The Directors are pleased to present the 22nd Annual Report along with
the audited accounts for the financial year ended March 31, 2012.
Management Discussion & Analysis
The summary of financial results, as indicated below, compares the
financial performance of your Company for the year ended March 31, 2012
with the results for the year ended March 31, 2011:
(Rs. in lacs)
Particulars Year ended Year ended
March 31, March 31,
Total Income 119.30 61.19
Total Expenses 26.47 34.20
Gross Profit 92.83 26.99
Profit Before Tax 92.83 26.99
Provision for Taxation 0.01 (3.24)
Profit for the Year after Tax 92.82 30.23
Profit for the Year after 92.82 30.23
Total Income increased to Rs. 119.30 lacs for the year ended March 31,
2012 as compared to Rs. 61.19 lacs, mainly due to maturity period of
schemes falling in this year. The main source of income during the year
was dividend income from mutual fund investments made by the Company.
For the year ended March 31, 2012 expenses were Rs. 26.47 lacs as
compared to Rs. 34.20 lacs for the previous year and the Management is
trying to reduce the cost of operation to maximum possible extent.
From last few years, your Company has concentrated on recovery of the
asset portfolio. Now since almost all the recoverable portfolio is
recovered, your Company is examining various options of commencing new
activities but the current condition of the economy like increase in
interest rates, inflation and political factors compel management to
give second thought before starting any new activity.
Your Company continuously reviews the internal control systems and
thereby ensures adequate and appropriate checks and balances in
transaction risk management.
In view of the volume of your Company''s business, the current employee
strength is considered adequate.
There are no adverse observations made by the Auditors in their Report
to the Members.
There are no subsidiaries of your Company.
Particulars of conservation of energy, technology absorption and
foreign exchange earnings
As your Company is not engaged in any manufacturing activities, there
are no particulars to be furnished for conservation of energy and
technology absorption. There were no foreign exchange earnings or
outgo during the year.
There are no employees covered by Section 217 (2A) of the Companies
Directors'' Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
(i) In the preparation of the annual accounts, the applicable
accounting standards have been followed.
(ii) The Directors had 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 as on March 31, 2012 and of the profit of the Company
for the year ended March 31, 2012.
(iii) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
(iv) The Directors have prepared the annual accounts on a ''going
The Equity Shares of your Company are currently listed with BSE Ltd.
and The National Stock Exchange of India Ltd. The listing fees for the
financial year 2012-13 have been paid to both the Stock Exchanges.
Your Company has taken adequate steps to ensure that all mandatory
provisions of Corporate Governance as prescribed under the Listing
Agreement of the Stock Exchanges, are complied with.
A separate report on Corporate Governance is attached as annexure to
Mr. Avinash Jain and Mr. D. N. Shukla, Directors of your Company,
retire by rotation at the forthcoming Annual General Meeting of the
Company and being eligible, offer themselves for re-appointment.
Mr. Avinash Jain, 46, B.Com (Hons), FCA, is a practicing Chartered
Accountant who has over 24 years experience in the field of taxation
and auditing. He was appointed as additional Director of the Company on
March 30, 2002. He is a member of the Audit Committee of the Company.
Mr. D. N. Shukla, 84, B.Com., C.A. I.I.B, has 45 years of experience in
the Banking Industry with internal exposure. He retired as Executive
Director of Bank of India. He was appointed as additional Director of
the Company on November 26, 2001. He is the Chairman of the Audit
Committee of the Company. He is also Director of Jaysynth Dyestuff
(India) Ltd., Zenith Securities & Investments Ltd., Homi Mehta & Sons
Pvt. Ltd. and Bharti Polytex Pvt. Ltd.
Appointment of Auditors
M/s. V. B. Goel & Co., Chartered Accountants, the Statutory Auditors of
the Company retire at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment.
Appointment of Internal Auditors
M/s. Shrikant Kulkarni & Associates, Chartered Accountants, have been
re-appointed as Internal Auditors of the Company.
The Board of Directors thank the Company''s promoters, customers,
bankers and employees for their continued support.
For and on behalf of the Board of Directors
DR. BHASKAR DAS S. SIVAKUMAR
Mumbai May 22, 2012