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FROM THE DESK OF CHAIRMAN:
It gives me immense pleasure to present 20th Annual Report of our Company, a year of accomplishments and a chronicle of how we made it happen. The year has been pivotal for us at SEIL. Our existence endows us with virtues such as maturity, a sense of mission and purpose in life, and the zest to be bigger than what we already are. And all that we stand for today – trust, uncompromising integrity, exceptional success–we owe it to our stakeholders.
During the year we managed our liquidity as bank funding quickly dried up. We prioritized our outflows, operating expenses, debt service requirements and serving our regular good customers. Meanwhile, there was a concerted search for funds. We are extremely grateful to our bankers for providing funds to us in times of our need. Company successfully scaled it operations during the year by reviewing its business portfolio so as to ensure focus on businesses for competitive advantage.
Your Company has shown great adaptability towards stringent regulatory changes and has performed exceptionally well during the year by relying on strategic principles and fundamentals. Business demand rose steadily through out the year and the gross income for the financial year grew exceptionally well registering a growth of over 16.29% to Rs. 21098.39 Lacs from Rs. 18143.66 Lacs in the last year. Our Net profits grew by 4.17% to Rs. 6335.34 Lacs from Rs. 6081.59 Lacs in the last year.
Non–banking financial companies (NBFCs) are fast emerging as an important segment of Indian financial system. They provide financial support to some important segments of the economy which plays a key role in stimulating the engine of economic growth. Since commercial banks have their limitations relating to whom they lend to, NBFCs get a free–hand in providing finance to infrastructure equipment, farm equipment and commercial vehicles. Banks seldom provide loans to these segments since these requires the banks to appraise the client before advancing the loan and accepting money in cash from lenders. Thus, they have broadened and diversified the range of products and services offered by a financial sector. Gradually, they are being recognized as complementary to the banking sector due to their customer–oriented services; simplified procedures; attractive rates of return on deposits; flexibility and timeliness in meeting the credit needs of specified sectors; etc.
NBFCs due to their inherent strengths in the areas of fast and easy access to market information for credit appraisal, well–trained collection machinery, close monitoring of individual borrowers & personalized attention to each client as well as minimum overhead costs, are in a better position to cater to these segments of the economy. In view of the recent proposal for considering these NBFCs for new banking licenses, the sector's modus–operandi is likely to add another feather to its wings.
NBFC sector faced significant stress on asset quality, liquidity and funding costs due to the global economic slowdown & its impact on the domestic economy. While all the NBFCs were affected, the impact varied according to the structural features of each NBFC.
Also, the Demerger of Non Conventional Energy Division from the Company into M/s S. E. Power Limited has been successfully done. Hon'ble Delhi High Court sanctioned the Scheme of Arrangement and S. E. Power Limited (Transferee Company) has been Listed on Bombay Stock Exchange & National Stock Exchange of India Limited and trading in S. E. Power Limited shares has commenced from 27th July, 2012 in the respective Stock Exchanges. Demerger is in the overall interest of shareholders and will attract sets of investors, strategic partners, lenders and other stakeholders which will lead to higher growth of businesses.
Going forward in 2012, we will continue to focus on our key business proven strategic principles for customer satisfaction, profitable market share and employee engagement. Our endeavour has always been to protect our stakeholders interest as a primer driver of business.
Lastly, I am indebted to all our distinguished shareholders and to our employees for the confidence and efforts they have put into making SEIL a success. I wish to express our sincere thanks to Reserve Bank of India for their guidance and understanding at all times. I would like to thank our Bankers and business associates in our growth and I wish to thank them for their continuous support and co–operation. With the support of all our stakeholders, the Company is geared to scale greater heights in the years to come.
21st August, 2012