Your Directors have pleasure in presenting this Nineteenth Annual Report and AuditedStatements of Account for the Financial year ended March 31, 2012.
| ||Current Year ||Previous Year |
| ||March 31. 2012 ||March 31, 2011 |
| ||(Rs. In Lakhs) ||(Rs. In Lakhs) |
|Income from Operations ||36.56 ||28.80 |
|Profit before Depreciation and Provision for taxation ||13.70 ||12.88 |
|Less: Depreciation ||1.11 ||1 38 |
| ||12.59 ||11.50 |
|Less: Provision for taxation ||3.60 ||2.75 |
|Net Profit ||8.99 ||848 |
|Add: Previous year's surplus ||67.10 ||62.61 |
|Amount available for appropriation ||76.09 ||71.01 |
|Appropriations || || |
|Transfer to Statutory Reserve ||2.00 ||2.00 |
|Transfer to General Reserve ||50.00 ||2.00 |
|Surplus carried to Balance Sheet ||24.09 ||67.09 |
| ||76.09 ||71 09 |
During the year the Company achieved a Gross Income of Rs.36.56 lakhs as compared toRs.28.80 lakhs during the previous year. The Profit before tax of the Company stood at Rs.12.59 lakhs, as against Rs 8.99 lakhs. During the year there were no major disbursements.The focus continued to be on recoveries and towards substantial reduction in operationalcost The net profit of the Company stood at Rs. 8.99 lakhs. During the year a sum of Rs. 2lakhs has been appropriated towards Statutory Reserve and Rs 50 lakhs towards GeneralReserve The resultant profit of Rs 4.99 lakhs has been carried to the Profit and LossAccount.
PRUDENTIAL NORMS FOR NBFCs
The prudential norms prescribed by the Reserve Bank of India for NBFCs for incomerecognition, provisioning for non performing assets and other directions issued from timeto time in this regard are followed by the Company. The Company has complied with thecapital adequacy norms and other directions issued by the Reserve Bank of India in respectof Non Banking Financial Companies from time to time.
In order to strengthen the financial position of the company the directors have decidednot to declare dividend for the year
Sri Shanti Kumbhat & Ajit Kumbhat retire at the end of this Annual General Meetingand being eligible, offer for re-appointment.
The Company has not accepted any fixed deposit from the public.
M/s. Krishnan & Giri, Chartered Accountants, Chennai retire at the forthcomingAnnual General Meeting. They have advised of their availability for re-appointment.
This year also was a challenging one for NBFC Sector, with falling liquidity andreducede demand for business. The Directors are of the opinion that some improvement canbe expected once the micro economic indicator improve.
The Company has obtained Compliance Certificate for the Year ended 31.03.2012 FromMr.Murugan Practicing Company Secretary.
INFORMATION AS PER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956
The Company has no activity relating to conservation of energy or technologyabsorption. The Company did not have foreign exchange earning or outgo.
The Company has no employee who is in receipt of remuneration in excess of the amountprescribed under section 217(2A) of the Companies Act, 1956 read with the Companies(Particulars of Employees) Rules, 1975
DIRECTORS' RESPONSIBILITY STATEMENT
In terms of section 217(2AA) of the Companies Act, 1956 your directors confirm asfollows :
i) that in the preparation of the annual accounts, the applicable accounting standardshad been followed.
ii) that the Directors had selected such accounting policies and applied themconsistently which are reasonable and prudent so as to give a true and fair view of stateof affairs of the company at the end of the financial year and of the financial year andof the profit or loss of the company for that year;
iii) that the Directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the company and for preventing and detecting fraud and other irregularities;
iv) that the Directors had prepared the annual accounts on a going concern basis
A Separate Report on Corporate Governance is incorporated as a part of this AnnualReport along with Auditor's Statement on its compliance, as prescribed under clause 49 ofthe Listing Agreement.
Your Directors wish to place on record their deep appreciation of the services of theDirectors and the members of the staff of the company,
| ||For and On behalf of the Board |
|Chennai ||Shanti Kumbhat |
|Date. 22/08/2012 ||Managing Director |