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Aravali Securities and Finance Ltd.

BSE: 512344 | NSE: ARAVALISEC | Series: NA | ISIN: INE068C01015 | SECTOR: Finance - Investments

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Sep 24, 16:00
2.72 -0.03 (-1.09%)
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AVERAGE VOLUME
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1,652
10-Day
2,252
30-Day
2,163
1,018
  • Prev. Close

    2.75

  • Open Price

    2.62

  • Bid Price (Qty.)

    2.62 (45)

  • Offer Price (Qty.)

    2.88 (1000)

NSE Live

Dec 27, 11:22
2.00 0.00 (0.00%)
Volume
No Data Available
1,000
  • Prev. Close

    2.00

  • Open Price

    -

  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

    - (0)

Aravali Securities and Finance is not listed on NSE

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2008 2006

Director’s Report

Your Directors have pleasure in presenting their Report and Audited Accounts of the Company with Auditors Report thereon for the year ended 31st March, 2006, WORKING RESULTS 2005-2006 2004-2005 (Rupees in lacs) (Rupees in lacs) Profit/(Loss) before interest, depreciation and taxes (176.89) 283.88 (Add)/Less : Interest (187.69) 170.60 Profit/(Loss) before depreciation, NPAs and taxes (364.58) 113.28 (Add)/Less : Depreciation (including lease adjustment charges) (46.77) 54.21 Profit/(Loss) before provision of tax and NPAs (411.35) 59.07 Add : Withdrawal from NPA Provisions as per RBI Prudential Norms 789.38 46.33 : Withdrawal from diminution in value of investments as per RBI Prudential Norms 0.48 0.13 Profit before taxation 378.51 105.53 Less/(Add) : Provision for Tax Fringe Benefit Tax 1.06 NIL Deferred Tax (11.73) 22.53 Prof it after Taxation 389.18 83.00 Less: Debit Balance brought forward from previous year (278.80) (393.81) 110.38 (310.81) Add/(Less): Amount Transferred from Debenture NIL (32.01) Redemption Reserve : Amount Transferred to NBFC Reserve Fund (89.65) NIL BALANCE CARRIED TO BALANCE SHEET 20.73 (278.80) DIVIDEND Due to non-availability of sufficient funds, your directors are not recommending any dividend. MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW: Your company has an operational loss of Rs.411.35 lacs after depreciation and interest. The same is due to the fact that the company has sold its leased assets as well as its overdue debtors on which it has suffered a loss, which has been written off. However, against the said assets the company has made a provision in the previous year of non-performing assets, which is added back. The net result is a profit of Rs.378.51 lac before taxes. A provision of deferred tax made earlier has been reversed and profit after tax is Rs.389.18 lacs which has been reduced by brought forward tosses of Rs.278.80 lacs and provision for NBFC Reserve Fund of Rs.89.65 lacs. The amount after the same of Rs. 20.73 lacs has been carried to Balance Sheet. Your companys secured borrowing has been repaid except an amount payable to SBI Commercial and International Bank Ltd. who has filed a case against the company before Debt Recovery Tribunal Mumbai, which is being contested. RESOURCES AND LIQUIDITY: The company, as in the past, is not relying on any borrowing except unsecured loans. More so, due to reduction in its activities, the requirement of fund has been reduced substantially. INDUSTRY STRUCTURE AND DEVELOPMENTS: Entrance of the banks in consumer durable financing as well as in car financing has brought a huge liquidity in this sector and there are very few takers who are getting financed from the private sector. This has virtually put a stop on private financing and most of the Non-Banking Finance Companies are out of this business. Most of the finance companies either have diversified their activities or are doing investment business or engaged in other finance related services. BUSINESS REVIEW: Your company being classified as an investment company is doing long term and short term investments. It is also trading in the shares and securities of other companies. The company has sold its non-performing assets and the financing activities have virtually been stopped. The investments division of the company in hotels industry is in the process of being demerged. Consequently, the shareholders of the company, on approval of the said scheme of demerger from the Honble High Court and shareholders, the shareholders of the company will get 19.2182 Equity shares of Rs.10/- each of Boutique Hotels India Limited (BHIL) against 100 Equity shares of the company held by them on the record date as may be announced in the near future. OPPORTUNITIES: With the change in world economic scenario, the Indian economy has emerged as one of the strongest economy in the world. The yearly GDP is 7% to 8% and it is expected that the same will, in the near future, may rise above this benchmark. It is expected that India with China will emerge as the biggest economic power in Asia. This change has already brought in various opportunities for all sectors and will create more in the near future. CHALLENGES: Your company being in the financial services sector is facing a very stiff competition from public sector as well as private sector banks and financial institutions. It is trying to cope up with the same but is finding it difficult to match up with them in expertise as well as finances available. However, the company is trying its level best to achieve the same level of competence to meet the challenges thrown in this sector. OUTLOOK: Your company is still in the process of consolidation and has not decided to enter into new field. However, the various business opportunities are being analysed. It is also being analysed to have a foreign collaboration with some internationally reputed NBFC which is looking to expand their business in India. Barring unforeseen circumstances your directors hope to do better in the near future. RISK AND CONCERNS: Your company at present is exposed to the normal industry risk factor of volatility in interest rate, economic cycle and credit risk. It has not yet decided its future course of activities as activities of Leasing, Hire Purchase and Bill Discounting have reduced substantially and is negligible. The losses suffered from these activities have already been accounted for in the previous years. The impact of new activity, as and when decided, will be known in the future. ADEQUACY OF INTERNAL CONTROL: The established Internal Control Systems of your company are adequate to ensure that all the activities are monitored and controlled against any misuse or misappropriation of asset and that the transactions are authorized, recorded and reported correctly. More so, these internal control systems are regularly monitored by the audit committee of your company and are improved upon on regular basis. HUMAN RESOURCE DEVELOPMENT: The team of experienced industry professionals depart regular training to the employees of the company. FIXED DEPOSITS: Your company does not accept fixed deposits from public and to this effect an undertaking is given to the Reserve Bank of India. However, the company had four unclaimed deposits amounting to Rs.65000/= which has been transferred to Investor Protection Fund as envisaged under the Companies Act, 1956. DIRECTORS: Shri Gautam Khaitan, director of the company, being longest in the office, is required to retire by rotation but being eligible, offers himself for re-appointment. Your directors recommend his appointment by the shareholders. DIRECTORS RESPONSIBILITY STATEMENT: Pursuant to the requirement under section 217 (2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed a) That in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same; b) That they have selected such accounting policies and applied them consistently and made judgments 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 of the company for the year ended on that date; c) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safe guarding the assets of the company and for preventing and detecting fraud and other irregularities; d) That they have prepared the annual accounts on a going concern basis. AUDITORS AND AUDITORS REPORT: M/s. Salarpuria & Partners, Chartered Accountants, as Statutory Auditors of the company, hold office until the conclusion of the ensuing Annual General Meeting and are recommended for reappointment. Your Company has received a certificate from M/s. Salarpuria & Partners, Chartered Accountants, to the effect that the appointment, if made, would be within the prescribed limits u/s 224 (1-B) of the Companies Act, 1956. The shareholders will be required to appoint them for the current year and to fix their remuneration. Auditors in the Annexure to their report have drawn attention to the Point No. 2(c) stating that certain shares are not registered in the name of the company. The same are on account of bad delivery, for which efforts are being made to sort out the same. PERSONNEL: The company had no employee during the year ended 31st March, 2006, who was in receipt of remuneration of Rs.24.0 lacs or more per annum, if employed for whole of the year or Rs.2.0 lacs or more per month, if employed for part of the year. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO : The Company being engaged in the financial services and trading, does not have any energy utilization or technology absorption. The Company during the year under consideration has not earned or spent any foreign exchange. CORPORATE GOVERNANCE: Your company has taken adequate steps to ensure that all mandatory provisions of `Corporate Governance as provided in the listing agreement of the Stock Exchanges with which the companys shares are listed, are duly complied with. A separate report on `Corporate Governance along with Auditors Certificate for its due compliance is annexed hereto as part of this report. ACKNOWLEDGEMENT: Your Directors would like to express their sincere appreciations for the co-operation received from shareholders, bankers and other business constituents during the year under review. Your directors also wish to place on record their deep sense of appreciation for the commitment displayed by all the employees of the company. For ARAVALI SECURITIES & FINANCE LTD. Registered Office : RANJAN KUMAR PODDAR UCO Bank Building, III Floor Managing Director Parliament Street New Delhi-110001 GAUTAM KHAITAN R. A. KILA HARDEV SINGH Dated : 29th July, 2006 Directors

Director’s Report