POONAWALLA FINCORP Share price

Magma Leasing Limited was incorporated on December 18 1978as ARM Group Enterprises Private Limited and was convertedinto a Public Limited Company with effect from October 301980. For nearly a decade and a half the Company has beencarrying on various business activities in manufacturingtrading and financial services and has laid the foundationfor emerging as a multi-divisional enterprise specialisingin diverse lines of business such as* Financial Services covering leasing hire-purchase andbill discounting through a separate division as well asthrough an exclusive Financial Services Company calledMagma Leasing Limited (erstwhile) which was separatelyincorporated for the purpose.* Real Estate Leasing including developing of primeproperties in Calcutta into multi-storied buildings andcreating valuable commercial space and leasing out of thesame.* Manufacturing and trading of HDPE/PP Woven Sacks andlaunching the exports of these products.* Manufacturing and selling of Industrial Gases.* Distribution and marketing of entertainment electronicproducts and consumer durables from the House of BPL.The growth of the Company on the above lines of businessnecessitated the consolidation and restructuring of the samein order to make it more manageable and profitable and amajor restructuring exercise was carried out subsequent towhich the various business divisions of the Company weretransformed into independent corporate bodies.While with effect from June 1 1993 the manufacturingfacilities for HDPE/PP Bags took separate identity as MAGMAPETROPACK LIMITED the marketing and distribution of ''BPL''entertainment electronic products and consumer durables wasspecialised in another Company called MAGMA MARKETINGPRIVATE LIMITED (with effect from October 1 1993).Simultaneously with the hiving off of these divisions ARMGroup Enterprises Limited absorbed its own creation MagmaLeasing Limited as well another associate ARM LeasingLimited by merging these two companies into it. The mergerwas approved by the Hon''ble High Court with effect fromApril 1 1992 and the Board of Directors of the Companydecided to lay emphasis on the key growth area of FinancialServices and Real Estate Leasing. Heralding this shift inemphasis the name of the Company was also changed from ARMGroup Enterprises Ltd. to Magma Leasing Limited (August 241993).The activity of manufacture and selling of Industrial Gaseshas been subsequently discontinued by the Company.Another Company Calcutta Credit Corporation Limited wasearlier merged with ARM Group Enterprises Ltd. in 1987.Calcutta Credit Corporation Ltd. was one of the earliesthire-purchase companies in Eastern India having beenincorporated in 1937.PRESENT BUSINESSPresently the Company is operating in the financialservices sector mainly in the fund-based areas of activity.The Company has been operating in this area for nearly adecade and a half and has been operating in the followinglines of business as -* Financial Services covering leasing hire-purchase andbill discounting.* Real Estate Leasing and Development.The growth in activities and business of the Company isevident from the growth in the amounts disbursed by theCompany in each line of activity and growth in its incomeand profits as mentioned below (Rs. in lacs)Disbursements in : 1990-91 1991-92 1992-93 1993-94Leasing 273.09 367.00 904.00 1264.00Hire Purchase 0.00 85.00 1044.00 938.00The Company started the activity of Bill Discounting in1994-95 and has done a business of Rs.300 lacs in the firstquarter of 1994-95.