Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting before the Annual Report of
the Company together with the Audited Statements of Accounts for the
year ended 31 st March, 2015.
S.No. CONTENTS OF THE REPORT
1 FINANCIAL SUMMARY/HIGHLIGHTS, OPERATIONS, STATE OF AFFARIS: [INSERT AS
PER INFORMATION FROM THE COMPANY]:
(Rs. in lakhs)
Particulars 2014-2015 2013-14
Gross Income 110.95 124.31
Profit Before Interest and Depreciation 65.95 54.79
Finance Charges 0.01 1.41
Gross Profit 65.94 53.37
Provision for Depreciation 20.66 20.14
Net Profit Before Tax 45.28 33.23
Provision for Tax 8.30 10.72
Net Profit After Tax 36.98 22.51
Surplus carried to Balance Sheet 36.98 22.51
General Information about the Company, the Board's perception of future
of the company considering market competition, production constraints,
government polices etc., Major events concerning the company are to be
highlighted.
2 EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENT, that affect the
substance and figures given in the Statement
NIL
3 Change in the Nature of Business, if any,
During the year under review, the Company has surrendered its NBFC
Licence to RBI. The Company intends it pursue its other main objects.
4 DIVIDEND:
The board recommends to declare a dividend at 5% for the year under
review.
5 BOARD MEETINGS:
The Board of Directors duly met 4 times during this financial year on
the
following dates
28/05/2014
22/07/2014
24/10/2014
02/02/2015
6 DIRECTORS AND KEY MANANGERIAL PERSONNEL:
Details about the Appointment, Re-appointment, Change in Designation,
Resignation of Directors (along with fact of resignation), Managing
Directors, Whole Time Directors, KMP, Independent Directors.
Disclosure U/s.149(10) on Appointment of Independent directors for the
second term by way of special resolution.
During the year Promoter Director Mr. Teckchand Hoondamal Vaswani &
Independent Director Mr.J.Viswanathan have expired. & Mrs, Muthulakshmi
Ganesh was appointed as a Director.
7. DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL
BASIS
The declaration from each Independent Director of the Company under
Section 149(7) of the Companies Act, 2013 is enclosed. ANNEXURE I
8 COMPOSITION OF AUDIT COMMITTEE
Audit Committee consists of the following Independent Directors
Mr.K.M.Narasimhan
Mr.T.V.Srinivasan
9. VIGILMECHANISM:
Whistle Blower policy: The Company has a whistle blower mechanism
wherein the employees are free to report violation of laws, rules,
regulations or unethical conduct to their immediate superiors or such
other person as may be notified from time to time by the management.
The confidentiality of those reporting violations shall be maintained
and they shall not be subjected to any discriminatory practices. No
person had been denied access to the Audit Committee.
10. DIRECTOR'S RESPONSIBILITY STATEMENT:
In pursuance of section 134 (5) of the Companies Act, 2013, the
Directors hereby confirm that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(b) the directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and profit for company
for that period;
(c) the directors have 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;
(d) the directors have prepared the annual accounts on a going concern
basis;
(e) the directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
(f) the directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively
11 INFORMATION ABOUT THE FINANCIAL PERFORMANCE / FINANCIAL POSITION OF
THE SUBSIDIARIES/ ASSOCIATES/JV
The company has no Subsidiary / Joint Venture / Associate.
12 EXTRACT OF ANNUAL RETURN:
As required pursuant to section 92(3) oftheCompaniesAct,2013 and Rule
12( 1) of the Companies (Management and Administration) Rules, 2014, an
extract of annual return in MGT 9 as a part of this Annual Report
(FORMAT IN ANNEXURE II)
13 AUDITORS:
The Auditors, M/s R.Bhaskar & Co, Chartered Accountants, D.C.Towers, No.
17,3rd Floor, F 37 & 38, Second Avenue, Anna Nagar, Chennai - 600 102
retire at the ensuing Annual General Meeting and, being eligible, offer
themselves for reappointment. As per the provisions of the Companies
Act, 2013, the Auditors could be appointed for a period of One year from
the conclusion of this Annual General Meeting till the conclusion of AGM
to be held on 2016.
14 SECRETARIAL AUDIT: Secretarial audit report as provided by Mr.
G.Porselvam Practising Company Secretary is enclosed to this Report as
Annexure III
15 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
OUTGO:
(A) Conservation of energy: NIL
(B) Technology absorption: NIL
(C) Foreign exchange earnings and Outgo NIL
16 DETAILS RELATING TO DEPOSITS, COVERING THE FOLLOWING:
The company has not Accepted / renewed any deposits during the year.
17 SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS:
The Company has not made any Application /Petition to any of the
Regulators during the year under Review, except that the Company has
submitted its Draft Scheme of De-Merger to the BSE, which is under
consideration.
18 DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS
The company has adequate Internal Control System.
19 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The Company does not have any:
SECURED LOANS: NIL UNSECURED LOANS: NIL CURRENT/NON-CURRENT
INVESTMENTS: NIL GUARANTEES: NIL SECURITIES EXTENDED: NIL
20 RISK MANAGEMENT POLICY:
The company has framed Risk Management policy
21 CORPORATE SOCIAL RESPONSIBILITY POLICY:
The present Net worth / turnover of the company do not require
compliance with CSR
22 RELATED PARTY TRANS ACTIONS: NIL
23 FORMAL ANNUAL EVALUATION:
Statement about the manner in which the formal evaluation made by the
Board of its own performance and that of its committees and individual
Directors.
The company is regularly adopting its Annual Evaluation Process, and
the same is being considered by the board.
24 Disclosure about Cost Audit
Applicability of Cost Auditor dose not arise.
25 LISTING WITH STOCK EXCHANGES:
The Company confirms that it has paid the Annual Listing Fees for the
year 2015- 2016 to BSE and BSE is the designated stock exchange where
the shares of the company are listed.
26 CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION:
Company has taken adequate steps to adhere to all the stipulations laid
down in Clause 49 of the Listing Agreement. A report on Corporate
Governance is included as a part of this Annual Report (ANNEXURE IV)
Certificate from the Statutory Auditors of the company confirming the
compliance with the conditions of Corporate Governance as stipulated
under Clause 49 of the Listing Agreement is attached to this report.
27 INDUSTRY BASED DISCLOSURES AS MANDATED BY THE RESPECTIVE LAWS
GOVERNING THE COMPANY NBFC, HOUSING COMPANIES ETC.
The company has surrendered its NBFC license to RBI during the year and
the disclosure in this regard is not mandated.
28 SECRETARIAL STANDARDS
Standards as was in Force is being adopted
Mar 31, 2013
The Directors have pleasure in presenting the Twentieth Annual Report
of your Company with Audited Accounts for the year ended 31 March,
2013.
PERFORMANCE:
The Performance of the Company for the year ended 31 March, 2013 is
briefly set out below:
(Rs.) in Lakhs
INCOME FOR THE YEAR
117.01
LESS: EXPENDITURE FOR THE YEAR 50.19
PROFIT BEFORE DEPRECIATION & TAX 66.82
LESS: DEPRECIATION 19.43
PROVISION FOR TAX & STANDARD ASSETS 6.31
PROFIT AVAILABLE FOR APPROPRIATION 41.08
ADD: OPENING BALANCE IN P&L ACCOUNT 79.95
LESS: TRANSFER TO STATUTORY RESERVES 8.21
BALANCE C/F TO P&L ACCOUNT 112.82
DIVIDEND:
Your Company has not recommended any Dividend due to insufficient
profits. This may also strengthen the reserves.
FIXED DEPOSITS:
The Company does not hold any deposits from the public or others as at
31 March, 2013 and hence, the company does not have any unpaid deposit
or interest.
DIRECTORS:
Mr.T.V.Srinivasan, and Mr.V.G.Sureshkumar Directors retiring by
rotation, being eligible have offered themselves for re-appointment.
At the Board Meeting held on 02/05/2013, Mr.P.Sankaran, Executive
Director has been re- appointed for a period of one year with effect
from 19/06/2013 on the terms and conditions as detailed in the Special
resolution placed for shareholder''s approval.
CORPORATE GOVERNANCE REPORT:
A Certificate from the auditors of the Company regarding compliance of
conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement is attached to this Report.
RESPONSIBILITY STATEMENT OFTHE BOARD OFDIRECTORS:
In terms of provisions of Section 217(2AA) of the Companies Act, 1956,
your Directors confirm that:
1. In the preparation of the Annual Accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures.
2. Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company at the end of the financial year and of the profit of the
company for that period.
3. 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.
4. Directors had prepared the annual accounts on a going concern
basis.
STATUTORYDISCLOSURES:
(i) Since none of the employees are in receipt of such remuneration for
being included in the statement under Section 217(2 A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975,
the information in this regard is Nil.
(ii) The provisions of Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 requiring disclosure of
particulars regarding Conservation of Energy in Form A and Technology
Absorption in Form B prescribed by the Rules do not apply to your
Company, as it does not carry on manufacturing activities.
(iii) The Company had no foreign exchange inflow and outflow.
AUDITORS:
R.Bhaskar & Co, Chartered Accountants, Chennai are recommended for
re-appointment as Statutory Auditors of the company to hold office from
the conclusion of this Annual General meeting till the conclusion of
the next Annual General Meeting.
ACKNOWLEDGEMENTS:
Your Directors wish to place on record their gratitude to you as
shareholders for your continued support. They are thankful to your
Company''s Clients, Bankers, Reserve Bank of India, FIHPA, SIHPA, SEBI,
MSE, BSE and other Government Agencies for their valuable assistance.
They also wish to convey their appreciation to the employees whose
dedicated service has enabled your Company to function satisfactorily
in a continued unpredictable business climate.
On behalf of the Board
Place: Chennai - 17 L.V. ANANTRAM P. SANKARAN
Date : 02-05-2013. Director Executive Director
Mar 31, 2012
The Directors have pleasure in presenting the Nineteenth Annual Report
of your Company with Audited Accounts for the year ended 31 March,
2012.
PERFORMANCE:
The Performance of the Company for the year ended 31 March, 2012 is
briefly set out below:
Rs.in Lakhs
INCOME FOR THE YEAR 92.99
LESS: EXPENDITURE FOR THE YEAR 48.66
PROFIT BEFORE DEPRECIATION & TAX 44.33
LESS: DEPRECIATION 22.73
PROVISION FOR TAX & STANDARD ASSETS 8.09
PROFIT AVAILABLE FOR APPROPRIATION 13.51
ADD: OPENING BALANCE IN P&L ACCOUNT 69.14
LESS: TRANSFER TO STATUTORY RESERVES 2.70
BALANCE C/F TO P&L ACCOUNT 79.95
DIVIDEND:
Your Company has not recommended any Dividend due to insufficient
profits. This may also strengthen the reserves.
MANAGEMENT DISCUSSION & ANALYSIS:
REVIEW OF OPERATIONS:
During the year your company's loan transactions totaling Rs 319.50
lakhs were disbursed as against Rs 293.56 lakhs in the previous year.
None of the new borrowal accounts have fallen NPA. Your Company
ventured into the Advances through factoring of receivables. The
working capital finance amounted Rs 220 lakhs against receivables during
the period under review. The total interest income ofRs 40.46 lakhs
which included Rs 3.68 lakhs collected towards interest during the short
period of four months from December 2011. The other income for the year
stood at Rs 52.53 lakhs including Rs 1.10 lakhs collected as Factoring
service charges. The reduction in other income for the year was mainly
caused by shortfall in profit on share trading due to a very volatile
market and lower rental income and amenities charges consequent to
surrender of some areas by tenants.
With a view to increasing financial income your company increased the
investment portfolio also to Rs 260.61 lakhs. The resultant income from
these investments would augment the Company's income in the long run.
Your Company is happy to inform you that due to constant review, follow
up, the company has been complying with Asset / Income pattern norms
fixed by RBI for NBFC companies in the current year under review.
WEBSITE:
Performance particulars of the Company can be ascertained by the share
holders / public from website, www.afslindia.com
FUTURE PROSPECTS:
Your Directors are also considering further expansion of business of
receivable financing, financing of commercial vehicles and construction
equipments during the current year. Hence, your directors are hopeful
of achieving improved results in the ensuing years.
ECONOMY MEASURES:
The Company has put into effect economy measures consistent with the
need to continue the operations on a moderate scale with efficiency and
promptness.
RISKS AND CONCERNS:
Your Company is exposed to normal industry risk factor such as Interest
rate volatility, economic cycle and credit risk. Your Company manages
these risks by adopting prudent business and risk management policies.
ADEQUACY OF INTERNAL CONTROL:
Your Company has got adequate system of internal controls and the
management ensures adherence to all internal control practices and
procedures. The Audit Committee critically reviews periodically the
adequacy of internal controls and suggests control measures for further
improvement / transparency.
FIXED DEPOSITS:
The Company does not hold any deposits from the public or others as at
31 March, 2012 and hence, the company does not have any unpaid deposit
or interest.
DIRECTORS:
Mr K V Aiyappan, Mr U.K.Selvathilak and Mr J.Viswanathan Directors
retiring by rotation, being eligible have offered themselves for
re-appointment.
At the Board Meeting held on 03/05/2012, Mr.P.Sankaran, Executive
Director has been re- appointed for a period of one year with effect
from 19/06/2012 on the terms and conditions as detailed in the Special
resolution placed for shareholder's approval.
CORPORATE GOVERNANCE REPORT:
A Certificate from the auditors of the Company regarding compliance of
conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement is attached to this Report.
RESPONSIBILITY STATEMENT OF THE BOARD OF DIRECTORS:
In terms of provisions of Section 217(2AA) of the Companies Act, 1956,
your Directors confirm that:
1. In the preparation of the Annual Accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures.
2. Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and
fair view of the state of affairs of the company at the end of the
financial year and of the profit of the company for that period.
3. 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.
4. Directors had prepared the annual accounts on a going concern
basis.
STATUTORY DISCLOSURES:
(i) Since none of the employees are in receipt of such remuneration for
being included in the statement under Section 217(2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975,
the information in this regard is Nil.
(ii) The provisions of Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 requiring disclosure of
particulars regarding Conservation of Energy in Form A and Technology
Absorption in Form B prescribed by the Rules do not apply to your
Company, as it does not carry on manufacturing activities.
(iii) The Company had no foreign exchange inflow and outflow.
AUDITORS:
R.Bhaskar & Co, Chartered Accountants, Chennai are recommended for
re-appointment as Statutory Auditors of the company to hold office from
the conclusion of this Annual General meeting till the conclusion of
the next Annual General Meeting.
ACKNOWLEDGEMENTS:
Your Directors wish to place on record their gratitude to you as
shareholders for your continued support. They are thankful to your
Company's Clients, Bankers, Reserve Bank of India, FIHPA, SIHPA, SEBI,
MSE, BSE and other Government Agencies for their valuable assistance.
They also wish to convey their appreciation to the employees whose
dedicated service has enabled your Company to function satisfactorily
in a difficult business climate.
On behalf of the Board
Place : Chennai - 17 L.V. ANANTRAM P. SAN KARAN
Date : 03-05-2012. Director Executive Director
Mar 31, 2011
The Directors have pleasure in presenting the Eighteenth Annual Report
of your Company with Audited Accounts for the year ended 31 March,
2011.
PERFORMANCE:
The Performance of the Company for the year ended 31 March, 2011 is
briefly set out below:
? in Lakhs
INCOME FOR THE YEAR 110.97
LESS: EXPENDITURE FOR THE YEAR 36.54
PROFIT BEFORE DEPRECIATION & TAX 74.43
LESS: DEPRECIATION 32.61
PROVISION FOR TAX & STANDARD ASSETS 27.76
PROFIT AVAILABLE FOR APPROPRIATION 14.06
ADD: OPENING BALANCE IN P&L ACCOUNT 58.08
LESS: TRANSFER TO STATUTORY RESERVES 3.00
BALANCE C/F TO P&L ACCOUNT 69.14
DIVIDEND:
Your Company has not recommended any Dividend due to insufficient
profits.
MANAGEMENT DISCUSSION & ANALYSIS:
REVIEW OF OPERATIONS:
During the year your company registered an increase in loan
transactions from ^ 147.93 lakhs in the previous year to ? 293.56 lakhs
in the current year. There was an increase in interest on loans from ^
22.98 lakhs in the previous year to ? 30.93 lakhs in the current year.
In spite of increase in business, the profit for the current year under
review has come down to ? 41.82 lakhs from ? 43.63 lakhs in the
previous year. This is mainly due to substantial reduction in profit on
share trading from ? 25.05 lakhs in the previous year to ? 9.49 lakhs
in the current year. Moreover, there was also decrease in rent and
amenities to the extent of ?20.80 lakhs during the year 2010-11.
With a view to increasing the financial income your company increased
the investments substantially to ? 233.58 lakhs. The resultant income
from these operations is expected to improve Companys income in the
long run.
However, your company is happy to inform you that due to strenuous
efforts, your company has been able to achieve the Asset/ Income
Pattern norms fixed by RBI for Non-Banking Financial Companies in the
current year under review.
WEBSITE:
Performance particulars of the Company can be viewed by the share
holders / public from website, www.afslindia.com
FUTURE PROSPECTS:
During the year your company sought and secured the approval of the
shareholders for carrying on the business of housing finance and the
scheme is in the advanced stage of processing.
Your Directors are also considering the business of receivable
financing, financing of commercial vehicles and construction equipments
during the current year. Hence, your directors are hopeful of achieving
improved results in the ensuing years.
ECONOMY MEASURES:
The Company has put into effect economy measures consistent with the
need to continue the operations on a moderate scale with efficiency and
promptness.
RISKS AND CONCERNS:
Your Company is exposed to normal industry risk factor such as Interest
rate volatility, economic cycle and credit risk. Your Company manages
these risks by adopting prudent business and risk management policies.
ADEQUACY OF INTERNAL CONTROL:
Your Company has got adequate system of internal controls and the
management ensures adherence to all internal control practices and
procedures. The Audit Committee critically reviews periodically the
adequacy of internal controls and suggests control measure for further
improvement / transparency.
FIXED DEPOSITS:
The Company does not hold any deposits from the public or others as at
31 March, 2011 and hence, the company does not have any unpaid deposit
or interest.
DIRECTORS:
Mr.L.V.Anantram, Mr.Teckchand Vaswani and Mr.P.Sankaran Directors
retiring by rotation, being eligible have offered themselves for
re-appointment.
Mr.A.K.Sabesan and Mr.R.Varadarajan resigned from the directorship of
the company with effect from 23-07-2010 and 20-01-2011 respectively
citing personal reasons. The Board places on record the good services
rendered by them during their tenure as Directors.
Mr.J.Viswanathan has been appointed as additional director at the Board
Meeting held on 23-07-2010. He holds office till the conclusion of the
forthcoming Annual General Meeting. Your company received a notice
under section 257 of the Companies Act, 1956 proposing his candidature
as Director. The Board of Directors recommends his appointment/re-
appointment.
Mr.K.M.Narasimhan has been appointed as additional director at the
Board Meeting held on 20-01 -2011. He holds office till the conclusion
of the forthcoming Annual General Meeting. Your company received a
notice under section 257 of the Companies Act, 1956 proposing his
candidature as Director. The Board of Directors recommends his
appointment/re- appointment.
At the Board Meeting held on 21-04-2011, Mr.P.Sankaran, Executive
Director has been re- appointed for a period of one year with effect
from 19-06-2011 on the terms and conditions as detailed in the Special
resolution placed for shareholders approval.
CORPORATE GOVERNANCE REPORT:
A Certificate from the Auditors of the Company regarding compliance of
conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement is attached to this Report.
RESPONSIBILITY STATEMENT OF THE BOARD OF DIRECTORS:
In terms of provisions of Section 217(2AA) of the Companies Act, 1956,
your Directors confirm that:
1. In the preparation of the Annual Accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures.
2. Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company at the end of the financial year and of the profit of the
company for that period.
3. 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.
4. Directors had prepared the annual accounts on a going concern
basis.
STATUTORY DISCLOSURES:
(i) Since none of the employees are in receipt of such remuneration for
being included in the statement under Section 217(2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975,
the information in this regard is NIL.
(ii) The provisions of Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 requiring disclosure of
particulars regarding Conservation of Energy in Form A and Technology
Absorption in Form B prescribed by the Rules do not apply to your
Company, as it does not carry on manufacturing activities.
(iii) The Company had no foreign exchange inflow and outflow.
AUDITORS:
R.Bhaskar & Co, Chartered Accountants, Chennai are recommended for
re-appointment as Statutory Auditors of the company to hold office from
the conclusion of this Annual General meeting till the conclusion of
the next Annual General Meeting.
ACKNOWLEDGEMENTS:
Your Directors wish to place on record their gratitude to you as
shareholders for your continued support. They are thankful to your
Companys Clients, Bankers, Reserve Bank of India, FIHPA, SIHPA, SEBI,
MSE, BSE and other Government Agencies for their valuable assistance.
They also wish to convey their appreciation to the employees whose
dedicated service has enabled your Company to function satisfactorily
in a difficult business climate.
On behalf of the Board
Place: Chennai - 17 L.V. ANANTRAM P. SANKARAN
Date : 21-04-2011. Director Executive Director
Mar 31, 2010
The Directors have pleasure in presenting the Seventeenth Annual
Report of your Company with Audited Accounts for the year ended 31st
March, 2010.
PERFORMANCEt
The Performance oft the Company for the year ended 31st March, 2010 is
briefly set out below:
Rs. in Lakhs
INCOME FOR THE YEAR 126.51
LESS : EXPENDITURE FOR THE YEAR 41.75
PROFIT BEFORE DEPRECIATION & TAX 84.76
LESS: DEPRECIATION 41.12
PROVISION FOR TAX INCLU. FBT 26.71
PROFIT AVAILABLE FOR APPROPRIATION 16.93
ADD : OPENING BALANCE IN P&L ACCOUNT 44.65
LESS : TRANSFER TO STATUTORY RESERVES 3.50
BALANCE C/F TO P&L ACCOUNT 58.08
DIVIDEND:
Your Company has nbt recommended any Dividend due to insufficient
profits and to strengthen the reserves.
MANAGEMENT DISCUSSION & ANALYSIS:
REVIEW OF OPERATIONS:
A full year after the financial meltdown the company was able to
register a moderate increase in operations resulting in an income of
Rs. 126.51 lakhs as against Rs. 107.12 lakhs for the previous year.
During the year loans totalling Rs. 158.80 lakhs was given as against
Rs. 134 97 lakhs disbursed in the previous year which continue to
support the operations of the company. In the result the status of the
company as NBFC-B category showed some improvement. The management is
hoping, that it will fully meet the prescribed requirements.
WEBSITE:
Performance particulars of the Company can be ascertained by the share
holders / public from websije, www.afslindia.com
FUTURE PROSPECTS:
The strategy designed few years ago is being continued with caution,
the disbursements being restricted to existing as well as well known
worthy / good clients. The Directors are confident of showing improved
results during this year.
ECONOMY MEASURES:
The Company has put into effect economy measures consistent with the
need to continue the operations on a moderate scale with efficiency and
promptness.
RISKS AND CONCERNS:
Your Company is exposed to normal industry risk factor such as Interest
rate, volatility, economic cycle and credit risk. Your Company manages
these risks by adopting prudent business and risk management policies.
ADEQUACY OF INTERNAL CONTROL:
Your Company has got adequate system of internal controls and the
management ensures adherence to all internal control practices and
procedures. The Audit Committee critically reviews periodically the
adequacy of internal controls and suggests control measure for further
improvement / transparency.
FIXED DEPOSITS:
The Company does not hold any deposits from the public or others as at
31 March, 2010 and hence, the company does not have any unpaid deposit
or interest.
DIRECTORS:
Mr.K.V. Aiyappan, Mr.V.G. Sureshkumar and Mr.T.V. Srinivasan Directors
retiring by rotation, being eligible have offered themselves for
re-appointment.
Mr.T.S. Ramakrishnan resigned from the directorship of the company with
effect from 24/04/2010 citing personal reasons. The Board places on
record the good services rendered by him during his tenure.
Mr.U.K. Selvathilak has been appointed as additional director at the
Board Meeting held on 24/04/2010. He holds office till the conclusion
of the forthcoming Annual General Meeting. Your company received a
notice under section 257 of the Companies Act, 1956 proposing his
candidature as Director. The Board of Directors recommends his
appointment/ re-appointment.
At the Board Meeting held on 24/04/2010, Mr.P.Sankaran, Executive
Director has been re-appointed for a period of one year with effect
from 19/06/2010 on the terms and conditions as detailed in the Special
resolution placed for shareholders approval.
CORPORATE GOVERNANCE REPORT:
A Certificate from the auditor of the Company regarding compliance of
conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement is attached to this Report.
RESPONSIBILITY STATEMENT OF THE BOARD OF DIRECTORS:
In terms of provisions of Section 217(2AA) of the Companies Act, 1956,
(Act) your Directors confirm that:
1 In the prepsiration of the Annual Accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
2 Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company at the end of the financial year and of the profit of the
company for that period.
3 Directors hid 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.
4 Directors had prepared the annual accounts on a going concern basis.
STATUTORY DISCLOSURES:
(i) Since none of the employees are in receipt of such remuneration for
being
included in the statement under Section 217(2A) of the Companies Act,
1956 read with Companies (Particulars of Employees) Rules, 1975, the
information in this regard is NIL.
(ii) The provisions of Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 requiring disclosure of
particulars regarding Conservation of Energy in Form A and Technology
Absorption in Form B prescribed by the Rules do not apply to your
Company, as it does not carry on manufacturing activities.
(iii) The Company had no foreign exchange inflow and outflow.
AUDITORS:
R.Bhaskar & Co, (fhartered Accountants, Chennai are recommended for
appoint- ment as Auditors of the company to assume office from the
conclusion of this Annual General meeting til the conclusion of next
Annual General Meeting in the place of Mr.K.C.Sthalasayanam, existing
Auditor who expressed his inability to continue effective from the
ensuing Annual General meeting citing personal reasons.
ACKNOWLEDGEMENTS:
Your Directors wis h to place on record their gratitude to you as
shareholders for your continued support. They are thankful to your
Companys Clients, Bankers, Reserve Bank of Ii[dia, FIHPA, SIHPA, SEBI,
MSE, BSE and other Government Agencies for their valuable assistance.
They also wish to convey their appreciation to the employees whose
dedicated service has enabled your Company to function satisfactorily
in a difficult business climate.
On behalf of the Board
Place: Chennai -17. L.V. ANANTRAM P. SANKARAN
Date : 24/04/2010- Director Executive Director