Mas Financial Services Ltd.
You can view the entire text of Notes to accounts of the company for the latest year
ISIN No INE348L01012 52Wk High (Rs.) 668 BV (Rs.) 131.69 FV (Rs.) 10.00
Bookclosure 23/11/2018 52Wk Low (Rs.) 368 EPS (Rs.) 19.17 P/E (X) 28.38
Mkt Cap. (Rs. Cr.) 2,974.71 P/BV (X) 4.13 Div Yield (%) 0.67 Mkt Lot 1
2011-03 1. Contingent Liabilities:

                        As at 31st March 2011   As at 31st March 2010 
                                 Rs.                   Rs. 

Guarantee given to a 
bank in respect of 
loan granted by the 
bank to the Company's 
subsidiary Amount of 
guarantee Rs. 
100,000,000 Amount 
of loan outstanding             10,000,000               - 
Other amounts for 
which the Company is
contingently                     1,500,000               - 
liable
2. Capital Commitments:

Estimated amounts of contracts remaining to be executed on capital account (net of advances) and not provided for - Rs. Nil (Previous year Rs. 625,000)

3. The Company has issued 40,000,000 8% Cumulative Redeemable Preference Shares (CRPS) of the face value of Rs.10 each to India Advantage Fund -VII (Mezzanine Fund I) ("the investor*) as stated in Note No. 6(a) below. As per the terms of the agreement, upon occurrence or non-occurrence of certain events, the investor has a right to convert, at its option, the CRPS into fully paid-up equity shares of the Company at a rate to be determined based on fair value of the equity shares to be calculated in the manner stated in the agreement. Further, on issue of equity shares (i) to Bellwether Microfinance Trust as per note 5 below or (ii) to Nederland's Financierings- Maatschappij Voor Ontwikkelingslanden N. V.(FMO) as stated in Note No.7(b) below or (iii) on the Company's initial public offer, depending upon the rate at which the equity shares are issued, the amount of securities premium shall be decided, against which, the Company shall charge the above stated premium on redemption of the CRPS as per the provisions of Section 78(2)(d) of the Companies Act, 1956. Under the circumstances, due to the variables currently indeterminate, the proportionate redemption premium for the period covered under these financial statements, amounting to Rs. 198.19 lacs (Previous year Rs. 207.50 lacs) (cumulatively Rs. 568.30 lacs upto 31st March, 2011) has not been provided for in the profit and loss account for the year.

4. The Company has entered into a Share Subscription and Shareholders Agreement ("the Agreement") with Caspian Advisors Private Ltd., Trustee, Bellwether Microfinance Trust ("Bellwether"), pursuant to which in the event of capital expansion by the Company by way of issue of equity shares, Bellwether has a right but not the obligation to subscribe to equity shares at price to be determined as per the terms of the Agreement.

5. (a) The Company has entered Into an Investment and Shareholders Agreement ("the Agreement) with India

Advantage Fund - VII (Mezzanine Fund I) ("the Investor") pursuant to which the Investor has subscribed to and has been allotted 40,000,000 8% Cumulative Redeemable Preference Shares of the face value of Rs. 10 each for cash at par. These shares are redeemable in one installment at the end of four years '-i,' \ from the "Second Closing Date", as defined in the Agreement, i.e. on 15th June, 2012 at face value plus a redemption premium which is to be calculated based on the IRR to be provided to the Investor on its investment as per the terms of the Agreement.

(b) The aforesaid Agreement inter alia provides that in the event the Company fails to redeem the preference shares on the redemption date, the Investor shall have the right to convert, at its option, whole or part of the preference shares into fully paid up equity shares of the Company under the circumstances and at a price to be determined as per the terms of the Agreement.

(c) The Company has entered into Warrant Subscription Agreement ("the Agreement") with India Advantage Fund - VII (Mezzanine Fund I) ("the Investor*) pursuant to which the Investor has subscribed to and has been allotted 2,000,000 warrants of the Company without any payment being made in cash by the Investor. Each warrant confers on the warrant holder, an option to subscribe to one equity share of the Company on one or more occasions, at any time during the currency of the Agreement and the Investment and Shareholders Agreement referred to in 6(a) above, as per the terms and conditions and at a price as specified in the Agreement. During the year under these financial statements, the investor has not exercised the option.

6. (a) The Company has entered into Share Subscription and Shareholders Agreement ("the Agreement") with Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N. V.(FMO) ("the Investor") pursuant to which, the investor has subscribed to and has been allotted 43,471,090 Cumulative Compulsorily Convertible Preference Shares (CCCPS) of the face value of Rs. 10 each at par.

(b) The CCCPS carry a right to be paid a fixed cumulative preferential dividend at the rate of 7% per annum free of income tax till the Financial Year ending on 31st March, 2014. After this date, under the circumstances specified in the Agreement, the rate of dividend is to be increased as provided for in the Agreement. The CCCPS are compulsorily convertible into equity shares at a conversion price to be determined based on the time of conversion and IRR to be provided to the Investor on its investment as per the terms of the Agreement.

7. During the year the Company has assigned, with recourse, loan receivables of 46,945 (Previous Year 25,156) contracts amounting to Rs. 1,744,895,538 (including future interest receivable) (Previous year Rs. 1,030,646,843) fora consideration of Rs. 1,575,665,831 (Previous year Rs. 923,765,939) and de- recognized the assets from the books. The income booked during the year in respect of assignment of receivables is Rs. 138,661,557 (Previous year Rs. 95,950,179) net of Rs. 29,374,957 (Previous year Rs. 25,984,789) provided for towards future servicing of the assigned pool.

During the year provision in respect of securitisation of Rs. 19,541,779 (Previous year Rs. 10,898,234) considered no longer necessary has been written back.

Outstanding balances of assigned loans as at 31st March, 2011 is Rs. 1,746,266,675 (As at 31st March, 2010 Rs. 1,142,736,505).

Notes:

i. Statement showing computation of net profits in accordance with section 349 of the Companies Act, 1956 is not furnished as no commission is payable to the directors.

ii. The above figures do not include contribution to Gratuity Fund as provision for gratuity benefit is based on actuarial valuation done on an overall company basis.

8. Segment Reporting

The Company is engaged primarily in the business of Financing and accordingly there are no separate reportable segments as per Accounting Standard 17 - "Segment Reporting" prescribed by Companies (Accounting Standards) Rules, 2006

Note:

Since the price at which the share warrants and the compulsorily convertible cumulative preference shares will be converted to equity shares is not ascertainable at present their effects are ignored in calculating diluted earnings per share.

9. Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006 have not furnished the information regarding filing of necessary memorandum with appointed authority. In view of this, information required under Schedule VI of the Companies Act, 1956 to that extent is not given.

19. Exceptional item represents Contingent Provision against Standard Assets at 0.25% of standard assets made as per RBI Circular No. DNBS.PD.CC.No.207/03.02.002/2010-11 dated 17 January, 2011.

10. Balances of debtors, creditors and loans and advances are subject to confirmation. Adjustments, if any required, will be made on settlement of the account of the parties.

11. The disclosures required in terms of Paragraph 13 of the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 are given in Annexure A forming part of these Financial Statements.

12. Previous year's figures have been regrouped / reclassified wherever necessary to conform to current year's classification.