| The Directors have pleasure in presenting the 22nd ANNUAL REPORT
together with audited accounts of the company for the financial year
ended 31st March, 2012. The summarized financial results of the company
are given below:
I. FINANCIAL RESULTS :
(Rupees in lacs)
CURRENT YEAR PREVIOUS YEAR
Income from Operations 67.36 25.02
Depreciation & Amortization Expenses 2.95 3.48
Profit Before Tax 59.71 3.13
Less : Provision for Taxation 18.19 1.35
Profit After Taxation 41.79 6.35
Balance Brought Forward (91.26) (84.91)
Profits Available for Appropriations (49.47) (91.26)
PROPOSED APPROPRIATIONS :
i) Special Reserve Fund 5.48 5.48
ii) Balance Carried to Balance Sheet (49.47) (91.26)
II. GENERAL REVIEW OF OPERATIONS :
The global economy witnessed significant volatility during the year.
The enquiry for credit and the demand for funds thus also registered a
noticeable increase. The banks and financial institutions also reported
a smart increase in the credit off take. The demand for funds was thus
high. Despite the rising demand for funds, the interest rates remain
relatively subdued. This affected the profits of Banks and NBFCs and
thus profits of finance companies were relatively low. The company was
able to conduct safe and secured business but volumes were low because
a large part of demand for finance was at a very low rate of interest
and such business had to be foregone by the company. The company also
continues to face severe competition from banks and financial
institutions who offer credit at very low rates of interest. In fact,
our competitors are seeking to enter every niche of business with large
funds at their disposal. In view of such fierce competition, your
directors are making the necessary efforts to attract new business by
providing easy and quick but secured finance to customers. The Indian
economy continues to be on a strong footing and is poised to achieve a
major growth. The company is confident of meeting its performance aided
by such credit in the economy.
III. DIVIDEND :
In order to conserve the resources, your Directors are unable to
declare any dividends.
IV. DEPOSITS :
The Company has not taken any deposits from the public. The deposits
under finance contractual obligations have been received and refunded
in the routine course of business. There were no deposits, which were
claimed for repayment but were unpaid as at 31st March, 2012. The
company has complied with all the requirements of the Reserve Bank of
India in respect of receipt of deposits and maintenance of minimum
percentage of liquid assets.
V. REGULATORY GUIDELINES :
Your Company has fully complied with the requirements of the prudential
norms prescribed by the Reserve Bank of India, in respect of
provisioning requirements, capital adequacy, asset classifications and
restriction on concentration of credit and investments. Your Company is
registered with the Reserve Bank of India as a Non Banking Finance
Company in the category of Equipment Lease and Hire Purchase Company.
The Registration No. is 13.00906 dated 26th May, 1998.
VI. DIRECTORS :
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Mahesh Jethva, Director of
the Company, shall retire by rotation at the ensuing Annual General
Meeting and being eligible offers himself for re-appointment.
During the year under review, Mr. Karsan Keshav Chitroda, was appointed
as an Additional Director on the Board of Directors. Mr. Karsan Keshav
Chitroda would vacate his office on the date of ensuing Annual General
Meeting of the Company.
The Company has received notice under Section 257 of the said Act from
a shareholder proposing the candidature of the said Directors for the
office of the Directors of the Company. Accordingly, the resolution has
been proposed in the Notice of the forthcoming Annual General Meeting
of the Company for the Appointment of Mr. Karsan Keshav Chitroda, as a
Director of the Company.
Details of the Directors to be appointed/ re-appointed at the
forthcoming Annual General Meeting as required pursuant to clause 49
(vi) (a) of the listing Agreement are appended here with as Annexure I.
VII. SECRETARIAL AUDIT REPORT:
The Company has obtained Compliance Certificate from a Company
Secretary in whole time practice pursuant to section 383A of the
Companies Act, 1956 and the same forms a part of the Balance Sheet.
VIII. AUDITORS :
M/s. AMD & Co., Chartered Accountants, the retiring Auditors have
expressed their willingness to be re- appointed. It has been proposed
to re-appoint M/s. AMD & Co., Chartered Accountants as Auditors of the
Company. The Company has received a Certificate from them that they are
qualified under Section 224 (1) of the Companies Act, 1956 for
appointment as Auditors of the Company. Members are requested to
consider their appointment at a remuneration to be decided by the Board
of Directors for the financial year ending March 31, 2013 as set out in
the Notice convening the Meeting.
IX. AUDITORS REMARKS:
The remarks of the auditors are self-explanatory in nature and need no
further clarification.
X. STATUTORY INFORMATION:
The Company had no employees, drawing remuneration in excess of the
limits laid out under Section 217(2A) of the Companies Act, 1956, read
with the Companies (Particulars of Employees) Rules, 1975.
XI. CORPORATE GOVERNANCE:
The Company, though it is not yet mandatorily required to comply with
the provisions laid down in the Listing Agreement on corporate
governance, has adhered to strict levels of corporate governance and
management.
XII. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
subscribe to the Directors Responsibility Statement' and confirm that:-
- In the preparation of the annual accounts, the applicable accounting
standards have been followed, along with proper explanation relating to
material departures.
- The Directors have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent, so as to give a true and fair view of the state of affairs of
the Company, at the end of the financial year and of the profit or loss
of the Company, for that period.
- The Directors have taken proper and sufficient care of the
maintenance of adequate accounting records in accordance with the
provisions of this Act, for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
- The Directors have prepared the annual accounts on a going concern
basis.
XIII. ACKNOWLEDGEMENT :
Your Directors wish to thank the Company's bankers and all other
associates, for their co-operation and support during the year.
For and on behalf of Board of Directors
Sd/-
Place : MUMBAI Mrs. Disha A. Mehta
Date : 31st May, 2012 Chairman, Managing Director |