Its latest annual report states that ``The economic climate continues to be difficult and recessionary trends in various sectors of industry persist. However, as a result of the merger, the company has achieved a higher turnover of Rs 56.39 crore, representing a growth of about 18 per cent. The lease and hire purchase segment, as anticipated, contributed substantially to the income,'' the report stated.

The profit before tax increased from Rs 2.68 crore in 1997-98 to Rs 4 crore. Profit after tax also increased from Rs 2.44 crore to Rs 3.66 crore.

However, the company has stated in the annual report that the results of 1998-99 are inclusive of the effect of amalgamation with effect from April 1, 1998, and are not strictly comparable with the results of 1997-98.

Managing director of Nicco UcoAlliance Credit MK Ogra, who held the same post in Nicco Uco Financial Services, told The Financial Express that the non-performing assets have been drastically reduced through the merger.

``At present, our NPA level is only 4.5 per cent of the total assets. In the present economic scenario, this is excellent. Moreover, the interest covering and debt equity ratio has also improved with the merger,'' he said.

Nicco Uco Alliance Credit, an ISO 9001 company, has started financing the white goods purchases of public sector employees.

``We are financing the white goods purchases of the employees of some public sector enterprises like Assam State Electricity Board, Orissa State Electricity Board, Nalco and some other PSUs under the Orissa government. The companies stand guarantee on these loans,'' Ogra said.

Apart from this, the company is also financing large corporate houses and some international transaction relating import and export. It is also into the factoring business.