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 Bellwether ICICI Ventures

Investment horizon

2006-2010 2008-2012

Amount (INR Cr)

6.5

40.0

Type

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

SR. NO

1 AXIS BANK LTD.

Bank/ FI

2 3 4 BOI CENTRAL BANK OF INDIA DCB 5 6 7 8 9 10 11 12 13 14 15 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

Relationship Since

2003 2006 2009 2007 1996 2004 2004 2005 2008 2008 2007 2006 2006 2009 2009 2010  17 CITY UNION BANK 2010

Credit relationship with over Seventeen banks and financial institutions

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

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

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Best Wishes