CHALLANI CAPITAL Share price

Indo Asian Finance Limited was initially incorporated as aPrivate Limited Company on April 17 1990 in the name andstyle of Anand Rishub Finance Private Limited. Then it wasconverted into Public Limited Company with effect from29.08.1991 and the name changed to Challani CreditsLimited. Subsequently the name was changed to Indo AsianFinance Limited on 14.07.1992 and further more Directorstraditionally engaged in the same business along withsubstantial contribution joined to strengthen the board.In the early days since inception the Company was primarilyengaged in the business of Hire Purchase which had been thetraditional mode of business of the Challani family fordecades. Gradually the company started to diversify intoprofitable finance schemes like leasing etc. and soonestablished its presence in these areas.Increase in Lease and Hire Purchase BusinessThe company has been in the Hire purchase and Leasebusiness since September 1991. The company now intends tocater to Corporate clients and finance assets on lease tolarge and medium sized companies also. Hire Purchasedisbursements are mainly in the retail auto segmentscovering commercial vehicles.MAIN OBJECTS OF THE COMPANY1) To carry on the business of financiers and to establishor promote or finance companies or firms for undertakingworks projects industrial enterprises whether by way ofmaking loans or advances to or subscribing to the capitalof such projects or industrial enterprises or financingundertaking and guaranteeing any business carried on orundertaken by financiers promoters underwriters brokersand bankers (except insurance and Banking business withinthe meaning of relevant statutes).2) To carry on the business in India or elsewhere of hirepurchase (i e.) letting on hire or selling on hire orselling on hire purchase system or otherwise on such termsand conditions as may be decided by the Board from time totime motorcars trucks scooters motorcycle and othervehicles ofevery kind and description motor cycle handlingequipments and devices plant machinery tools jigs sndfixtures office equipments and appliances such astelevisions radios transistors electronic equipments ofall kinds fan heaters coolers air-conditionersrefrigerators and other electrical appliances telephonesand intercom systems and other items that may be considerednecessary by the Board.3) To carry on in India or elsewhere the business ofpurchasing and letting on lease or on hire all kinds ofmachinery plants tools jigs and fixtures agriculturalmachinery ships trawlers vessels barges automobilesand vehicles of every kind and description computersoffice equipments and appliances of every kindconstruction machinery of all kinds and descriptionair-conditioning plants air craft electronic equipmentsof all kinds and description and clinical and surgicalequipments and appliances of all kinds and description.4) To finance and/or undertake operations of all kinds suchas purchase acquisition development construction ofsites houses flats lands plots and all form ofimmovable properties by whatsoever name called.5) To carry on investment business and to deal in sharesstocks securities and properties of all kinds anddescription and to lend money either with or withoutsecurity and generally to such persons firms companieswhether incorporated or not upon such terms and conditionsas may deem expedient in connection with the business ofthe company and in particular to customers and othershaving dealing with the company and to receive money ondeposit or loan and borrow raise money in such manner asthe company shall deem fit.PRESENT BUSINESS OF THE COMPANYThe company''s main business is Hire Purchase and Leasing ofMotor Vehicles Machineries equipments etc.HIRE PURCHASE AND LEASINGThe company is a non-banking Finance Company classified asHire Purchase Company and hence the major thrust is on HirePurchase and Leasing Business. The projections for thisbusiness is based on the expected growth in capital assetformation and increased industrial activities. With theliberalisation process initiated by the Government of Indiain the recent years and consequent growth of the CorporateSector and Capital markets there is ample scope forfinancial services companies. So far the company has beenfinancing under hire purchase facility mainly new cars andalso heavy vehicles and commercial vehicles.The Production and Sales of Cars have shown a considerableincrease in last year. With the increase in Sales of Carsthe potential for Finance Companies engaged in the Carfinancing is also growing.Economic liberalisation and thrust given to development ofcore sectors such as Transport Telecommunication Powerwould provide excellent opportunities to hire purchase andlease business. The leasing business also provides taxshield to the Company through depreciation charge. Withthe expansion and growth in these business the fundsrequirements will also increase.The deregulation of economy as considerably accelerated thepace of industrial growth and consequently the demand forcapital goods. Public Sector Enterprises are alsoaccessing the Market Borrowings and are also resorting tonew methods of financing and like Lease Financing to fundtheir projects. For example Department ofTelecommunication alone has estimated a leasing requirementof about Rs. 10000 Crores over the next few years (Source: 1994 Annual Report - Equipment Leasing Association ofIndia).The company is now proposing to finance under CorporateSector in a big way. With its established contacts backedby its Marketing Team the company will be concentratingmore on corporate sector both under Hire Purchase as wellas Leasing.During 1993-94 the total leased assets of the membercompanies of Equipment Leasing Association recorded agrowth rate of 31% to reach a figure of Rs. 2318 crores.The Stock on hire for these Companies grew by 44% duringthe same period to Rs. 3101 Crores. The above indicatesthe potential in this segment.The company during the years have been financing commercialvehicles and the demand has been increased steadily. Withits good recovery record the company is confident ofdeploying the funds to maximise its profit. It envisagesto the Corporate Clients also for achieving its end. Thecompany is also in the line of lease business for more thantwo years. With its concentration and expertise andadditional tax benefits to be derived the company ishopeful of enlarging its deployment in this field.PARTICULARS 31.03.91 31.03.92 31.03.93 31.03.94 (Rs.in lakhs)H.P. disbursements 40.25 49.97 143.22 355.06Lease Assets 4.10 4.19 60.38 50.61CURRENT ASSETS :The current assets to be employed represents short termparking of funds till its utilisation for the mainactivities of the company. Deployment of funds vary fromyear to year based on market opportunities and the timingof investing of the funds. The company envisages investingin liquid assets for a short term period such asintercorporate loans bridge loans with reputed companiesand concerns.INVESTMENT:Presently the company is investing in Primary Marketdealings to the extent of 5% of its turn over.Liberalisation and deregulation of interest rate etc. andsubsequent market growth the company is confident ofincreasing its stake to reap the benefits.SUBSIDIARY COMPANIESThe company does not have any Subsidiary Companies.