About Smile Microfinance Limited
Smile Microfinance Limited is a Non-Banking Financial Company (NBFC) registered under the Reserve Bank of India. Smile Microfinance is mainly engaged in providing financing services to women from poor segments of Tamil Nadu. The company’s vision is not just to act as a financing company, but to help the needy.
Smile Microfinance Limited provides micro/small loans to poor women of Tamil Nadu for the purpose of small businesses or other revenue-generating activities. The company also provides loans for personal consumption. The company is mainly targeting the segment which is ignored by the traditional banks or financial institutions.
The best part of the company is its business model. They have adopted a joint liability group model for providing unsecured loans. This model ensures credit discipline through weekly/monthly/fortnightly meetings, mutual support, and peer pressure. In this model, if an individual fails to make payments on time, then the group might make the payment on the behalf of defaulting member of the group will use peer pressure to ensure the loan payment.
Smile Microfinance was the first urban Micro Finance Institution to be established in Chennai in 2005. For expansion, the company brings funds by debt and equity. They also have a specialized microfinance fund based in the USA for their funding. Developing World markets has infused Rs. 50 Crores in the company through the fund.
As of 31st March 2020, the company is operating in 7 States across India with a network of 137 branches.
CARE Ratings has assigned BBB- rating to Smile Microfinance Limited for its long-term bank facilities of Rs. 250 Crore.
21 March 1995
Category / Sub-Category of the Company
Company limited by shares
Address of the Registered office and contact details
14/25, Chakrapani Street, West Mambalam,
Chennai - 600033
Name, Address and Contact details of Registrar and Transfer Agent, if any
Cameo Corporate Services Listing
No. 1, Club House Road,
Near Spencers Signal on Anna Salai
Chennai, Tamil Nadu – 600 002
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Name and Description of main products/services
% to total turnover of the Company
Financial Services - Lending
BOARD OF DIRECTORS
Mr. Murali Srinivas P (MD & CEO)
Mrs. IndraniBhagwan Singh (Non-Executive Director)
Mr. J. Bradley Swanson (Non-Executive Director)
Mr. Aleem Remtula (Non-Executive Director)
Mr. Suresh K Krishna (Independent Director)
Mr. Rajan Samuel (Independent Director)
Mr. V S Padmanaban (Non-Executive Director)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
S.M.I.L.E. MICROFINANCE LIMITED does not have any subsidiary or associate company.
S.M.I.L.E. MICROFINANCE LIMITED UNLISTED SHARE DETAILS
Total Available Shares:
Rs. 10 Per Equity Share
Last Traded Price
Rs. 154.32 Crore
(As on 31-03-2020)
No. of Shares
% of total Shares of the company
The last two decades have seen the microfinance industry grow by leaps and bounds around the world and India is no exception. The number of non-banking finance companies providing microcredit products has gone up significantly. Microfinance is now recognized as being the vehicle to achieve India’s financial inclusion goals.
With technology penetrating the industry, the microfinance industries are expanding their services in innovative ways. The microfinance Industry has a huge potential in India. At the pan India level, micro-credit reached not more than 20% of total deserving households through a variety of channels including Banks, small finance banks, and microfinance institutes.
The threat of industry includes a high level of competition. As Small finance banks mainly focusing on this segment, and nowadays commercial banks are also showing active interest in the microcredit industry, the competition has become very intense.
The Outbreak of the COVID 19 pandemic across the globe and in India has contributed to a significant decline and volatility in the global and Indian Financial markets and a slowdown in economic activities. Since the duration and magnitude of COVID 19 is still uncertain, it will affect the plans of this industry for FY 2021.
However, according to ICRA, a rating agency, the microfinance industry is likely to face asset quality pressure in the short term. However, the majority of the microfinance industry will withstand any stress as their collection capacity is improving. Moreover, their balance sheets mention that they are maintaining sufficient liquidity for tackling emergencies.
KEY FINANCIALS OF S.M.I.L.E. MICROFINANCE LIMITED(In Rs. Lakhs)
Profit before Tax
Profit After Tax
BALANCE SHEET OF S.M.I.L.E. MICROFINANCE LIMITED(In Rs. Lakhs)
Cash and Cash equivalents
Other financial assets
TOTAL FINANCIAL ASSETS
NON FINANCIAL ASSETS
Other non financialassets
TOTAL NON FINANCIAL ASSETS
EQUITY AND LIABILITIES
Equity share capital
Other financial liabilities
TOTAL FINANCIAL LIABILITIES
NON FINANCIAL LIABILITIES
Other non financial liabilities
TOTAL NON FINANCIAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
DIVIDEND AND RETAINED EARNINGS
Dividend (In Rs.) (final + interim)
Retained Earnings (Consolidated) (In Rs. Lakhs)
PERFORMANCE OF THE COMPANY
Interest Income of the company increased by 7.88% from Rs. 11,341.61 Lakhs in FY 2019 to Rs. 12,235.63 Lakhs in FY 2020.
Despite an increase of 8.57% in total income in FY 2020, Profit After Tax of the company declined by 41.56% from Rs. 2,146.47 Lakhs in FY 2019 to Rs. 1,254.37 Lakhs in FY 2020.
The capital adequacy ratio of the company was 20.85% as of 31st March 2020. The minimum requirement of capital adequacy ratio is 15% intimated by RBI.
The total loan asset under management of the company increased to Rs. 60,647 Lakhs in FY 2020, an increase of 18% from Rs. 51,500 Lakhs in FY 2019.
The company’s total borrowings increased by 10% to Rs. 39,464.39 Lakhs in FY 2020, from Rs. 35,646.87 Lakhs. Total Loan given increased by 16% from Rs. 50,605.37 Lakhs in FY 2019 to Rs. 59,039.91 lakhs in FY 2020.
Gross NPA stood at 0.22% and Net NPA stood at Nil as of March 31, 2020, as against Gross NPA of 0.26% and Net NPA of Nil as on March 31, 2019.
The company has not given any dividends for the past 3 years.
In FY 2020, the company has opened new branches in Chhattisgarh, Jharkhand, Karnataka, and Madhya Pradesh.
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