| Your Directors have pleasure in presenting the Seventh Annual Report
of the company along with the Audited Statement of Accounts. At the
outset, I would like to, along with my Directors, thank you for the
confidence reposed in the company.
FINANCIAL PERFORMANCE
Financial Results for the year ended 31st March, 1996 are as follows:
Year Ended Year Ended
31-03-1996 31-03-1995
(Rs.in Lakhs) (Rs. in Lakhs)
Profit before Depreciation 28.42 24.70
Less : Depreciation 13.12 14.56
Preliminary Expenses written off 2.09 0.11
Profit Before Tax 13.21 10.03
Less : Provision for Tax 4.15 2.87
Profit After Tax 9.06 7.16
DIVIDEND
Your directors have recommended a dividend of 5% (subject to
deduction of tax at source) for the year 1995-96 to be paid on a
pro-rata basis.
OPERATIONS
The Year 1995-96 has been significant to your Company as it has
entered the Capital Market for the first time in October 1995 with an
issue of Rs.180 lakhs which was well received by the Investors.
During the year under review, the company had disbursed an amount of
Rs. 305 lakhs by way of Hire-purchase, Lease and other Loans.
Efficient recovery management and the lending norms adopted by your
company ensure adequate safety to its fund.
The Company has obtained Registration of RBI and complied with all
the norms prescribed by the Reserve Bank of India for NBFCs governing
important parameters such as Capital Adequacy, Asset Classification,
Income Recognition, Provisioning, Credit Concentration etc. for the
year. Your Company has also fallen in line fully with the accounting
standards issued by the Institute of Chartered Accountants of India.
The Company is confident of achieving better results in the coming
years.
PUBLIC DEPOSITS:
The Public Deposits outstanding as at the year end stood at Rs.78.06
lakhs as against Rs. 52.27 lacs as on 31st March, 1995. Your
Directors wish to express their gratitude to the Depositors for their
continued support and reiterate the commitment to the highest safety
and security of their funds. As at the year ending, Deposits
totalling to Rs. 3.43 lakhs matured but remain unclaimed or renewed.
Steps have been taken to obtain instructions from the deposit holders
to ensure repayment/renewal of these deposits.
FUTURE PLANS
Despite the continuing uncertainties in securing adequate funds by
NBFCs especially from banks and other institutions, difficult money
market conditions, your Directors certainly view the business to be
more prospective during the coming years with cautious optimism.
As a part of expansion, we have opened a new branch during the year
at Visakhapatnam, with this new branch, we have now two branches, the
other being at Vijayawada and we have expanded our operations
throughout Andhra Pradesh.
Your company is making arrangements to evolve with better strategetic
plans for entry into new vistas of business like Investment Banking,
Real Estate and Property Development activities during the year
1996-97 and we are confident that the company will continue to
perform well in future.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGES
Your company, being basically Hire Purchase Finance company, has not
consumed energy of any significant level and accordingly no measures
were taken for energy conservation and no additional investment was
made for reduction of energy consumption. No comment is made on
technology absorption considering the nature of activities undertaken
by your Company during the year under review. There has been no
foreign exchange income or outflow during the year under review.
DIRECTORS
Mr S R K MURTHY, Director, retires by rotation and being eligible
offers himself for re-appointment. Your directors recommend the
re-appointment of Mr S R K Murthy as a Director of your company.
Dr Suri Srimathi, Director, retires by rotation and being eligible
offers herself for re-appointment. Your directors recommend the
re-appointment of Dr Suri Srimathi as a Director of your company.
AUDITORS
M/s. Krishnababu & Associates, Chartered Accountants, Auditors of the
Company retire at the conclusion of the ensuing Annual General
Meeting. The Company has since received a letter from them expressing
their unwillingness for their re-appointment, the Board of Directors
have recommended the appointment of M/s. B K Hegde & Co., Chartered
Accountants as Auditors of the Company to hold office from the
conclusion of this Meeting till the conclusion of next Annual General
Meeting.
PERSONNEL
Your directors wish to place on record their appreciation for the
hard work, commitment and involvement put in by the employees of your
company. Their efforts go a long way in maintaining the continuous
growth and good results shown by your company.
The Company has not paid any remuneration attracting the provisions
of Companies (particulars of employees) Rules, 1975 read with Section
217 (2A) of the Companies Act, 1956. Hence, no information is
required to be appended to this report in this regard.
PROJECTIONS VS. ACTUALS
We furnish hereunder comparison of projected profitability figures
with actual figures as required by clause 43 of the Listing
Agreement.
(Rupees in Lakhs)
Particulars Projections Actuals
Total Income 84.90 66.20
Profit after tax 29.03 9.06
Reasons for Variations:
The year 1995-96 was a difficult year for all Non-Banking Finance
Companies (NBFCs) as banks and financial institutions have not
extended their full support to NBFCs by not considering
enhancement/fresh credit limits. Non release of even the sanctioned
limits and the tight money market situations coupled with abnormal
delay in receipt of public issue funds and allotment money have all
affected the deployment of funds in the right time.
ACKNOWLEDGEMENTS
Your directors wish to place on record their sincere appreciation for
the support and cooperation extended by the Bankers, Customers and
Depositors who have contributed to the growth of the company during
the year under review.
Your directors once again express their gratitude to the Members for
their support to the company.
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