Annual Report: 2023
ANNUAL REPORT 2022-23
Corporate Information:
Maxvalue Credits and Investments Limited is an NBFC with its registered office in Thrissur, Kerala. The Board of Directors includes Sri. Kottarath Nandakumar (Managing Director), Sri. Manoj VR (Whole-Time Director), and several Non-Executive and Independent Directors. Smt. Salini Narayanan K is the Chief Financial Officer and Sri. Akhil B Vijay is the Company Secretary. M/s. Unnikrishnan & Co are the Statutory Auditors, and M/s. SKDC Consultants Limited are the Registrar & Share Transfer Agents.
Managing Director's Message:
The Managing Director is pleased to deliver the message for the 28th Annual General Meeting of Maxvalue Credits & Investments Ltd. Operations started in three southern states: Kerala, Karnataka, Andhra Pradesh, and soon Tamil Nadu. Even with the impact of floods and COVID-19, the company managed issues effectively without salary cuts or retrenchment, implementing minimum wages. Sub-Debt Maturity repayment proceeded without delinquency. The company focuses on strengthening operations at the grass-root level to achieve sustainable results, utilizing high-efficiency computer software and networking. The Personal cadre's dedication is an asset. New opportunities are being explored in finance, such as securitization and co-lending, to enhance sustainability, with a focus on profit-making branches and high-yielding portfolios.
Notice to Shareholders:
The 28th Annual General Meeting will be held on Friday, July 28th, 2023, at 11:30 a.m. IST via video conferencing. The ordinary business includes:
Special business includes:
The notice details e-voting procedures, including instructions for those holding shares in physical and dematerialized forms. The Register of Members and Share Transfer Books will be closed from July 22nd to July 28th, 2023.
Explanatory Statements:
These statements provide further context for the special resolutions proposed. The issue of NCDs aims to raise capital, while mortgaging assets is intended to secure loan facilities for business purposes. The reappointment of Mr. Kottarath Nandakumar as Managing Director is based on the recommendation of the Nomination & Remuneration Committee.
Board of Directors' Report:
The 28th Annual Report is presented with the Audited Financial Statements for the year ended March 31st, 2023. Key financial figures (in Rupees):
No dividend is recommended for the Financial Year 2022-23.
The company provides vehicle, gold, trader, and micro-finance loans and secured Non-Convertible Redeemable Debentures and Subordinated Debts.
The Indian NBFC sector's importance is growing. The NBFC was able to absorb the shocks of the pandemic. Asset quality has improved, and capital buffers have augmented. RBI's stress test reveals that 8% to 13% of NBFCs might fail to meet the minimum capital requirement under various stress scenarios. Credit extended by NBFCs is picking up, with the largest quantum deployed to the industrial sector, followed by retail, services, and agriculture.
Due to RBI restrictions imposed in February 2020, the Company's portfolio size reduced to Rs.562 Cr (March 31st, 2023) from Rs.658 Cr (March 31st, 2022). Vehicle and Gold loans form a major portion of the Asset under Management.
The company plans to improve branch profitability, close loss-making branches, expand in profitable areas, and review loan products. Liquidity management is a key focus, and the company aims to replace maturing funds with equity and fresh borrowings. Recovery of written-off amounts and branch/product profitability are prioritized.
The company's branch network comprises 81 branches in Kerala, 52 in Karnataka, and 7 in Andhra Pradesh. The company is working towards closing branches that are not profitable.
Subordinated Debts and NCDs are the major funding sources. The company repaid Rs.191.56 Cr towards maturity payments of subordinated debt and debentures. The company seeks to obtain loans from commercial banks.
Authorized share capital is Rs.500 Cr, and paid-up share capital is Rs.164.75 Cr. The capital adequacy ratio as of March 31st, 2023, was 17.62%.
The company has an Internal Audit and Control System, reviewed by the Audit Committee. The board has placed a comprehensive risk management policy and monitors risks through committees. There were 1464 employees as of March 31st, 2023. The company has complied with applicable regulations from the Reserve Bank of India and has a related-party transaction policy displayed on its website.
Several directors are liable to retire and are proposed for re-appointment. Mr. Kottarath Nandakumar was appointed as Managing Director in January 2023, and Mr. Paulson Chirayath Varkey resigned from the Board. Independent Directors have submitted declarations of independence. The Board met on 10 occasions during the year.
Directors confirmed compliance with accounting standards, maintenance of records, and preparation of accounts on a going concern basis. The Auditors' Report contains no qualifications. No frauds have been reported by the Statutory Auditors. The Company appointed M/s. Unnikrishnan & Co as Statutory Auditors, who are eligible to continue as Auditors.
The company isn't required to appoint a Cost Auditor. Secretarial Audit was conducted by M/s. Prasanth and Associates. The company is a Non-Banking Financial Company and has taken measures for energy conservation. No foreign exchange earnings or outgo occurred.
The company has no subsidiaries or joint ventures. The company hasn't developed and implemented any Corporate Social Responsibility initiatives. Contracts with related parties are reviewed by the Audit Committee. Particulars of employees who received remuneration exceeding the limit as stated in rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not stated. The company has constituted Audit Committee. There are no significant and material orders passed by regulators or courts or tribunals impacting the going concern status and company's operation in future.
Material changes and commitments that have occurred after the financial year have ended. The company has not issued shares with differential rights, Employee Stock Options, or Sweat Equity Shares during the year. The Internal Complaints Committee under the Sexual Harassment of Women at Workplace Act, 2013 is in place.
Auctions were held during the year (2022-23), with loan principal amounts outstanding at Rs.175,284,266.00 and interest amounts outstanding at Rs. 54,267,083.00, resulting in a total of Rs. 229,551,349.00 and value fetched of Rs.223,223,118.87.
Annexure A: The Company has received independence certificates from independent directors.
Annexure B: Details particulars of contracts and the arrangements
Annexure C: We have audited the internal financial controls of Maxvalue Credits and Investments Limited The company’s financial statement complies with the accounting standards
Management Discussion and Analysis Report:
NBFCs enhance the financial system and promote inclusive growth by providing financial services to the less-banked and unorganized sectors. They play a major role in the country's economic transformation by improving access to credit, supported by digital transformation. NBFCs have a large opportunity to grow.
SWOT Analysis:
D. Outlook:
The Reserve Bank of India still has the company under supervisory restrictions as of the date of the report. Company emphasizes fast recycling loan products and tries to better the cost efficiency and margins. Company writing off NFA reduces the financial loss
E. Risks and Concerns:
Company risk management is integral to the business , with the key risks being:Credit Risk, Interest Rate Risk, Market Risk (collateral price), Liquidity Risk and Operational Risk. Company has put an adequate internal control system in place and reviews audits A systematic audit plan is in place
G. Discussion on Financial Performance with Respect to Operational Performance:
Revenue from operation has decreased over year with decline in interest income due to NFA
Comparison of Interest Income table included
To reduce risk company diversified into Gold loan segment Interest Cost data Included.
Maxvalue follows the following processes:
The Company has begun a transformation of the technology landscape. Loan write offs, as well as other assets are explained.
Independent Auditor’s Report:
Addressed to the members of MAXVALUE CREDITS AND INVESTMENTS LTD Independent audit was conducted following guidelines and report provides the following:
Includes information on loan amounts Other compliance rules outlined
Important financial data included in final financial document for member review and vote.
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