The Directors have pleasure in presenting the Twenty First Annual
Report and Audited Statements of Account for the Financial year ended
Current Year Previous Year
March 31, 2014 March 31, 2013
(Rs. In Lakhs) (Rs. In Lakhs)
Income from Operations 53.20 46.30
Profit before Depreciation
and Provision for taxation 9.92 7.89
Less: Depreciation 0.76 0.91
Less: Provision for taxation 5.71 1.77
Net Profit 3.45 5.21
Add: Previous year''s surplus 27.30 24.09
Amount available for appropriation 30.75 29.29
Transfer to Statutory Reserve 2.00 2.00
Transfer to General Reserve 20.00 -
Surplus carried to Balance Sheet 8.75 27.29
During the year the Company achieved a Gross Income of Rs.53.20 lakhs
as compared to Rs.46.3 lakhs during the previous year. The Profit
before tax of the Company stood at Rs.9.16 lakhs as against Rs.6.98
lakhs last year. During the year there were no major disbursements. The
focus continued to be on recoveries and towards substantial reduction
in operational cost. The net profit of the Company stood at Rs.3.45
lakhs. During the year a sum of Rs.2 lakhs has been appropriated
towards Statutory Reserve and Rs.20 lakhs towards General Reserve . The
resultant profit of Rs.8.75 lakhs has been carried to the Profit and
PRUDENTIAL NORMS FOR NBFCs
The prudential norms prescribed by the Reserve Bank of India for NBFC''s
for income recognition, provisioning for non performing assets and
other directions issued from time to time in this regard are followed
by the Company. The Company has complied with the capital adequacy
norms and other directions issued by the Reserve Bank of India in
respect of Non Banking Financial Companies from time to time.
In order to strengthen the financial position of the company the
directors have decided not to declare dividend for the year.
Sri. Shanti Kumbhat & Ajit Kumbhat retires at the end of this Annual
General Meeting and being eligible, offer themselves for
The Company has not accepted any fixed deposit from the public.
M/s. Krishnan & Giri, Chartered Accountants, Chennai retire at the
forthcoming Annual General Meeting. They have advised of their
availability for re-appointment.
This year also witnessed consolidation in the NBFC sector wherein the
financial position and profitability of the companies came under severe
strain. Certain global majors also entered into the field which
resulted in intense competition and there by resulting in reduction and
interest rate. The directors are of the opinion that the same trend
will continue in the coming years.
The Company has obtained Compliance Certificate for the Year ended
31.03.2014 from Mr.Murugan, Practicing Company Secretary.
INFORMATION AS PER SECTION 217(1 )(e) OF THE COMPANIES ACT, 1956
The Company has no activity relating to conservation of energy or
technology absorption. The Company did not have foreign exchange
earning or outgo.
The Company has no employee who is in receipt of remuneration in excess
of the amount prescribed under section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules. 1975.
In terms of section 217(2AA) of the Companies Act, 1956 your directors
confirm as follows :
i) that in the preparation of the annual accounts, the applicable
accounting standards had been followed.
ii) that the Directors had selected such accounting policies and
applied them consistently which are reasonable and prudent so as to
give a true and fair view of state of affairs of the company at the end
of the financial year and of the financial year and of the profit or
loss of the company for that year;
iii) that the Directors had 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;
iv) that the Directors had prepared the annual accounts on a going
A Separate Report on Corporate Governance is incorporated as a part of
this Annual Report along
with Auditor''s Statement on its compliance, as prescribed under clause
49 of the Listing Agreement.
Your Directors wish to place on record their deep appreciation of the
services of the Managing Director and the members of the staff
of the company.
For and On behalf of the Board
Chennai Shanti Kumbhat
Date: 25/08/2014 Managing Director