Description
Highlights the Industry Trends in mortgage finance industry, PEST Analysis of Industry in mortgage finance industry, Competitor Analysis, SWOT analysis, Company Description, General Information about sahara housing finance corporation, it's Finance performance, SWOT analysis and Various Strategies employed by sahara.
Company Name SAHARA HOUSINGFINA CORPORATION LTD. Industry Analysis Housing Finance 1. Industry trends: Indian The Indian mortgage finance market, which accounts for around 7% (cumulative) of GDP, has been able to maintain a steady growth rate. There is slowdown in housing sector because high interest rate in India, high property prices, tight liquidity position of builders. Also some Construction Companies are filing for corporate debt restructuring. The rate of credit growth in the Indian mortgage finance market was around 18% in 2010-11 (as against 11% in the previous fiscal). The housing market is quite concentrated, with the top three players (SBI along with Associates, HDFC Group, and ICICI Group) clearly dominating the domestic mortgage market and cumulatively accounting for 48% of the total housing credit in India (as of March 31, 2011). However, the players ranked 4 to 10 in terms of housing loan size players are catching up, and were able to increase their share from 24% as on March 31, 2010 to 28% as on March 31, 2011. Risk-based pricing yet to pick up; mortgage market still lacks transparent benchmark rate for variable rate loans The Indian housing finance interest rate is sensitive to RBI key policy rate such as repo rate, reverse Repo rate, and bank rate. Source: ICRA Global perspectives The global housing industry is slowly recovering from housing bubble of 2008 which lead to recession in major economies such as US and UK. Lots of bank around the globe are holding toxic mortgages in their book. Regulations such as Dodd Frank Act came into existence because of the housing crisis in 2008. Recent happenings There is urban and rural housing shortage which is good for housing finance industry The reasons for rise in shortage in affordable housing on the supply side is lack of availability of urban land, rising construction costs and regulatory issues while lack of access to home finance for low income groups are constraints on the demand side. India will face shortage of over 26 million houses by 2012, which would lead to spurt in housing prices as demand-supply gap widens amid rising purchasing power of the middle class people Mortgage penetration levels (mortgage loans as percentage of GDP) in India, which had risen from around 2% as in March 2002 to a little over 7% as in March 2007, have remained at the 7% levels till date. This being significantly lower than the penetration rates in developed countries
Some factors that could drive future growth in mortgage penetration in the domestic market over the long term are: 1. Viewing of property as a savings or investment vehicle 2. Tax incentives on home loans for both principal and interest repayment 3. Favourable demographics, with India having a large proportion of its population below the age of 30 years 4. Changing social scenario (increasing rate of urbanisation and number of nuclear families) 5. Increase in supply of affordable homes and expectations of price increase in the residential real estate market 6. Large inventory of unleveraged homes (which could be pledged by borrowers to raise loans against property) Source: ICRA 2. PEST Analysis: Political: 1. Reserve bank of India and National housing board requirements 2. Registration Certificate for permission to accept public deposits 3. Project finance to finance to victims affected by tsunami in Andhra Pradesh 4. Removal of prepayment penalty. In October 2010, National Housing Bank (NHB), the regulator for HFCs, advised all HFCs not to levy any prepayment charge or penalty on pre-closure of housing loans by borrowers if the borrowers were pre-closing loans with funds from their own sources. 5. The LTV ratio has been restricted to a maximum of 80% for all housing loans larger than Rs. 2 million to individuals and to a maximum of 90% for all housing loans up to Rs. 2 million to individuals. 6. To improve transparency in the systems on October 19, 2011, NHB also directed that HFCs should ensure uniformity in rates, on floating rate basis, charged to their old and new customers, with the same risk profile, irrespective of the time of entry in the market. Economic: 1. Healthy housing finance company result in economic growth by engaging different industry such as cement, and power 2. Reduces poverty and reduces slum area 3. Affects Inflation 4. Influenced by interest rate Social: 1. Create and meet growing housing demand 2. Increases employment opportunities 3. Growing population impact 4. Family break ups 5. Lifestyle changes 6. Multiple home dreams in different regions
Technical
1. Software to track housing loans 2. Hardware requirements 3. Credit quality/ Credit rating
3. Competitor Analysis: Last Price Market Net Total Cap. Sales Profit Assets (Rs. cr.) Turnover 684.75 102273.66 17332.94 4122.62 115001.56 259 753.7 164 89.5 112.1 52.3 95.15 13070.77 2675.16 1920.07 481.97 229.64 77.77 66.61 6114.86 513.91 2467.76 439.42 286.83 12.47 20.09 914.2 120.34 306.41 59.04 43.76 4.46 2.26 53552.12 4214.82 18985.49 3664.05 2329.86 179.22 157.18
Name HDFC LIC Housing Fin GRUH Finance Dewan Housing GIC Housing Fin Can Fin Homes Sharyans Res Sahara Housing
Comparative Chart on Home Loan Interest Rates
FinancialInstitutions
Tenure(in years) Up to 5 years 5-20 years 0-20 years 0-20 years 0-20 years 0-20 years 0-20 years Up to 5 years Above 5 yrs up to 10 yrs 0-20 years
Rate of InterestFixed 12.25% 12.25% 10.50% 10.5%- 11% 13.25%
Rate of InterestFloating 10.75% 11.25% 9.50% 9.50% 11.25%
Processing Charges
State Bank of India
0.50% of loan amount 1% of loan amount 0.5 per cent of the amount (max. Rs. 5000) 1% of the loan amount +applicable service taxes and cess) 1% of loan amount 1% of loan amount
ICICI LIC Housing Finance Ltd. HDFC
HSBC Citibank Canara Bank
10.75% 9.75% 10.75%
9.00%
11.00% 10.50% 9.25%
-
Standard Chartered Bank
1.25 % of loan amount
Canfin Homes Ltd IndusInd Bank
0-20 years 0-20 years
9.25%-12% 10.5 % (for <20 lakhs) 13% (for >20 lakhs) 11 10 % (< 10 lacs) 10.5% (>10 lacs)
9.25 % (for <20 lakhs) 12% (for >20 lakhs)
1.25% of loan amount
Saraswat Bank HUDCO
0-20 years 0-20 years
10 9% (< 10 lacs) 9.5% (>10 lacs)
0.5 % of loan amount (Max. Rs.250)
4. SWOT Analysis: Strengths: 1. Good and effective regulatory framework 2. Good network of banks, MFI, regional cooperative bank 3. Main and active sector 4. Demand in housing market in key places 5. Prime loans: The Gross Non-Performing Assets (Gross NPAs) of HFCs increased by 16%, their Gross NPA percentage declined, with the growth in the loan portfolio having been higher at 24%. Weakness 1. Interest rate wars 2. Lack of uniformity of norms 3. Counterparty Credit Risk 4. Long locking of capital 5. Slowness in KYC Opportunities 1. Increasing urbanisation 2. Infrastructure prioritization by government 3. Tax benefits for housing loan 4. Reduction in key policy rate by RBI 5. Relaxed norms by regulator 6. Better risk management 7. CRM expertise 8. Online loaning 9. Cross selling 10. Expanding network and reach
Threats 1. Anti money laundering 2. Lower demand and transaction in most realty area 3. Recession in economy 4. Switching of customer 5. Higher interest rate and higher cost of homes Porter’s five forces analysis
Threat of substitutes: It is medium Negotiating power of supplier: Medium Negotiating power of buyer: low to medium depends on credit quality of borrower Rivalry: High. The competition in the housing finance industry has been high a period that has seen various players introducing teaser home loans as well as loans with higher loan-tovalue (LTV) ratios in a bid to revive the market. Such schemes have increased the vulnerability of the loan book also there is some impact on asset quality. Barrier to entry: Restricted by RBI and NHB norms and requirements
Company Analysis: 1. Company description Sahara Housingfinas Corporation Limited A National Housing Bank regulated & BSE listed company. In India, housing finance market is around Rs. 1,20,000 crore (USD 25,000 million) with a growth rate of around 20%. Sahara Housingfinas Corporation Limited was founded in August 2002 with its registered corporate office at Kolkata. SHCL commenced retail-lending business in May 2004 with professionals from the industry and fully integrated on-line systems solution backed by strong procedures and underwriting standards. Today we operate from four regions viz. Kolkata, Lucknow, Hyderabad and Mumbai and have a branch each in Kolkata, Asansol, Siliguri, Lucknow, Gorakhpur, Pune, Hyderabad, Vijaywada and Mumbai. We serve our clientele through our attractive and competitive home loan schemes. Specially tailored schemes for the allotees of Sahara City Homes are also being worked out. We are expanding our business by increasing the number of business outlets. The challenge before the Company today is the growing transaction costs, more particularly the cost of funds and mobilization of funds for further expansion and development. I am confident that with the trust and confidence of our customers, investors and the lending institutions, SHCL will be able to establish itself as a prominent player in the Housing Finance sector in India. Sahara India Pariwar is a major entity on the corporate scene having diversified business interests that include finance, infrastructure & housing, media & entertainment, consumer products, manufacturing, services & trading. With Sahara Home Loan, one can bring to life the house of his dreams. One could buy a self-contained flat in an existing or proposed cooperative society, in an apartment owners association or even an independent single-family or multi-family bungalow or row house as well as a house that he like anywhere in India (subject to local geo-limits of SHCL branches).
2. General information about the company: Registered Address Sahara India Sadan 2A Shakespeare Sarani Kolkata
West Bengal Tel: 91-033-22829067/0811 Fax: 91-033-22824910 Month and Year of founding: August 2002 Shareholding pattern No. % of Shares(Mn) Holdings 4.99 71.4
Particulars Total Promoter Holdings Total Govt Holding (Promoter + Non Promoter) Total Domestic Institutions (Banks/ FI + MF / UTI) Total Foreign Holdings (FII+NRI holdings) Total Non Promoter Corporate Holdings Total Public & Others (Individuals + HUF + Clearing members) Total
0
0
0 0.01 0.86
0 0.1 12.3
1.13 7
16.2 100
Composition of the Board of Directors The Board of Director comprises Six members and all are non-executive directors out of which three are independent directors.. Composition of the Board of Directors Category Promoter - Executive - Non Executive Directors % of total number of Directors 0.00 50.00
--Shri Om Prakash Srivastava Shri Joy Broto Roy Shri Seemanto Roy Shri Brijendra Sahay Shri Sakti Prasad Ghosh Shri Ranoj Dasgupta
Independent Directors Total
50.00
100.%
CEO & Company Secretary D J Bagchi
Tenure Two–third of the Directors of the Corporation are liable to retire by rotation. Of this, onethird retire every year and if eligible, qualify for reappointment. Responsibilities The Board of Directors at SHCL are collectively responsible for advising the Company on Strategic Matters, Policy making and various other material and key decisions. Apart from the above, they mainly review the Corporate Performance of the Company vis-àvis its competitors, ensure the shareholders’ security and safeguarding of their interest and most importantly oversee the Regulatory and Statutory Compliances. Audit Committee:
?
The Audit Committee is primarily responsible for review of financial performance on half yearly/annually basis; appointment/ removal/remuneration of auditors; review of internal control systems and its adequacy and compliance with various Regulatory Bodies. The Company Secretary to the Company acts as the secretary to all the committees of the Board of Directors. It consists of the following members: Name of Member Shri O.P. Srivastava Shri Brijendra Sahay Shri S.P. Ghosh Shri Ranoj Dasgupta Status Promoter Director Independent Independent Independent Executive / Non Executive Non-Executive Non-Executive Non-Executive (CM) Non-Executive
Shareholders’/Investors’ Grievance Committee:
?
The Committee is primarily responsible for handling the work of Share Transfers and redress Investor Grievances. The Committee comprises of the following members: Name of Member Shri S.P. Ghosh Shri Ranoj Dasgupta Status Independent Independent Executive / Non Executive Non-Executive (CM) Non-Executive
Remuneration Committee:
?
The Committee consists of the following members:
Name of Director/Member Status Shri Brijendra Sahay Shri S.P. Ghosh
Executive / Non Executive
Independent Non-Executive (CM) Independent Non-Executive
Shri Ranoj Dasgupta
Independent Non-Executive
3. Financial performance of the company: 2012 Q1 results in Rs. Cr Sales Turnover Other Income Total Income Total Expenses Operating Profit Gross Profit Interest PBDT Depreciation PBT Tax Net Profit
4.78 0.17 4.95 1.06 3.72 3.89 3.04 0.86 0.04 0.82 0.22 0.6
Yearly result in Rs Cr March'11 INCOME : Operating Income Other Income Total Income EXPENDITURE : Total Expenditure Gross Profit Depreciation Profit Before Tax Tax Deferred Tax Reported Net Profit Cash Flow
20.28 0.11 20.39
17.17 3.22 0.15 3.07 0.9 -0.09 2.26
Cash Flow Particulars Cash and Cash Equivalents at Begining of the year Net Cash from Operating Activities Net Cash Used In Investing Activities Net Cash Used In Financing Activities Net Inc/(Dec) In Cash And Cash Cash And Cash Equivalents At End Of The Year Mar11 5.29 15.81 0.18 16.28 -0.29 5
Segment wise performance of the past 1 year Segment-wise Reporting does not apply to your Companysince revenues are derived from only one segment i.e. housing finance activity.
4. SWOT Analysis: Strengths: 1. Main and active sector 2. Demand in housing market in key places 3. Prime loans Weakness 1. Interest rate wars 2. Counterparty Credit Risk 3. Long locking of capital Opportunities 1. Increasing urbanisation 2. Infrastructure prioritization by government 3. Tax benefits for housing loan 4. Reduction in key policy rate by RBI 5. Relaxed norms by regulator 6. Better risk management 7. CRM expertise 8. Online loaning 9. Cross selling 10. Expanding network and reach
Threats 1. Lower demand and transaction in most realty area 2. Recession in economy 3. Switching of customer 4. Higher interest rate and higher cost of homes
5. Various strategies employed by the company in the course of conducting business Sahara Housing - Appointment of Director Sahara Housingfina Corporation Ltd has informed BSE that Shri. Seemanto Roy has been appointed as additional director on the Board of Directors of the Company with effect from July 08, 2011. Sahara Housing - Resignation of Director Sahara Housingfina Corporation Ltd has informed BSE that Shri Subrata Roy Sahara, Director (Promoter Director) has tendered his resignation from the directorship of the Company vide his letter dated June 07, 2011. Housing Loan for (Products)
? ? ? ? ? ?
Ready/Under construction property Self construction Repairs & Renovations/Extension Existing loan take-over (Balance transfer) Mortgage & NRP Loan Other(s)
Housing Loan Type:
? ?
A choice between fixed and floating interest rates Loan tenure 5-20 years
Regional Presence SHCL today operates from four regions (Kolkata, Lucknow, Hyderabad and Mumbai) and thirteen branches (Kolkata, Asansol, Siliguri, Ranchi, Durgapur, Lucknow, Gorakhpur, Kanpur, Mumbai, Pune, Hyderabad, Vijayawada and Vishakapatnam) and is serving its customers through attractive and competitive home retail schemes
doc_345204207.docx
Highlights the Industry Trends in mortgage finance industry, PEST Analysis of Industry in mortgage finance industry, Competitor Analysis, SWOT analysis, Company Description, General Information about sahara housing finance corporation, it's Finance performance, SWOT analysis and Various Strategies employed by sahara.
Company Name SAHARA HOUSINGFINA CORPORATION LTD. Industry Analysis Housing Finance 1. Industry trends: Indian The Indian mortgage finance market, which accounts for around 7% (cumulative) of GDP, has been able to maintain a steady growth rate. There is slowdown in housing sector because high interest rate in India, high property prices, tight liquidity position of builders. Also some Construction Companies are filing for corporate debt restructuring. The rate of credit growth in the Indian mortgage finance market was around 18% in 2010-11 (as against 11% in the previous fiscal). The housing market is quite concentrated, with the top three players (SBI along with Associates, HDFC Group, and ICICI Group) clearly dominating the domestic mortgage market and cumulatively accounting for 48% of the total housing credit in India (as of March 31, 2011). However, the players ranked 4 to 10 in terms of housing loan size players are catching up, and were able to increase their share from 24% as on March 31, 2010 to 28% as on March 31, 2011. Risk-based pricing yet to pick up; mortgage market still lacks transparent benchmark rate for variable rate loans The Indian housing finance interest rate is sensitive to RBI key policy rate such as repo rate, reverse Repo rate, and bank rate. Source: ICRA Global perspectives The global housing industry is slowly recovering from housing bubble of 2008 which lead to recession in major economies such as US and UK. Lots of bank around the globe are holding toxic mortgages in their book. Regulations such as Dodd Frank Act came into existence because of the housing crisis in 2008. Recent happenings There is urban and rural housing shortage which is good for housing finance industry The reasons for rise in shortage in affordable housing on the supply side is lack of availability of urban land, rising construction costs and regulatory issues while lack of access to home finance for low income groups are constraints on the demand side. India will face shortage of over 26 million houses by 2012, which would lead to spurt in housing prices as demand-supply gap widens amid rising purchasing power of the middle class people Mortgage penetration levels (mortgage loans as percentage of GDP) in India, which had risen from around 2% as in March 2002 to a little over 7% as in March 2007, have remained at the 7% levels till date. This being significantly lower than the penetration rates in developed countries
Some factors that could drive future growth in mortgage penetration in the domestic market over the long term are: 1. Viewing of property as a savings or investment vehicle 2. Tax incentives on home loans for both principal and interest repayment 3. Favourable demographics, with India having a large proportion of its population below the age of 30 years 4. Changing social scenario (increasing rate of urbanisation and number of nuclear families) 5. Increase in supply of affordable homes and expectations of price increase in the residential real estate market 6. Large inventory of unleveraged homes (which could be pledged by borrowers to raise loans against property) Source: ICRA 2. PEST Analysis: Political: 1. Reserve bank of India and National housing board requirements 2. Registration Certificate for permission to accept public deposits 3. Project finance to finance to victims affected by tsunami in Andhra Pradesh 4. Removal of prepayment penalty. In October 2010, National Housing Bank (NHB), the regulator for HFCs, advised all HFCs not to levy any prepayment charge or penalty on pre-closure of housing loans by borrowers if the borrowers were pre-closing loans with funds from their own sources. 5. The LTV ratio has been restricted to a maximum of 80% for all housing loans larger than Rs. 2 million to individuals and to a maximum of 90% for all housing loans up to Rs. 2 million to individuals. 6. To improve transparency in the systems on October 19, 2011, NHB also directed that HFCs should ensure uniformity in rates, on floating rate basis, charged to their old and new customers, with the same risk profile, irrespective of the time of entry in the market. Economic: 1. Healthy housing finance company result in economic growth by engaging different industry such as cement, and power 2. Reduces poverty and reduces slum area 3. Affects Inflation 4. Influenced by interest rate Social: 1. Create and meet growing housing demand 2. Increases employment opportunities 3. Growing population impact 4. Family break ups 5. Lifestyle changes 6. Multiple home dreams in different regions
Technical
1. Software to track housing loans 2. Hardware requirements 3. Credit quality/ Credit rating
3. Competitor Analysis: Last Price Market Net Total Cap. Sales Profit Assets (Rs. cr.) Turnover 684.75 102273.66 17332.94 4122.62 115001.56 259 753.7 164 89.5 112.1 52.3 95.15 13070.77 2675.16 1920.07 481.97 229.64 77.77 66.61 6114.86 513.91 2467.76 439.42 286.83 12.47 20.09 914.2 120.34 306.41 59.04 43.76 4.46 2.26 53552.12 4214.82 18985.49 3664.05 2329.86 179.22 157.18
Name HDFC LIC Housing Fin GRUH Finance Dewan Housing GIC Housing Fin Can Fin Homes Sharyans Res Sahara Housing
Comparative Chart on Home Loan Interest Rates
FinancialInstitutions
Tenure(in years) Up to 5 years 5-20 years 0-20 years 0-20 years 0-20 years 0-20 years 0-20 years Up to 5 years Above 5 yrs up to 10 yrs 0-20 years
Rate of InterestFixed 12.25% 12.25% 10.50% 10.5%- 11% 13.25%
Rate of InterestFloating 10.75% 11.25% 9.50% 9.50% 11.25%
Processing Charges
State Bank of India
0.50% of loan amount 1% of loan amount 0.5 per cent of the amount (max. Rs. 5000) 1% of the loan amount +applicable service taxes and cess) 1% of loan amount 1% of loan amount
ICICI LIC Housing Finance Ltd. HDFC
HSBC Citibank Canara Bank
10.75% 9.75% 10.75%
9.00%
11.00% 10.50% 9.25%
-
Standard Chartered Bank
1.25 % of loan amount
Canfin Homes Ltd IndusInd Bank
0-20 years 0-20 years
9.25%-12% 10.5 % (for <20 lakhs) 13% (for >20 lakhs) 11 10 % (< 10 lacs) 10.5% (>10 lacs)
9.25 % (for <20 lakhs) 12% (for >20 lakhs)
1.25% of loan amount
Saraswat Bank HUDCO
0-20 years 0-20 years
10 9% (< 10 lacs) 9.5% (>10 lacs)
0.5 % of loan amount (Max. Rs.250)
4. SWOT Analysis: Strengths: 1. Good and effective regulatory framework 2. Good network of banks, MFI, regional cooperative bank 3. Main and active sector 4. Demand in housing market in key places 5. Prime loans: The Gross Non-Performing Assets (Gross NPAs) of HFCs increased by 16%, their Gross NPA percentage declined, with the growth in the loan portfolio having been higher at 24%. Weakness 1. Interest rate wars 2. Lack of uniformity of norms 3. Counterparty Credit Risk 4. Long locking of capital 5. Slowness in KYC Opportunities 1. Increasing urbanisation 2. Infrastructure prioritization by government 3. Tax benefits for housing loan 4. Reduction in key policy rate by RBI 5. Relaxed norms by regulator 6. Better risk management 7. CRM expertise 8. Online loaning 9. Cross selling 10. Expanding network and reach
Threats 1. Anti money laundering 2. Lower demand and transaction in most realty area 3. Recession in economy 4. Switching of customer 5. Higher interest rate and higher cost of homes Porter’s five forces analysis
Threat of substitutes: It is medium Negotiating power of supplier: Medium Negotiating power of buyer: low to medium depends on credit quality of borrower Rivalry: High. The competition in the housing finance industry has been high a period that has seen various players introducing teaser home loans as well as loans with higher loan-tovalue (LTV) ratios in a bid to revive the market. Such schemes have increased the vulnerability of the loan book also there is some impact on asset quality. Barrier to entry: Restricted by RBI and NHB norms and requirements
Company Analysis: 1. Company description Sahara Housingfinas Corporation Limited A National Housing Bank regulated & BSE listed company. In India, housing finance market is around Rs. 1,20,000 crore (USD 25,000 million) with a growth rate of around 20%. Sahara Housingfinas Corporation Limited was founded in August 2002 with its registered corporate office at Kolkata. SHCL commenced retail-lending business in May 2004 with professionals from the industry and fully integrated on-line systems solution backed by strong procedures and underwriting standards. Today we operate from four regions viz. Kolkata, Lucknow, Hyderabad and Mumbai and have a branch each in Kolkata, Asansol, Siliguri, Lucknow, Gorakhpur, Pune, Hyderabad, Vijaywada and Mumbai. We serve our clientele through our attractive and competitive home loan schemes. Specially tailored schemes for the allotees of Sahara City Homes are also being worked out. We are expanding our business by increasing the number of business outlets. The challenge before the Company today is the growing transaction costs, more particularly the cost of funds and mobilization of funds for further expansion and development. I am confident that with the trust and confidence of our customers, investors and the lending institutions, SHCL will be able to establish itself as a prominent player in the Housing Finance sector in India. Sahara India Pariwar is a major entity on the corporate scene having diversified business interests that include finance, infrastructure & housing, media & entertainment, consumer products, manufacturing, services & trading. With Sahara Home Loan, one can bring to life the house of his dreams. One could buy a self-contained flat in an existing or proposed cooperative society, in an apartment owners association or even an independent single-family or multi-family bungalow or row house as well as a house that he like anywhere in India (subject to local geo-limits of SHCL branches).
2. General information about the company: Registered Address Sahara India Sadan 2A Shakespeare Sarani Kolkata
West Bengal Tel: 91-033-22829067/0811 Fax: 91-033-22824910 Month and Year of founding: August 2002 Shareholding pattern No. % of Shares(Mn) Holdings 4.99 71.4
Particulars Total Promoter Holdings Total Govt Holding (Promoter + Non Promoter) Total Domestic Institutions (Banks/ FI + MF / UTI) Total Foreign Holdings (FII+NRI holdings) Total Non Promoter Corporate Holdings Total Public & Others (Individuals + HUF + Clearing members) Total
0
0
0 0.01 0.86
0 0.1 12.3
1.13 7
16.2 100
Composition of the Board of Directors The Board of Director comprises Six members and all are non-executive directors out of which three are independent directors.. Composition of the Board of Directors Category Promoter - Executive - Non Executive Directors % of total number of Directors 0.00 50.00
--Shri Om Prakash Srivastava Shri Joy Broto Roy Shri Seemanto Roy Shri Brijendra Sahay Shri Sakti Prasad Ghosh Shri Ranoj Dasgupta
Independent Directors Total
50.00
100.%
CEO & Company Secretary D J Bagchi
Tenure Two–third of the Directors of the Corporation are liable to retire by rotation. Of this, onethird retire every year and if eligible, qualify for reappointment. Responsibilities The Board of Directors at SHCL are collectively responsible for advising the Company on Strategic Matters, Policy making and various other material and key decisions. Apart from the above, they mainly review the Corporate Performance of the Company vis-àvis its competitors, ensure the shareholders’ security and safeguarding of their interest and most importantly oversee the Regulatory and Statutory Compliances. Audit Committee:
?
The Audit Committee is primarily responsible for review of financial performance on half yearly/annually basis; appointment/ removal/remuneration of auditors; review of internal control systems and its adequacy and compliance with various Regulatory Bodies. The Company Secretary to the Company acts as the secretary to all the committees of the Board of Directors. It consists of the following members: Name of Member Shri O.P. Srivastava Shri Brijendra Sahay Shri S.P. Ghosh Shri Ranoj Dasgupta Status Promoter Director Independent Independent Independent Executive / Non Executive Non-Executive Non-Executive Non-Executive (CM) Non-Executive
Shareholders’/Investors’ Grievance Committee:
?
The Committee is primarily responsible for handling the work of Share Transfers and redress Investor Grievances. The Committee comprises of the following members: Name of Member Shri S.P. Ghosh Shri Ranoj Dasgupta Status Independent Independent Executive / Non Executive Non-Executive (CM) Non-Executive
Remuneration Committee:
?
The Committee consists of the following members:
Name of Director/Member Status Shri Brijendra Sahay Shri S.P. Ghosh
Executive / Non Executive
Independent Non-Executive (CM) Independent Non-Executive
Shri Ranoj Dasgupta
Independent Non-Executive
3. Financial performance of the company: 2012 Q1 results in Rs. Cr Sales Turnover Other Income Total Income Total Expenses Operating Profit Gross Profit Interest PBDT Depreciation PBT Tax Net Profit
4.78 0.17 4.95 1.06 3.72 3.89 3.04 0.86 0.04 0.82 0.22 0.6
Yearly result in Rs Cr March'11 INCOME : Operating Income Other Income Total Income EXPENDITURE : Total Expenditure Gross Profit Depreciation Profit Before Tax Tax Deferred Tax Reported Net Profit Cash Flow
20.28 0.11 20.39
17.17 3.22 0.15 3.07 0.9 -0.09 2.26
Cash Flow Particulars Cash and Cash Equivalents at Begining of the year Net Cash from Operating Activities Net Cash Used In Investing Activities Net Cash Used In Financing Activities Net Inc/(Dec) In Cash And Cash Cash And Cash Equivalents At End Of The Year Mar11 5.29 15.81 0.18 16.28 -0.29 5
Segment wise performance of the past 1 year Segment-wise Reporting does not apply to your Companysince revenues are derived from only one segment i.e. housing finance activity.
4. SWOT Analysis: Strengths: 1. Main and active sector 2. Demand in housing market in key places 3. Prime loans Weakness 1. Interest rate wars 2. Counterparty Credit Risk 3. Long locking of capital Opportunities 1. Increasing urbanisation 2. Infrastructure prioritization by government 3. Tax benefits for housing loan 4. Reduction in key policy rate by RBI 5. Relaxed norms by regulator 6. Better risk management 7. CRM expertise 8. Online loaning 9. Cross selling 10. Expanding network and reach
Threats 1. Lower demand and transaction in most realty area 2. Recession in economy 3. Switching of customer 4. Higher interest rate and higher cost of homes
5. Various strategies employed by the company in the course of conducting business Sahara Housing - Appointment of Director Sahara Housingfina Corporation Ltd has informed BSE that Shri. Seemanto Roy has been appointed as additional director on the Board of Directors of the Company with effect from July 08, 2011. Sahara Housing - Resignation of Director Sahara Housingfina Corporation Ltd has informed BSE that Shri Subrata Roy Sahara, Director (Promoter Director) has tendered his resignation from the directorship of the Company vide his letter dated June 07, 2011. Housing Loan for (Products)
? ? ? ? ? ?
Ready/Under construction property Self construction Repairs & Renovations/Extension Existing loan take-over (Balance transfer) Mortgage & NRP Loan Other(s)
Housing Loan Type:
? ?
A choice between fixed and floating interest rates Loan tenure 5-20 years
Regional Presence SHCL today operates from four regions (Kolkata, Lucknow, Hyderabad and Mumbai) and thirteen branches (Kolkata, Asansol, Siliguri, Ranchi, Durgapur, Lucknow, Gorakhpur, Kanpur, Mumbai, Pune, Hyderabad, Vijayawada and Vishakapatnam) and is serving its customers through attractive and competitive home retail schemes
doc_345204207.docx