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Haryana Financial Corporation Ltd.

BSE: 530927 Sector: Financials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Haryana Financial Corporation Ltd
NSE 05:30 | 01 Jan Haryana Financial Corporation Ltd

Haryana Financial Corporation Ltd. (HARYANAFINCO) - Director Report

Company director report

Your Directors present this 50th Annual Report together with the Audited statements ofAccounts on the working of the Corporation for the year ended 31st March 2017.

Financial Results

During the financial year 2016-17 the Corpoartion has achieved the following workingresults :

(Rs. in crore)

2016 - 17 2015 - 16
A. Income
Income from operations/other income 6.68 6.46
B. Expenditure
Interest & Other Financial Expenses 0.06 0.10
Personnel Expenses 5.65 6.56
Administrative Expenses 1.37 0.78
Depreciation 0.35 0.39
Bad Debts written off 0.02 0.04
Total Expenditure 7.46 7.87
C. Operating Profit / (Loss) (A - B) (0.78) (1.41)
D. Less : Prior Period Expenditure & Adjustments 3.41 0.00
E. Add : Provision against NPAs Loan Assets & investments written back 0.35 4.96
Net Profit / (Loss) (C - D + E) (3.84) 3.55

Operational Highlights

The Corporation has already stopped sanction of loans w.e.f. May 2010 as alreadystated in the previous Annual Reports. The details of the operations of the Corporationi.e recovery of its dues during the year are given as under:

(Rs. in crore)

Performance for the Year 2016-17
Sanction 0.00
Disbursement 0.00
Recovery 4.82

Recovery of Dues

The amount fallen due during the year was Rs. 190.12 lakh out of which the Corporationrecovered Rs. 189.27 lakh i.e. more than 99%. The Corporation also recovered Rs. 16.24lakh from previous over due which is about 86% of the previous over due. As perrequirements of the borrowers the ‘One Time Settlement Schemes' of the Corporationwas also extended during the year to make recovery under the NPAs cases. The Corporationmade efforts to contact the borrowers and pursued them to come forward under the abovesettlement schemes to settle their cases. During the year the Corporation was successfulto settle 22 cases. The Corporation also made the recovery out of u/s 29 cases RC casessuit filed cases and out of lease finance cases. Due to above measures the Corporationmade recovery of Rs. 4.82 Crore.

Resources Management

The Corporation has stopped fresh business/sanction since May 2010. No borrowings fromthe market/banks made during the year. As stated earlier the Corporation has since repaidits borrowings and there is no outstanding loan against the Corporation. The Corporationutilized its limited resources for meeting the commitments/liabilities during the year.The details of the sources are discussed in the subsequent paras.

Share Capital from State Government

Due to present position of the Corporation the State Govt has not sanctioned/releasedany amount towards share capital during the year.

Corporate Governance/ Management Discussion & Analysis Report

The Corporate Governance and Management discussion and Analysis report as per SEBI(Listing Obligations & Disclosures Requirements) Regulations 2015 is annexed asAnnexure with the Director's Report. A certificate from M/s Sharma Sarin & AssociatesCompany Secretaries on the above for the year ending on 31st March 2017 is also annexedwith this report.

Listing

The equity shares of the Corporation are listed at Bombay Stock Exchange Ltd. (BSEScript No. 530927). The Corporation has paid the Annual Listing fee of Rs. 2 lakh plusservice tax to the Stock Exchange (BSE) within time.

Audit

The shareholders in its 49th Annual General Meeting held on 10.11.2016 as perprovisions of section 37 of State Financial Corporations' Act 1951 appointed M/s R.RMallick & Associates Chartered Accountants Chandigarh (on the panel of the RBI) asStatutory Auditors for the financial year 2016-2017 (for 4th term) who have conducted theaudit of the Corporation.

As per guidelines in the normal course an audit firm may continue for a term of 4years in one spell. The term of 4 years of existing statutory auditors M/s R.P. Mallick& Associates Chartered Accountants Chandigarh has been expired. Accordingly the RBIvide their letter dated 07. 08. 2017 have forwarded a list containing the names ofeligible audit firms based at Chandigarh and complying with the norms for appointment asStatutory Auditors in public sector banks for appointment as Statutory Auditors for theyears 2017-18. The names of the 2-3 audit firms have been short listed and the item forappointment of statutory auditors for the year 2017-18 has been included in the notice forAGM.

Audit By Comptroller & Auditor General of India

The Comptroller & Auditor General of India (CAG) had conducted the audit of theaccounts of the Corporation for Financial year 2015-16 and their report has been placedbefore State Legislature as per provisions of State Financial Corporations Act 1951. Theaudit of the affairs of the Corporation for the year 2016-17 will be undertaken by theComptroller & Auditor General of India under section 37(6) of the SFCs'Act 1951 indue course.

Cash flow Statement

In conformity with the provisions of SEBI (LODR) Regulations 2015 the Cash FlowStatement for the year ended on 31.03.2017 is annexed with the Annual Accounts.

Board of Directors

The list of the Board of Directors as on 31.03.2017 has seperately been given in theAnnual Report.

During the year under review only 2 meetings of Board of Directors were held due toshifting Head Office. The detail of the number of meeting of the Board held during the FY2016-17 forms part of the report on Corporate Governance in terms of regulation 34(3) ofSEBI (LODR) Regulations 2015.

Change of Head Office of the Corporation

The Head Office of the Corporation at Bays Nos. 1718 & 19 Sector 17-A Chandigarhwas on rent. As per Supreme Court orders the said premises was vacated. The Head Officeof the Corporation has been shifted to the nearby place in the same sector i.e at 30 BaysBuilding (Ground Floor) Sector 17-C Chandigarh -160017. The intimation for the changeof the office address has been filed with the Stock Exchange (BSE). The notice of changeof the Head Office have also been given on the website of the Corporation and alsopublished in the newspapers (Hindi & English) for the information of theshareholders/public.

Postion of Winding Up/Liquidation of Corporation

It was already informed to the shareholders in the previous Annual General Meetingsthat the Corporation has since stopped fresh business/ sanction of the loan since May2010. The shareholders were also informed through notice for the last year AGM that theBoard of the Corporation (on the suggestion by the IFCI (Financial Consultant) andrecommendation of the Committee of Directors) in its 340th meeting held on 30.12.2015decided that the State Govt be requested to take further action for winding up of theCorporation in view of the provisions of section 45 of the SFCs Act 1951. The matter wasalso placed before the shareholders in the last AGM to consider and approve therecommendation of the Board for winding up /liquidation of Haryana Financial Corporationu/s 45 of the SFCs Act 1951 to the State Govt.. As approved by the Board and theshareholders the proposal for liquidation/winding up has already been forwarded to theState Govt.. The matter is under consideration with the State Govt. .

Acknowledgements

The Board of the Haryana Financial Corporation wishes to place on record its specialthanks and gratitude to Govt of Haryana Department of Industries Small IndustrialDevelopment Bank of India (SIDBI) for their continuous co-operation and support in all theoperational/financial matters.

The Board wishes to take the opportunity to thank the Banks and shareholders forextending their support and cooperation.

The Board of Directors placed on record its appreciation of the contribution made bypast Managing Director Sh. Sudhir Rajpal IAS and Dr. Raja Sekhar Vundru IAS.

The Board of Directors also placed on record its appreciation of the contribution madeby the outgoing Directors.

The Board placed on record its appreciation for the services rendered by the staff ofthe Corporation at different levels during the year.

For and on behalf of Board of Directors
Place : Chandigarh Managing Director