ANNUAL REPORT 2019-20 Driven by Commitment Powered by Values Gosree Finance Limited 41/889-A3, Moopen Complex N.H.Bye pass, Service Road Padivattom, Edappally PO Cochin-682024, Kerala, India +91 484 2803854 +91 7593 877 877 www.gosreenance.com 2019-20 2019-20 7TH ANNUAL REPORT Content 1. Corporate Information Pg. 5 2. Gosree Story Pg. 6 3. Brief profile of the Board & Management Pg. 8 4. Our Journey So Far Pg. 12 5. List of Branches Pg. 14 5. Notice of AGM Pg. 15 6. Directors' Report for the year 2019-20 Pg. 37 7. Report on the Audit of the Standalone Financial Statements Pg. 71 8. Balance Sheet Pg. 81 9. Report on the Audit of the Consolidated Financial Statements Pg. 109 10. Consolidated Balance Sheet Pg. 116 11. Report on the Financial Statements Gosree Insurance Broking Services Pvt Ltd Pg. 143 12. Balance Sheet (Gosree Insurance Broking Services Pvt Ltd) Pg. 152 13. Report on the Financial Statements Gosree Investments & Risk Services Pvt Ltd Pg. 164 14. Balance Sheet (Gosree Investments & Risk Services Pvt Ltd) Pg. 174 Annual Report 2019-20 CORPORATE INFORMATION Inauguration of Gold Loan Board of Directors Banks 1. GopalanKutty Menon Director & Chairman of the board 1. Federal Bank business at our Kollam branch by 2. Jayakumar. P.G Managing Director & CEO 2. Lakshmi Vilas Bank Promoter Sri. Mohanachandran 3. T.S. Jagadeesan Managing Director 3. AU Small Finance Bank Nair on 21 Aug 2020 4. T.S. Anantharaman Director 4. State Bank of india 5. R.K. Bhoodes Director 5. Union Bank of India Inauguration of Gold Loan at kollam Branch 6. P. Chandrika Devi Director 6. HDFC Bank 7. Sidharth Ram Director 7. ICICI Bank 8. N. Govindan Director 8. South Indian Bank 9. Sriraag Subramonian Director 10. Chandra Mohana Prasad Independent Director Registrar & Transfer Agents Inauguration of our Palakkad Branch 11. Vishnu Prasad B Menon Independent Director Integrated Registry Management Services Pvt Ltd 2nd Floor, Kences Towers Company Secretary No. 1 Ramakrishna Street, 1. Sripriya M Shenoy North Usman Road T Nagar, Chennai - 600 017. General Managers 1. G.S. Ajith Prasad- General Manager & CFO Debenture Trustee George Joseph Other Executives 37/2038, Muttathil Lane 1. Sumeet C Menon- Asst. General Manager Kadavanthra 2. Vipin Sebastian- Asst. General Manager Cochin - 682020 2. Gopakumar K- Chief Operating Officer 3. V Hariharan- Chief Credit Officer Registered Office Gosree Finance Limited Statutory Auditors 41/889-A3, Moopen Complex, M/s Krishnamoorthy & Krishnmoorthy NH Bypass Service Road, Chartered Accountants, 39/3217, Paliam Road, Padivattom, Edappally, KOCHI – 682024 Ernakulam, Kerala –682016 Disclaimer This document contains certain forward-looking statements, which are purely based on assessment of current economic, financial, social and political factors and environment by the Management of Gosree Finance. These factors are subject to change and would have significant impact on the outcome. Hence, this document should not be construed as an offer or recommendation to buy or sell any securities or products of the Company. 5 Annual Report 2019-20 THE GOSREE STORY Kerala the ‘Gods own country’ is the home for several 28.01.2015, and started regular lending activity in successful scheduled commercial banks, NBFC’s and other December 2015 and is a continuously profit making organised/unorganized financial institutions. Many of the Company. It has presently a LOAN book of Rs. 82.00 crores. MISSION NBFCs which had humble beginning decades back grew It has set up a wide DSA network to source loan proposals To Protect interests of all stakeholders in geometrical progression and spread their wings across and has at present 16 branches; it has laid out detailed by delivery of excellent customer service the country offering a slew of unique products and services plans to expand its foot prints in the states of Kerala, through unique and transparent financial to the people. All of them have grown to significant scale Tamil Nadu and Karnataka within the next three years – products and solutions, by developing justifying the confidence reposed in them by their stake Targeting around 40 branches. human resources through recognition, holders. It was in this background that Gosree Finance motivation and reward to the employees, Limited was established in Cochin, the prehistoric city The Company has put in Centralised loan sanction, disbursal, documentation and collection mechanism to by optimizing the returns to the which hosted and accepted the Jews and Arabs and the shareholders and enhancing shareholder western world as their trading partners. build efficiency of operations. Currently the Company has launched a product “SME Micro Loans” with individual value and by giving back to the Society Gosree Finance was promoted by professionals from the loans ranging from 1 to 5 lakhs to cater to the needs of through value creation, enforcement VISION banking industry, Development bank, premier regulatory smaller category of SME segment with attractive inbuilt of sustainable practices, respect to To become Trusted partner for progress organization, Chartered Accountant fraternity and the features, which now forms over 18% of its total loan book. individuals and communities etc providing easy and quick access to finance. persons of high repute and integrity from the business The Company is also focussing on medium SME segment community. They identified unmet credit needs of to build its asset portfolio, which assets are mostly backed MSME segment and hoped to meet through the setting by mortgage of commercial/residential/urban property. up of Gosree Finance. Despite priority sector lending requirements and verticals focused on MSME, micro The Company is working in a fully computerised finance etc, Indian banks have largely been unable to environment – Loan Origination System being introduced. meet the credit needs of the micro SME segment, due to The Company could get BBB- rating for its borrowing KEY STRENGTHS various reasons. The resource crunch experienced by the programme in the second year of operations itself, which Efficiency of Operation Human Resources micro SME segment has prompted these businesses to was subsequently renewed and retained current year go to informal and private sources of credit from usurious also. Company is following sound principles of financial The Company follows time tested procedures formulated A good people organization. We attract, train nurture lenders and this has severely hampered the growth of the management and corporate governance standards by veteran Bankers and personnel from reputed financial and retain the talent to enhance the efficiency of the micro SME business in India. At the same time, several and regulatory compliances in its journey to grow as a institutions, regulatory body and the industry fine-tuned company. Participation and involvement of employee will Government initiatives like direct credit of Govt assistance responsible all India financial institution tapping the huge to the present needs. Products are introduced after be ensured by their improvement and providing them a to the accounts of beneficiaries, Ambitious programme of opportunities available in the fastest growing economy. extensive study by the experts in the segment which part of the fruits of their contribution. Efforts are made direct assistance to small and marginal farmers, Special is the core strength of the company. We have robust to induce energy, enthusiasm and excitement about the focus on MSME sector which add to 40% of GDP and is the It’s a good People’s Organisation – believes in attracting, credit monitoring and credit collection team in the field, organization. The goals of the company are aligned to the largest employer in the unorganised sector, thrust on PM training, nurturing, retaining, rewarding and satisfying working with the customers. All feedback will be through aspiration and progress of the employees. Company is in Awas Yojana, large investments in Infrastructure planned, growth aspirations of its employees. Building a team online process. Company is having good technology back the process of instituting appropriate reward programmes Skill India programme etc are all expected to put money of young professionals to take the company’s fortunes up and legal support system to effectively manage the for employees. into the economy and to spur the economic activities. It forward, as part of Management succession plan portfolio. We are continuously working to improve our will increase the purchasing power of the large segment of Turnaround time to satisfy the customer needs. A strong Corporate Governance The Company has two subsidiaries (1) M/s.Gosree the common man also, which in turn will increase savings balance sheet over the years is our goal. Company has Insurance Broking Services Pvt Ltd, to do the Insurance To ensure strict compliance of regulatory norms and and investment. It is expected that the renewed vigour plans to invest in emerging technology and processes to Broking and Financial Services and (2) M/s.Gosree to safeguard the ethical values, Corporate Governance introduced in the financial sector will take our country to enhance efficiency of operations. Also Company has plans Investments and Risk Services Pvt Ltd, to render Insurance Policies are put in place with best practices as basic to this the USD 5 trillion economy, as planned. to foray its operations in Fintech domain. Advisory and wealth Management services. Also plan to structure. It covers the entire activities of the company.