COIMBATORE LAKSHMI INVESTMENT AND FINANCE COMPANY LIMITED
ANNUAL REPORT 2011-2012
Your Directors present the 22nd Annual Report and Audited Statement of
Accounts for the financial year ended 31st March 2012.
the Financial Results of the Company for the year under review are
(Rs. in lacs)
For the For the
Particulars Year ended Year ended
Profit/(Loss) before interest,
tax and depreciation (3.23) (4.97)
Interest 0.01 0.02
Income Tax - -
Depreciation - -
Profit/(Loss) for the year (3.24) (4.99)
Brought forward Loss (2622.17) (2617.17)
Since the company has incurred loss during the year under review, the Board
of Directors is not in a position to recommend any dividend for2011-12.
The Reserve Bank of India barred our Company from accepting or renewing the
deposits and the company was not allowed to enter into any fresh hire
purchase/lease business. During the year, the Company has made a loss of
Rs.3.24 lacs as against a loss of Rs. 4.99 lacs in the previous year.
The total Fixed Deposits outstanding as at 31.03.2012 is Rs. Nil.
REGISTRATION WITH RESERVE BANK OF INDIA
The Registration granted by the Reserve Bank of India expired on 31.03.2004
and the same has not been considered for renewal. The Company has preferred
an appeal before the Appellate Authority for NBFC's, which is pending
The company had issued preference shares on 09.03.1998 aggregating Rs.
80.35 lacs. The shares are required to be redeemed in three installments.
Due to the poor performance of the Company, the Company could not declare
any dividend to the preference shareholders. As the preference shares can
be redeemed only out of profits or fresh issue, no redemption is possible
as the company continues to incur losses and no fresh issue is possible due
to changed market conditions.
During the year under review, Sri. M.R. Achaya kumar who was Director of
the Company, vacated his office of the Director due to health reasons with
effect from 12.09.2011 and the Board places on record its appreciation for
the contribution and valuable services rendered by him during his long term
association with the Company.
The Board of Directors appointed Sri. S. Parameswaran as new Director of
the Company with effect from 12.09.2011, to fill the causal vacancy in the
Smt. Mani Rajagopal, Director of the Company, retires by rotation at the
ensuing Annual General Meeting. The retiring, Director being eligible,
offers herself for re-appointment,
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTIONS
AND FOREIGN EXCHANGE. EARNINGS AND OUTGO:
Furnishing of details regarding Conservation of Energy, Research and
Development, Technology absorptions and Foreign Exchange Earnings and Outgo
are not applicable to the Company.
The Audit committee consists of following Directors viz., Smt. Mani
Rajagopal, Sri.V. Ramanathanand Sri.S. Parameswaran.
M/s. Suri & Co., Auditors of the Company will retire at the ensuing Annual
General Meeting and they have given their consent for re-appointment. The
requisite certificate from Auditors, pursuant to Section 224(1 B) of the
Companies Act, 1956 has been received.
DIRECTORS' RESPONSIBILITY STATEMENT
In terms of the provisions of Sections 217(2AA) of the Companies Act 1956,
your Directors confirm:-
a. That in the preparation of the ' Annual Accounts, the applicable
accounting standards had been followed.
b. That the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable and
prudent so as so to give a true and fair view of the state of affairs of
the Company at the end of the financial year and the loss of Company for
c. That the Directors had 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 and;
d. That the directors had prepared the annual accounts on a going concern
With reference to the remarks of the Auditors in their report, we wish to
state as under;
a) & b) Regarding non-reconciliation of certain accounts and subsidiary
records, the Company is in the process of reconciling the accounts and
arriving at the correct difference. The provision may not be required on
completion of reconciliation of accounts,
c) Regarding confirmation of balance from parties, confirmation letters
have been sent,
d) The company accounts are maintained on a going concern basis. The re-
payment to depositors has been periodically reviewed by the Company Law
Board and the Reserve Bank of India.
e) As regards sales of assets of Bangalore Branch, the Company had
initiated legal proceedings against the employee for rendering correct
account of sale proceeds and other remaining assets.
INFORMATION AS PER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956
Your Company has no activity relating to conservation of energy and
technology absorption. The Company did not have any foreign exchange or
Your company has no employees drawing remuneration as prescribed under
subsection (2A) of Section 217 of the Companies Act, 1956 read with Rule 1A
of Companies (Particulars of Employees) Amendment Rules, 2011, during the
period under review.
REPORT ON CORPORATE GOVERNANCE
A detailed report on Corporate Governance is annexed to this report. The
Company has complied with the Conditions of Corporate Governance as
stipulated in clause 49 of the
Listing Agreement. The Certificate from the Auditors of the Company
confirming compliance of Corporate Governance requirements is also attached
to this report.
Your Directors wish to thank the Company's bankers, for their continued co-
operation. Your Directors also wish to thank the customers and the
depositors for their support. Your Directors place on record their
appreciation of the good work done by the employees of the Company.
By order of the Board
For Coimbatore Lakshmi Investment and
Finance Company Limited
Coimbatore (Sd.) V. RAMANATHAN
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENT
The NBFC industry has shrunk further and only a few large players are
continuing in business.
OPPORTUNITIES AND THREATS
There are no fresh opportunities in the Financing Industry. The Company has
to identify a different business plan for its sustenance.
SEGMENT-WISE OR PRODUCT WISE PERFORMANCE
The Company did not have any financing activities or any other activity
other than collections during the year.
The Company is still scouting to identify a different business plan and
upon Finalization of the plan will seek to take-up the business.
RISK AND CONCERNS
Since the Company is only collecting the receivables there are no
significant risks associated with this operation,
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has a proper and adequate internal control system to ensure
that all assets are safeguarded and protected against loss from
unauthorized use or disposition and that transactions are authorized,
recorded and reported correctly. Presently the book value of fixed assets
is NIL. The Audit Committee meets periodically with the Management and the
statutory Auditors to review the internal control systems.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Please refer Director's Report on Operation.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCE/INDUSTRIAL RELATIONS
The Company has no material developments in human resources/industrial