| Dear Members,
The Directors hereby submit the Twenty Fifth Annual Report with
Audited Accounts for the year ended 31st March 2014.
(Rupees in Lakhs)
FINANCIAL RESULTS 2013-14 2012-13
Profit/(Loss) before Interest, Depreciation,
Tax, Bad Debts and Provision for Non-
Performing Assets (3.90) (2.84)
Less: Depreciation 0.55 0.60
Profit/(Loss) before Tax, Bad Debts &
Other Provisions (4.45) (3.44)
Less: Bad Debts Written off - -
Provision for Diminution in Investments (0.60) (1-30)
Provision for Non-Performing Assets - -
Profit / (Loss) after Tax (3.85) (2.14)
APPROPRIATION
Transfer to Special Reserve Fund
(As per RBI Act) - -
Balance carried to Balance Sheet - -
BUSINESS OUTLOOK
Your Company's strategy, as in the past will be to focus on profitable
growth, leveraging its intimate knowledge of the market and customer
relationships that have been built on a strong foundation of
personalized service.
DEPOSITS
All the outstanding Public Deposits as on 15th September 2004 Rs. 10.25
Lakhs and their accrued interest upto 31st March 2004, Rs.20.47 Lakhs
was transferred to an Escrow Account on 22nd September, 2004 with
M/s.City Union Bank Limited, Madurai. As on 31st March 2014 balance
out-standing in the Escrow Account was Rs.0.38 Lakhs.
The Company has not accepted any fixed deposit during the year under
review.
DIVIDEND
Your Directors regret their inability to recommend dividend in view of
accumulated losses.
ADVANCES
Total disbursements during the year under Hire Purchase Loan was
Rs.NIL.
MANAGING DIRECTOR'S REMUNERATION
The Managing Director has not received any remuneration during the
current year.
PARTICULARS OF EMPLOYEES IN TERMS OF SECTlON 217 (2A) OF THE COMPANIES
ACT, 1956.
None of the employees fall within the purview of the above Section and
the Rules framed there under.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF
DIRECTORS) RULES, 1988.
Parts A, B and C of the above rules does not apply to the Company.
DIRECTORS
Sri. R.Milton Amalraj, Sri.M.K.Balaji, Sri.M. Vijayakumar and Sri.
J.Moses Edward have resigned from the directorship on 16.06.2014.
Sri. A.Rajkumar, retires by rotation and being eligible, offers himself
for re-election.
Smt.Sweda Rajkumar retires by rotation and being eligible, offers
herself for re-election.
RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956 the Directors confirmed that:
a) in the preparation of the annual accounts for the year ended 31st
March 2014 applicable accounting standards have been followed with no
material departure.
b) your Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31st March 2014 and the loss for the year ended on
that date
c) your Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities and
d) the accounts for the year ended 31st March 2014 have been prepared
on a going concern basis.
CORPORATE GOVERNANCE
A detailed report on corporate governance together with a certificate
from the Statutory Auditors, in compliance with clause 49 of the
Listing Agreement, is attached as part of this report.
AUDITORS
M/s. P.T.Ponnaiah & Co., Chartered Accountants, Chennai retires at this
Annual General Meeting and are eligible for re-appointment.
REPLY TO AUDITOR'S REPORT
The qualification in the Auditor's Report are considered and the
Directors are taking steps to improve the position.
However Company's strategy, has been thwarted by the steps taken by
Income Tax Department by freezing the Company's funds, kept in their
accounts and recovering the same, in spite of the fact that the cases
relating to Income Tax matters are pending with Honorable High Court,
Madras and the cases have been decided in favour of the Company. The
Income Tax Department has recovered a sum of Rs.46.31 lacs so far from
the Company and the Company is entitled to received the Refund. This
recovery has affected financial liquidity of the Company and its
earnings.
ACKNOWLEDGEMENT
Your Directors thank the Bankers, Shareholders and Customers for their
continued support and co-operation to the Company. Your Directors
also appreciate the employees of the Company for their good work.
For and on behalf of the Board of Directors
Place: Chennai R.ALAGHENTREN
Date : 15th July, 2014 Chairman | 