Mas Financial Services Ltd.
You can view full text of the latest Director's Report for the company.
ISIN No INE348L01012 52Wk High (Rs.) 657 BV (Rs.) 131.69 FV (Rs.) 10.00
Bookclosure 23/11/2018 52Wk Low (Rs.) 368 EPS (Rs.) 19.17 P/E (X) 28.67
Mkt Cap. (Rs. Cr.) 3,005.05 P/BV (X) 4.17 Div Yield (%) 0.67 Mkt Lot 1
2011-03 To The Members of MAS FINANCIAL 5ERVICE5 LTD.

The Directors are happy to present the Sixteenth ANNUAL REPORT of your Company together with the Audited Accounts drawn for the year ended on 31st March 2011.


Particulars Year            Ended31/03/ll Year          Ended31/03/10
                                 RUPEE5                    RUPEE5

Interest on Loans to 
Customers (Net)               782,603,785                536,725,077

Income From Operations & 
Other Income                  124,188,812                105,843,747

Total Income                  906,792,597                702,568,824

Total Expenditure             660,548,415                501,607,472

Profit Before Exceptional 
Item                          246,244,182                200,961,352

Contingent Provision 
against 5tandard Assets         8,845,124                      _

Profit Before Tax             237,399,058                200,961,352
Provision for Taxation (Including Deferred Tax, Fringe

Benefit Tax & Income Tax of 
earlier years)                 79,589,861                 68,767,730

Profit After Taxes            157,809,197                132,193,622

Short Provision for taxation 
of earlier years                  570,139                     97,531

Net Profit                    157,239,058                132,096,091

Profit Brought Forward         16,850,058                 16,578,450

Profit Available for 
Appropriation                 174,089,116                148,674,541

Transfer to Statutory 
Reserve                        31,447,812                 26,419,218

Interim Dividend                6,175,000                          _

Proposed Dividend              75,017,263                 76,204,763

Corporate Tax on Dividend      13,485,022                 12,951,002

Transfer to General Reserve     7,862,000                          _

Transfer to Capital 
Redemption Reserve              5,418,167                 16,249,500

Surplus Balance carried to 
Balance Sheet                  34,683,852                 16,850,058

                                174089116                148,674,541

In the year 2010-11 the company continues to grow at an impressive rate of 32% in AUM and 20% in terms of PAT, evident from the financial presented above. The gross income realized by the company is Rs. 90.68 Crore (Previous year Rs. 70.26Crore) comprising of Interest Income on Loans to customers.

Net Profit after tax is Rs.15.72 Crore (Previous year 13.21 Crore). Asset under management is Rs. 511.84Crore (Previous year Rs.388.47 Crore). This year's performance sets the stage for the further growth in AUM accompanied by increased geographical presence.


The policy of the company to be catalyst in financial inclusion continues to be the key driver of growth. Various products ranging from MSME (Micro, Small and Medium Enterprises) Loans to Home Loans (through its subsidiary MRHMFL) caters to the various needs of the vast section of the society. , This is a very huge market to be served, which needs an efficient last mile delivery of credit, thus creating enormous opportunity for all the financial institutions and NBFCs in special.

The company has consolidated its operations in the region of Rajasthan, Maharashtra besides Gujarat. The company has started its operations in Madhya Pradesh - Indore and Tamilnadu- Chennai in the current financial year. The company expects a good volume of business from these regions.

Your company is in constant quest to execute the detail plans drawn to explore the available opportunity. An immaculate execution skill is the key to bring about efficient delivery of the financial services, which ensures affordability to the end user. The financial inclusion agenda is incomplete, without the element of affordability imbibed in the same. Your company being aware of the above fact is constantly on the drive to provide affordable financial services. Your company's expertise over nearly two decades confers a unique positioning in this space.

The confidence of the Company's management to emerge as a very significant player in the industry stems out of the following facts:

- Large customer base,

- Knowledge of the local market,

- Large dealers' network,

- Established name presence,

- Well-developed organization channel,

- Thrust on creating and maintaining quality portfolio

- Constant endeavour to develop its human resources

- Willingness to re-strategize to keep pace with the developments.

MRHMFL (Mas Rural Housing & Mortgage Finance Ltd. - subsidiary of MFSL) aims at serving the middle income and the lower income sector of the economy, especially in the semi urban and rural areas, which are reckoned to be the key drivers of the sector in the coming decades. Full-fledged efforts are on to execute efficiently as per the detail planning. Being aware of the challenges involved in serving this class of the society, a very cautious approach is adopted in building up volumes. Nevertheless, company is quite confident of building substantial volumes in the near future. The company's rural initiative will also start yielding results shortly.


The company is in process to raise the requisite capital and is in advance negotiation with few investors, your company would like to associate with such investors, who understand the dynamics of the business and are capable of being catalyst to the company's growth.

The company by virtue of its performance over the years enjoys very good relationships with almost all leading financing institutions and banks. The company could raise the required resources from various banks and financial institutions comfortably. We anticipate the same response from all our lending partners for the coming year too. The company anticipates credit lines from few more banks and financial institutions besides the existing ones.

your Company continues to command the respect and the confidence of Bankers as their extended channel in their task of providing efficient delivery of credit. The company acknowledges the constructive support of the Investors and consortium member banks.


Financing activity is the business of management of risks, which in turn is the function of the appropriate credit models and the robust systems and operations. Your company continues to focus on the above two maxims, and is always eager to improve upon the same.

your Company continues to give prime importance to the function of receivables management, as it considers this the ultimate reflection of the correctness of marketing strategy as well as appraisal techniques. The company achieved almost 94% recovery, with overdue of 6% only. It may be noted that the above-mentioned 6% debtors are under strictest surveillance of follow up. The NPA Accounts of the company is Rs. 3.43 Crore which is approximately 0.67% of Credit exposure which includes managed portfolio.


The Net owned fund of the company as on 31st March 2011 is Rs. 116.50 Cr. inclusive of Rs. 9.50 Cr. Equity Share Capital.


Your Company has paid an Interim Dividend of 13.25% in the year 2010-11. To preserve and maintain adequate amount of reserves for the better performance of the Company, the Board does not propose any final dividend for the year ended on 31st March, 2011.


The Company has made necessary provisions towards non-performing assets, fully complying with the provisioning requirement of the Prudential Norms prescribed by Reserve Bank of India. The company has also complied with the directions issued by Reserve Bank of India regarding Capital Adequacy, Asset classification and provisioning norms.


The assets of your Company have been adequately insured.


It has always been very challenging for the NBFC sector since long to get an enabling situation for growth. However, the sector has always emerged stronger, despite of various discriminations. This confirms the basic reality on the ground that, the last mile credit delivery provided by NBFCs is of paramount importance, to say the least. However, we trust and believe; that, all the stakeholders and regulators in particular will accord due importance to the sector and create an enabling situation for the NBFCs to grow, which in turn will promote inclusive growth.


Pursuant to Section 217{2AA) of the Companies Act, 1956, as amended by the Companies (Amendment) Act, 2000, the Directors confirm that:

1. In the preparation of the annual accounts for the Financial year ended 31st March, 2011 the applicable accounting standards have been followed.

2. Appropriate accounting policies have been selected and applied consistently and have made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2011 and of the profit for the period from 1st April, 2010 to 31st March, 2011.

3. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provision of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

4. The annual accounts for the financial year ended 31st March 2011 have been prepared on a "Going Concern Basis"1.


Particulars of Employees

The information as required Under Section 217 (2A) of the Companies Act, 1956 read with the companies (Particulars of Employee) Rules, 1975, is NIL.

Conservation of Energy. Technology Absorption. Foreign Exchange Earnings and outgo:

The Company has no activities relating to Conservation of energy or Technology Absorption. The company has no Foreign Exchange earnings and outflow.


M/s. Deloitee Haskins & Sell, auditors of the Company retire at the ensuring Annual General Meeting of the company and are eligible for reappointment. The members are requested to consider their reappointment for the financial year 2011-12.


As per the provision of section 256 of the Companies Act, 1956, Mr. Kamlesh C. Gandhi and Mr. Chetan Shah retires by rotation at forthcoming Annual General Meeting and being eligible, offer themselves for the re-appointment. Resolutions seeking approval of the shareholders for their re - appointment have been incorporated in the notice of the forthcoming Annual General Meeting,


The Directors place on record their appreciation to all those people, who have so willingly placed their trust in the company & management and to more than 3.35 lacs customers across the length and breadth of the states of Gujarat, Rajasthan and Maharashtra, who have given the company opportunity to serve them.

The entire MAS Team deserves the appreciation for their sincere efforts and determination to excel.

I trust this journey will continue to be a pleasant one with their support, aware of the fact that we have "Miles to go.........together we can and we will.

Best Wishes,




Place : Ahmedabad.

Date : 25th May, 2011