| Dear Members,
The Board of Directors of the Haryana Financial Corporation has great
pleasure in presenting this 48th Annual Report together with the
Audited statements of Accounts on the working of the Corporation for
the year ended 31st March, 2015.
Financial Results
During the financial year 2014-15 the Corpoartion has achieved the
following working results :
( Rs in crore)
2014 - 15 2013 - 14
Income
A. Income from operations/other income 6.97 13.46
Expenditure
B. Interest & Other Financial Expenses 0.43 0.01
C. Personnel Expenses 9.33 9.73
D. Administrative Expenses 0.80 0.81
E Depreciation 0.42 0.50
F. Total Expenditure (B to E) 10.98 11.05
G. Operating Profit / (Loss) (A - F) (4.01) 2.41
H. Less: Other expenditure
Prior period adjustment 0.00 0.20
Bad Debts written off 50.84 1.74
Total :(H) 50.84 1.94
I. Add : Other Income
Provision against NPAs written back 45.90 2.50
Profit on sale of Assets 9.06 0.00
Waiver of principal amount of Refinance 51.68 0.00
from SIDBI under OTS
Refund of Income Tax - AY 1995-96 0.04 0.00
Total (I) 106.68 2.50
J. Net Profit/(Loss) ( G - H I) 51.83 2.97
Operational Highlights
The Corporation has already stopped sanction of loans w.e.f. May, 2010
as already stated in the previous Annual Reports. The details of the
operations of the Corporation recovery of its dues during the year are
given as under :
Performance for the Year 2014-15 ( Rs. in crore)
Sanction 0.00
Disbursement 0.00
Recovery 13.08
Recovery of Dues
During the year, 'One Time Settlement Scheme' of the Corporation was
extended in view of the requirements of the Corporation/borrowers under
NPAs with a view to maximise the recovery and minimize the loan cases.
The Corporation made efforts to contact the borrowers and pursued them
to come forward under the above settlement scheme to settle their
cases. The Corporation also monitored the other borrowers (standard /
sub-standard) for the timely repayment of dues to the Coporation. Due
to the above measures, the Corporation made the recovery of Rs. 13.08
crore.
Resources Management
The Corporation has managed its limited resources efficiently. The
Corporation was able to meet its commitments. The details of the
sources are discussed in the subsequent paras.
Share Capital from State Government
During the year, the State Govt, has not released any amount towards
share capital.
Refinance
In the previous Annual Reports.it was informed that during the year
2010-11, the Corporation was able to settle its entire outstanding
refinance of Rs.181.68 crore due to the SIDBI at Rs. 130.00 crore
payable within a period of three years.
The Corporation paid Rs. 119.67 crore to the SIDBI upto 31.03.2014
against the settlement amount of Rs. 130.00 crore. On the
Corporation's request, the SIDBI has allowed the Corporation to pay the
balance amount by 30th September, 2014. The above arrangement was made
as per availability of the funds/best utilization of the limited
sources available with the Corporation.
The Corporation paid the balance amount of Rs. 10.33 crore to SIDBI on
29.09.2014 as per settlement. The Corporation also paid inteerst of Rs.
5,12,255/- on delayed payment for the period 01.04.2014 to 28.09.2014
against the demand of Rs. 65,31,249/- as negotiated with SIDBI. As on
31.03.2015, the Corporation has no outstanding loan against SIDBI/
others.
Corporate Governance/ Management Discussion & Analysis Report
The Corporate Governance and Management discussion and Analysis report
as per clause 49 of the Listing Agreement is annexed as Annexure with
the Director's Report. A certificate from M/s Sharma Sarin &
Associates, Company Secretaries on the above for the year ending on
31st March, 2015 is also annexed with this report.
Listing
The equity shares of the Corporation are listed at Bombay Stock
Exchange Ltd. (BSE Script No. 530927). The Corporation has paid the
Annual Listing fee to the Stock Exchange (BSE) within time.
Audit
The shareholders in its 47th Annual General Meeting held on 17.11.2014
as per provisions of section 37 of State Financial Corporations' Act,
1951 appointed M/s R.P. Mallick & Associates, Chartered Accountants,
Chandigarh (on the panel of the RBI) as Statutory Auditors for the
financial year 2014-2015 (for 2nd term) who have conducted the audit of
the Corporation.
M/s R.P., Mallick & Associates, Chartered Accountants, Chandigarh are
eligible for re-appointment for the FY 2015-16 i.e. for 3rd term. The
RBI vide letter dated 13. 05. 2015 have confirmed their eligibility.
Further as per RBI guidelines, M/s R.P. Mallick & Associates, Chartered
Accountants, Chandigarh have also submitted the necessary declaration
and other details to the effect that their appointment, if made, would
be within the prescribed limits and they are not disqualified for such
appointment within the meaning of provisions of Companies Act/RBI
guidelines.
The item for re-appointment has been included in the notice for the
AGM.
Audit By Comptroller & Auditor General of India
The Comptroller & Auditor General of India (CAG) had conducted the
audit of the accounts of the Corporation for Financial year 2013-14 and
their report has been placed before State Legislature as per provisions
of State Financial Corporations Act, 1951. The audit of the affairs of
the Corporation for the year 2014-15 will be undertaken by the
Comptroller & Auditor General of India under section 37(6) of the
SFCs'Act, 1951 in due course.
Cash flow Statement
In conformity with the provisions of clause 32 of the listing
Agreement, the Cash Flow Statement for the year ending on 31.03.2015 is
annexed with the Annual Accounts.
Board of Directors
The list of the Board of Directors as on 31.03.2015 has seperately been
given in the Annual Report.
During the year under review, 4 meetings of Board of Directors have
been held.
Acknowledgements
Your Directors take this opportunity to place on record its gratitude
to State Government, Department of Industries, Small Industrial
Development Bank of India (SIDBI) for their continuous co-operation and
support in all the operational/ financial matters.
The Board wishes to take opportunity to thank the Banks and
Shareholders for extending their support & co-operation.
The Board of Directors placed on record its appreciation of the
contribution made by past Chairman Sh. S.S. Dhillon, IAS and by the
past Managing Directors Sh. Tarun Bajaj, IAS and Sh. T.L. Satyaprakash,
IAS.
The Board of Directors also placed on record its appreciation of the
contribution made by the outgoing Directors.
The Board placed on record its appreciation for the services rendered
by the staff of the Corporation at different levels during the year.
For and on behalf of Board of Directors
Managing Director
Place : Chandigarh
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