To the Members,
The Directors present the 52nd Annual Report of the Corporation
together with the audited statements of Accounts for the year ended
31st March 2012.
1.0 Economy :
The developments over the last year in major economies of the world
have not been encouraging. The global economy witnessed fresh spells of
crisis during 2011 12 with domestic business and consumer confdence
dampening on the back of deepening sovereign debt crisis in Europe. The
crisis percolated into Indian economy and growth in India is moderating
more than expected earlier. The infation, though moderated in last
quarter, remained sticky and stood at 6.9% in March 2012. Average
infation for fscal 2012 was 8.8% as compared to 9.5% in fscal 2011.
During April March 2011 12, Index of Industrial Production (IIP) growth
was 2.8% as compared to 8.2% during April March 2010 11. The Indian
economy saw moderation in economic activity during fscal 2012,
following domestic macroeconomic conditions of high interest rates and
slowdown in investments. The overall growth of GDP at factor cost at
constant prices, as per Advanced Estimates, is estimated at 6.9% in
2011 12 as compared to the revised growth of 8.4% during 2010 11. The
growth in real GDP is placed at 6.1% in the third quarter of 2011 12.
Weakening industrial growth and global economic situation has adversely
affected the growth of Indian economy.
2.0 Operational Results/Financial Highlights :
Since last more than one decade, Corporation is solely concentrating on
recovery of dues. In order to boost recovery, Corporation has extended
the validity of various One Time Settlement schemes upto 31.3.2012.
During the year under reference, aggregate recovery of the Corporation
stood at Rs. 31.69 crore as against Rs. 38.35 crore during the last
fnancial year 2010 11.
During the year under report, the total income of the Corporation
including exceptional items stood atRs. 56.71 crore as against Rs. 64.21
crore during the last year. The total expenditure for the period under
reference came to Rs. 265.63 crore whereas the same for the last year was
Rs. 221.12 crore. Corporation recorded a net loss ofRs. 208.92 crore during
the year under report as against Rs. 156.91 crore in the previous year.
The accumulated loss of the Corporation as on 31st March, 2012 stood at
Rs. 1913.97 crore.
Corporation redeemed bonds guaranteed by the State Government totaling
face value of Rs. 2.95 crore during the year under report besides meeting
liability of Public Sector Bonds amounting to Rs. 1.92 crore. The
outstanding Government guaranteed bonds as on 31/03/2012 stood at Rs.
1.25 crore as against Rs. 4.20 crore at the end of previous year.
3.0 Resources :
Corporation is receiving active support of Government of Gujarat by way
of budgetary allocation of funds to meet its liabilities. During the
year under report, Corporation has received loan of Rs. 4.20 crore from
Government of Gujarat.
4.0 Recovery :
During the year 2011 12, total recovery of the Corporation amounted to
Rs. 31.69 crore as againstRs. 38.35 crore during FY 2010 11.
5.0 Human Resource :
During the year under reference, keeping in pace with the requirement,
Corporation attempted to recast the organization structure. Under the
organization structure approved and implemented during the year, the
Regional Offce is manned by an offcer who has been designated
functionally as Regional Manager inspite of the cadre in which he
belongs supported by ministerial staff designated functionally. As for
Head Offce, the number of departments has been pruned down to six by
way of merger of various departments. Each restructured department at
Head Offce is headed by an offcer known as Executive Offcer supported
by Junior Executive Offcer and other ministerial staff. There was an
attrition of 5 personnel during the year due to retirement, resignation
etc. The total staff strength as on 31/03/2012 is as under:
1. Grade ''A'' Offcers 08
2. Grade ''B'' offcers 95
3. Grade ''C employees 26
Out of 129 employees, 45 staff are on deputation/loan service to other
offces of the Government.
6.0 Audit :
As recommended by RBI under the provisions of Section 37 (I) of the
SFCs Act, 1951 and approved by the members in the 51st Annual General
Meeting, M/s. Mahendra N Shah & Co., Chartered Accountants, Ahmedabad,
were re appointed as Statutory Auditors to conduct audit of the Books
of Accounts of the Corporation for FY 2011 12. They, being eligible,
have given their consent to continue to act as Auditors of the
Corporation for FY 2012 13. RBI has also confrmed their eligibility for
re appointment. Members are requested to consider their re appointment
as Statutory Auditors of the Corporation for the current year 2012 13.
7.0 Board of Directors :
During the course of the fnancial year 2011 12, Shri DN Pandey, IAS,
Commissioner (Public Sector Enterprises) & Ex offcio Secretary, Finance
Department, Govt. of Gujarat was nominated on the Board of the
Corporation with effect from 17.9.2011 in place of Shri CL Meena, IAS.
The Board of Directors places on record their appreciation and thanks
for the valuable services rendered by Shri CL Meena, IAS, during his
tenure as Director of the Corporation.
8.0 Corporate Governance :
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Management Discussion and Analysis Report, Corporate
Governance Report and Certifcate regarding compliance of conditions of
Corporate Governance are annexed hereto and form part of the Annual
9.0 Directors'' Responsibility Statement :
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956, the Board of Directors, based on the representations received
from the Accounts Department, hereby confrms that :
1. In the preparation of the annual accounts for the year ended 31st
March 2012, the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any.
2. Such accounting policies as mentioned in Note 16 of the Annual
Accounts have been selected and applied consistently and judgments and
estimates that are reasonable and prudent are made so as to give a true
and fair view of the state of affairs of the Corporation at the end of
the fnancial year ended 31st March 2012 and of the loss of the
Corporation for that year.
3. Proper and suffcient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act 1956 for safeguarding the assets of the Corporation and
for preventing and detecting fraud and other irregularities.
4. The annual accounts for the year ended 31st March 2012 has been
prepared on a going concern basis.
10.0 Acknowledgement :
The Board of Directors gratefully acknowledge the valuable advice and
support extended by various Ministries of the Government of Gujarat,
particularly the Finance Department and Industries & Mines Department
and Small Industries Development Bank of India and its offce at
Ahmedabad. The Board thanks various Banks for extending their support
and co operation.
Your Directors also convey their gratitude to the shareholders of the
Corporation for the confdence reposed by them in the Corporation. The
Board also commends the hard work and dedicated efforts put in by the
employees of the Corporation.
For and on behalf of the Board
Place : Gandhinagar (Arvind Agarwal)
Date : 03/08/2012 Managing Director