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Directors Report of Haryana Financial Corporation

Mar 31, 2015

Dear Members,

The Board of Directors of the Haryana Financial Corporation has great pleasure in presenting this 48th Annual Report together with the Audited statements of Accounts on the working of the Corporation for the year ended 31st March, 2015.

Financial Results

During the financial year 2014-15 the Corpoartion has achieved the following working results :

( Rs in crore)

2014 - 15 2013 - 14

Income

A. Income from operations/other income 6.97 13.46

Expenditure

B. Interest & Other Financial Expenses 0.43 0.01

C. Personnel Expenses 9.33 9.73

D. Administrative Expenses 0.80 0.81

E Depreciation 0.42 0.50

F. Total Expenditure (B to E) 10.98 11.05

G. Operating Profit / (Loss) (A - F) (4.01) 2.41

H. Less: Other expenditure

Prior period adjustment 0.00 0.20

Bad Debts written off 50.84 1.74

Total :(H) 50.84 1.94

I. Add : Other Income

Provision against NPAs written back 45.90 2.50

Profit on sale of Assets 9.06 0.00

Waiver of principal amount of Refinance 51.68 0.00

from SIDBI under OTS

Refund of Income Tax - AY 1995-96 0.04 0.00

Total (I) 106.68 2.50

J. Net Profit/(Loss) ( G - H I) 51.83 2.97

Operational Highlights

The Corporation has already stopped sanction of loans w.e.f. May, 2010 as already stated in the previous Annual Reports. The details of the operations of the Corporation recovery of its dues during the year are given as under :

Performance for the Year 2014-15 ( Rs. in crore)

Sanction 0.00

Disbursement 0.00

Recovery 13.08

Recovery of Dues

During the year, 'One Time Settlement Scheme' of the Corporation was extended in view of the requirements of the Corporation/borrowers under NPAs with a view to maximise the recovery and minimize the loan cases. The Corporation made efforts to contact the borrowers and pursued them to come forward under the above settlement scheme to settle their cases. The Corporation also monitored the other borrowers (standard / sub-standard) for the timely repayment of dues to the Coporation. Due to the above measures, the Corporation made the recovery of Rs. 13.08 crore.

Resources Management

The Corporation has managed its limited resources efficiently. The Corporation was able to meet its commitments. The details of the sources are discussed in the subsequent paras.

Share Capital from State Government

During the year, the State Govt, has not released any amount towards share capital.

Refinance

In the previous Annual Reports.it was informed that during the year 2010-11, the Corporation was able to settle its entire outstanding refinance of Rs.181.68 crore due to the SIDBI at Rs. 130.00 crore payable within a period of three years.

The Corporation paid Rs. 119.67 crore to the SIDBI upto 31.03.2014 against the settlement amount of Rs. 130.00 crore. On the Corporation's request, the SIDBI has allowed the Corporation to pay the balance amount by 30th September, 2014. The above arrangement was made as per availability of the funds/best utilization of the limited sources available with the Corporation.

The Corporation paid the balance amount of Rs. 10.33 crore to SIDBI on 29.09.2014 as per settlement. The Corporation also paid inteerst of Rs. 5,12,255/- on delayed payment for the period 01.04.2014 to 28.09.2014 against the demand of Rs. 65,31,249/- as negotiated with SIDBI. As on 31.03.2015, the Corporation has no outstanding loan against SIDBI/ others.

Corporate Governance/ Management Discussion & Analysis Report

The Corporate Governance and Management discussion and Analysis report as per clause 49 of the Listing Agreement is annexed as Annexure with the Director's Report. A certificate from M/s Sharma Sarin & Associates, Company Secretaries on the above for the year ending on 31st March, 2015 is also annexed with this report.

Listing

The equity shares of the Corporation are listed at Bombay Stock Exchange Ltd. (BSE Script No. 530927). The Corporation has paid the Annual Listing fee to the Stock Exchange (BSE) within time.

Audit

The shareholders in its 47th Annual General Meeting held on 17.11.2014 as per provisions of section 37 of State Financial Corporations' Act, 1951 appointed M/s R.P. Mallick & Associates, Chartered Accountants, Chandigarh (on the panel of the RBI) as Statutory Auditors for the financial year 2014-2015 (for 2nd term) who have conducted the audit of the Corporation.

M/s R.P., Mallick & Associates, Chartered Accountants, Chandigarh are eligible for re-appointment for the FY 2015-16 i.e. for 3rd term. The RBI vide letter dated 13. 05. 2015 have confirmed their eligibility. Further as per RBI guidelines, M/s R.P. Mallick & Associates, Chartered Accountants, Chandigarh have also submitted the necessary declaration and other details to the effect that their appointment, if made, would be within the prescribed limits and they are not disqualified for such appointment within the meaning of provisions of Companies Act/RBI guidelines.

The item for re-appointment has been included in the notice for the AGM.

Audit By Comptroller & Auditor General of India

The Comptroller & Auditor General of India (CAG) had conducted the audit of the accounts of the Corporation for Financial year 2013-14 and their report has been placed before State Legislature as per provisions of State Financial Corporations Act, 1951. The audit of the affairs of the Corporation for the year 2014-15 will be undertaken by the Comptroller & Auditor General of India under section 37(6) of the SFCs'Act, 1951 in due course.

Cash flow Statement

In conformity with the provisions of clause 32 of the listing Agreement, the Cash Flow Statement for the year ending on 31.03.2015 is annexed with the Annual Accounts.

Board of Directors

The list of the Board of Directors as on 31.03.2015 has seperately been given in the Annual Report.

During the year under review, 4 meetings of Board of Directors have been held.

Acknowledgements

Your Directors take this opportunity to place on record its gratitude to State Government, Department of Industries, Small Industrial Development Bank of India (SIDBI) for their continuous co-operation and support in all the operational/ financial matters.

The Board wishes to take opportunity to thank the Banks and Shareholders for extending their support & co-operation.

The Board of Directors placed on record its appreciation of the contribution made by past Chairman Sh. S.S. Dhillon, IAS and by the past Managing Directors Sh. Tarun Bajaj, IAS and Sh. T.L. Satyaprakash, IAS.

The Board of Directors also placed on record its appreciation of the contribution made by the outgoing Directors.

The Board placed on record its appreciation for the services rendered by the staff of the Corporation at different levels during the year.

For and on behalf of Board of Directors

Managing Director

Place : Chandigarh


Mar 31, 2012

The Board of Directors of the Haryana Financial Corporation have great pleasure in presenting the 45th Annual Report together with the audited statements of accounts on the working of the Corporation for the year ended 31st March, 2012.

WORKING RESULTS

During the financial year 2011-12, the Corporation has achieved the following working results :

(Rs. in Crores) 2011-12 2010- 11

A. Income from operations/ other income 15.51 20.54

B. Interest & Other Financial Expenses 2.37 6.65

C. Personnel Expenses 11.59 10.27

D. Administrative Expenses 0.96 0.93

E. Depreciation * 0.61 0.68

F. Profit/Lloss) before tax & provision for NPAs (0.02) 2.01

G. Add Provision against NPAs, leased assets 1.60 3.38 & investment written back

H. Profit/(Loss) before tax 1.58 5.39

I. Less provision for Deferred Tax 30.80 0.00

J. Net Profit/(Loss) after deffered tax assets (29.22) 5.39



OPERATIONAL HIGHLIGHTS

The Corporation has stopped sanctioning of the fresh loans. The Corporation is giving emphasis on recovery of the loans especially from NPAs/bad debts etc. The operational areas of the Corporation viz sanction, disbursement and recovery of its dues during the year are given as under:

PERFORMANCE FOR THE YEAR 2011-12

(Rs. in Crores)

Sanction. 0.00

Disbursement. 2.37

Recovery 45.98

DISBURSEMENT

The Corporation made total disbursement of Rs. 2.37 crore during the year. As already stated above, the Corporation has stopped sanctioning of fresh loans.

RECOVERY OF DUES

The Corporation has given full emphasis for recovery of its loans. The Corporation has also introduced ‘One Time Settlement Scheme'' for the dues of in NPAs/Loss cases with a view to maximize the recovery and minimize the loan cases. The borrowers under this category were persuded to come forward under the above settlement policies to settle their cases. Follow-up in all other cases were made so as to avoid the standard units to fall under NPAs. Efforts were also made for out of court settlement in legal cases. Due to all these concerted efforts, the Corporation made the recovery of Rs. 45.98 crore which includes pre-mature recovery ofRs.9.19 crore.

RESOURCES MANAGEMENT

During the year under review, the Corporation was able to meet all its commitments of disbursement and had also repaid the amount due to the banks/others against bonds raised by the Corporation from time to time.

SHARE CAPITAL FROM STATE GOVT.

The State Govt, originally made a provision of share capital of Rs. 1.00 lac in its Annual Plan for the year 2011-12 but due to requirement of refinance under settlement to Small Industries Development Bank of India (SIDBI), the State Govt, was requested to provide another Rs.20.00 crore as share capital. The State Govt, agreed to the proposal of the Corporation and sanctioned additional share capital of Rs.20.00 crore in its supplementary plan. So during the year the State Govt, has released share capital of Rs.20.01 crore against which 2,00,10,000 shares of Rs.10/- each were allotted to the State Govt..

REFINANCE

It is pertinent to add here that during the year 2010-11, the Corporation was able to settle the entire outstanding refinance of Rs.181.19 crore due to the SIDBI at Rs.130.00 crore payable within a period of three years without any further interest. An initial sum of Rs. 5.00 crore was paid against above settlement during the year 2010-11. During the year 2011-12, the Corporation has repaid Rs.38.34 crore against above settlement. Accordingly, the Corporation has repaid 1 /3rd of settled amount. The balance will also be paid within overall stipulated time.

BONDS

During the year, no SLR Bond quota was allocated to the Corporation. Further, bonds worth Rs. 19.35 crore repaid on maturity during the year.

CORPORATE GOVERNANCE/MANAGEMENT DISCUSSION & ANALYSIS

The Corporate Governance and Management discussion and Analysis report as per clause 49 of the Listing Agreement is annexed as Annexure with the Director''s Report.

LISTING

The equity shares of the Corporation are listed at Bombay Stock Exchange Ltd. (BSE Script No. 530927).

AUDIT

The shareholders in its 44th Annual General Meeting held on 19.01.2012 re-appointed M/s Dhillon & Associates, Chartered Accountants, Chandigarh as per panel of the RBI as Statutory Auditors for the financial year 2011-2012,(for 3rd term) who have conducted the audit of the Corporation.

AUDIT BY COMPTROLLER & AUDITOR GENERAL OF INDIA

The audit of the affairs of the Corporation for the year will be undertaken by the Comptroller & Auditor General of India under section 37 (6) of the SFCs Act, 1951 in due course.

BOARD OF DIRECTORS & EXECUTIVE COMMITTEE

The list of the Board of Directors as on 31.03.2012 has seperately been given in the Annual Report.

The Board of the Corporation in its 327th meeting held on 10-07-2012 has co-opted Sh. Sanjeev Kaushal, IAS, Principal Secretary to Govt, of Haryana, Finance Department in place of Sh. Ajit M Sharan, IAS.

SIDBI, the shareholder has nominated Ms Paramjot Kaur, GM, SIDBI, as director on the Board of the Corporation in place of Sh. S. Mukhopadyay, GM on 20.06.2011 u/s 10(c) of the SFCs Act, 1951. Further, SIDBI has withdrawn the nomination of Sh. K.G. Alai, CGM as director on the Board of the Corporation w.e.f. 08.05.2012. No other officer has been appointed as director in place of Sh. K.G. Alai. Subsequently, the SIDBI has nominated Mr Manish Sinha, DGM, as director on the Board of the Corporation in place of Ms Paramjot Kaur, GM on 03.08.2012 u/s 10(c) of the SFCs Act, 1951.

On 10.05.2011 the Punjab National Bank (shareholder of the Corporation) has withdrawn their nomination of Sh. A.K. Loomba, DGM from the Board of the Corporation. Ms Kalpana 3 jpta , DGM of Punjab National Bank was nominated / elected as a director in the AGM held on 19.01.2012 for a period of three years under section 4(3)(c) of SFCs Act,1951.

On 01.06.2011 the LIC of India (shareholder of the Corporation) has withdrawn the nomination of Sh. Raghupal Singh, Senior Divisional Manager under section 4(3)(c) of SFCs Act,1951.

The State Govt, vide its orders dated 23-11-2012 oppointed Sh. Tarun Bajaj, IAS, as Managing Director of the Corporation in place of Sh. Rajeev Arora, IAS.

The Board of Directors placed on record its appreciation for the keen interest taken by the outgoing directors in the deliberations of meetings of the Board during their association with the Board.

During the year under review 3 meetings of Board of Directors were held. No meeting of Executive Committee was held during the year.

ACKNOWLEDGEMENTS

The Board of Directors wish to place on record its gratitude to Govt, of Haryana, Department of Finance & Department of Industries for their continuous co-operation and support in all the operational matters.

The Board of Directors wish to place on record its gratitude to Small Industrial Development Bank of India (SIDBI) for their continued support and guidance in all operational and financial matters.

The Board wishes to take opportunity to thanks the Banks, Bond subscribers and shareholders for extending their support & co-operation.

The Board placed on record its appreciation for the services rendered by the staff of the Corporation at all levels during the year.

For and on behalf of Board of Directors

MANAGING DIRECTOR


Mar 31, 2010

The Board of Directors of the Haryana Financial Corporation have great pleasure in presenting the 43rd Annual Report together with the Audited statements of accounts on the working of the Corporation for the year ended 31st March, 2010.

WORKING RESULTS

During the financial year 2009-10, the Corporation has achieved the following working results :

(Rs. in Crores)

2009-10 2008- 09

A. Income 19.57 34.62

B. Interest & Other Financial Expenses 21.77 23.15

C. Personnel Expenses 10.80 8.78

D. (i) Administrative Expenses 1.30 1.70

(ii) Bad debts written off - 0.04

E. Depreciation 0.76 0.84

F. Profit before tax & provision for NPAs (-)15.06 0.11

G. (i) Fringe benefit tax - 0.03

(iii) Provision for deferred tax - (-)2.70

H. Provision against NPAs, leased assets 6.45 3.99 & investments written back

I. Net Profit (-)8.61 1.37

OPERATIONAL HIGHLIGHTS

The operational areas of the Corporation viz sanction, disbursement and recovery of its dues during the year with regard to targets are given as under.

(Rs. in Crores)

TARGET (2009-10) PERFORMANCWE FOR THE YEAR 2009-10

Sanction. 50.00 23.48

Disbursement. 35.00 21.38

Recovery 65.00 58.34

SANCTION OF LOANS

The Corporation sanctioned Rs. 23.48 crores to 44 units. The Corporation made efforts to provide loans to the good units and are established in the HUDA/HSIIDC approved industrial estates after obtaining sufficient security to avoid NPAs at the later stage. The loan amounting to Rs. 23.48 crore were sanctioned to 44 units in the Micro/Small Scale Sector. Due to recession in the market, the Corporation was not able to achieve the targets in respect of sanction & disbursement inspite of a number of open house meets held at District level. Efforts are being made to improve the performance of the Corporation.



INDUSTRY WISE SANCTION

The important industrial sectors which have obtained term loan assistance from the Corporation during the year includes Rs. 4.20 crores textiles/spinning/weaving & finishing, Rs. 1.38 crores to metal industries, Rs. 1.58 crores to footwear & leather industries, Rs. 1.50 crores to chemical units, Rs. 1.11 crores to food industries, Rs. 1.10 crores to hotels and balance to other type of industries.

SIZEWISE SANCTION

The detail of size-wise sanctions of term loan during thr year is given as under :-

2009-2010 (Rs. in Lacs)

Size of Assistance No. Amount

Upto Rs. 01 Lakh 0 0

Rs. 01 Lakh to Rs. 05 Lakhs 02 6.91

Rs. 05 Lakhs to Rs. 10 Lakhs 03 26.86

Rs. 10 Lakhs to Rs. 20 Lakhs 05 71.74

Rs. 20 Lakhs to Rs. 50 Lakhs 23 795.58

Rs. 50 Lakhs to Rs. 90 Lakhs 05 362.00

Rs. 90 Lakhs to Rs. 120 Lakhs 03 300.00

Above Rs.120 Lakhs 03 785.00

Total 44 2348.09

DISBURSEMENT

The Corporation made total disbursement of Rs. 21.38 crore during the year under review against target of Rs. 35.00 crores. The Corporation could not achieve the targets of disbursement due to lesser sanction of loans on account of competition from banks and recession in the market.

RECOVERY OF DUES

In order to improve further liquidity position and reduce dependence on larger debts, the Corporation gave top priority throughout the year to the recovery of its dues. Effective persuation and follow-up in all cases was done so as to maximize recovery . Efforts were made to make the units viable by making reschedulement of repayments. Wherever, the revival of the unit wa.s not possible, the Corporation also tried for one time settlement. Efforts were also made for out of court settlement in legal cases. Due to all these steps, the Corporation could achieve total recovery of Rs. 58.34 crore against the target of Rs. 65.00 crore.

RESOURCES MANAGEMENT

During the year under review, the Corporation was able to meet all its commitments of disbursements and had also repaid all dues of the SIDBI & Banks etc. without any default. Brief details of major resources from which the funds were raised are discussed hereunder :-

SHARE CAPITAL FROM STATE GOVT.

In order to strengthen the equity base of the Corporation and to achieve positive net worth of the Corporation, the Corporation approached the State Govt, to provide adequate Share Capital. The State Govt, considered our case and provided share capital contribution of Rs. 144.80 lacs during the financial year 2009-10.

REFINANCE

During the year under review, the Corporation availed refinance to the tune of Rs. 15.37 crore from SIDBI and repaid Rs. 25.88 crore including soft loan of Rs. 0.02 crore to SIDBI.

BONDS

During the year, no SLR Bonds quota was allocated to the Corporation. Further, bonds worth Rs. 212.50 lacs repaid on maturity during the year.

CORPORATE GOVERNANCE/MANAGEMENT DISCUSSION & ANALYSIS REPORT

The Corporate Governance and Management discussion and Analysis report as per clause 49 of the listing agreement is annexed as Annexure with the Directors Report.

LISTING

The equity shares of the Corporation are listed at Bombay Stock Exchange Ltd. (BSE).

AUDIT

The shareholders in its 42nd Annual General Meeting held on 30.07.2009 appointed M/s Dhillon & Associates, Chartered Accountants, Chandigarh out of the panel of the RBI as Statutory Auditors for the financial year 2009-2010, who have conducted the audit of the Corporation.

AUDIT BY COMPTROLLER & AUDITOR GENERAL OF INDIA

The audit of the affairs of the Corporation for the year will be undertaken by the Comptroller & Auditor General of India under section 37 (6) of the SFCs Act, 1951 in due course.

BOARD OF DIRECTORS & EXECUTIVE COMMITTEE MEETINGS

During the year under review 4 meetings of Board of Directors and 4 meetings of Executive Committees were held.

ACKNOWLEDGEMENTS

The Board of Directors wish to place on record its gratitude to Govt, of Haryana, Department of Finance & Department of Industries for their continued co-operation and assistance.

The Board of Directors wish to place on record its gratitude to Small Industrial Development Bank of India (SIDBI) for their continued support and guidance in all operational and financial matters.

The Board wishes to take opportunity to thanks the Banks, Bond subscribers and shareholders for extending their support & co-operation.

The Board of Directors place on record its appreciation of the contribution made by past Chairman Sh. M.L. Tyal, IAS and by the past Managing Director Smt. Dheera Khandelwal, IAS.

The Board of Directors also placed on record its appreciation of the contribution made by Sh. Vivek Malhotra & Sh. Rohtash Kumar, the outgoing directors.

The employees of the Corporation at all levels put in their best in achieving these results. The Board records its appreciation for the continued and sincere efforts put in by the officers and staff of the Corporation.

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(RAJEEV ARORA) MANAGING DIRECTOR


Mar 31, 2000

Board of Directors of the Haryana Financial Corporation have great pleasure in presenting the 33rd Annual Report on the working of the Corporation for the year ended 31 st March 2000. The audited statements of accounts are also enclosed for the year under review.

CORPORATIONS BUSINESS

During the year 1999-2000 the industrial growth remained slow and both the primary and secondary capital market also remained depressed. Inspite of above, the Corporation made the due efforts to compete with the banks and mobilise its business.

As expected, the SFCs (Amendment) Act, 2000 was passed by the Parliament and implemented with effect from 6th September, 2000. The amendments may have far reaching affects. The act has enlarged the definition of industrial concern by including a number of industries in the act like Financial, Engineering, Technical, Management, Marketing Services, Medical Health Services, Software and Hardware services including Telecommunication & Information Technology, setting up Tourism Facilities, Maintenance of Roads, Commercial Complexes, Floriculture, Fish, Poultery, Hatcheries and other activities approved by the SIBDI from time to time. The limit of accommodation has also been increased to five hundred lakhs of rupees. These amendments will definitely increase the business of the Corporation in the coming years.

OPERATIONAL HIGHLIGHTS

Inspite of all constraints and slow industrial growth the Corporation achieved the target of operational areas of sanction, disbursement and recovery of dues.In the area of sanction of loan the small scale sector was the largest beneficiary. The performance in its key areas vis-a-vis targets are given below.

(Rs in Crores)

Targets Achievements

Sanctions. 75.00 90.61

Disbursements. 55.00 65.45

Recovery. 180.00 190.50

SANCTION OF LOANS

The Corporation sanctioned Rs.90.61 crores to 299 units. The Corporation arranged a number of open house meets at various districts from time to time for business promotion. The Corporation made efforts to provide loan to the good units after obtaining due security to avoid NPAs at the later stage. The loans amounting to Rs.88.89 crores were given to the units in the Small Scale Sector which is more than 98% of the total amount sanctioned.

INDUSTRY WISE SANCTION

The important industrial sector which has obtained term loan assistance from the Corporation during the year are food processing and agro based -Rs. 9.73 crores, textiles spinning weaving & finishing Rs. 11.80 crores, footwear & wearing apparels Rs. 5.93 crores, metal industry Rs. 7.76 crores, hotel industry Rs. 3.15 crores and balance to other type of industries.

SIZEWIZE SANCTION

The size-wise sanctions of term loan is given below :-

1999-2000 Size of Assistance No. Amount (Rs. in Crores)

Upto Rs. 01 Lakh 03 0.03

Rs. 01 Lakh to Rs.05 Lakhs 45 1.34

Rs. 05 Lakhs to Rs. 10 Lakhs 63 4.80

Rs. 10 Lakhs to Rs. 20 Lakhs 63 9.76

Rs. 20 Lakhs to Rs. 50 Lakhs 79 25.81

Rs. 50 Lakhs to Rs. 90 Lakhs 22 14.78

Rs. 90 Lakhs to Rs. 1 20 Lakhs 12 12.54

Above Rs. 120 lakhs 12 21.55

Total 299 90.61

DISBURSEMENT

The corporation made total disbursement of Rs. 65.45 crores during the year under review. The low disbursement can be attributed to depressed capital market condition, low industrial growth, high interest rates, competition from bank etc.

RECOVERY OF DUES

In order to improve further liquidity position and reduce dependence on larger debts, the Corporation gave top priority throughout the year to the recovery of its dues. Effective persuation and follow-up in all the cases was done so far to maximize recovery against the dues. Efforts were made to make the units viable by making reschedulement of repayments in deserving cases. Wherever, the revival of the unit was not possible the Corporation also tried for one time settlement. Efforts were also made for out of court settlement in legal cases. The defaulters who wanted to clear their defaults in one go were given a benefit by waiving penal interest. Due to all these steps the Corporation could achieve total recovery of Rs. 190.50 crores.

WORKING RESULTS

During the year 1999-200, the Corporation has achieved the following working results:

(Rs. in Crores)

1999-2000 1998-1999

A. Income 83.65 92.01

B. Operating Expenses 85.23 86.50

C. Operating Profits (A-B) (-)1.58 5.51

D. Other Expenses 3.69 3.74

E. Bad debts written off 0.00 0.00

F. Profit before Tax (-) 5.27 1.77

G. Provision for Income tax. 0.00 0.19

Net profit (-) 5.27 1.58

The main reason for reduction in profits was on account of lesser recoveries from NPA (Non Performance Asset) due to low spread available because of downwards revisions in lending rates and rebate in interest rate to good borrowers and high cost of funds resulting from total dependence on borrowed funds. Further the salaries/administrative expenses increased due to the payment of the arrears of revision of pay scale to the employees of the Corporation.

RESOURCES MANAGEMENT

During the year under review, the Corporation was able to meet all its commitments of disbursement and had also repaid all dues of Govt, IDBI, SIDBI, RBI, Banks etc without any default. The Corporation also continued pre-paying higher interest rate debts by raising cheaper funds from alternative sources. Brief details of major resources from which the funds sources were raised are given below.

REFINANCE

During the year under review, the Corporation raised refinance to the extent of Rs. 44.71 crores from SIDBI. A sum of Rs.38.66 crores was repaid to the IDBI including premature payment of Rs.30.47 crores. Similarly the Corporation repaid Rs. 40.37 crores to SIDBI including premature payment of Rs. 3.14 crores during the year.

BORROWING FROM RESERVE BANK OF INDIA

The credit limit of Rs.6.00 crores availed during the year 1998-1999 has been repaid during the current year 1999-2000.

SLR BONDS

During the year, the Corporation has not issued any series of SLR Bonds. Further, no bonds has been matured for payment during the year.

DEPOSITS

The Corporation continued to accept deposits from institutions under section 8 of SFCs Act, 1951 and raised Rs. 0.58 crore during the year. Further deposits of Rs. 3.22 crores were repaid during the year.

TERM LOANS/LINE OF CREDIT FROM BANKS

The Corporation has not raised any loan from bank during the year. Further Rs. 12.53 crores were repaid during the year. The Corporation also paid short term loan of Rs. 6.00 crores to SIDBI out of Rs. 13.00 crores availed during the year 1998- 1999.

AUDIT

M/s. Bajaj Ajay & Co., Chartered Accountants were appointed by the state Government as statuary auditors for the financial year 1999-2000.

AUDIT BY COMPTROLLER & AUDITORS GENERAL OF INDIA

The audit of the affairs of the corporation will be undertaken by the Comptroller & Auditor Genera! of India under section 37 (6) of the SFCs Act, 1951.

BOARD OF DIRECTORS & EXECUTIVE COMMITTEE MEETINGS

Durifig the year under review 6 meetings of Board of Directors and 10 meetings of Executive Committee were held.

ACKNOWLEDGMENT

The Board of Directors wish to place on record its gratitude to Govt, of Haryana, Department of Finance & Department of Industries for their continued co-operation and assistance.

The Board of Directors wish to place on record its gratitude to Industrial Development Bank of India (IDBI), Small Industries Development Bank of India (SIDBI) for their continued support and guidance in all operational and financial matters.

The Board wishes to take the opportunity to thank the Banks, Bond subscribers and share holders for extending their support and cooperation. The Board of Directors also place on record the appreciation of the contribution made by the outgoing directors/Managing Director.

The employees of the Corporation at all levels put in their best in achieving these results. The Board records its appreciation for the continued and sincere efforts put in by the officers and staff of the Corporation.

FOR AND ON BEHALF OF BOARD OF DIRECTORS

Sd/-

P.K. Gupta

MANAGING DIRECTOR

 
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