CHAIRMAN’S MESSAGE
Dear Stakeholders,
The Financial year 2015-2016 was a mixed bag of offerings for NBFCs. The last budget
had nothing much to offer to the NBFC sector. But, this year the Union Budget has cheered
the NBFC sector by offering 5% deduction in respect of provision for bad and doubtful
debts, FDI will be allowed beyond the 18 specified NBFC activities in the automatic route
in other activities which are regulated by financial sector regulators and full-filled the
long standing demand and additional options to banking companies and financial
institutions, including NBFCs, for reversal of input tax credits with respect to non-
taxable services. Also, NBFCs were not allowed deduction under Income tax Act for NPA
provisions. The boost to housing sector would be benefiting the housing finance companies.
Meanwhile, the move to hike foreign investment limit in Indian stock exchanges will
improve competitiveness of stock exchanges and speed up adoption of technology and global
practices. The move to strengthen ARCs would be strongly benefitted them, allowing them to
raise more capital and funds.
One of the main risks for all financial institutions, banks and NBFC is rising of
Non-Performing Assets of the Company/ Banks. The present environment did not really
encourage the NBFCs to accept mortgages on real estate as for the enforcement of security
interests in immovables, they had to take the help of judiciaries. On the other hand,
banks had the privilege of the SARFAESI which is powerful weapon with regards to recovery
of loans against immovables. But now, the extension of SARFAESI to NBFC having asset of
Rs. 500 crore, has changed the direction of lending for the NBFCs. We are looking forward
the same benefit to small NBFC also in near future.Project finance and working capital
loans are something that the NBFCs have not explored much mainly due to the difficulties
associated with the enforcement of immovables and floating charges. But due to the
extension of SARFESI now, it enable the NBFCs to explore these areas. This will also act
as booster for those NBFCs which are engaged in the business of loan against properties
(LAP). Your Company (India Finsec Limited) has shown a remarkable growth in providing LAP
(Loan against Properties). During the year, it has widen its products like personal loan,
Inter Corporate Deposits, IPO Funding, Funding against Shares and Securities and Loan
against Properties (LAP).
Moreover, financial year 2015-2016 was the historic period for the India Finsec Limited
(‘the Company’). It has migrated from SME platform to Main Board i.e. BSE.This
move excites the Company to grow more and achieve the threshold for graduating to the next
level. The Company has also acquired a subsidiary i.e. "IFL Enterprises Limited"
during the financial year. IFL Enterprises Limited mainly deals in providing financial
consultancy. This will not only help our Company to expand its activities in its core area
but also helps in exploring other business line. It will enhance the brand image of the
Company.
In monetary terms, the Company has also performed outstanding, the net profit of the
Company has increased from Rs. 2,49,034/- to Rs. 55,58,346/- during the financial year
ended March 31, 2016. This is a remarkable profit for the Company.We are confident that,
this figure will come in seven figures in next financial year.
Lastly, I would like to thank each shareholder and stakeholder for their support and
trust on us and on the Company. It would not be possible without your investment, trust
and time that you have devoted in the Company. We always try to fulfill all your
expectations that you have with the Company and in future we will maximize our
shareholder’s wealth with complete dedication. I promise to all my shareholders/
stakeholders that your company will soon reach new highs in the coming years.
Gopal Bansal,
Chairman & Managing Director