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Platinum Finance Ltd.

BSE: 511541 Sector: Financials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Platinum Finance Ltd
NSE 05:30 | 01 Jan Platinum Finance Ltd

Platinum Finance Ltd. (PLATINUMFINANCE) - Director Report

Company director report

1996 PLATINUM FINANCE LIMITED DIRECTORS' REPORT Your Directors have pleasure in presenting their Third Annual Report together with Audited Accounts for the period ended 30th June, 1996. The current Financial Year is for a period of 15 months starting from 1st April, 1995 and ending on 30th June, 1996. The extension of the accounting year is primarily to reflect the correct workings of the company during the period. DIVIDEND Your Directors are pleased to recommend a dividend at the rate of Re. 1.00 per equity share amounting to Rs. 61,07,000 subject to deduction of tax. OPERATIONS During 1995-96, your Company executed fresh leases worth Rs. 446.06 lacs. The income from leasing operations increased from Rs. 80.04 lacs to Rs. 222.82 lacs representing an increase of 178%. Due to adverse capital market conditions, the fee income is less than last year. The capital adequacy of your Company was 57.54% against the minimum norm of 8%, as stipulated by Reserve Bank of India in their prudential norms. In compliance with clause 43 of the Listing Agreement with the Stock Exchanges, a comparison between the projected profitability of the company, reported in the Prospectus dated 13th June, 1994, and actual profitability is given below: (Rs. in Lacs) Projected for Actuals for the year ended the period ended 31.03.96 30.06.96 Income from Operations 1013.44 442.34 Profit before Interest, 905.64 317.23 depreciation lease equalisation & tax Profit after tax 304.85 141.42 Dividend (%) 20% 10% The above figures are not comparable as the current period ended 30th June, 1996 is for 15 months, whereas the projections are for 12 months. FUTURE PROSPECTS Your Directors look forward to the future with optimism expecting favourable results from the various policy decisions taken by the Government and Reserve Bank of India in terms of regulating the financial services industry. Despite the Capital markets being sluggish for a major part of the year, your company has performed well. Manned by highly committed professionals having the capacity to steer ahead in the changing scenario, your company is expected to perform well in the near future. During the year, your company opened an additional office at Ahmedabad, primarily to cater to the capital market segment there. With this the total number of offices has increased to four, and it is heartening to note that all the Branches are performing well. SUBSIDIARY COMPANY During the period, Platinum Stock Broking Services Limited, the wholly owned subsidiary of your company, has declared a maiden dividend of 3% on its equity. This company earned a net profit of Rs. 24.25 lacs as against the loss of Rs. 8.57 lacs incurred in the previous year. The accounts of the subsidiary company were extended to end on 30th June,1996 to conform with the holding company's year end. FIXED DEPOSITS The Fixed Deposit programme launched by your company has received favourable response. Your company's efforts will be to provide efficient and prompt service to the depositors. Deployment of these funds has been given utmost importance in terms of security and returns . As at 30th June, 1996, your Company had Fixed Deposits totalling to Rs. 28,30,000/-, which included deposits from non-residents also, of which two deposits totalling to Rs. 10,30,000/- were unclaimed as at 30th June, 1996. As of this date, the number of deposits remaining unclaimed is only one, amounting to Rs. 780,000/-. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION As the Company is engaged in leasing and financial services activities, disclosure under the rule is not applicable. FOREIGN EXCHANGE EARNINGS AND OUTGO During they year under review, your Company had no earnings or outgo of foreign exchange. DIRECTORS M/s. K N Memani, S R Sodhani, Y M Lodha, K M Lakhotia and Mrs. P Sodhani, resigned from Directorships of the company on 23rd August, 1995. Mr K V Mahadevan who was co-opted as an Additional Director on that date, resigned from the Board with effect from March 01, 1996. The Directors place on record their sincere appreciation of the advice and guidance given by these Directors during their tenure on the Board. Mr. V Subrahmanyan was appointed as an Additional Director on 22nd May, 1996 and holds office till the date of the forthcoming Annual General Meeting. The Company has received Notice under Section 257 of the Companies Act, 1956, from a member of the company signifying his intention to propose the appointment of Mr. V Subrahmanyan as a Director of the Company. Mr. P D Ojha, retires from the Board by rotation and being eligible, offers himself for re-election. AUDITORS M/s. Lovelock Lewes, Chartered Accountants, Statutory Auditors of the company hold office until the conclusion of the ensuing Annual General Meeting and being eligible are recommended for reappointment. PARTICULARS OF EMPLOYEES The Company had no employees drawing Rs. 3,00,000/- or more during the year and as such no particulars as required under Section 217(2A) of the Companies Act, 1956 has been furnished. ACKNOWLEDGEMENT Your Directors acknowledge with thanks the assistance, support and advice given by Shareholders, Reserve Bank of India, Banks, Financial Institutions, Securities and Exchange Board of India, Stock Exchanges, Central and State Governments and look forward to their continued support and guidance. Your Directors place on record their appreciation for the valuable dedicated and committed contribution made by the staff members of the Company. On behalf of the Board P.D. Ojha Chairman Place : Calcutta Date : 11th October, 1996.