MUKUNDA INDUSTRIAL FINANCE LIMITED was incorporated on 1st February'
1985, and the Company commenced its business on 1st March 1985.
The Main objects are set out in clause III of the Memorandum of
Association of the Company which inter alia include
1) To carry on the business of leasing and hire purchase operations
of all kinds.
2) To carry on the business of investment and trading.
3) To carry on the business of general finance, legal trusts and
financiers of industrial enterprises.
4) To carry on the business as merchant bankers, portfolio managers,
underwriters, advisors, consultants to Public Issues.
5) To carry on the business of bills discounting, factoring and in
general as financiers of industry and business.
CURRENT BUSINESS OF THE COMPANY
The Company is engaged in Equipment Leasing, Hire Purchase Financing
of motor vehicles, industrial machinery, equipments, etc., since
incorporation. The Company is also offering Safe Deposit Vault
facility at its Corporate Office.
SUBSIDIARY OF THE COMPANY
The Company has no subsidiary Company.
PRESENT BUSINESS OPERATIONS OF THE COMPANY:
The Company started its Lease Finance operations in the year 1985 and
has established for itself a distinct place. Till March 31st 1994 the
Gross Leased Assets were Rs.473.56 lakhs reflecting a growth of 796%
as compared to its Gross Leased Assets of Rs.6.52 lakhs in 1985.
Lease Financing, in addition to strengthening the bottom line of the
has given a distinctive advantage of tax shelter. Through well
planned lease operations, the Company has been able to maintain high
returns. The income from lease operations accounted for 75.40% of
the total income for the year ended 31st March 1994.
The existing lease portfolio includes more than 200 clients with
sound financial track record consisting of corporate bodies, firms,
individuals of large, medium and small scale sectors. This has not
only resulted in earning high returns, but also helped to build up
financially sound lease port-folio with minimal incidence of defaults
recovery cost till date.
Presently, the Company provides lease assistance for plant &
machinery, equipment, light motor vehicles, heavy duty vehicles, rigs
& and consumer durables.
The lease period ranges between 3 to 8 years depending on the nature
of the assets leased. The lease period comprises of Primary &
Secondary periods. The Lease finance provided with the lease charges
termed as lease rentals are realised during the primary period of
lease & notional
rentals per annum depending on the lease finance provided are being
collected as rentals for the secondary period. Personal guarantee &
collateral security is also insisted upon, by the Company in certain
The Company has identified the following areas for expansion of its
1) Industrial Leasing of Plant and Machinery preferably used by Small
Scale & Light Industries.
2) Office automation systems, air conditioners, medical, electronic,
computer and other equipment.
3) Commercial/fleet vehicles.
4) Non-commercial motor vehicles.
The Company's other major operations are in Hire Purchase. The
company's clientele consists of more than 250 accounts. The Company
has been increasingly concentrating on Hire Purchase operations in
transport/automobile sector, plant and machinery and equipments in
small, medium and large industrial sectors.
As such, the Company, is maintaining a relatively high asset based
security, which has enabled to maximise its returns. Leasing and
Hire Purchase finance divisions of the Company are very buoyant since
inception. The Stock on Hire of the Company which was Rs.2.89 lakhs
in 1985 has grown substantially to Rs.171.21 lakhs on 31st March
The Company provides Hire Purchase Finance on light motor vehicles,
commercial & transport vehicles, heavy duty vehicles, rigs, plant &
machinery, equipment, & consumer durables.
The Hire Period ranges from a minimum of 12 Months to a maximum of 36
months. The Company has formulated various Hire purchase schemes &
the total finance provided is restricted between 60 to 90% of the
cost and finance charges varies between 12% to 15% flat p.a. based on
schemes of the Company.
ARRANGEMENTS FOR FOLLOW UP & RECOVERY
The recovery & follow up matters are presently being supervised by
the Manager-Operations of the Company, assisted by a Recovery Manager
with day to day recovery position from the Finance & Accounts
Departments. Post dated cheques towards the lease rentals/Hire
monies are being collected in advance from the lessees in certain
cases. The Recovery Committee constituted by the Board, reviews
every month, the follow up & recovery of the amounts receivable from
its constituents. Besides the
above, the Board has set certain exposure norms to its constituents
towards extension of credit facilities. In cases of overdue
accounts, reminders are sent through Registered Post Acknowledgement
Due. On defaults for a period exceeding three instalments, necessary
legal action for recovery is being initiated & in cases wherever it
deemed fit, the assets are repossessed. In view of frequent visits
being made by the Operations Department, the Company is in receipt of
first hand information of its constituents.
SAFE DEPOSIT VAULTS
The Company has been operating Safe Deposit Vault in a well situated
locality in Bangalore since January 1990. The Safe Deposit Vault
operations has been a success and has gained confidence of number of
customers. The occupancy rate of certain range of lockers is 100%
and the Company has also been able to mobilise deposits against
renting of the Vaults. This is acclaimed as one of the well
organised 'Vaults' in the non-banking sector in Bangalore.
2002-Mukunda Industrial Finance Ltd has informed that Sri R P
Agarawal has resigned as director of the company with effect from
October 9, 2002.
2002-Mukunda Industrial Finance Ltd has informed that Mr R Vijeyndra
Company Secretary has resigned and he is relieved with effect from
December 19, 2002.Mr G A P Shivayogi is appointed as the Company
Secretary and he will be the Compliance Officer.