Your Directors have pleasure in presenting the Nineteenth Annual Report of your Company with Audited Accounts for the year ended 31 March, 2013.
TThe Performance of the Company for the year ended 31 March, 2013 is briefly set out
Rs. in Lakhs
| INCOME FOR THE YEAR
| LESS: EXPENDITURE FOR THE YEAR
|PROFIT BEFORE DEPRECIATION & TAX
|PROVISION FOR TAX & STANDARD ASSETS
|PROFIT AVAILABLE FOR APPROPRIATION
| ADD: OPENING BALANCE IN P&L ACCOUNT
| LESS: TRANSFER TO STATUTORY RESERVES
| BALANCE C/F TO P&L ACCOUNT
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 loans totalling Rs.447.80 lakhs were disbursed as against Rs.319.50 lakhs in the previous year. None of the borrowal accounts have fallen NPA. Many of the disbursements are mainly or collaterally secured by valued assets. The working capital finance alone amounted Rs.274 lakhs against receivables during the period under review. The total interest income of Rs.34.68 lakhs which included Rs.12.30 lakhs collected towards interest from factoring finance alone. Some loans are spreading for a span of 2 and above years under EMI Scheme. The other income for the year stood at Rs.82.57 lakhs such as Rs.5.06 lakhs collected as Other Commission & service charges & Rs.16.87 lakhs as Dividend from Equity shares, Mutual Funds & Rs.6.60 lakhs from Profit on share trading. While comparing previous years income, there is substantial increase in many heads of incomes.
With a view to increasing financial income your company increased the investment portfolio to Rs.228.71 lakhs & loan portfolio to Rs.447.80 lakhs. The resultant income from these activities would assuredly augment the Company's income in future also. 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.
Performance particulars of the Company can be ascertained by the share holders / public from website,www.afslindia.com
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.
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.
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.
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 OF THE BOARD OF DIRECTORS:
In terms of provisions of Section 217(2AA) of the Companies Act, 1956, (Act) your Directors confirm that:
In the preparation of the Annual Accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures.
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.
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.
Directors had prepared the annual accounts on a going concern basis.
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.
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.
The Company had no foreign exchange inflow and outflow.
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.
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.