KOUSALI INSTITUTE OF MANAGEMENT STUDIES,

KARNATAK UNIVERSITY DHARWAD.

ASSIGNMENT ON:

“RELIANCE COMMERCIAL FINANCE LTD.”

SUBJECT:
MICRO
FINANCE

SUBMITTED TO:

DR. SHIVAPPA

SUBMITTED BY:

Aishwarya Revankar (17MBA002)

Manjunath Naik (17MBA020)

 RELIANCE COMMERCIAL FINANCE LTD.

INTRODUCTION:

Reliance Commercial Finance Limited (RCFL) is a part of the Reliance Capital group and is
a 100% subsidiary of Reliance Capital Limited (RCL).. The Company is registered with
Reserve Bank of India (RBI) as a Non-Banking Financial Company without accepting public
deposits, as defined under Section 45-IA of the Reserve Bank of India Act, 1934. The
Company is principally engaged in lending activities.

The Company offers a wide range of products which include Small and Medium Enterprises
(SME) loans, Infrastructure financing, Agriculture loans and Supply Chain financing, Micro
financing and Vehicle loans. The focus in this business continues to be on asset backed
lending and productive asset creation.

Retaining the core values of Reliance Commercial Finance Ltd., we have now adopted a new
brand name to signify wide range of financial solutions that cater to our customer's evolving
financial needs.

Reliance Commercial Finance is now re-branded as Reliance Money in 2018. The

company has an AUM of ` 16,475 crore as at March 31, 2018, and a strong network of over
5,000 distribution partners serving customers in more than 200 locations across India.

By empowering customers and helping them realize their business dreams, Reliance Money
hopes to power India’s journey towards self-reliance.
MISSION: EXCELLENCE IN FINANCIAL SERVICES :

 To attain global best practices and become a world-class financial services enterprise –
guided by its purpose to move towards greater degree of sophistication and maturity.
 To work with vigor, dedication and innovation to achieve excellence in service, quality,
reliability, safety and customer care as the ultimate goal.
 To earn the trust and confidence of all stakeholders, exceeding their expectations and
make the Company a respected household name.
 To consistently achieve high growth with the highest levels of productivity.
 To be a technology driven, efficient and financially sound organization.
 To contribute towards community development and nation building.
 To be a responsible corporate citizen nurturing human values and  concern for society,
the environment and above all the people.
 To promote a work culture that fosters individual growth, team  spirit and creativity to
overcome challenges and attain goals.
 To encourage ideas, talent and value systems.
 To uphold the guiding principles of trust, integrity and transparency  in all aspects of
interactions and dealings.

HISTORY OF COMPANY

Reliance Commercial Finance Limited formerly known as Reliance Gilts Limited,

was incorporated on August 17, 2000 with the Registrar of Companies (RoC), Maharashtra,
Mumbai. Subsequently, as on May 21, 2009 the Company was registered as a Non-Banking
Financial Company without accepting public deposits, as defined under Section 45-IA of the
Reserve Bank of India Act, 1934.

The Company is principally engaged in lending activities and provides loans to small
and medium enterprises for working capital and growth, loans to commercial vehicles and
two wheelers, loans against property, personal loans and financing of various micro
enterprises.

BOARD OF DIRECTORS:
Shri Devang Mody Executive Director & CEO

Smt. Deena Mehta Independent Director

Shri Lav Chaturvedi Independent Director

Shri Arvind Mayaram Director

Shri Amrish Shah Chief Financial Officer

COMPANY OTHER INFORMATION:

CIN U66010MH2000PLC128301

Registration Date August 17, 2000

Name of the Company Reliance Commercial Finance Limited

Category / Sub-Category of the Company Public Company / NBFC

Whether listed company No

Headquarter Mumbai

THE INTENTION

To reach out to potential consumers who could use the company’s services in the near future
or would be interested in doing business with us.

CHALLENGES FACED BY RELIANCE COMMERCIAL FINANCE

  Less accessibility to new technologies and digital interface.
 User friendly communication mediums.
 Build an aspiration for the target audience.
 Subtle promotion of thebrand without bringing out technical aspects of products.

BELIEVES

Reliance Commercial finance believes by empowering SMEs and helping them realize their
business dreams, we hope to power India’s journey towards self-reliance.

FINANCIAL INFORMATION

Amounts in Rs. Crore,

FY 2018 FY 2017
Revenue from operations 2038.90 1909.74
Other Income 94.71 46.60
Total Revenue 2133.61 1953.34
Profit / loss 315.10 353.77
before depreciation tax
Less: 34.03 11.09
Depreciation and Amortisation
Profit / (loss) before Tax 281.07 342.68
Less: Provision for Income Tax 54.50 87.67
Less: Provision for Deferred Tax 18.20 (40.16)
Net Profit / (loss) after Tax 208.37 295.17
Add: Profit / (loss) 233.19 (2.95)
brought forward from previous year
Less: Amount Transferred to Special 41.67 59.03
Reserve
Less: Dividend paid to Equity 6.14 -
Shareholders
Less: Tax on Dividend 1.25 -
Profit / (loss) 392.50 233.19
carried to Balance Sheet
Earnings per share 16.95 46.04

FINANCIAL PERFORMANCE

During the year under review, Reliance Commercial finance ltd. Company has earned
Profit Before Tax of Rs. 281.07 crore for the financial year ended March 31, 2018 as against `
342.68 crore in the previous financial year and Profit After Tax of RS. 208.37 crore for the
financial year March 31, 2018 as against ` 295.17 crore in the previous financial year.

Depreciation was at Rs. 34.03 crore as against Rs. 11.09 crore in the previous year. An
amount of Rs. 41.67 crore was transferred to the Statutory Reserve Fund pursuant to Section
45-IC of the Reserve Bank of India Act, 1934

CAPITAL STRUCTURE
The Company’s Authorised Share Capital was enhanced to Rs. 10,00,20,00,000/- divided into
60,00,00,000 equity shares of Rs. 10/- each, 40,00,00,000 preference shares of Rs. 10/- each
and 20,00,000 preference shares of Rs. 1/- each on March 31, 2018.

During the year under review, pursuant to the Scheme of Arrangement, the Company has
issued and allotted 13,79,857 10% Non-Convertible Non-Cumulative Redeemable Preference
Shares of Rs. 1/- each on December 18, 2017.

The Company has also issued 1,25,00,000 Equity shares of face value of Rs. 10/- each on
March 28, 2018. Accordingly, the issued, subscribed and paid-up Share Capital of your
Company stood at ` 535.46 crore.

RESOURCES AND LIQUIDITY

The Company’s Net Worth as on March 31, 2018, stood at Rs. 2617.18 crore. The Company
has raised Rs. 8215 crore during the financial year 2017-18 by issuance of Commercial
Papers, Non-Convertible Debentures (NCDs) and other money market instruments.

The funds were deployed in providing ongoing funding requirements of the Company’s
business activities and refinancing of the existing debt obligations. The Company’s debt
equity ratio as on March 31, 2018 stood at 4.78:1.

PRODUCTS

 BUSINESS EXPANSION LOANS / SME LOANS

 INFRASTRUCTURE LOANS
 MICROFINANCE
 PERSONAL LOANS
 TWO-WHEELER LOAN
 USED CAR LOAN

MICROFINANCE

In India a large segment of the society, particularly low-income people, have very little access
to formal financial services.
The Indian government and RBI have been proactive in promoting ‘Financial Inclusion’ and
among the various initiatives, reaching out to the un-banked and under-banked populace in
partnership with MFIs and/or Pvt. Ltd. Cos. has been seen as an innovative and sustainable
method. People from this secluded part of the society too have aspirations to grow and are
industrious enough to fulfill all their dreams.

At Reliance Commercial finance too strongly believe in these dreams and have been
providing financial services in the remotest parts of India by partnering with Microfinance
Institutions (MFIs). They offer innovative microfinance solutions at competitive interest rates
and minimal documentation at their doorstep. And do wholesale funding to MFIs for on-
lending and provide guarantees to help MFIs avail funding from other sources.

FEATURES OF MICROFINANCE LOAN

 Wholesale lending for on-lending purpose

 Micro Finance and Micro Enterprise Loans through ‘Service Provider Model’
 Provide ‘Guarantee’ on PTCs, Covered Bonds and NCDs transactions
 Subscription to PTCs issued by NBFC-MFIs

Documents Required For Microfinance Loan In Reliance commercial

finance ltd.

 Application form.
 Passport copy / PAN Card / Ration card.
 Office address proof.
 Passport sized photographs of all applicants / co-applicants.
 Certified copies of MOA / AOA /Partnership deed.
 Repayment track record.
 2 years audited financials.
 2 yrs ITR of directors/partners.
 6 months bank statement of main operating account.
 Performa invoice to the equipment to be financed.
 Professional qualification certificate in case of Doctors/CA/Lawyers/Architects.


Who can avail of Reliance Micro Loans?

For on-ward lending, the following can apply:

NBFC and NBFC-MFI

Societies and Trusts involved in micro-finance activities

Minimum and maximum loan amounts in Reliance commercial finance ltd.

For On-ward lending: Rs 50 Lakh to Rs 50 Cr.

For Women Borrower (JLG Group): Rs 15K to 35K

For Micro-entrepreneur: Rs 1 Lakh to Rs 10 Lakh.

Tenure options in Reliance commercial finance ltd.

The loan can be repaid over a period of 12-48 months

Security, collateral requirements in Reliance commercial finance ltd.

For MF institutions up to 10% FD and 100% of Book Debts Hypothecation.

For micro-entrepreneurs mortgage of property.

For women borrower no collateral.

Repayment Option in Reliance commercial finance ltd.

For MF institutions Equate Monthly Installment.

For women borrower and micro-entrepreneurs repayment can be weekly, bi-weekly and
monthly.
FEES AND CHARGES
For Unsecured
Description
Sub-Product
Cheque Bounce Charges
Overdue Interest
Prepayment Charges
Loan reschedulement charges :
a) EMI Cycle Date Change
b) Tenure/EMI Reschedulement
For secured
Description
Sub-Product
Cheque Bounce Charges
Overdue Interest
Prepayment Charges
MEL Loans MFI ( ML / MU
Unsecured
Rs.350
26% (on the overdue amount)
i) 5% + G.S.T. within 12 months of
disbursement,
ii) 3% + G.S.T thereafter
a) Rs.2000
b) 3% of POS
MEL Loans MFI ( ML / MU
Secured
Rs.350
26% (on the overdue amount)
Cases disbursed since.
0 to 12 months: - 5% of the POS
 13 to 24 months: - 4% of the POS

25 and beyond: - 3% of the POS

Loan reschedulement charges :

a) EMI Cycle Date Change a) Rs.2000
b) Tenure/EMI Reschedulement b) 3% of POS

REFERENCE:

1. https://www.reliancemoney.co.in/microfinance

2.https://www.reliancemoney.co.in/documents/20621/24031148/Annual+Report
+2017-18.pdf/e7878144-752f-47c9-9781-39e794f439b7

3. https://www.icra.in/Rationale/ShowRationaleReport/?Id=77488