MAS Financial Services Ltd 6 Ground Floor Narayan

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MAS Financial Services Ltd. 6, Ground Floor, Narayan Chambers, B/h. Patang Hotel, Ashram Road,

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.

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, 000 customers.

BOARD OF DIRECTORS Mr. Kamlesh Gandhi • More than two decades of experience in

BOARD OF DIRECTORS Mr. Kamlesh Gandhi • More than two decades of experience in the industry 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 • 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

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

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 To attain AUM of `5, 000 Cr. ` 3500 Crores : Retail

VISION 2015 To attain AUM of `5, 000 Cr. ` 3500 Crores : Retail assets (Approx. ) ` 1500 Crores : Housing (Approx. ) v MSME & SME Loan `1500 Cr. v Two wheeler loan `1000 Cr. v Commercial Vehicle Loan `1000 Cr. Customer base The Impact No. of Customers Income Range 6 Lacs `5000 p. m. to `35000 p. m. Presence in approximately 5000 locations covering 6 -7 states.

VISION 2015 The Impact Will : HELP 35, 000 House Holds Realize their dream

VISION 2015 The Impact Will : HELP 35, 000 House Holds Realize their dream of “owning a home. ” PROMOTE 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

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

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 - 7 Branches Maharashtra - 12 Branches Started Operations in Ø Madhya Pradesh - 1 Branch Ø Tamil Nadu - 1 Branch Ø Two more Potential States will be covered depending upon market condition and the potentiality. Ø Ø

VISION 2015 Network INDIA

VISION 2015 Network INDIA

VISION 2015 Network Ø Such penetrative network will be replicated in other states.

VISION 2015 Network Ø Such penetrative network will be replicated in other states.

VISION 2015 Business Model & Products * Promoting Financial Inclusion * To concentrate on

VISION 2015 Business Model & Products * Promoting Financial Inclusion * To concentrate on the business model and products, which ensures scalability and sustainability. Ø Home loans • 35% from Rural • 40% from Semi urban. • 25% from Urban MIG LIG customers. Ø Small, Medium & Micro Enterprise Loan • Individual lending model Ø Two wheeler • 60% from Rural • 40% from Semi urban Contd…

VISION 2015 Business Model & Products Ø SRTO (Small Road Transport Operators) • •

VISION 2015 Business Model & Products Ø SRTO (Small Road Transport Operators) • • • Three Wheelers Four Wheelers Multi Utility Vehicle Sports Utility Vehicle Light Commercial Vehicle Ø SME • Partnership (SIDBI and Likes) • Direct funding Ø Non fund based • Insurance • Syndication

VISION 2015 Affordable Financial Services To offer affordable financial services thereby acting as the

VISION 2015 Affordable Financial Services To offer affordable financial services thereby acting as the catalyst to expand the market size. §To maintain ROA of 3. 0% to 3. 5%. § To raise capital & debt on most competitive terms. §Strive hard to reduce the cost of operations by efficient management.

VISION 2015 Capital & Liability Management ØTo remain adequately capitalized. • Estimated internal accruals

VISION 2015 Capital & Liability Management ØTo remain adequately capitalized. • Estimated internal accruals over the period will be approx. `250 cr. • Capital raising estimated at ` 350 cr. approximately during the period. Ø To go for an IPO between 2014 to 2016, depending upon the situation of the market. Ø To dilute up to 25% inclusive of the IPO offer. Unlocking close to `800 cr. To `1000 cr. (depending upon the timing of an IPO) available for investment to carry on future expansion plans. Ø 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,

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

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 35 Crores 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 Investment horizon Amount (INR Cr)

VISION 2015 Business Overview KEY INVESTORS and SHAREHOLDING PATTERN Investment horizon Amount (INR Cr) KEY BANKING RELATIONSHIPS Type SR. NO Bank/ FI Relationship Since Bellwether 2006 -2010 6. 5 Tier II 1 AXIS BANK LTD. 2003 ICICI Ventures 2008 -2012 40. 0 Tier II 2 BOI 2006 3 CENTRAL BANK OF INDIA 2009 2008 44. 0 Tier I 4 DCB 2007 5 DENA BANK 1996 6 HDFC BANK LTD. 2004 7 ICICI BANK LTD. 2004 8 IDBI BANK LTD. 2005 9 ING VYSYA BANK LTD. 2008 10 PUNJAB NATIONAL BANK 2008 11 SBI 2007 12 SIDBI 2006 13 STANDARD CHARTERED BANK 2006 14 STATE BANK OF PATIALA 2009 15 UNITED BANK OF INDIA 2009 16 DHANLAXMI BANK 2010 17 CITY UNION BANK 2010 FMO Shareholding Pattern MARCH 2011 Promoters & Family 99. 99 % Others 0. 004% Total active Clients is 2, 68, 222 as on 31 st March 2011 § 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 § Internal Audit – Random audit

VISION 2015 Operational Overview RISK CONTROL Client Adoption § 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 § Robust KYC process § Tie up with banks for no frills saving accounts for all customers Credit Approval Process Control Recovery Robust Technology Platform § Credit Scoring model Rule based lending norms, On site/Off site verification § Centralized credit approval rendering effective control § 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 Has been

VISION 2015 Key Management Personnel - MFSL Mr. Kamlesh Gandhi Managing Director Has been on the helm of affairs of the company since last 22 years Mr. Mukesh Gandhi Director Finance Masters in commerce and has been actively involved in strategic decisions and resource raising for the company Mr. Saumil Pandya Vice-President (Sales & Marketing) Having 16 years of experience in the company; handles sales, marketing and product development Ms. Darshana Pandya Chief Operating Officer Having 16 years of experience in the company and currently handles Operations, credit and risk management. Mr. Joby Joseph HR Manager Having wide experience of HR filed and managing the entire HR related activities in the Company Mr. Sunil Shah Head Credit & Recovery Oversees credit & Recovery function of the company; 12 years of working experience in MFSL. Mr. Gaurang Kasudia EDP In Charge In charge of electronic data processing centre and managing information requirement for the company; 16 years experience in MFSL. Ms. Prachi Kanodia Company Secretary Responsible for legal compliances of the company. Mr. Ankit Jain EA to Director Finance Involved in Strategic Planning, Resource mobilization and budgeting.

VISION 2015 Organization Structure - MFSL

VISION 2015 Organization Structure - MFSL

VISION 2015 Business Plan – MFSL Key Trends 1/3 CAPITAL ADEQUACY LOAN PORTFOLIO O/S

VISION 2015 Business Plan – MFSL Key Trends 1/3 CAPITAL ADEQUACY LOAN PORTFOLIO O/S (Rs. In Cr. ) 5518 CAGR 49% 35% 28% 4368 23% 3304 16% 15% 2067 388 512 725 FY 10 FY 11 FY 12 13. 5% 16% 1278 FY 13 FY 14 FY 15 FY 16 FY 17 RONW/ROA 11. 6% 16% FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 27% OPERATING COST TO INCOME 20. 1% 20. 6% 20. 7% 23. 9% 24. 6% 33% 29% 30% 11. 6% 4. 3% 3. 9% 3. 1% 3. 4% 3. 7% FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 ROA RONW FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 Company on an inflection point to assume exponential growth and profitability FY 16 FY 17

VISION 2015 Business Plan – MFSL Financial Projections KEY FINANCIAL PROJECTIONS INR Mn. Total

VISION 2015 Business Plan – MFSL Financial Projections KEY FINANCIAL PROJECTIONS INR Mn. Total Income Total Expenditure PBT PAT LIABILITIES Share Capital Reserve & Surplus Net Worth Loans Total Liabilities ASSETS Fixed Assets Net Current Assets Misc Assets Total Assets. 2/3 STATUTORY AUDITOR: DELOITTE HASKINS & SELLS FY 11 907 661 237 157 930 235 1165 3415 4580 62 4427 92 4580 FY 12 1280 958 312 203 1430 314 1744 6836 8579 62 8367 150 8579 FY 13 2502 1863 625 408 1760 268 2028 12850 14878 74 14614 190 14878 FY 14 4107 3059 1028 672 2640 626 3266 20787 24052 112 23641 300 24052 FY 15 6592 4917 1644 1075 3840 1365 5205 33120 38325 101 37845 380 38325 FY 16 9284 6735 2522 1656 4290 2639 6929 43504 50433 90 49742 600 50433 Growth in Asset book and Income levels without compromising on credit quality, the key to consistent growth FY 17 11871 8590 3252 2137 4290 4396 8686 54881 63567 81 62885 600 63567

VISION 2015 Business Plan – MRHMFL Financial Projections 3/3 KEY FINANCIAL PROJECTIONS INR Mn.

VISION 2015 Business Plan – MRHMFL Financial Projections 3/3 KEY FINANCIAL PROJECTIONS INR Mn. Total Income Total Expenditure PBT PAT LIABILITIES Share Capital Reserve & Surplus Net Worth Loans Total Liabilities ASSETS Fixed Assets Loan Portfolio Net Current Assets Misc Assets Total Assets. FY 11 17 FY 12 85 12 54 5 4 660 482 657 424 1081 15311 16392 1055 770 1007 835 1842 25729 27571 8 15313 1071 0 16392 3423 6 8127 632 0 8765 2117 384 280 357 190 547 8219 8765 FY 17 4479 0. 45 3427 293 0 3720 1207 199 145 207 70 277 3444 3720 FY 16 2776 0. 33 1055 107 0 1162 597 85 62 107 22 129 1033 1162 FY 15 1591 0. 33 98 26 0 124 229 31 23 107 7 114 10 124 FY 14 796 FY 13 315 1307 1513 2820 40619 43439 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

Best Wishes