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Coimbatore Lakshmi Investment & Finance Co Ltd.

BSE: 511435 Sector: Financials
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Coimbatore Lakshmi Investment & Finance Co Ltd. (CLIFCO) - Director Report

Company director report

COIMBATORE LAKSHMI INVESTMENT AND FINANCE COMPANY LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT Dear Members, Your Directors present the 22nd Annual Report and Audited Statement of Accounts for the financial year ended 31st March 2012. FINANCIAL RESULTS the Financial Results of the Company for the year under review are summarized below: (Rs. in lacs) For the For the Particulars Year ended Year ended 31.03.2012 31.03.2011 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) (2625.41) (2622.16) DIVIDEND 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. OPERATIONS 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. DEPOSITS 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 disposal, PREFERENCE SHARES 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. DIRECTORS 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 Board. 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. AUDIT COMMITTEE The Audit committee consists of following Directors viz., Smt. Mani Rajagopal, Sri.V. Ramanathanand Sri.S. Parameswaran. AUDITORS 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 that period. 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 basis. AUDITORS QUALIFICATION 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 outgo. PERSONNEL 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. ACKNOWLEDGEMENT 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 30.05.2012 Director 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. OUTLOOK 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 relations front.