Home  »  Company  »  Swarna Securitie  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of Swarna Securities Ltd.

Mar 31, 2015

Dear Members,

The Directors take pleasure in presenting their 25th Annual Report and the Audited Financial Statements of the Company for the year ending 31st March, 2015

(Rupees in Lakhs) FINANCIAL RESULTS CURRENT YEAR PREVIOUS YEAR

Total Income 25.98 28.98

Less: Expenditure 13.62 48.95

Profit before depreciation 12.36 -19.97

Less: Depreciation 00.16 00.34

Profit before tax 12.20 -20.31

Less: Provision for Taxation 06.02 05.98

Profit after tax 06.18 -26.29

Less: Reserve Fund 02.44 0.00

03.74 -26.29

Add: Surplus carried forward -65.68 -39.39

Balance Carried to Balance Sheet -61.94 -65.68

DIVIDEND:

Due to constraints of profit, the Board do not recommend any dividend for the year 2014-15.

REVIEW OF OPERATIONS:

The industry of hire purchase and lease finance is in a very bad shape with increased competition and lack of support. Even the segment of mortgage and real estate loans has become non-profitable with difficulty in the collection of the installments. With great difficulty the company could collect the installments which are utilised for reduction of secured liabilities. Concentration has been made in collection of Hire purchase and Loan Installments which are classified as NPA's and there has been satisfactory result on the same. Hence, there has been a very marginal profit during the year under consideration.

PUBLIC DEPOSITS:

The Company had neither accepted nor held any public deposits during the year under review. In pursuance to Clause 5 (Part III) of the Non- Banking Finance Companies (Reserve Bank) Directions, 1998, your Directors wish to state that as on 31st March, 2015 there are no depositors who have not claimed or to whom the amount was not paid by the Company after the date on which the deposits became due for repayment and as on date there are no deposits that are matured and remained unclaimed or deposits that are claimed and remained unpaid.

FINANCE:

Your Company has redeemed all the outstanding Secured Redeemable Non-Convertible Debentures during the year. The Company has neither renewed any of the matured debentures, nor issued any fresh debentures.

FUTURE PROSPECTS :

There has been a steady fall in the financial income of the Company and with the result, the Company is falling short of the principal business criteria for holding the certificate of registration as specified in the Circular DNBS (PD) C.C.No.81/03.05.002/2006-07 dated 19/10/2006 issued by the Reserve Bank of India. The Board is making every effort to improve the financial income and the financial assets and is hopeful of recovery in the coming year. The Board is further planning to diversify its activities to other sectors. However, a final decision is yet to be taken in the matter which will be put before the members shortly.

DIRECTORS:

Sri K. Sridhar and Sri T.V.S.J. Nehru retire by rotation in the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. The consent of the shareholders is also being sought for the re-appointment of Sri M. Murali Krishna as Chairman and Managing Director of the Company who has been re-appointed by the Board of Directors for a period of five years.

The independent directors Sri K Sridhar and T V S J Nehru have given declaration that they meet the criteria of independence as laid down under section 149(6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement.

DIRECTORS' RESPONSIBILITY STATEMENT:

Your Directors wish to confirm that:

(i) in the preparation of annual accounts for the year ended 31st March, 2015, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same;

(ii) such accounting policies have been selected and applied consistently and judgments and estimates are made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at 31st March, 2015 and of the profit of the company for the year ended on that date;

(iii) proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safe guarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) accounts for the financial year ended on 31st March, 2015 are prepared on a going-concern basis.

(v) internal financial controls to be followed by the Company has been laid down and such internal financial controls are adequate and are operating effectively; and

(vi) proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

INTERNAL FINANCIAL CONTROLS:

The Company has in place adequate internal financial controls with reference to the financial statements. During the year, such controls were tested and no reportable material weakness in design or operation were observed.

CONSERVATION OF ENERGY:

Your Company not being a manufacturing company, there are no particulars to be given in respect of Conservation of Energy and Technology Absorption as required under rule 8(3) of the Companies (Accounts) Rules, 2014.

STATUTORY AUDITORS:

M/s Seshadry & Company, the auditors of the Company, hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. They have confirmed their eligibility to the effect that their re-appointment, if made, would be within the limits prescribed under the Act and that they are not disqualified.

OBSERVATIONS OF AUDITORS:

The observations made in the audit report are self-explanatory as given in the notes of accounts attached thereto and do not call for any further comments. The Auditor's Report does not contain any qualification, reservation or adverse remark.

SECRETARIAL AUDITOR:

The Board has appointed Sri J.V. Rama Rao, Practising Company Secretary, to conduct the Secretarial Audit for the financial year 2014- 15. The Secretarial Audit Report for the financial year ended 31st March, 2015 is annexed herewith as "Annexure A".

EXPLANATIONS OR COMMENTS BY THE BOARD ON RESERVATIONS / QUALIFICATIONS IN SECRETARIAL AUDIT REPORT:

As the Companies Act, 2013 has been introduced recently; the management has missed some of the provisions of the newly introduced Act inadvertently. The Board of Directors assure to the members, henceforth strict implementation of the Act will be taken care of.

EXTRACT OF ANNUAL RETURN:

The details forming part of the extract of the Annual Report in Form MGT-9 is annexed herewith as "Annexure B".

MEETINGS:

A calendar of meetings is prepared and circulated in advance to the Directors. During the year Seven Board Meetings and four Audit Committee Meetings were convened and held. The details of which are given in are Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

LISTING:

The shares of the Company were listed in Bombay Stock Exchange Ltd., Mumbai and the listing fee has been paid upto financial year 2015-16.

CORPORATE GOVERNANCE:

A detailed report on Corporate Governance along with the certificate from the Auditors of the Company regarding compliance of Corporate Governance as stipulated under clause 49 of the listing agreement is attached to this report.

SUBSIDIARY COMPANIES:

The Company does not have any subsidiaries.

HUMAN RESOURCES:

There are no employees covered in terms of the provisions of section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 to furnish the particulars mentioned in Rule 5(1) thereof.

FOREIGN EXCHANGE INFLOW & OUTGO:

There has been no foreign exchange inflow or outgo in the current year.

APPRECIATION:

Your Directors wish to place on record their sincere appreciation to the Company's customers, Bankers, Financial Institutions, debenture holders and share holders for their continued support and faith in the Company. A word of appreciation is also due to the employees of the Company for their hard work and commitment.

Place: VIJAYAWADA Date : 12.06.2015 For and on behalf of the Board

(sd) M. Murali Krishna Chairman & Managing Director


Mar 31, 2013

The Directors take pleasure in presenting their 23rd Annual Report and the Audited Financial Statements of the Company for the year ending 31st March, 2013. (Rupees in Lakhs) FINANCIAL RESULTS CURRENT YEAR PREVIOUS YEAR

Total Income 22.32 22.56

Less: Expenditure 15.89 19.49

Profit before depreciation 06.43 03.07

Less: Depreciation 00.45 00.60

Profit before tax 05.98 02.47

Less: Provision for Taxation 02.35 01.91

Profit after tax 03.63 00.56

Less: Reserve Fund 01.20 00.49

02.43 00.07

Add: Surplus carried forward -41.49 -41.56

Balance Carried to Balance Sheet -39.06 -41.49



DIVIDEND .

Due to constraints of profit, the Board do not recommend any dividend for the year 2012-13.

REVIEW OF OPERATIONS :

The industry of hire purchase and lease finance is in a very bad shape with increased competition and lack of support. Even the segment of mortgage and real estate loans has become non-profitable with difficulty in the collection of the installments. With great difficulty the compatw could collect the installments which are utilized for reduction of secured liabilities. Concentration has been made is Collction of hire Purchases and Loan Instalments which are classified as NPAs and there has been satisfactory result on the same. Hence, there has been a very marginal profit during the year under consideration.

PUBLIC DEPOSITS :

The Company had neither accepted nor held any public deposits during the year under review. In pursuance to Clause 5 (Part III) of the Non- Banking Finance Companies (Reserve Bank) Directions, 1998, your Directors wish to state that as on 31st March, 2013 there are no depositors who have not claimed or to whom the amount was not paid by the Company after the date on which the deposits became due for repayment and as on date there are no deposits that are matured and remained unclaimed or deposits that are claimed and remained unpaid

FINANCE :

Your Company has issued Secured Redeemable Non-Convertible Debentures of Rs.100/- each on private placement basis to the tune of Rs.30.75 lakhs (Series-AF) and Rs.27.90 lakhs (Series-AG). While Series-AD and Series-AE are redeemed in full during the year under review, Series-AG is still open for subscription on private placement basis.

FUTURE PROSPECTS :

With the future Hire Purchase and Lease sector appearing to be grim, the company is contemplating to diversify its activities towards the upcoming sectors of real estate, hospitality and tourism sectors. However, a final decision is yet to be taken in the matter which will be put before the members shortly.

DIRECTORS :

Smt. M.V.N.S. Sushma retires by rotation in the ensuing Annual General Meeting and being eligible offers herself for re-appointment.

DIRECTORS'' RESPONSIBILITY STATEMENT :

Pursuant to Section 217(2AA) of the Companies Act, 19&5, with respect to the Directors'' responsibility statement, your Directors wish to confirm that :

(i) In the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;

(ii) Such accounting policies have been selected and applied consistently and judgements and estimates are made 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 or loss of the Company for that period.

(iii) Proper and sufficient care has been taken for 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 any fraud or other irregularities;

(iv) Accounts for the financial year ended on 31st March, 2013 are prepared on a going-concern basis.

AUDITORS :

M/s.Seshadry & Company, the auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting and they have intimated that their re-appointment, if made, would be within the limits prescribed under Section 224(1-B) of the Companies Act, 1956.

OBSERVATIONS OF AUDITORS :

The Observations made in the audit report are self-explanatory as given in the notes of accounts attached thereto.

LISTING:

The shares of the Company were listed in Bombay Stock Exchange LimiteaTMumbai and the listing fee has been paid upto financial year 2012-13.

CORPORATE GOVERNANCE :

A detailed report on Corporate Governance along with the certificate from the auditors of the Company regarding compliance of Corporate Governance as stipulated under Clause 49 of the listing agreement is attached to this report.

HUMAN RESOURCES :

There are no employees covered by Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended.

ADDITIONAL INFORMATION:

Your Company not being a Manufacturing Company is advised that Forms A & B of the Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 requiring the disclosure of particulars regarding conservation of energy and technology absorption, are not applicable.

There has been no foreign exchange inflow or outgo in the current year.

APPRECIATION :

Your Directors wish to place on record their sincere appreciation to the Company''s Customers, Bankers, Financial Institutions, Debenture Holders and Share Holders for their continued support and faith in the Company. A word of appreciation is also due to the employees of the Company for their hard work and commitment.

For and on behalf of the Board

Place: VIJAYAWADA (sd/-)

Date : 06.06.2013 M. MURALI KRISHNA

Chairman & Managing director


Mar 31, 2012

The Directors take pleasure in presenting their 22nd Annual Report and the Audited Financial Statements of the Company for the year ending 31st March, 2012.

(Rupees in Lakhs)

FINANCIAL RESULTS CURRENT YEAR PREVIOUS YEAR

Total Income 22.56 25.12

Less: Expenditure 19.49 19.64 ----- ----- Profit before depreciation 03.07 05.48

Less: Depreciation 00.60 00.70 ----- ----- Profit before tax 02.47 04.78

Less: Provision for Taxation 01.91 00.35 ----- ----- Profit after tax 00.56 04.43

Less: Reserve Fund 00.49 00.96 ----- ----- 00.07 03.47

Add: Surplus carried forward -41.56 -45.03 ----- ----- Balance Carried to Balance Sheet -41.49 -41.56 ----- ----- DIVIDEND :

Due to constraints of profit, the Board do not recommend any dividend for the year 2011-12.

REVIEW OF OPERATIONS :

The industry of hire purchase and lease finance is in a very bad shape with increased competition and lack of support. Even the segment of mortgage and real estate loans has become non-profitable with difficulty in the collection of the installments. With great difficulty the company could collect the installments which are utilised for reduction of secured liabilities. Concentration has been made in collection of Hire purchase and Loan Instalments which are classified as NPA's and there has been satisfactory result on the same. Hence, there has been a very marginal profit during the year under consideration.

PUBLIC DEPOSITS :

The Company had neither accepted nor held any public deposits during the year under review. In pursuance to Clause 5 (Part III) of the Non- Banking Finance Companies (Reserve Bank) Directions, 1998, your Directors wish to state that as on 31st March, 2012 there are no depositors who have not claimed or to whom the amount was not paid by the Company after the date on which the deposits became due for repayment and as on date there are no deposits that are matured and remained unclaimed or deposits that are claimed and remained unpaid.

FINANCE :

Your Company has issued Secured Redeemable Non-Convertible Debentures of Rs. 100/- each on private placement basis to the tune of Rs. 03.10 Lakhs (Series-AD), Rs. 49.35 Lakhs (Series-AE) and Rs. 14.25 Lakhs (Series-AF). While Series-AB and Series-AC are redeemed in full during the year under review, Series-AF is still open for subscription on private placement basis.

FUTURE PROSPECTS :

With the future Hire Purchase and Lease sector appearing to be grim, the company is contemplating to diversify its activities towards the upcoming sectors of real estate, hospitality and tourism sectors. However, a final decision is yet to be taken in the matter which will be put before the members shortly.

DIRECTORS :

Sri K. Sridhar and Sri T.V.SJ. Nehru retire by rotation in the ensuing Annual General Meeting and being eligible offer themselves for re- appointment. The consent of the shareholders is also being sought for the re-appointment of Sri M. Murali Krishna as Chairman and Managing Director of the Company who has been re-appointment by the Board of Directors for a period of three years.

DIRECTORS' RESPONSIBILITY STATEMENT :

Pursuant to Section 217(2AA) of the Companies Act, 1956, with respect to the Directors' responsibility statement, your Directors wish to confirm that.

(i) In the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;

(ii) Such accounting policies have been selected and applied

consistently and judgments and estimates are made 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 or loss of the company for that period;

(iii) Proper and sufficient care has been taken for 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 any fraud or other irregularities;

(iv) Accounts for the financial year ended on 31st March, 2012 are prepared on a going-concern basis.

AUDITORS :

M/s Seshadry & Company, the auditors of the Company, hold office until the conclusion of the ensuing Annual General Meeting and they have intimated that their re-appointment, if made, would be within the limits prescribed under Section 224(1-B) of the Companies Act, 1956.

OBSERVATIONS OF AUDITORS :

The observations made in the audit report are self-explanatory as given in the notes of accounts attached thereto.

LISTING:

The shares of the Company were listed in Bombay Stock Exchange Ltd., Mumbai and the listing fee has been paid upto financial year 2011-12.

CORPORATE GOVERNANCE:

A detailed report on Corporate Governance along with the certificate from the Auditors of the Company regarding compliance of Corporate Governance as stipulated under clause 49 of the listing agreement is attached to this report.

HUMAN RESOURCES :

There are no employees covered by Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended.

ADDITIONAL INFORMATION:

Your Company not being a Manufacturing Company is advised that Forms A & B of the Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 requiring the disclosure of particulars regarding conservation of energy and technology absorption, are not applicable.

There has been no foreign exchange inflow or outgo in the current year.

APPRECIATION :

Your Directors wish to place on record their sincere appreciation to the Company's customers, Bankers, Financial Institutions, debenture holders and share holders for their continued support and faith in the Company. A word of appreciation is also due to the employees of the Company for their hard work and commitment.

For and on behalf of the Board

Place: VIJAYAWADA (sd)

Date : 04.06.2012 M. MURALI KRISHNA

Chairman & Managing director


Mar 31, 2011

Dear Members,

The Directors take pleasure in presenting their 21st Annual Report and the Audited Financial Statements of the Company for the year ending 31st March, 2011.

(Rupees in Lakhs) FINANCIAL RESULTS CURRENT YEAR PREVIOUS YEAR

Total Income 25.12 23.66

Less: Expenditure 19.64 19.70

Profit before depreciation 05.48 03.96

Less: Depreciation 00.70 00.90

Profit before tax 04.78 03.06

Less: Provision for Taxation 00.35 01.16

Profit after tax 04.43 01.90

Less: Reserve Fund 00.96 00.61

03.47 01.29

Add: Surplus carried forward -45.03 -46.32

Balance Carried to Balance Sheet -41.56 -45.03

DIVIDEND :

Due to constraints of profit, the Board do not recommend any dividend for the year 2010-11.

REVIEW OF OPERATIONS .

The industry of hire purchase and lease finance is in a very bad shape with increased competition and lack of support. Even the segment of mortgage and real estate loans has become non-profitable with difficulty in the collection of the installments. With great difficulty the company could collect the installments which are utilised for reduction of secured liabilities. Concentration has been made in collection of Hire purchase and Loan Instalments which are classified as NPA's and there has been satisfactory result on the same. The provision for NPA's could be reduced by Rs. 3.62 Lskhs. Hence, there has been a very marginal profit during the year under consideration.

PUBLIC DEPOSITS :

The Company had neither accepted nor held any public deposits during the year under review. In pursuance to Clause 5 (Part III) of the Non- Banking Finance Companies (Reserve Bank) Directions, 1998, your Directors wish to state that as on 31st March, 2011 there are no depositors who have not claimed or to whom the amount was not paid by the Company after the date on which the deposits became due for repayment and as on date there are no deposits that are matured and remained unclaimed or deposits that are claimed and remained unpaid.

FINANCE :

Your Company has issued Secured Redeemable Non-Convertible Debentures of Rs. 100/- each on private placement basis to the tune of Rs. 07.50 Lakhs (Series- AB), Rs. 51.65 Lakhs (Series-AC) and Rs. 43.25 Lakhs (Series-AD). While Series-Z and Series-AA are redeemed in full during the year under review, Series-AD is still open for subscription on private placement basis.

CHANGE IN REGISTERED OFFICE :

For more administrative convenience, the Registered Office of the Company was shifted from 27-21-36, 1st Floor, Kaleswara Rao Road, Governorpet, Vijayawada-2 to II Floor, Swarnalok Complex, Governorpet, Vijayawada - 2 with effect from 24.01.2011

FUTURE PROSPECTS :

With the future Hire Purchase and Lease sector appearing to be grim, the company is contemplating to diversify its activities towards the upcoming sectors of real estate, hospitality and tourism sectors. However, a final decision is yet to be taken in the matter which will be put before the members shortly.

DIRECTORS :

Sri Pradeep Kumar retires by rotation in the ensuing Annual General Meeting and being eligible offers himself for re-appointment.

DIRECTORS' RESPONSIBILITY STATEMENT :

Pursuant to Section 217(2AA) of the Companies Act, 1956, with respect to the Directors' responsibility statement, your Directors wish to confirm that.

(i) In the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;

(ii) Such accounting policies have been selected and applied consistently and judgments and estimates are made 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 or loss of the company for that period;

(iii) Proper and sufficient care has been taken for 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 any fraud or other irregularities;

(iv) Accounts for the financial year ended on 31st March, 2011 are prepared on a going-concern basis.

AUDITORS :

M/s Seshadry & Company, the auditors of the Company, hold office until the conclusion of the ensuing Annual General Meeting and they have intimated that their re-appointment, if made, would be within the limits prescribed under Section 224(1-B) of the Companies Act, 1956.

OBSERVATIONS OF AUDITORS :

The observations made in the audit report are self-explanatory as given in the notes of accounts attached thereto.

LISTING:

The shares of the Company were listed in Bombay Stock Exchange Ltd., Mumbai and the listing fee has been paid upto financial year 2010-11.

CORPORATE GOVERNANCE :

A detailed report on Corporate Governance along with the certificate from the Auditors of the Company regarding compliance of Corporate Governance as stipulated under clause 49 of the listing agreement is attached to this report.

HUMAN RESOURCES :

There are no employees covered by Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended.

ADDITIONAL INFORMATION:

Your Company not being a Manufacturing Company is advised that Forms A & B of the Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 requiring the disclosure of particulars regarding conservation of energy and technology absorption, are not applicable.

There has been no foreign exchange inflow or outgo in the current year.

APPRECIATION :

Your Directors wish to place on record their sincere appreciation to the Company's customers, Bankers, Financial Institutions, debenture holders and share holders for their continued support and faith in the Company. A word of appreciation is also due to the employees of the Company for their hard work and commitment.

For and on behalf of the Board

(sd) M. MURALI KRISHNA Chairman & Managing director

Place: VIJAYAWADA Date : 04.06.2011


Mar 31, 2010

The Directors take pleasure in presenting their 20th Annual Report and the audited financial statements of the Company for the year ending 31st March, 2010.

(Rupees in Lakhs)

FINANCIAL RESULTS CURRENT YEAR PREVIOUS YEAR

Total Income 23.66 27.21

Less: Expenditure 19.70 15.40

Profit before depreciation 03.06 11.81

Less: Depreciation 00.90 01.89

Profit before tax 03.06 09.92

Less: Provision for Taxation 01.16 00.22

Profit after tax 01.90 09.70

Less: Reserve Fund 00.61 01.98

01.29 07.72

Add: Surplus carried forward -46.32 -54.04

Balance Carried to Balance Sheet -45.03 -46.32



DIVIDEND :

Due to constraints of profit, the Board do not recommend any dividend for the year 2009-10.

REVIEW OF OPERATIONS :

The industry of hire purchase and lease finance is in a very bad shape with increased competition and lack of support. Even the segment of mortgage and real estate loans has become non-profitable with difficulty in the collection of the installments. With great difficulty the company could collect the installments which are utilized for reduction of secured liabilities. Hence, there has been a very marginal profit during the year under consideration.

PUBLIC DEPOSITS :

The Company had neither accepted nor held any public deposits during the year under review. In pursuance to Clause 5 (Part III) of the Non- Banking Finance Companies (Reserve Bank) Directions, 1998, your Directors wish to state that as on 31st March, 2010 there are no depositors who have not claimed or to whom the amount was not paid by the Company after the date on which the deposits became due for repayment and as on date there are no deposits that are matured and remained unclaimed or deposits that are claimed and remained unpaid

FINANCE :

Your Company has issued Secured Redeemable Non-Convertible Debentures of Rs.100/- each on private placement basis to the tune of Rs.46.30 lakhs (Series-Z), Rs.50.90 Lakhs (Series-AA) and Rs.40.10 lakhs (Series-AB). While Series-W, Series-X and Series-Y are redeemed in full during the year under review, Series-AB is still open for subscription on private placement basis.

FUTURE PROSPECTS :

With the future of Hire Purchase and Lease sector appearing to be grim, the company is contemplating to diversify its activities towards the upcoming sectors of real estate, hospitality and tourism sectors. However, a final decision is yet to be taken in the matter which will be put before the members shortly.

DIRECTORS :

Smt. M.V.N.S. Sushma retires by rotation in the ensuing Annual General Meeting and being eligible offers herself for re-appointment.

DIRECTORS RESPONSIBILITY STATEMENT :

Pursuant to Section 217(2AA) of the Companies Act, 1956, with respect to the Directors responsibility statement, your Directors wish to confirm that :

(i) In the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any;

(ii) Such accounting policies have been selected and applied consistently and judgements and estimates are made 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 or loss of the Company for that period.

(iii) Proper and sufficient care has been taken for 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 any fraud or other irregularities;

(iv) Accounts for the financial year ended on 31st March, 2010 are prepared on a going-concern basis.

AUDITORS :

M/s.Seshadry & Company, the auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting and they have intimated that their re-appointment, if made, would be within the limits prescribed under Section 224(1-B) of the Companies Act, 1956.

OBSERVATIONS OF AUDITORS :

The Observations made in the audit report are self-explanatory as given in the notes of accounts attached thereto.

LISTING:

The shares of the Company were listed in Bombay Stock Exchange Limited, Mumbai and the listing fee has been paid upto financial year 2009-10.

CORPORATE GOVERNANCE :

A detailed report on Corporate Governance along with the certificate from the auditors of the Company regarding compliance of Corporate Governance as stipulated under Clause 49 of the listing agreement is attached to this report.

HUMAN RESOURCES :

There are no employees covered by Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended.

ADDITIONAL INFORMATION:

Your Company not being a Manufacturing Company is advised that Forms A & B of the Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 requiring the disclosure of particulars regarding conservation of energy and technology absorption, are not applicable.

There has been no foreign exchange inflow or outgo in the current year.

APPRECIATION :

Your Directors wish to place on record their sincere appreciation to the Companys Customers, Bankers, Financial Institutions, Debenture Holders and share holders for their continued support and faith in the Company. A word of appreciation is also due to the employees of the Company for their hard work and commitment.

For and on behalf of the Board

Place: VIJAYAWADA (sd)

Date : 01.06.2010 M. MURALI KRISHNA

Chairman & Managing director



 
Subscribe now to get personal finance updates in your inbox!