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Can Fin Homes

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Directors Report Year End : Mar '16    Mar 15
The Directors are pleased to present the 29th Annual Report of the
 business and operations of the Company together with the audited
 accounts for the year ended March 31, 2016.
 
 1. Financial Results
 
 The financial performance for the Fy 15-16 is summarised here below:
 
                                                          (Rs. in Lakh) 
 
 Particulars                                Year ended       Year ended
                                       March 31 , 2016   March 31, 2015
 
 Profit before Tax & Provisions              27,326.61        15,169.98
 
 Less: Provision for Standard Assets          1,400.00         1,200.00
 
 Provision for Doubtful Debts 
 (Written Back)                                 540.53           224.77
 
 Prior Period adjustments                         0.00             0.00
 
 Profit before Tax                           25,386.08        13,745.21
 
 Tax expenses:
 
 (a) Provision for Tax - Current year         8,000.00         4,323.00
 
 (b) Deferred Taxation                        1,675.56           797.91
 
 Profit after Tax                            15,710.51         8,624.30
 
 Balance brought forward from 
 previous year                                  309.30           521.72
 
                                             16,019.81         9,146.02 
 
 Appropriations:
 
 Transfer to Special Reserve 
 u/s.36(1)(viii) of the Income Tax            5,500.00         2,850.00 
 Act, 1961
 
 Transfer to General Reserve                  4,000.00         2,000.00
 
 Additional Reserve (u/s.29C of the 
 NHB Act)                                     3,200.00         1,800.00
 
 Proposed Dividend                            2,663.08         1,864.16
 
 Tax on Distributed Profits                     542.15           322.56
 
 Balance carried forward to balance 
 sheet                                          114.58           309.30
 
                                             16,019.81         9,146.02
 
 2. Shareholders''Wealth
 
 Particulars                                Year ended       Year ended
                                       March 31 , 2016   March 31, 2015
 
 Earnings Per Share (EPS) (Rs.)                  59.02            41.45 
 
 Dividend Rate                                    100%              70%
 
 Market Price of shares (Rs.)                 1,154.40           607.40 
 
 Market Capitalisation (Rs. in 
 Crore)                                       3,070.70         1,615.68 
 
 3. Business performance Highlights
 
 a. Sanctions
 
 The main challenge during the year under review was to increase the
 revenue with a focus to increase the bottom line. This challenge was
 particularly pronounced by the economic slowdown, high interest rates,
 slow realty sector growth and sluggish apartment off-take.
 
 During the year, your Company continued to focus on retail housing and
 non-housing loan segment which constituted 99% of its total sanctions.
 Housing and other loans sanctioned amounted to Rs.4,418 Crore (previous
 year Rs.3,670 Crore), a growth of 20% over the previous year and
 significantly higher than the H industry average. The cumulative loan
 sanctions since inception of your Company stood at Rs.20,911 Crore at
 the end of the Fy 15-16.
 
 b. Disbursements
 
 your Company recorded a growth of 17% in disbursements of housing loans
 and other loans that was higher than the industry average. The
 cumulative loan disbursements from inception to the end of the Fy 15-16
 was Rs.18,291 Crore.
 
 c. Loans outstanding (Loan Book)
 
 The loan(s) outstanding at the end of the financial year 2015-16 was
 Rs.10,643 Crore (previous year Rs.8,231 Crore), registering a growth of
 29%.
 
 your Company continues to give more thrust to increasing the share of
 high-yielding non-housing loans in the loan-mix. During the year, the
 share of non-housing loan has increased from 11.00% (Rs.905.80 Crore) to
 11.86% (Rs.1,261.81 Crore).
 
 d. Non-performing Asset (NpA)
 
 In a slowing housing loan market, one of the biggest challenges lay in
 addressing accretion of non- performing assets. your directors are
 pleased to report that even as the year under review was challenging
 for the country''s non-banking finance sector, the Gross NPA of your
 Company as on March 31, 2016 was Rs.19.76 Crore (previous year Rs.14.35
 Crore), possibly the lowest in the industry. The net NPA as on the date
 continued to be Nil, with the NPA Provision Coverage Ratio at 100%.
 The gross NPA percentage as on March 31, 2016 stood at 0.19% compared
 to 0.17% as on March 31, 2015.
 
 During the year under review, your Company could make a cash recovery
 of Rs.3.32 Crore (previous year Rs.1.37 Crore) in respect of accounts 
 which were Non Performing Assets as on March 31, 2015. Recovery in 
 written-off accounts during Fy 15-16 was Rs.0.74 Crore (previous 
 Rs.year 0.73 Crore).
 
 e. profits
 
 your Directors are happy to inform that during the year under review,
 your Company recorded a Profit Before Tax (PBT) and Provisions of
 Rs.273.27 Crore (previous year Rs.151.70 Crore) and Profit After Tax  
 (PAT) of Rs.157.11 Crore (previous year Rs.86.24 Crore) registering a 
 year-on-year increase of 80% and 82%, respectively. During the year 
 under review your Company has made provisions for standard assets 
 amounting to Rs.14.00 Crore (previous year Rs.12 Crore) and Rs.19.04 
 Crore (previous year Rs.9.69 Crore) towards the Deferred Tax Liability 
 (DTL) on Special Reserve. While the year-on-year ( yoy ) growth was 
 80.13% under Profit before Tax and Provisions, the same was 82.17% 
 under PAT with DTL component and 104.25% without considering the DTL 
 component.
 
 f. Dividend
 
 your Company has been paying dividends continuously.
 
 your directors have considered in detail about the dividend with
 specific reference to the funds and the Capital Adequacy Requirements
 (CAR) for the projected business plans for next year, creation of
 Deferred Tax Liability and expected future business growth of your
 Company.
 
 Considering the views expressed by the Members of your Company at the
 previous Annual General Meetings, appreciating the confidence reposed
 by the members in your Company, the Board of Directors of your Company
 are happy to recommend a dividend of Rs.10 per equity share (100%) for
  the financial year ended March 31, 2016 for all the shareholders 
 (against Rs.7 per equity share (70%) recommended during the previous 
 year). The tax on dividends u/s.115-O of the Income Tax Act, 1961, at 
 about 20.36% (previous year 17.30%), is being paid to the Government 
 by your Company.
 
 4. Expansion of Branch Network
 
 During the Fy 15-16, 3 new branches were opened by your Company in
 different States across the country, taking the total number of
 branches to 110 (previous year 107 branches). Further, your Company
 introduced the concept of ''Satellite Offices''by which many branches in
 metropolitan/tier-II cities can source business from additional
 locations (within 30 km radius) apart from providing doorstep service
 to existing/potential customers with lower operating costs considering
 the smaller unit size.
 
 your Company opened 20 new Satellite Offices across the country in Fy
 15-16 to take the tally of Satellite Offices from 10 to 30 as on March
 31, 2016. The total number of branches / satellite offices as on March
 31, 2016 stood at 140.
 
 With this branch network, your Company will enjoy a strong marketing
 and distribution capabilities to scale its business and address the
 growing needs of a larger section of customers.
 
 The Registered Office and all the branches are provided with
 state-of-the art ambiance, spacious premises, and other facilities to
 enhance service quality and visibility in the market.
 
 For the year Fy 16-17, your Company has envisaged opening
 branches/satellite offices in 35 locations, out of which 27
 branches/satellite offices were opened on a single day viz., on April
 21, 2016 and another 3 branches in May 2016.
 
 5. Technology Initiatives
 
 All the branches of your Company and the Registered Office are linked
 through a core-banking platform (Integrated Business Suite) under the
 Application Service Provider (ASP) Model that enriched data management
 and strengthened service delivery.  All the new branches were opened on
 the Core Banking platform from day one. your Company increased its
 bandwidth to enhance operational speed across branches through the ASP
 vendor through an additional connectivity provider (Tata and Reliance).
 
 In order to improve operational efficiency, your Company embarked on
 technology initiatives like the introduction of Online Application
 Module in the Company''s website to receive applications online, mobile
 website, customer portal in the website to draw account
 statements/certificates at customers'' end, missed call facility to
 borrowers to inform them about outstanding balances in their loan
 accounts, SMS alerts to remind borrowers of loan installments/new
 schemes. The Electronic Clearing System (ECS) facility for collection
 of installments covers almost 69.74% of the new accounts making the
 recovery process smooth and hassle-free.
 
 your Company has introduced online money transfer & ''E-info Book''as a
 mobile application, to facilitate its borrowers to view their
 mini-statement of account(s), product information, branch location and
 last six entries in their accounts.
 
 6. Customer-Friendly Initiatives
 
 During the year, your Company conducted studies for evaluating the
 systems/procedures/processes/products of peer group players to examine
 the best practices and implement/adopt those suitable, to ensure simple
 and customer-friendly processes.  Earnest efforts were made to reduce
 the turnaround time (TAT) in sanctioning and disbursing loans at all
 levels.
 
 your Company continued to adopt transparent, ethical, equitable
 practices towards all customer segments. your Company''s website
 provided all the major information on the products and applicable
 charges. The Fair Practice Code (FPC) and Most Important Terms and
 Conditions (MITC) reviewed at half-yearly intervals based on feedback
 from customers/branches and as per NHB guidelines. your Company
 received encouraging response to its unique referral scheme wherein
 many existing customers benefited from the refunds of their processing
 fees upon referring new customers to the Company and on getting the
 same disbursed.
 
 As another customer-friendly initiative, your Company has introduced
 on-line transfer facility to the borrower for making remittances to
 their respective loan accounts and an on-line customer feedback
 facility through which the customers can offer their suggestions,
 complaints, if any and feedback.
 
 7. Financial Resources
 
 a. Refinance from National Housing Bank (NHB)
 
 During the year, in all, your Company has availed fresh refinance
 amounting to Rs.630.64 Crore (previous year Rs.1,345.90 Crore) under
 the NHB refinance scheme to housing finance companies.The cumulative 
 NHB borrowings as on March 31, 2016 were Rs.3,535.05 Crore (previous 
 Year Rs.3,220.34 Crore), with the overall cost of borrowing (including 
 the loans under Rural Housing and Urban Housing Schemes) of 8.74% p.a. 
 as on March 31, 2016.
 
 Borrowings from Banks
 
 your Company progressively reduced its dependence on bank borrowings
 (31% to 27% of total borrowings on yOy basis). During the year,
 borrowings were diversified through a combination of short-term and
 long-term loans considering the asset liability management position to
 derive the maximum benefit of competitive interest rates. The lenders
 included HUDCO, State Bank of India, Bank of Baroda, HDFC Bank,
 Oriental Bank of Commerce and Federal Bank apart from Canara Bank, the
 principal bankers to the Company. The aggregate bank borrowings (term
 loans plus overdraft) at the end of the financial year stood at
 Rs.2,531.65 Crore (previous year Rs.2,307.12 Crore); 
 
 The overall borrowings are always within regulatory ceiling (16 times
 of audited net owned funds).
 
 The overall cost of borrowings was 9.81% p.a. as on March 31, 2016.
 During the year, the long-term ''rating''for term loans for your Company
 was ''[ICRA]AAA''(pronounced ICRA triple A) by ICRA Ltd., these ratings
 assumed to possess the highest degree of safety with regard to the
 timely servicing of financial obligations.
 
 While reaffirming the ratings by ICRA during February 2016, the outlook
 on the long-term ratings has been revised from stable to negative.
 
 b. Debentures
 
 (i) Secured Non-Convertible Debentures
 
 In its continuing efforts to reduce fund costs, your Company issued
 Secured Redeemable Non-Convertible Non-Cumulative Taxable Debentures
 (SRNCD) aggregating Rs.1,540 Crore (previous year Rs.300 Crore) in
 different tranches through private placement Rs. with a coupon rate range
 of 8.41% to 8.85%. The debentures were secured by way of a floating
 charge on the assets i.e., loan receivables specifically earmarked for
 the purpose/mortgage of an immovable property in favour of the
 Debenture Trustees.  Most investors in these debentures comprised major
 insurance companies, public sector banks, corporates and investors of
 repute, indicating their safety perception in your Company''s
 fundamentals and prospects.
 
 The tenure of debentures is range bound to two to three years.  The
 interest on these debentures was serviced as and when it became due.
 The aggregate borrowings by way of Secured NCDs as on March 31, 2016
 was Rs.2,090 Crore (previous year Rs.550 Crore) while the overall cost 
 was 8.94% p.a.
 
 The Debentures issued by your Company were rated by three rating
 agencies viz., Credit Analysis & Research Ltd. (CARE), India Ratings
 and Research Pvt. Ltd. (FITCH) and ICRA Ltd.
 
 The debentures were rated ''[CARE] AAA''by CARE, ''IND AAA''by India
 Ratings and Research Pvt. Ltd (FITCH), and ''[ICRA] AAA'' by ICRA
 Limited. While reaffirming the ratings by ICRA during February 2016,
 the outlook on the long-term ratings has been revised from stable to
 negative. These debentures were listed on the Wholesale Debt Market
 (WDM) segment of the National Stock Exchange of India Limited.
 
 your Company plans to raise Non-Convertible Debentures up to a maximum
 Rs.3,000 Crore (last year Rs.2,500 Crore as permitted by AGM) in a year,
 subject to cost benefit and asset liability management requirements.
 
 (ii) Unsecured Non-Convertible Debentures
 
 During the previous year, your Company had issued 8.94% Unsecured
 Non-Convertible Debentures in the nature of Tier II Bonds aggregating
 Rs.100 Crore for a tenure of 10 years. These debentures are subordinated
 to present and future senior indebtedness of the Company and qualify
 as Tier II Capital under the National Housing Bank (NHB) guidelines for
 assessing Capital Adequacies Requirements. These Tier II Bonds were
 rated ''IND AAA'' long-term rating by India Rating & Research Pvt
 Limited (FITCH), ''[CARE] AAA''by Credit Analysis & Research Ltd., (CARE)
 and ''[ICRA] AAA''by ICRA Ltd., While reaffirming the ratings by ICRA
 during February 2016, the outlook on the long-term ratings has been
 revised from stable to negative. your Company has serviced the interest
 on the above debentures on the due date.
 
 c. Commercial paper
 
 your Company started mobilising funds through commercial paper (CP)
 since July 2014. The outstanding at the end of the March 2016 was 
 Rs.1,000 Crore. The effective cost of funds H was 7.30% p.a. The CP 
 issue by your Company was rated at the maximum [ICRA] A1  rating by 
 ICRA Ltd., indicating, Instruments with this rating are considered to 
 have very strong degree of safety regarding timely payment of financial
 obligations.
 
 d. Deposits
 
 During the year your Company accepted deposits of Rs.67.66 Crore
 (Previous year Rs.113.62 Crore) The outstanding balance of deposits
 (including interest accrued, but not due) as of March 31, 2016 was
 Rs.220.97 Crore (previous year Rs.222.06 Crore).
 
 The rate of interest on public deposits ranged from 7% to 9.25%, while
 the overall cost of deposits was 9.47% p.a. as on March 31, 2016.
 
 As on March 31, 2016, a sum of Rs.17.06 Crore relating to 1,106 accounts 
 (Rs.14.50 Crore as on March 31, 2015 relating to 1,154 accounts) remained
 unclaimed/overdue. Of this amount, a sum of Rs.2.20 Crore relating to 239
 accounts (previous year Rs.6.67 Crore relating to 271 accounts) was
 claimed and renewed/settled as of May 18, 2016. The depositors whose
 deposits matured were intimated with a request to either renew or claim
 their deposits (followed by subsequent reminders). your company has not
 defaulted in repayment of deposits or interest during the year. The
 Company has complied with the requirements under Chapter V of the
 Companies Act, 2013 to the extent applicable.
 
 During the year, the deposit schemes of your Company are rated ''MAAA
 (pronounced as M Triple A) against ''MAA ''(pronounced M double A plus)
 during the previous year by ICRA Ltd., indicating highest
 credit-quality and that the rated deposit programme carried the lowest
 credit risk. While reaffirming the ratings by ICRA during February
 2016, the outlook on the long-term ratings has been revised from stable
 to negative. The reason for revision in outlook for the ratings, as
 stated by ICRA was due to revision in outlook for long-term debt
 programme of sponsor bank.
 
 your Company, being a housing finance company registered with National
 Housing Bank (NHB), has complied with the Directions/ Guidelines issued
 by the NHB with regard to deposit acceptance and renewal. your Company
 is exempted from the applicability of the Companies (Acceptance of
 Deposits) Rules 2014
 
 e. Mortgage-backed securities
 
 your Company did not opt for any securitisation during the year under
 review or during the previous year. There were no securitised assets
 outstanding as on March 31, 2016.
 
 8. Compliance with Directions/Guidelines of National Housing Bank (NHB)
 and other statutes
 
 your Company adhered to the prudential guidelines for non- performing
 assets (NPAs) as per the National Housing Bank (NHB) Directions 2010,
 as amended from time to time. your Company complied with the guidelines
 and directions issued by NHB on withdrawal of pre-closure charges for
 all loans. The Guidelines/ norms for asset classification of
 credit/investments, credit rating, acceptance of deposits, Fair
 Practices Code (FPC), Most Important Terms and Conditions (MITC)
 Customer Complaints Redressal Mechanism, Know your Customer (KyC),
 Anti-Money Laundering (AML) Guidelines, Asset Liability Management,
 Capital Adequacy Ratio (CAR) norms, Customer Redressal Mechanism and
 other related instructions, issued by the National Housing Bank (NHB)
 were implemented in letter and spirit with an explicit notification on
 the website of your Company.
 
 As per the National Housing Bank Circulars NHB.HFC.DIR.4/ CMD/2012
 dated January 19, 2012 and NHB.HFC.DIR.9/ CMD/2013 dated September 6,
 2013, in addition to the provision for non-performing assets, your
 Company has made a general provision @:
 
 (i) 1% of Standard Assets in respect of Commercial Real Estates other
 than Residential Housing,
 
 (ii) 0.75% of Standard Assets in respect of Commercial Real Estate 
 Residential Housing, and
 
 (iii) 0.40% of the total outstanding amount of loans, which are
 Standard Assets other than (i) and (ii) above.
 
 Loans to individuals for third dwelling units onwards are treated as
 Commercial Real Estate (CRE) exposure. A provision of Rs.14 Crore was
 made in the books as on March 31, 2016 and the cumulative provision in
 that regard stood at Rs.52 Crore as on the above date.  The recognition 
 of income and provision for all assets was made in the books as per the
 Guidelines on Prudential Norms applicable as of March 31, 2016.
 
 your Company carved out Rs.19.04 Crore from current year P&L and 
 Rs.18.50 Crore from General Reserves towards DTL as per NHB guidelines
 NHB(ND)/DRS/Pol.62/2014 dated May 27, 2014 and NHB(ND)/DRS/Pol.65/2014
 dated August 22, 2014 and ensured full compliance of regulatory
 guidelines. Amount which is proposed to be transferred to reserves is
 given in detail in Note no. 3 of Notes forming part of the financial
 statements
 
 your Company has complied with the Accounting Standards issued by the
 ICAI, New Delhi, and other related statutory Guidelines/Directions as
 applicable to the Company from time to time.
 
 Compliance of all Regulatory guidelines of NHB/other statutes are
 periodically reviewed at Audit Committee/Board.
 
 9. Compliance under the Companies Act, 2013
 
 The Companies Act, 2013, with Rules, were notified with effect from
 April 01, 2014 with substantial changes in the requirement of law. your
 Company has complied with the requirements of the above Act, as
 applicable, during Fy 15-16. In accordance with Sec 134 (3) (a) of the
 said Act, an extract of the Annual Return in the prescribed format is
 appended as Annexure 4 to this Report.
 
 10. Capital Adequacy
 
 The Capital Adequacy Ratio (CAR) of your Company as at March 31, 2016
 was 20.69% (previous year 18.39%), well above the Regulatory benchmark
 of 12% prescribed by the National Housing Bank (NHB). The increase in
 CAR was mainly due to downward revision of risk weightages by the
 National Housing Bank during October, 2015 as per directions of
 NHB/HFC/DIR17/ MD&CEO/2015/dt-October 9, 2015.
 
 11. Depreciation
 
 Depreciation was calculated on the Written Down Value Method as per the
 useful life, in the manner prescribed in Schedule II to the Companies
 Act, 2013. The Company reworked the useful life on various Fixed Assets
 as prescribed in Part C of Schedule II of the Companies Act, 2013 in Fy
 14-15. In respect of those assets whose remaining useful life as on
 April 01, 2014 was Nil, the same was adjusted to the General Reserve in
 Fy 14-15 as prescribed under 7(b) to the notes of the said Schedule II
 of the Companies Act, 2013. your Company followed the similar method
 for Fy 15- 16 also.
 
 12. Deferred Tax Liability (DTL)
 
 Vide Circular NHB (ND)/DRS/Pol.62/2014 dated May 27, 2014, the National
 Housing Bank (NHB) directed Housing Finance Companies (HFCs) to provide
 for deferred tax liability with respect to the balance in the Special
 Reserve created under Section 36(1) (viii) of the Income Tax Act, 1961
 as on March 31, 2014 and permitted to adjust the same from retained
 earnings. Further, vide Circular NHB(ND)/DRS/Pol.65/2014 dated August
 22, 2014, NHB permitted HFCs to adjust the Deferred Tax Liability in a
 phased manner over three years in the ratio of 25:25:50 starting from
 Fy 14-15. Accordingly, your Company has to adjust the DTL of Rs.7399.96
 Lakh in three years. During the current year, your = Company has
 transferred Rs.1,850.00 Lakh (Previous Rs.1,850.00 = Lakh) from the 
 General Reserve to DTL, on the Special Reserve outstanding as on March 
 31, 2014.
 
 Further, Deferred Tax Liability (net) of Rs.1,675.56 Lakh (previous  
 year Rs.797.91 Lakh) was charged to the Statement of Profit & Loss, on
 account of various components of asset & liabilities including Special
 Reserve appropriated during the current year.
 
 Further, Deferred Tax Liability of Rs.19.04 Crore (previous year Rs.9.69
 Crore) was charged to the Statement of Profit & Loss, H because of
 Special Reserve appropriated during the current year.
 
 13.  Recovery Action under Securitisation & Reconstruction of Financial
 Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi Act)
 
 During the year, your Company initiated action against 73 defaulting
 borrowers under the Securitisation and Reconstruction of Financial
 Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 and
 recovered Rs.2.66 Crore (previous year Rs.2.79 Crore) from borrowers of
 Non-Performing accounts.  By way of seized assets, your Company has
 recovered Rs.1.09 Crore (previous year - Rs.0.82 Crore). During the year,
 Company recovered Rs.0.74 Lakh in written off accounts (previous year Rs.
 0.37 Lakh). During the year, your Company negotiated one-time 
 settlement (OTS) with eligible NPA borrowers as per its recovery policy
 and recovered Rs.206.65 Lakh (previous year Rs.231.60 Lakh).
 
 14. Listing of Securities
 
 The equity shares of the Company are continued to be listed on the BSE
 Limited (BSE), Mumbai, and the National Stock Exchange of India Ltd.
 (NSE), Mumbai. The listing fee payable to these Stock Exchanges were
 paid before the due dates.
 
 The Securities & Exchange Board of India, vide its letter dated
 December 26, 2014 bearing No. WTM/ RKA/MRD/165/2014, granted an exit to
 the Bengaluru Stock Exchange Ltd., (BgSE)., Bengaluru.
 
 Listing Agreement: The Securities Exchange Board of India (SEBI), has
 notified the SEBI (Listing Obligations and Disclosure Requirements)
 Regulations, 2015 on September 2, 2015 with the aim to consolidate and
 streamline the provisions of Listing Agreements for different segments
 of capital to ensure better enforceability. The Regulations were
 effective from December 1, 2015.
 
 Accordingly, as per the requirements, your Company entered into Listing
 Agreements with the National Stock Exchange of India Ltd and BSE
 Limited within the prescribed period.
 
 Shri K.S. Sathyaprakash, FCS, continued to be the Compliance Officer of
 the Company during the Fy 15-16. The Board of Directors have authorised
 the Company Secretary and the Chief Financial Officer, severally, for
 reporting disclosure of material events, if any, in terms of Regulation
 30 of the said Regulations.
 
 15. Human Resources Development
 
 The total number of employees of your Company was 553 (395 regular and
 158 on contract) as on March 31, 2016 as against 491 (318 regular and
 173 on contract) as at the end of the previous year. your Company
 adopted the policy of recruiting local people in the respective branch
 locations to improve functional efficiency of the branches. Attrition
 rate stood at about 2% for regular employees, which is far below the
 industry level.
 
 To prepare employees in addressing the latest changes/ developments in
 the housing finance area and related subjects, some employees were
 deputed for training programmes/ seminars on topics of relevance to
 housing finance, organised by the National Housing Bank and other
 reputed institutions.  During the year, training in credit, information
 technology, human relations, finance, taxation, marketing, fraud
 prevention and other topics of importance were imparted to employees
 and executives.  your Company has put in place a series of HR measures
 including timely/continuous promotions, proper placements, implementing
 appropriate employee recognition schemes, rewards for good work at
 Board level, promising career path etc. Besides, eligible
 branches/branch employees were rewarded with unique cash incentives for
 reducing SMAs and NPAs.
 
 Industrial relations in your Company continued to be cordial during the
 year.
 
 Particulars of Employees:
 
 During Fy 15-16, your Company had not employed anyone with a
 remuneration of Rs.60 Lakh or more per annum nor had employed for a part
 of the year with a remuneration of Rs.5 Lakh or more. The ratio of
 remuneration of each Director to the median of employees remuneration
 and such other details as required under Sec 197(12) of the Companies
 Act, 2013 read with Rule 5(1) of the Companies (Appointment and
 Remuneration of Managerial Personnel) Rules 2014, are furnished below:
 
 i. The ratio of the remuneration of Managing Director to the median
 remuneration of the employees (regular employees) of the Company for
 the Fy 15-16 was 5.58 : 1 (Non-executive directors and Independent
 Directors are eligible for sitting fee only)
 
 ii. The percentage increase in remuneration in the financial year for
 Managing director was 28.00% (the remuneration of Managing Director is
 as per the Service Regulations of Canara Bank in terms of the
 resolution passed by the members at the General Meeting for appointment
 in the Company).
 
 The Chief Financial Officer and the Company Secretary are employees of
 the Company and the percentage increase in their remuneration was 21%
 and 23% respectively.
 
 iii. The percentage increase in the median remuneration of employees in
 the financial year: 26.56%.
 
 iv. The number of permanent employees on the rolls of the Company: 395
 
 v. The explanation on the relationship between average increase in
 remuneration and Company''s performance: The increase in remuneration of
 the employees is as per the HR Policy of the Company and not in
 relation to the performance of the Company. The variable Component of
 the salary of the employees is linked to the performance of the
 employee in terms of his/her key responsibility area.
 
 vi. Comparison of the remuneration of the Key Managerial Personnel
 against the performance of the Company: For the Fy 15-16, the total
 remuneration paid to the KMPs were approx. 0.34% of the net profit for
 the year.
 
 vii.  The Market capitalisation of the Company has increased from
 Rs.1,615.68 Crore as of March 31, 2015 to Rs.3,070.57 Crore as of March
 31, 2016. Over the same period, the price to earnings ratio moved from
 18.73% to 19.56%. The Company''s stock price as at March 31, 2016 has
 increased to Rs.1,154.35 (NSE) from Rs.607.40 (NSE) as at March 31, 
 2015.
 
 viii. Average percentile increase already made in the salaries of
 employees other than the managerial personnel in the last financial
 year and its comparison with the percentile increase in the managerial
 remuneration and justification thereof and point out if there are any
 exceptional circumstances for increase in the managerial remuneration:
 Average % increase in remuneration of the employees was around 15%,
 whereas that of Managerial remuneration was around 26%.
 
 ix. Comparison of the each remuneration of the Key Managerial Personnel
 against the performance of the Company: % increase y0y in the net
 profit of the Company was around 45% and that of the KMPs were as per
 para (ii) of the above.
 
 x. The key parameters for any variable component of remuneration
 availed by the directors and the ratio of the remuneration of the
 highest paid director to that of the employees who are not directors
 but receive remuneration in excess of the highest paid director during
 the financial year: Not Applicable
 
 xi. The Company affirms remuneration is as per the Remuneration Policy
 of the Company.
 
 During the year the Company has not engaged any employee drawing
 remuneration exceeding the limit specified under section 197(12) read
 with Rule 5(2) of the Companies (Appointment and Remuneration of
 Managerial Personnel) Rules, 2014.
 
 The Company has a Policy on Prevention of Sexual Harassment of Women
 at Workplace and matters connected therewith or incidental thereto
 covering all the aspects as contained under the The Sexual Harassment
 of Women at Workplace (Prohibition, Prevention and Redressal) Act,
 2013. During Fy 15-16 no cases of sexual harassment were reported. The
 Company has laid down a Code of Conduct for Prevention of Insider
 Trading, in accordance with the requirements under the Securities and
 Exchange Board of India (Prevention of Insider Trading) Regulations,
 2015 and Companies Act, 2013, with a view to regulate trading in
 Securities of the Company by its directors, designated persons and
 employees. The same is made available on the website of the Company.
 
 16. Transfer of unclaimed and unpaid Dividend/ Deposit Amounts to the
 Investor Education and protection Fund (IEpF)
 
 In terms of (section 125 of the Companies Act, 2013 yet to be notified)
 the amounts (dividend, deposits etc., with interest) that remained
 unclaimed and unpaid for more than 7 years from the date they first
 became due for payment, should be transferred to IEP F.
 
 As an investor-friendly measure, your Company has been intimating the
 respective shareholders/depositors/investors to encash their dividend
 warrant/renew matured deposits or lodge their claim for payment of due,
 if any, from time to time and claims made are settled. As per the
 statutory requirements, unclaimed deposits/ other dues for the previous
 seven years as of the date of the Annual General Meeting are made
 available on the website of MCA-IEPF as well as on the Company''s
 website.
 
 In order to receive prompt payment of dividend, the members/ investors
 are requested to demat the shares held in physical mode, register bank
 account particulars, opt for ECS facility, register nomination and
 intimate change of address, if any, to the Company/Depository
 Participants promptly.
 
 a. unclaimed dividends
 
 As at March 31, 2016, dividends aggregating to Rs.98.34 Lakh (previous
 year Rs.83.63 Lakh) relating to dividends declared for the years Fy
 08-09 to Fy 14-15 (of which Rs.25.57 Lakh related to dividend for the
 year 2015), had not been claimed by shareholders.  As an investor
 friendly measure, your Company has intimated shareholders to lodge
 their claims and related particulars were provided in the annual
 reports each year as well as on the website of your Company.
 
 The dividend pertaining to 2007-08, which remained unclaimed/unpaid
 amounting to Rs.7.43 Lakh (in respect of Rs.1,873 shareholders), was
 transferred to IEPF in October 2015, after the settlement of claims by
 members received in response to the individual reminder letters sent by
 your Company to the respective members.
 
 The dividend pertaining to 2008-09 remaining unclaimed and unpaid,
 amounting to Rs.5.49 Lakh (in respect of Rs.1,880 shareholders) as on 
 March 31, 2016, would be transferred to IEPF during August 2015 after
 settlement of the claims received up to the date of completion of seven
 years.
 
 b. unclaimed deposits
 
 As required under Section 125 of the Companies Act, 2013 (corresponding
 Section 205C of the Companies Act, 1956), the unclaimed and unpaid
 deposits together with interest for the year 2007-08 amounting to Rs.3.62
 Lakh (previous year Rs.19.43 Lakh) HH that remained unclaimed and unpaid
 for a period of 7 years were transferred to IEPF during the year under
 review.
 
 17.  particulars regarding conservation of energy, technology
 absorption and foreign exchange earnings and expenditure
 
 Since your Company is a housing finance Company and does not own any
 manufacturing facility, the requirement relating to providing the
 particulars relating to conservation of energy and technology
 absorption as per Sec 134 (3) (m) of the Companies Act, 2013 read with
 Rule 8 of the Companies (Accounts) Rules 2014, are not applicable.
 
 your Directors are pleased to inform that Solar Power systems and power
 saving lamps have been installed in 13 branches so far as a measure for
 conservation of energy. your Company has installed Solar-UPS in some of
 its branches. Certain branches of your Company have been using solar
 power energy, LED lamps etc.
 
 As a part of Save Green efforts and leverage of technology, a lot of
 paper work at branches and the Registered office has been reduced by
 suitable leveraging of technology (also refer para 5).
 
 During the year, your Company did not earn any income or incur any
 expenditure in foreign currency/exchange other than payment of Dividend
 to NRIs on repatriation basis to an extent of Rs.12 Lakh through
 authorised dealers.
 
 18. Directors & Key Managerial personnel
 
 Appointments / Re-appointments:
 
 The Board of Directors made the following appointments / re-
 appointments based on the recommendations of the Nomination and
 Remuneration Committee :
 
 (1) Shri C. Ilango, Managing Director (General Manager, Canara Bank)
 was re-appointed as the Managing Director with effect from April 28,
 2016
 
 (2) Shri Sarada Kumar Hota, Dy. General Manager, Canara Bank was
 appointed as Additional Director and Whole-time Director with effect
 from April 28, 2016
 
 (3) Smt. Bharati Rao, Former Dy. Managing Director of State Bank of
 India was appointed as Additional Director
 
 (Independent Director) with effect from April 28, 2016
 
 (4) Shri Sarada Kumar Hota, Whole-time Director of the Company has been
 appointed as the Managing Director with effect from May 19, 2016,
 consequent to repatriation of Shri C.Ilango, Managing Director, to
 Canara Bank.
 
 The directors had filed their consent(s) and declarations that they are
 not disqualified to become directors in terms of the provisions of
 Companies Act, 2013 and related Rules. The directors have intimated to
 the Company that they are not holding any shares or taken any loan(s)
 from the Company.
 
 The particulars of directors including their profile are provided in
 the Report of Directors on Corporate Governance forming part of this
 Annual Report. Further, the agenda relating to appointments /
 re-appointments of Directors are provided in the Notice of the 29th
 Annual General Meeting of the Company seeking approval and/or
 ratification from the members. The particulars relating to the
 Directors and all other relevant information are provided in the
 explanatory statement forming part of the said Notice for the
 information of members.
 
 The Board of Directors appointed Smt. Veena G Kamath, ACS, as the
 Company Secretary with effect from April 1, 2015. Further, the Board of
 Directors appointed the said Company Secretary as the Compliance
 Officer with effect from May 2, 2016.  Shri K.S. Sathyaprakash, FCS,
 Dy. General Manager and the former Company Secretary of the Company
 continued to be the Compliance Officer till May 1, 2016.
 
 Retirement by rotation:
 
 In terms of Section 152 and all other applicable provisions of the
 Companies Act, 2013, and the Articles of Association of the Company,
 Shri S.A. Kadur, Director, retires by rotation at the ensuing Annual
 General Meeting and being eligible, offers himself for re-appointment.
 The particulars relating to Shri S.A. Kadur, Director are provided in
 the Report of the Directors on Corporate Governance. your Directors
 recommend the re-appointment of Shri S.A. Kadur as a Director.
 
 The agenda relating to re-appointment of Shri S.A. Kadur, Director,
 forms part of the notice convening the ensuing Annual General Meeting
 and all other relevant information as per SEBI Regulations are provided
 in the explanatory statement.
 
 Resignations
 
 Shri C. Ilango, Managing Director of the Company submitted his
 resignation with effect from May 18, 2016 (after office hours)
 consequent to his repatriation to Canara Bank, as necessary permission
 was not accorded by the competent authority for extension of tenure
 beyond 5 years. The Board places on record its appreciation for the
 services rendered by Shri C. Ilango during his tenure of five years
 with the Company.
 
 Smt. Bharati Rao, Additional Director resigned from the Board of the
 Company with effect from May 18, 2016 due to personal reasons.
 
 19. Meetings of the Board
 
 During the year, six meetings of the Board of Directors were held and
 the related details, including that of various committees constituted
 by the Board, are made available in the Report of Directors on
 Corporate Governance forming part of the annual report placed before
 the members.
 
 Committees of the Board
 
 Currently the Board had six Committees viz. the Audit Committee, the
 Nomination and Remuneration Committee, the Corporate Social
 Responsibility Committee, the Stakeholders Relationship Committee, the
 Risk Management Committee and the Management Committee. A detailed note
 on the composition of the Board and its Committees and other related
 particulars are provided in the Report of Directors on Corporate
 Governance forming part of this Annual Report
 
 20. Directors''Responsibility Statement
 
 In accordance with the provisions of Section 134(3)(c) read with
 Section 134(5) of the Companies Act, 2013, and based on the information
 provided by the Management, the Board of Directors report that:
 
 a) In the preparation of annual accounts, the applicable Accounting
 Standards have been followed along with proper explanation relating to
 material departures, if any;
 
 b) the Directors have selected such accounting policies and applied
 them consistently and made judgements and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the end of the financial year and of the profit and
 loss of the Company for that period;
 
 c) the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities;
 
 d) the Directors have prepared the annual accounts on a going concern
 basis;
 
 e) the Directors, in the case of a listed Company, have laid down
 internal financial controls to be followed by the Company and that such
 internal financial controls are adequate and were operating effectively
 and
 
 f) the Directors have devised proper systems to ensure compliance with
 the provisions of all applicable laws and that such systems were
 adequate and operating effectively.
 
 The Independent Directors have given declarations to the Company in
 terms of with Section 149(7) of the Companies Act, 2013 that they meet
 the criteria of independence as provided in sub-section(6) of Section
 149.
 
 Code of Conduct
 
 In terms of Regulation 26(3) of the SEBI (Listing Obligations and
 Disclosure Requirements) Regulations, 2015, all the members of the
 Board and Senior Management Personnel have affirmed compliance with the
 Code of Conduct of Board of Directors and Senior Management for the
 Fy15-16. As required under Schedule V (D) of the said Regulations, a
 declaration signed by the Managing Director & Chief Executive Officer
 of the Company stating that the members of the Board and the Senior
 Management Personnel have affirmed compliance of their respective Codes
 of Conduct, is enclosed to this Report as Annexure 2.
 
 21. Nomination and Remuneration Committee (NRC)
 
 your Company constituted a Nomination and Remuneration Committee (NRC)
 of the Board in terms of Section 134(3)(e) of the Act and Regulation 19
 of the SEBI (Listing Obligations & Disclosure Requirements)
 Regulations, 2015 consisting of 3 Directors. This Committee identifies
 persons who are qualified to become Directors of the Company. The
 appointment, renewal, re- appointment, re-categorisation and/or removal
 of the Directors so identified, including extension or continuation of
 the term of appointment, will be recommended by the NRC to the Board.
 This Committee has also laid down the criteria to identify persons who
 may be appointed to the senior management of the Company. The NRC has
 formulated the criteria for determining qualifications, positive
 attributes and independence of a Director, carrying out evaluation of
 every Director''s performance. The NRC Policy of the Company covering
 all the above aspects is made available on the official website of the
 Company viz: http://www.canfinhomes.  com/Aboutus/Board of Director
 (path).
 
 22. Corporate Social Responsibility (CSR) policy
 
 The CSR Rules made effective from April 1, 2014, are intended to
 promote socio-economic development in rural areas, improve education,
 eradicate hunger, promote gender equality, etc. The Rules include a
 mandate for business entities to spend a minimum of 2% of their average
 net profit of the preceding 3 years on CSR initiatives.
 
 your Company constituted a Corporate Social Responsibility (CSR)
 Committee of the Board as prescribed under Section 135 of the Act and
 has put the CSR policy in place. The total amount to be spent under the
 CSR initiatives for Fy 15-16 was Rs.372 Lakh (previous year Rs.162 Lakh),
 out of which projects sanctioned under CSR activities was Rs.303 Lakh,
 out of which an amount of Rs.109 Lakh was spent (previous year Rs.3.10
 Lakh) during the year. The unspent amount of Rs.263.28 Lakh for Fy 15-16
 (previous year Rs. 158.90 Lakh) is carried forward as per provisions of
 Companies Act with the aim to go in for granular details/ appropriate
 projects before spending in Fy 16-17. The Annual Report on CSR
 activities including brief contents are provided as an Annexure 6 to
 this report.
 
 23. Risk Management policy
 
 your Company has constituted a Risk Management Committee with two
 directors and senior executive of the Company. In terms of Section 134
 (3) (n) of the Act, your directors wish to state that your Company has
 drawn and implemented a risk management policy including identification
 therein of elements of risks, if any, which in the opinion may threaten
 the existence of your Company.  The above policy is being
 reviewed/re-visited once a year or at such other intervals as deemed
 necessary for modifications and revisions, if any.
 
 24. Audit and Internal Control
 
 your Company strengthened the adequacy of the existing internal control
 systems for loan reviews at periodical intervals and measures for
 minimising operational risks commensurate with the nature of its
 business and the size of operations. Further, your Company has
 established clear delegation of authorities and standard operating
 procedures for all parts of the business/ functions. your Company has
 further strengthened Offsite Transaction Monitoring System (OTMS) to
 track transactions/ early-warning signals across all branches by
 introducing new monitoring tools.
 
 The National Housing Bank conducts inspection of your Company on an
 annual basis. During the year, the NHB conducted credit inspection of
 your Company in September 2015 for the position as at March 2015. The
 compliance on the observations was submitted within the prescribed time
 to the NHB, which was reviewed, by the Audit Committee and the Board.
 
 All the branches are subjected to quarterly/half yearly audit by
 external auditors who conduct audit and submit their reports.  your
 Company has also put in place a well- defined policy on Risk Based
 Internal Audit (RBIA) and as per the said policy all the 110 branches
 that became due for audit, were audited in Fy 15-16.
 
 Apart from the RBIA Audit, considering the volume of the business,
 branches are also subjected to quarterly/ half yearly internal audit by
 empanelled audit firms. The Audit Committee reviewed the audit
 reports/remarks/ observations and replies/ compliances including the
 compliance with KyC norms.
 
 25. Secretarial Audit
 
 The Secretarial Audit for Fy 15-16 was conducted as required U/s.204 of
 the Companies Act 2013, by S. Kedarnath and Associates, a firm of
 Company Secretaries in Practice. In terms of Section 204(3) of the Act,
 your Directors are pleased to inform that there was no qualification or
 observation or other remarks made by the said Company Secretaries in
 their Secretarial Audit Report. The Secretarial Audit Report issued by
 the Practising Company Secretaries is enclosed to the report of
 Directors in terms of Section 134(3) (f) read with Section 204(1) of
 the Act.
 
 Loans , Guarantees or Investments:
 
 There are no particulars of loans, guarantees or investments made
 during the year in terms of Section 186(1) and 186(2) of the Act
 requiring disclosure to be made in the report of Directors as required
 under Section 134(3)(g) of the Act. In terms of Section 186(11)(a) the
 requirement relating to the disclosure is not applicable to a loan
 made, guarantee given or security provided by a housing finance
 company.
 
 Related Party Transactions:
 
 The particulars of contracts or arrangements with the ''Related
 Parties''referred to in sub-section (1) of Section 188 of the Act are
 furnished in Note No.30 of the Notes forming part of the financial
 statements for Fy 15-16, forming a part of the annual report.  The
 particulars of Related Party Transaction as required u/s sec 134(3)(p)
 and 134(3)(n) in the prescribed format is attached to this Report as
 Annexure 5.
 
 26. Auditors
 
 M/s K.P. Rao & Co., Chartered Accountants, Bengaluru, Statutory
 Auditors of your Company (Firm Registration No.003135S) appointed by
 the members at the 28th Annual General Meeting (AGM) of your Company
 held on July 08, 2015 and other 42 firms of branch auditors who were
 appointed by the Board based on the approval of the members at the
 above AGM, to hold office from the conclusion of the said meeting until
 the conclusion of the ensuing AGM of your Company, would retire at the
 ensuing AGM and are eligible for re-appointment.
 
 your Company has obtained the consent and a certificate from the
 statutory auditors under section 139 of the Companies Act, 2013 to the
 effect that their re-appointment, if made, would be in accordance with
 the conditions as may be prescribed.  The statutory auditors have also
 confirmed that they hold a valid certificate issued by the ''Peer Review
 Board''of The Institute of Chartered Accountants of India.
 
 your Directors recommend the appointment/re-appointment of M/s. K.P.Rao
 & Co, Chartered Accountants as the Statutory Auditors. The resolutions
 seeking approval of the members for appointment of Statutory Auditors
 and fixation of their remuneration and authorisation to the Board of
 Directors for appointment of Branch Auditors and fixation of their
 remuneration are included in the notice convening the ensuing Annual
 General Meeting.  The above said appointment attracts the provisions of
 Section 139, 142, 143 and all other applicable provisions, if any, of
 the Companies Act, 2013 and Rules.
 
 Statutory Auditors Report:
 
 In terms of Section 134(4) and 134(3)(ca) of the Act, your Directors
 are pleased to inform that, as in the previous years, there is no
 qualification, reservation or adverse remark or disclaimer made by the
 statutory auditors of the Company in their audit report for the
 financial year Fy 15-16.
 
 The Board has adopted policies and procedures for ensuring the orderly
 and efficient conduct of its Business, adherence to its polices,
 safeguarding its assets, prevention and detection of frauds/errors,
 accuracy and completeness of the accounting records and timely
 preparation of reliable financial disclosures.  M/s K P Rao & Co, the
 Statutory Auditors of the Company have audited the Internal Financial
 Controls over the Financial Reporting of the Company and submitted a
 Report, which forms part of the Auditors''Report, placed before the
 members together with the Financial Statements for Fy 15-16.
 
 your Directors wish to inform that there are no material changes and
 commitments, other than what is reported in the financial statements,
 affecting the financial position of your Company which occurred between
 the end of the financial year of your Company to which the financial
 statements relate and the date of this report. your Director also wish
 to inform that there were no significant and material orders passed by
 the Regulations/Courts/ Tribunals impacting the going concern status
 and Companies operations, in future.
 
 27. Management Discussion and Analysis Report
 
 In terms of Regulation 34(2) of the SEBI (Listing Obligations &
 Disclosure Requirements) Regulations, 2015, the Management Discussion
 and Analysis Report forms part of this annual report.
 
 28. Corporate Governance
 
 As required under the Companies Act, 2013 and Regulation 34 read with
 Schedule V of the SEBI (Listing Obligations & Disclosure Requirements)
 Regulations, 2015, the ''Report of Directors on Corporate Governance''for
 the year Fy 15-16 is placed in this annual report .
 
 The said Report covers in detail the Corporate Governance Philosophy of
 the Company, Board Diversity, Directors appointment and remuneration,
 declaration by Independent Directors, Board evaluation, familiarisation
 programme etc.
 
 Business Responsibility Report:
 
 The SEBI (Listing Obligations and Disclosure Requirements) Regulations,
 2015, mandates inclusion of Business Responsibility Report (BRR) in the
 prescribed format, as a part of the Annual Report for top 500 listed
 entities based on the market capitalisation in compliance with the said
 Regulations, the BRR is provided as a part of this Report.
 
 In terms of Regulation 17(10) of the SEBI (Listing Obligations &
 Disclosure Requirement) Regulations, 2015, your Company has put in
 place the ''Board and Director''s Evaluation Policy''laying down a
 framework for evaluation of the Board, its Committees and of the
 individual directors with defined attributes for evaluation. The
 results of the evaluation exercise will be shared with the Board in
 subsequent Board Meeting(s), including listing of the identified
 strengths, areas of improvement and actions to be taken, if any.
 
 29. Save Green Efforts
 
 In recognition and support to the green initiative taken by the
 Ministry of Corporate Affairs (MCA), Government of India, your Company
 is sending AGM notices, annual reports, correspondence with the
 stakeholders etc. to the respective e-mail IDs of stakeholders. As a
 step towards paperless banking, initiatives taken by your Company
 include ECS facility for repayment of loans, streamlining the systems
 and procedures for reporting by the branches and at the Registered
 Office through Integrated Business Suite (IBS), networking of branches
 with the Registered Office, harnessing solar energy for lighting and
 computer operations in three new branches (13 in all) and the like.
 The usage of the paper is minimised.
 
 As in the previous years, we are publishing only the statutory
 disclosures in the print version of the Annual Report. Electronic
 copies of the Annual Report and Annual General Meeting Notices are
 being sent to all members whose e-mail address are registered with the
 Company/Depository participants. For members who have not registered
 their e-mail address, physical copies are sent in the permitted mode.
 
 30. Outlook for 2016-17
 
 The RBI and the Government continued the policy of managing inflation,
 promoting investment through employment generation and improving
 infrastructure. The real estate industry (including housing) is
 expected to strengthen in the current year across the country; credit
 off take is likely to improve. Reduction of interest rates are expected
 and the consequent impact on spreads are expected to sustain .
 
 your Company drew out a challenging business plan for Fy 16- 17 with
 target loan book size of Rs.13,500 Crore by March''17.
 
 your Company would continue to focus on lending to individual segments
 preferably the salary class, increasing the Non Housing Loan ratio,
 further improve asset quality, reducing cost of funds further,
 increasing operations and profits.
 
 your Company has drawn a vision document upto the year 2020, with an
 aim to reach a loan book size of Rs.35,000 Crore by March 2020. your
 Company expects to sustain performance growth during 2016-17.
 
 However, given the indications about the likely changes in the cost of
 funds and expectations of borrowers for availing loans at lesser rates,
 etc., margins are expected to remain under pressure.
 
 31. Acknowledgements
 
 your Directors would like to thank Canara Bank for consistent support.
 
 your Directors would like to acknowledge the role of all its
 stakeholders viz., shareholders, debenture holders, CP holders,
 depositors, bankers, lenders, borrowers, merchant bankers, Debenture
 Trustees and all others for their continued support to your Company and
 the confidence and faith that they have always reposed in your Company.
 
 your Directors acknowledge and appreciate the guidance and support
 extended by all the Regulatory authorities including National Housing
 Bank (NHB), Securities Exchange Board of
 
 India (SEBI), Ministry of Corporate Affairs (MCA), Registrar of
 Companies, Karnataka, the Stock Exchanges and the NSDL and CDSL.
 
 your Directors thank the Rating Agencies ICRA, CARE, India Ratings &
 Research Ltd., (FITCH), the Registrars Share Transfer Agents of your
 Company Government(s), local/statutory authorities, and all others for
 their whole-hearted support during the year and look forward to their
 continued support in the years ahead.
 
 your Directors value the professionalism of all the employees who have
 worked in a challenging environment and whose efforts have stood the
 Company in good stead and taken it to present level.
 
 
 
                           For and on behalf of the Board of Directors
 
                                                     Sd/- 
 
 Place: Bengaluru                                    K.N. Prithviraj 
 
 Date: May 18, 2016                                  Chairman
Source :
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