DIRECTORS' REPORT 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. 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 |