PLATINUM FINANCE LIMITED
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
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.
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
Income from Operations 1013.44 442.34
Profit before Interest, 905.64 317.23
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.
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.
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.
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
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.
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.
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
On behalf of the Board
Place : Calcutta
Date : 11th October, 1996.