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 ÂOne 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