Director's Message

The total Revenue of the Company for FY 2012 is Rs.86.93 Lakhs with Profits before depreciation and tax of Rs.58.69 Lakhs. As of 31st March 2012, your company has 173 Joint Liability Group (JLG) and 153 Self Help Group (SHG) units with total loan outstanding of Rs.386.25 Lakhs in the microfinance (MF) portfolio. Cumulative disbursement as of 31st March 2012 is 10.21 Crores. Our expenses stand at 6.68% of total loans outstanding which is one of the best in the industry.

Your directors are also pleased to report the non-performing asset (NPA) of the company is at 1.50% despite the difficult period the industry is currently undergoing. Even though the Reserve Bank of India has given relief to all MFI's to defer provisioning norms till March 31, 2013, your company has adopted the provisioning norms in the financial results as stipulated by RBI during the period under review.

In FY 2012, the company successfully moved to SHG model of lending where there is greater accountability from group members and in particular the group leader. In SHG model the NPA levels are near zero. The JLG model will be phased out in the next 15 to 18 months.

The company has brought in equity capital of Rs.304.15 Lakhs in the current financial year, to achieve the Net owned funds at Rs.515.33 Lakhs to qualify as MFI as per new RBI guidelines. We are qualifying in all respects as a MFI company satisfying all conditions set by the new RBI guidelines.

With revenue of Rs.86.93 Lakhs, the company has built strong second line management at the Branch manager level to manage Coimbatore and Erode. Due to small revenue base, we consciously did not build second line management in Finance, HR and IT. Instead we retained industry experts as consultants to advise the CEO to manage these functions.

Your company has received form DDA from all the directors and none of the Directors of your company is disqualified under Section 274(1)(g) of the Companies Act 1956 as required by Law.

Thank you for your continued support.

M. Muthukumar
On behalf of Board of Directors