Corporate Profile
The Corporation was incorporated . as a Government company on 30 September, 1994 under Section 25 of the Companies Act, 1956 to promote economic and developmental activities for the "backward Sections" amongst minorities. The Buddhists, Christians, Muslims, Sikhs and Parsis have been notified as the national minorities. Preference is given to occupational groups and women. The Corporation extends concessional finance primarily for self-employment schemes. The company in general operates within the framework of guidelines provided by Government of India. At present, loans are being given to members of minorities are notified by the Central Government, whose annual family income is below double the poverty line.
It has been implementing its programmes through State Channelising Agencies (SCA), nominated by respective State Governments against Government Guarantee and has recently adopted, as a parallel strategy, scheme of Micro-financing through reputed NGO's also.
Financial Results/Highlights
During the year under review, excess of income over expenditure has gone up to Rs.6.87 crores and the Reserves and Surplus have increased from Rs.16.69 crores to Rs.23.55 crores registering a growth of 41.10% .
Sources of Funds (Rs. in Lacs)As on 31.3.1999
Share Capital 14912.24
Share Application Money (pending Allotment) 3200.00
Reserves and Surplus 2354.89
Total 20467.13
The Government of India/States have released Rs.149.1224 crores as share capital contribution since inception ... Funds not immediately disbursed for implementation of schemes/projects were invested by the Corporation during short periods keeping in view the guidelines issued by DPE. The interest earned from short-term deposits for 1998-99 was Rs.283.96 lakhs.
Share Capital
The authorized share capital of the Corporation is Rs.500 crores. The contribution earmarked for Central Government has been enhanced upto 60% (from 25%), 26% has been earmarked for State Government/U.T. and 14% for like-minded organisations ... Central Government and State Governments have contributed till date 52.33% and 20.86% of their respective shares ...
Contributions have been received for the first time from Madhya Pradesh, Tamilnadu, Rajasthan and Gujarat.
Sanction/Disbursement of Loans
During 1998-99 the Corporation has sanctioned Rs.61.42 crores to 17 SCA's. The cumulative sanction of loan till 31.3.99 was Rs.255.31 crores. The Corporation disbursed Rs.59.39 crores to 20 SCAs covering over 14000 beneficiaries during 1998-99 under Micro Financing Scheme ... Till July, 1999 the Corporation had received a total of 177 proposals from NGOs ... 38 proposals, constituting 19 proposals for Micro Credit (Rs.84.66 lakhs), 15 proposals for Interest Free loan (Rs.20.78 lakhs), 4 proposals for Grant-in-aid (Rs.5.42 lakhs) have been sanctioned. 34 proposals have been disbursed (17 Micro Credit - Rs.57.40 lakhs), (13 Interest Free Loan Rs.10.64 lakhs), (4 Grant-in-Aid - Rs.2.73 lakhs).
Repayments
The Corporation was required to recover an amount of Rs.40.71 crores from 27 SCAs on cumulative basis as on 31.3.1999. out of this, an amount of Rs.35.33 crores has been recovered contributing to a recovery of about 86.80%. The rate of recovery was 64.56% in 1997-98.
In respect of NGOs, Rs.3.49 lakhs have been recovered from 7 NGOs against the outstanding amount of Rs.3.89 lakhs from 9 NGOs ...
Recoveries from Beneficiaries
... The Corporation has been advising the SCAs. To recruit recovery agents on commission basis who may be ex-servicemen, retired and pensionable government servants, genuine NGOs etc ... To facilitate matters, the Corporation is even providing financial support for the purpose under its 1% additional interest margin scheme.
Scheme of Financing
The Corporation is operating three loan schemes viz. Term Loan, Margin Money Loan and Micro Financing Scheme.
Under the Term Loan Scheme, project costing upto Rs.5 lakhs are considered to cover upto 85% of the project cost subject to a maximum of Rs.4,25,000. Interest for loan upto Rs.1 lakh shall be charged @4.5% p.a. with a rebate of 0.5% on timely repayment ... For loan above Rs.1 lakh interest shall be charged @ 7.5% p.a. with a rebate of 0.5% p.a. on timely repayment ...
The Corporation has also taken the initiative to finance skill development training and technology upgradation of skilled minorities and its marketing ...
Among the targeted beneficiaries ...are craft persons ... They need support in marketing channels. Therefore, a beginning is being made by the-Corporation to provide such support ... by way of grant ... to a voluntary organisation (to) organize an exhibition-cum-sale in Bangalore ... With gathering of experience more such steps would be taken ...
Revised Lending Policy
Ministry of Social Justice and Empowerment has come out with a Revised Lending Policy to be implemented from 1.4.1999 ...
Human Resources: The Corporation has manpower strength of 31 as at 31s March, 1999 out of which 10 belong to SC, 1 belong to ST and 4 belong to OBC ....
The post of Chairman (remained vacant) after the expiry of the tenure of Mohd. Hidayatullah Khan ...
