Slide 1 - Mas Financial Services Ltd

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MAS

Financial Services Ltd.

6, Ground Floor,

Narayan Chambers,

B/h.Patang Hotel, Ashram Road,

Ahmedabad . PIN - 380009.

State: Gujarat, Country : India

Ph. No.: +91 79-30016500, Fax: +91 79 30016597

Website : www.mas.co.in

Information Memorandum

Introduction

In existence since last 23 years. Turned corporate in the year 1995.

A retail finance company focused on Financial Inclusion. Total 65 branches and 2300 locations reach in the state of Gujarat,

Maharashtra ,Rajasthan, Tamil Nadu and Madhya Pradesh.

Has created the expertise in the distribution of credit and a base of more than 4,00,000 customers.

BOARD OF DIRECTORS

Mr. Kamlesh Gandhi

Founder and Managing Director

Mr. Mukesh Gandhi

Co founder and Director Finance

Mr. Bala Bhaskaran

Professional Director

Mr. Jagdish Joshipura

Professional Director

Mr. Chetan Shah

Professional Director

Mr. Subir Nag

Nominee Director

Mr. Cornelis Jan de Kruijf

Nominee Director

• More than two decades of experience in the industry

• Chairman of Gujarat Finance Company Association & committee member of Finance Industry Development Council

(FIDC), visiting faculty ICFAI

• Formerly associated with Gujarat Industrial Investment

Corporation &Dean of ICFAI Business School Ahmedabad & till recently with Shanti Business School (Ahmedabad)

• Former General Manager of Gujarat state Finance Corporation

& director of Som Lalit Institute of Management, Ahmedabad

• More than 25 years of experience in Banking and Finance and a practicing Chartered Accountant

• Director at ICICI Venture Fund Management Co

• More than 15 years of experience in Project Management,

Investment Banking and Corporate Finance

• Senior Investment Officer (Private Equity - FMO)

VISION 2015

VISION

To be one of the most efficient distributor of financial services and create value on a very large scale.

VISION 2015

MISSION

To constantly endeavour, to attain excellence and create a very wide

Financial distribution network and to be catalyst; in providing the most efficient financial services which we term as financial inclusion.

VISION 2015

VISION 2015

To attain AUM of

`

5,000 Cr.

`

3500 Crores : Retail assets (Approx.)

`

1500 Crores : Housing (Approx.)

MSME & SME Loan

`

1500 Cr.

Two wheeler loan

`

1000 Cr.

Commercial Vehicle Loan

`

1000 Cr.

Customer base

The

Impact

No. of

Customers

6 Lacs

Income Range

`

5000 p.m. to

`

35000 p.m.

Presence in approximately 5000 locations covering 6-7 states

.

VISION 2015

The Impact

Will :

HELP

PROMOTE

35,000 House Holds Realize their dream of

“owning a home.”

300,000 Micro, Small & Medium Entrepreneurs to scale up their business.

PROVIDE

Livelihood Financing to 270,000 House Holds through SRTO and Two Wheeler financing especially in Rural and Semi Urban Areas.

VISION 2015

Enablers

Distribution Network.

Business Model, Products & Market Size

Thrust on Providing Affordable Financial Services.

Liability Management.

Human Resource Development.

VISION 2015

Distribution of Network

Target to have close to 200 branch offices and 5000 centers reach.

To cover 6-7 states

Current Networking Status – 65 Branches.

Gujarat - 44 Branches.

Rajasthan

Maharashtra

- 7 Branches

- 12 Branches

Started Operations in

Madhya Pradesh

Tamil Nadu

- 1 Branch

- 1 Branch

Two more Potential States will be covered depending upon market condition and the potentiality.

Network

INDIA

VISION 2015

VISION 2015

Network

Such penetrative network will be replicated in other states.

VISION 2015

Business Model & Products

* Promoting Financial Inclusion *

To concentrate on the business model and products, which ensures scalability and sustainability.

Home loans

35% from Rural

40% from Semi urban.

25% from Urban MIG LIG customers.

Small, Medium & Micro Enterprise Loan

Individual lending model

Two wheeler

60% from Rural

40% from Semi urban

Contd…

Business Model & Products

SRTO (Small Road Transport Operators)

Three Wheelers

Four Wheelers

Multi Utility Vehicle

Sports Utility Vehicle

Light Commercial Vehicle

SME

Partnership (SIDBI and Likes)

Direct funding

Non fund based

Insurance

Syndication

VISION 2015

VISION 2015

Affordable Financial Services

To offer affordable financial services thereby acting as the catalyst to expand the market size.

Strive hard to reduce the cost of operations by efficient management.

To raise capital & debt on most competitive terms.

To maintain ROA of

3.0% to 3.5%.

VISION 2015

Capital & Liability Management

To remain adequately capitalized.

Estimated internal accruals over the period will be approx.

Capital raising estimated at `

`

250cr.

350cr. approximately during the period.

To go for an IPO between 2014 to 2016, depending upon the situation of the market.

To dilute up to 25% inclusive of the IPO offer. Unlocking close to

`

800cr. To

`

1000cr. (depending upon the timing of an IPO) available for investment to carry on future expansion plans.

To have the ideal debt resource mix, that ensures continuous flow of funds at the most competitive terms.

VISION 2015

Human Resource Development

To retain and strengthen the core team of dedicated, proven, loyal personnel and hire the best talents as per requirement.

To constantly endeavour to develop the human resource, which commensurate with the growth plans.

To ensure that the organization imbibes the culture of being a learning organization.

VISION 2015

Brand Building

A very systematic exercise will be undertaken to project the strengths and the working of the company as the company in activity of financial inclusion for more than two decades.

Visualized the opportunity of financial inclusion very early.

Financial inclusion activities covering more than 35Crores of population and catering to their multiple needs by offering products ranging from Micro loans to home loans.

Presence of financial services across income segments ranging from

`

5000 p.m. to

`

35000 p.m.

Detail action plan will be formulated till then catering to more than 4.00 lakhs customers satisfactorily is very concentrated efforts in itself to build up the brand.

VISION 2015

Business Overview

KEY INVESTORS and SHAREHOLDING PATTERN

Type

Bellwether

ICICI Ventures

Investment horizon

2006-2010

2008-2012

Amount

(INR Cr)

6.5

40.0

Tier II

Tier II

FMO 2008

Shareholding Pattern MARCH 2011

Promoters & Family

Others

44.0

Tier I

99.99 %

0.004%

Total active Clients is 2,68,222 as on 31 st

March 2011

KEY BANKING RELATIONSHIPS

7

8

5

6

9

10

11

12

13

14

15

SR. NO

1 AXIS BANK LTD.

Bank/ FI

2

3

4

BOI

CENTRAL BANK OF INDIA

DCB

16

DENA BANK

HDFC BANK LTD.

ICICI BANK LTD.

IDBI BANK LTD.

ING VYSYA BANK LTD.

PUNJAB NATIONAL BANK

SBI

SIDBI

STANDARD CHARTERED BANK

STATE BANK OF PATIALA

UNITED BANK OF INDIA

DHANLAXMI BANK

2010

17

CITY UNION BANK

2010

Credit relationship with over Seventeen banks and financial institutions

Relationship Since

2003

2006

2009

2007

1996

2004

2004

2005

2008

2008

2007

2006

2006

2009

2009

Investment by reputed international investors and credit relationship with most of the leading banks

VISION 2015

Operational Overview

RISK CONTROL

Client

Adoption

Robust KYC process

Tie up with banks for no frills saving accounts for all customers

Internal Audit – Random audit of the loans approved to validate compliance

Review of sourcing and recovery targets – Regular monitoring of the business sourced and amounts recovered

Portfolio

Monitoring

Post Dated Cheques

For the installments

Hub and Spoke model for recovery and settlement

Recovery

Process

Control

Credit

Approval

Credit Scoring model -

Rule based lending norms, On site/Off site verification

Centralized credit approval rendering effective control

Robust

Technology

Platform

In house IT team

Technology supports

FAS module (used by credit and accounting ) and MIS module (for management, recovery and marketing)

Robust client adoption process, credit checks and technology ensures efficient recovery and process control

VISION 2015

Key Management Personnel - MFSL

Mr. Kamlesh Gandhi

Managing Director

Mr. Mukesh Gandhi

Director Finance

Mr. Saumil Pandya

Vice-President (Sales & Marketing)

Ms. Darshana Pandya

Chief Operating Officer

Mr. Joby Joseph

Mr. Sunil Shah

HR Manager

Head Credit & Recovery

Mr. Gaurang Kasudia

EDP In Charge

Ms. Prachi Kanodia

Mr. Ankit Jain

Company Secretary

EA to Director Finance

Has been on the helm of affairs of the company since last 22 years

Masters in commerce and has been actively involved in strategic decisions and resource raising for the company

Having 16 years of experience in the company; handles sales, marketing and product development

Having 16 years of experience in the company and currently handles Operations, credit and risk management.

Having wide experience of HR filed and managing the entire HR related activities in the Company

Oversees credit & Recovery function of the company; 12 years of working experience in MFSL.

In charge of electronic data processing centre and managing information requirement for the company; 16 years experience in

MFSL.

Responsible for legal compliances of the company.

Involved in Strategic Planning, Resource mobilization and budgeting.

Organization Structure - MFSL

VISION 2015

VISION 2015

Business Plan – MFSL Key Trends 1/3

LOAN PORTFOLIO O/S (Rs. In Cr.)

5518

CAGR 49%

4368

3304

2067

388

512

725

FY10 FY11

RONW/ROA

FY12

1278

FY13 FY14 FY15 FY16 FY17

20,1%

20,6%

20,7%

23,9%

24,6%

11,6%

13,5%

11,6%

4,3% 3,9%

3,1%

3,4%

3,4% 3,4%

3,7%

3,7%

FY10 FY11 FY12 FY13

ROA

FY14 FY15

RONW

FY16 FY17

CAPITAL ADEQUACY

35%

28%

23%

16% 15%

16%

16% 16%

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

OPERATING COST TO INCOME

33%

33%

29%

29%

30%

30%

27%

27%

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Company on an inflection point to assume exponential growth and profitability

VISION 2015

Business Plan – MFSL Financial Projections 2/3

KEY FINANCIAL PROJECTIONS

INR Mn.

Total Income

FY11

907

FY12

1280

FY13

2502

STATUTORY AUDITOR: DELOITTE HASKINS & SELLS

FY14

4107

FY15

6592

FY16

9284

FY17

11871

Total Expenditure 661 958 1863 3059 4917 6735 8590

PBT

PAT

LIABILITIES

Share Capital

Reserve & Surplus

Net Worth

Loans

Total Liabilities

237

157

930

235

1165

3415

4580

312

203

1430

314

1744

6836

8579

625

408

1760

268

2028

12850

14878

1028

672

2640

626

3266

20787

24052

1644

1075

3840

1365

5205

33120

38325

2522

1656

4290

2639

6929

43504

50433

3252

2137

4290

4396

8686

54881

63567

ASSETS

Fixed Assets

Net Current Assets

Misc Assets

Total Assets.

62

4427

92

4580

62

8367

150

8579

74

14614

190

14878

112

23641

300

24052

101

37845

380

38325

90

49742

600

50433

Growth in Asset book and Income levels without compromising on credit quality, the key to consistent growth

81

62885

600

63567

VISION 2015

Business Plan – MRHMFL Financial Projections 3/3

KEY FINANCIAL PROJECTIONS

INR Mn.

Total Income

FY11

17

FY12

85

FY13

315

FY14

796

Total Expenditure 12 54 229 597

FY15

1591

1207

FY16

2776

2117

FY17

4479

3423

PBT

PAT

LIABILITIES

Share Capital

Reserve & Surplus

Net Worth

Loans

Total Liabilities

5

4

107

7

114

10

124

31

23

107

22

129

1033

1162

85

62

207

70

277

3444

3720

199

145

357

190

547

8219

8765

384

280

657

424

1081

15311

16392

660

482

1007

835

1842

25729

27571

1055

770

1307

1513

2820

40619

43439

ASSETS

Fixed Assets

Loan Portfolio

Net Current Assets

Misc Assets

Total Assets.

0.33

98

26

0

124

0.33

1055

107

0

1162

0.45

3427

293

0

3720

6

8127

632

0

8765

8

15313

1071

0

16392

9

25846

1716

0

27571

10

40783

2645

0

43439

Housing Finance subsidiary key to future growth; Company poised to leverage on it’s distribution network and huge market size.

Best Wishes

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