DCM FINANCIAL SERVICES Share price

DCM Financial Services Ltd. (DFS) was incorporated asTanvi Leasing and Finance Pvt. Ltd. on 13th February1991. The name was subsequently changed to DCM FinancialServices Pvt. Ltd in February 1992 to reflect the fact ofits DCM pedigree as also the nature of its business.There after the Company became a public Company in July 1993under the provisions of Sec. 43-A of the Companies Act1956. Thereafter Shareholders of the Company passed aSpecial Resolution on 3rd June 1994 for deleting therestrication clause under the Section 3(1)(iii) of theCompanies Act 1956 and as such Company became fully PublicLimited Company within the meaning of Section 3(1)(iv) ofthe Companies Act 1956. The Company commenced itsoperations in April 1991.The Company belongs to the DCM Ltd. group which wasearlier a part of the DCM group established in the year1889. The DCM group was split up into four groups in theyear 1990 one of them being the DCM Ltd. a group headedby Dr.Bharat Ram. Over the years DCM has grown into one ofthe leading multi-product conglomerates of the country. Thebusiness interests of DCM Ltd today include TextilesEngineering Automobiles Electronics and Real Estatesamongst others. DFS is a subsidiary of DCM InternationalLimited which inturn is wholly owned subsidiary of DCMLtd.The Company is a Non-Banking Financial Company and isgoverned by the Non- Banking Financial Companies (ReserveBank) Directions 1977 issued by the Reserve Bank ofIndia.PRESENT ACTIVITIES OF THE COMPANYThe Company commenced its operations in February 1991. Themain activities under taken were lease financing ofcommercial vehicles. Since then the Company has steadilygrown and has added expertise in various areas of financialservices. It has also developed the requisite systems andinfrastructure in line with the market trends and futuregrowth.Today the Company''s cumulative exposure in vehiclefinancing is in excess of Rs.24 crores representing 1029vehicles and 861 customers. In addition to leasefinancing the Company has added new services like StockBroking Bill discounting Inter Corporate FinancingAdvisory services Equity research Bridge Financing etc.Lease and Hire Purchase: The Company is the largest financerof DCM Toyota trucks (Dyna) in India. The expertise andknowledge gained by the Company in the area of LCVfinancing shall help the Company in diversifying itsportfolio into other areas of vehicle financing such asHCVS passenger cars etc. The Company projectsdisbursements of Rs 20 Crores in the coming financial yearin this area.Corporate Lease: The Company has a diversified corporatelease portfolio with some of the major business houses ofthe country availing lease / hire purchase facilities fromthe Company. Keeping in view the projected growth in theeconomy and particularly in industry trade andinfrastructure the Company foresees adequate demand tomeet the projected levels of disbursements andprofitability.Money Market Operations (Bill discounting/ICDs):As part of the total financial services offered to theclients the Company arranges short term funds by wayof discounting of trade bills and placement of intercorporatedeposits. In this activity the Company deploys its ownfunds as well as acts as an intermediary between clients.In this segment the Company has stabilised its operationsin a short span and foresees tremendous growth because ofthe increased usage of such instruments in the IndianMoney Markets.Investments & Broking : The Company is engaged ininvestment in primary and secondary equity markets. Longand short term investment decisions are taken based onextensive research. The Company proposes to engage in thebusiness of corporate broking and institutional brokingincluding private placement of securities and trading indebt instruments. The Company has acquired the dealershipof OTCEI.Merchant Banking: The Company is proposing to enter intomerchant banking activities and has already obtained SEBIapproval to act as Category I merchant banker. Mainactivities which the Company is proposing to commence areIssue Management Underwriting consultancy servicescredit syndication and technology tie-up services.Activity wise performance data for last 3 years (Rs inlacs) 1993-94 1992-93 1991-92A) Income from operations1) Leasing - Gross 491.35 408.18 339.022) Hire Purchase-Gross 80.53 34.94 6.653) Bill Discounting - Gross 2.45 2.40 -B) Disbursements Made1) Leasing - Gross 346.96 315.10 942.572) Hire Purchase - Gross 574.36 307.58 212.293) Bill Discounting - Gross 365.88 27.71 -C) Bad Debts1) Leasing /H.P. 14.69 - -D) Recovery Percentage1) Leasing & Hire Purchase 91.06% 90.07% 89.71%2) Bill Discounting 100% 100% 100%Investment PolicyThe Company''s investment policy is based on strict criteriain appraising credit risks and norms for the company''scredit exposure based on overall and individual exposure toeach Industry Company and activity security of thetransaction balancing between risk and return. TheCompany closely monitors and reviews its outstandingcommitments/positions/transactions periodically dependingupon the amount of exposure market conditions paymentrecord of the party and other relevant factors. The powersfor overall deployment of funds are vested with thePresident of the Company which are reviewed from time totime by the Board.There are no non-recoveries of principal/interest due orbad and doubtful debts from Companies in which theDirectors are interested