Annual Report: 2022
Fincare Business Services Limited Annual Report 2021-22 Summary:
Company Overview:
Fincare Business Services Limited (FBSL) is registered with the Reserve Bank of India (RBI) as a non-deposit taking, systemically important Core Investment Company (CIC-ND-SI). Its activities include investing in and providing loans to group companies. The company's only subsidiary is Fincare Small Finance Bank Limited (FSFB).
Fincare Small Finance Bank Limited (FSFB):
FSFB, commenced operations as a Small Finance Bank in July 2017 and has a vision to enable financial inclusion for the unbanked and underbanked through its branches and digital approaches. As of March 31, 2022, it serves 32+ Lakh customers across 17 states and union territories through 919 branches. The bank’s Gross Loan Product stood at *8,277Crore. FSFB offers a range of smart banking products including Savings Accounts, Current Accounts, Fixed Deposits, NRI Deposits, Recurring Deposits, Micro Loans, Cash Overdraft, Loan against Gold, Loan against Property, Institutional Finance and Two-Wheeler Loans. The Bank has a Digital-First approach and aspires to become a 'Smart Bank of Choice' in India.
Managing Director's Message:
The Managing Director notes FY22 was a period of resurgence after the pandemic's initial challenges. Fincare expanded its reach by adding 135 banking outlets, focusing on customer engagement and enriching its product offerings. He states the company is on the right path, contributing meaningfully to nation-building. He thanked the Board, the leadership team and all Fincarians for their commitment.
Director's Report:
Financial Highlights for FY22: Company’s financial performance, both on a Consolidated and Standalone basis for FY 22 compared to the previous year, FY 21. The gross revenue of the Company stood at ₹43,05,818 for the year ended 31st March 2022 as against ₹8,99,14,871 in the previous year. The Company incurred a net loss of ₹4,93,44,065 for the year ended 31st March, 2022 as compared to a net loss of ₹5,79,71,705 in the previous year. The consolidated gross revenue of Fincare Group was at ₹17,07,89,15,611 as against ₹14,48,19,30,264 during the previous financial year. The Fincare Group has incurred a consolidated net loss (including OCI) amount of ₹79,78,19,116 as against a Net Profit of ₹73,21,67,931 in the previous year. The directors do not recommend any dividend for the FY 2021-2022, in order to conserve financial resources and support ongoing business needs.
There has been no change in the nature of business of the Company during the year under review.
FSFB formally again started its initial public offering (IPO) process by filing the Draft Red herring prospectus with Securities and Exchange Board of India on August 7, 2022.
As a consequence of change of registered office the CIN of FBSL has also changed from U74900KA2014PLC075614 to U74900GJ2014PLC132578.
During FY22, pursuant to issuance 13,32,656 equity shares against employee stock options, the Capital of the Company was increased from 32,84,17,440 equity shares to 32,97,50,096 equity shares.
Details of ESOP are described.
M/s Bhushan Khot & Company, Chartered Accountants were appointed as statutory Auditors of the Company for a period 5 (five) years.
The Independent Directors have submitted their disclosures to the Board that they fulfil all the requirements as stipulated in section 149(6) of the Companies Act, 2013.
Corporate Social Responsibility Committee has been constituted in accordance with Section 135 of the Companies Act, 2013. The committee was further re-constituted at the Board Meeting held on 6th April 2022.
Details of Attendance of Directors are cited in the Corporate Governance Report.
The maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is not applicable to the Company.
Management Discussion and Analysis:
India's GDP grew by 8.7% in FY22, supported by government policies and strong industrial and service sectors. The government expects India's GDP growth at about 7% in FY23. India is expected to remain the fastest-growing major economy in the world. The banking sector's profit after tax grew by 86.9% year-on-year, and private banks performed well. Small Finance Banks (SFBs) have been provided with a banking license with the objective to serve the under-served and marginalised sections of the society.
Report on Corporate Governance:
The company is committed to ethical practices and transparency. The Board critically evaluates the company's strategic direction and management policies. The company amended the Articles of Association by adopting a new set of articles of association ("AOA") in the extra ordinary general meeting of members of the Company held on April 30, 2021. The Directors had carried out evaluation of the Board as a whole, its Committees and the Directors (Executive, Non-Executive & Independent Directors). The Independent Directors of the Company have met separately without the presence of other directors and / or management team members as required under Schedule IV of the Companies Act, 2013. During the year under review the Company has not received any complaint of sexual harassment.
Report on CSR Activities:
The Corporate Social Responsibility Committee consists of independent and nominee directors. The Company has a Corporate Social Responsibility Policy, and the directors approved CSR projects. Total CSR amount spent for the financial year 2021-22 was 8,43,125. The CSR initiatives focused on eradicating hunger through grocery kit distribution programs across multiple states.
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