Chola Q4 results release.



NC Network 

 The Board of Directors of CIFCL on Monday  approved the audited financial results for the quarter and year ended 31st March 2019.
The Company transitioned from IGAAP to INDAS during this year. Financial results for the year is prepared as per INDAS and correspondingly for comparable purposes previous year figures has also been reinstated as per INDAS.
During the year, the industry faced liquidity constraints due to restrictive supply of market funds. Despite market constraints, with effective banking relationships, we were able to tap the banking lines and deploy it optimally. Further the company has been maintaining cash cover at around Rs.3000 Cr, to manage funds position for next 3 months.



Asset Quality

CIFCL continues to demonstrate strong asset quality and been able to reduce the Stage 3
receivables from 3.4% in Mar’18 to 2.7% in Mar’19 (under IND AS). As per the traditional IGAAP approach also the GNPA levels reduced from 3.0% in Mar’18 to 2.3% in Mar’19. A brief comparison under both IGAAP and IND AS is also given.


Capital Adequacy:

The Capital Adequacy Ratio (CAR) of the company as on 31st March 2019, was at 17.56% (As perIGAAP) as against the regulatory requirement of 15%.


Executive Director’s Comments:

Commenting on the results, Arun Alagappan, Executive Director, stated “We have been consistentin delivering growth over 25% in AUM, total income and PAT for the past few years and the growth has been phenomenal even during the current year across all major parameters. The Asset quality has improved further this year and is at an all-time low of 1.1% Net NPA.

During the year, the industry faced an adverse impact due to tightening of financing following the liquidity crunch. However, at Chola we did not have any impact having built credible relationships with banks and financial institutions, which resulted in more than adequate funds for the company to disburse”.

About Chola
Cholamandalam Investment and Finance Company Limited (Chola), incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.
Chola operates from 900 branches across India with assets under management above INR 54,000 Crores. The subsidiaries of Chola are Cholamandalam Securities Limited (CSEC), Cholamandalam Distribution Services Limited (CDSL).
The mission of Chola is to enable customers enter a better life. Chola has a growing clientele of over 8 lakh happy customers across the nation. Ever since its inception and all through its growth, the company has kept a clear sight of its values. The basic tenet of these values is a strict adherence to ethics and a responsibility to all those who come within its corporate ambit - customers,shareholders, employees and society. For more details, please visit www.cholamandalam.com


About Murugappa Group



Founded in 1900, the INR 329 Billion (32,893 Crores) Murugappa Group is one of India's leading business conglomerates. The Group has 28 businesses including nine listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., TI Financial

Holdings Ltd and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components, Transmission systems,cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM),Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents. Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 35,000 employees. For more details, visit
www.murugappa.com

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