MAGMA FINCORP LIMITED  

Quarterly Result
-
Financial Results for the Quarter and Audited for the Year Ended 31st March 2011



Financial Results for the Quarter and Audited for the Year Ended 31st March 2011

(Rs. in lacs)
Particulars
Consolidated
Standalone
Quarter Ended
Year To Date
Quarter Ended
Year To Date
31st March, 2011
31st March, 2010
31st March, 2011
31st March, 2010
31st March, 2011
31st March, 2010
31st March, 2011
31st March, 2010
(Unaudited)
(Unaudited)
(Audited)
(Audited)
(Unaudited)
(Unaudited)
(Audited)
(Audited)
1.
Income From Operations 25,851.83 20,162.85 81,903.98 65,658.80 25,318.27 19,556.70 79,001.82 63,653.11
2. Other Operating Income 1,086.33 1,485.24 5,330.13 6,277.77 1,318.54 1,485.24 5,562.04 6,277.77
  Total Operating Income (A) 26,938.16 21,648.09 87,234.11 71,936.57 26,636.81 21,041.94 84,563.86 69,930.88
3. Staff Cost 3,965.57 2,617.67 13,464.99 10,533.55 3,965.57 2,617.67 13,464.99 10,533.55
4. Depreciation and Amortisation 662.09 777.61 2,785.07 3,278.58 662.09 777.61 2,785.07 3,278.58
5. Provision for Standard Assets 1,148.00 - 1,148.00 - 1,090.00 - 1,090.00 -
6. Brokerage & Commission 2,395.47 1,657.69 7,009.07 5,021.72 2,395.17 1,657.69 7,006.42 5,021.72
7. Bad Debts Written-off 245.18 1,418.27 2,408.43 4,083.48 348.34 1,355.96 2,463.29 4,001.85
8. Other Operative & Administrative Expenses 2,439.06 2,158.71 7,132.15 5,838.38 2,783.27 2,060.61 7,060.11 5,536.11
  Total Operating Expenditure (B) 10,855.37 8,629.95 33,947.71 28,755.71 11,244.44 8,469.54 33,869.88 28,371.81
9. Profit From Operations Before Other Income & Interest (A-B) 16,082.79 13,018.14 53,286.40 43,180.86 15,392.37 12,572.40 50,693.98 41,559.07
10. Other Income 39.54 79.95 169.12 370.01 39.54 79.95 169.12 370.01
11. Profit Before Interest & Tax 16,122.33 13,098.09 53,455.52 43,550.87 15,431.91 12,652.35 50,863.10 41,929.08
12. Interest & Finance Charges 9,524.18 8,872.37 35,234.54 32,504.56 9,161.33 8,604.36 33,813.00 31,624.96
13. Profit Before Tax 6,598.15 4,225.72 18,220.98 11,046.31 6,270.58 4,047.99 17,050.10 10,304.12
14. Tax Expense (Includes Deferred Tax) 2,104.74 1,579.90 6,006.38 3,914.20 1,985.31 1,515.36 5,606.78 3,658.09
15. Profit After Tax 4,493.41 2,645.82 12,214.60 7,132.11 4,285.27 2,532.63 11,443.32 6,646.03
16. Share of Minority Interest in Profit / (Loss) 54.12 29.43 200.55 126.40 - - - -
17. Profit After Tax & Minority Interest 4,439.29 2,616.39 12,014.05 7,005.71 4,285.27 2,532.63 11,443.32 6,646.03
18. Paid-Up Equity Share Capital (Face Value Rs. 2/- per share) 2,595.47 2,177.71 2,595.47 2,177.71 2,595.47 2,177.71 2,595.47 2,177.71
19. Reserves & Surplus - - 54,629.23 33,048.95 - - 53,680.33 32,670.78
20. Earning Per Share                
  - Basic (In Rs.) 3.17 2.32 8.57 5.79 3.05 2.24 8.12 5.46
  - Diluted (In Rs.) 3.09 2.31 8.38 5.78 2.98 2.24 7.94 5.45
21. Public Shareholding                
  - Number Of Shares 75,746,047 54,806,585 75,746,047 54,806,585 75,746,047 54,806,585 75,746,047 54,806,585
  - Percentage Of Shareholding 58.37% 50.33% 58.37% 50.33% 58.37% 50.33% 58.37% 50.33%
22. Promotors and promotor group Shareholding                
  a) Pledged / Encumbered                
  - Number of Shares - - - - - - - -
  - % of Shares (to total shareholding of promotor and promotor group) - - - - - - - -
  - % of Shares (to total share capital of the Company) - - - - - - - -
  b) Non-encumbered                
  - Number of Shares 54,027,503 54,079,115 54,027,503 54,079,115 54,027,503 54,079,115 54,027,503 54,079,115
  - % of Shares (to total shareholding of promotor and promotor group) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

100.00%

  - % of Shares (to total share capital of the Company) 41.63% 49.67% 41.63% 49.67% 41.63% 49.67% 41.63% 49.67%


Interim disclosure of Balance Sheet items
(Rs. in lacs)
Particulars Consolidated Standalone
As at As at
31st March, 2011 31st March, 2010 31st March, 2011 31st March, 2010
(Audited) (Audited) (Audited) (Audited)
Shareholders' Funds        
    (a) Share Capital 17,283.83 13,787.91 17,283.83 13,787.91
    (b) Optionally Convertible Equity Warrants 1,250.00 - 1,250.00 -
    (c) Reserves and Surplus 54,629.23 33,048.95 53,680.33 32,670.78
Total Shareholders' Funds 73,163.06 46,836.86 72,214.16 46,458.69
Minority Interest 983.51 522.96 - -
Subordinated Non-Convertible Perpetual Debentures (Tier I Capital) 5,500.00 3,000.00 5,500.00 3,000.00
Subordinated Redeemable Non-Convertible Debentures (Tier II Capital) 35,420.00 21,800.00 35,420.00 21,800.00
Loan Funds 418,324.69 340,633.13 399,921.77 331,909.07
Deferred Tax Liability 3,808.96 4,789.02 3,829.40 4,791.55
Total 537,200.22 417,581.97 516,885.33 407,959.31
         
Fixed Assets 18,712.97 20,795.87 18,712.97 20,795.87
Investments 1,138.44 1,911.64 2,988.38 3,021.58
Current Assets, Loans and Advances        
    (a) Assets on Finance 451,429.04 330,136.73 428,374.76 318,158.65
    (b) Stock-in-trade 17.17 17.17 17.17 17.17
    (c) Sundry Debtors 549.58 710.81 606.25 744.65
    (d) Cash & Bank Balances 100,753.13 97,090.65 100,427.60 96,845.68
    (e) Other Current Assets 10.67 36.18 10.67 36.18
    (f) Loans and Advances 16,555.04 15,596.77 16,448.16 16,225.26
Less: Current Liabilities and Provisions        
    (a) Current Liabilities 42,177.13 43,401.68 41,037.93 42,689.12
    (b) Provisions 9,788.69 5,312.17 9,662.70 5,196.61
Total Net Current Assets, Loans and Advances 517,348.81 394,874.46 495,183.98 384,141.86
Total 537,200.22 417,581.97 516,885.33 407,959.31




Notes :
1. The audited financial results have been reviewed by the Audit Committee and recommended for adoption to the Board of Directors. The Board of Directors of the Company have considered and approved the same at its Meeting held on 18th April 2011.
2. The consolidated financial statements have been prepared in accordance with the Accounting Standard 21 (Consolidated Financial Statements) and comprise of the financial results of Magma Fincorp Limited and its subsidiary, Magma ITL Finance Limited.
3. Pursuant to the approval of the shareholders at the Annual General Meeting held on 15th July 2010, each equity shares of the face value of Rs. 10/- each has been sub-divided into five equity shares of the face value of Rs. 2/- each on record date of 16th August 2010. Accordingly, the EPS has been recalculated based on face value of Rs. 2/- each for the current year and for the earlier years as required by Accounting Standard 20 (Earnings Per Share).
4. The Board of Directors at their meeting considered and recommended an Equity Dividend @ 30% i.e. Rs. 0.60/- per Equity Shares of Rs. 2/- each and Preference Dividends of 9.7%, 5%, 3.71%, 9.6% and 12% for the financial year 2010-11 and @ 1% on 21,09,199 Cumulative Non-Convertible Redeemable Preference Shares of Rs. 100/- each for the financial year 2009-10, subject to approval of the Shareholders.
5. The Company had entered into an agreement with HDI Gerling International Holding AG.( HDI ), part of the Talanx AG Group, Germany for the purposes of undertaking general insurance business in India through Magma HDI General Insurance Company Limited (the "Insurance Company") subject to necessary regulatory approvals. Pursuant to the application seeking licence for carrying on the business of general insurance in India, the Insurance Company has since received the approval for its R1 application and is in the process of obtaining the R2 approval from the Insurance Regulatory Development Authority.
6. The Reserve Bank of India (RBI) vide its Notification No. DNBS. 223/CGM (US) – 2011 dated 17th January 2011 has issued directions to all NBFCs to make provision of 0.25% against standard assets with immediate effect. Accordingly, the Company has made provision of Rs. 1,148.00 lacs including Rs. 58.00 lacs pertaining to Subsidiary Company during the year against standard assets which has been charged to Profit and Loss Account. The above provision is treated as Tier II Capital.
7. The Company is engaged primarily in the business of financing in India and as such no separate information as per Accounting Standard 17 (Segment Reporting) is required to be furnished.
8. Previous year / quarter figures are regrouped / restated, wherever found necessary.
9. During the quarter, no complaints received. There were no complaints pending on 31st March 2011.


By order of the Board
For Magma  Fincorp Limited
Place : Kolkata - 700 016
Dated : 18th April, 2011
Sanjay Chamria
Vice Chairman & Managing Director

Registered Office : Magma House, 24 Park Street, Kolkata - 700 016