| Dear Members,
The Directors have pleasure in presenting the 22nd Annual Report of
your Company together with the Audited Statements of Accounts for the
year ended March 31, 2014.
(Rs. in Lac)
FINANCIAL RESULTS Year Ended Year Ended
31.03.2014 31.03.2013
Income 9.58 10.16
Profit /(Loss) before Tax &
extraordinary item (0.20) (0.11)
Less : Provision for Taxation 0.00 0.00
Profit / (Loss) after Tax (0.20) (0.11)
Less : Extra-Ordinary Items 0.00 0.20
Less : Statutory Reserves 0.37 0.37
Add: Profit/(Loss) brought
forward from Previous Year (134.25) (134.33)
Balance of Profit / (Loss) carried forward (134.66) (134.25)
OVERVIEW OF ECONOMY
A survey by global consultancy firm Ernst & Young (E&Y) sees India as
the world's most attractive investment destination. With the opening up
of foreign direct investment (FDI) in several sectors, India is today
an eye-catching destination for overseas investors. The relaxation of
norms by the government has created a vast opportunity for foreign
players, who are competing for a greater role in the Indian market.
Sectors projected to do well in the coming years include automotive,
technology, life sciences and consumer products.
India has also become a hotbed for research and development (R&D) and
the country is now a preferred destination for automotive R&D, as per a
study on the Global Top 500 R&D spenders by globalization advisory and
market expansion firm, Zinnov. The study noted that there was strong
potential for growth in areas such as engineering analytics and that
significant talent could be found in 'Deccan Triangle' region, which
encom- passes Pune, Bangalore and Hyderabad.
The World Bank has projected an economic growth rate of 5.7 per cent in
FY15 for India, due to a more competitive exchange rate and several
significant investments going forward.
India is the third biggest economy in the world in terms of purchasing
power parity (PPP), according to a World Bank report. The country was
ranked 10th in the previous survey conducted in 2005.
The stakes held by foreign institutional investors (FII) in Indian
companies touched a record high in the fourth quarter of FY 14. The
estimated value of FII holdings in India stands at US$ 279 billion.
The cumulative amount of FDI equity inflow into India stood at US$
212,031million in the period April 2000- February 2014, while FDI
equity inflow during April 2013-February 2014 was recorded as US$
20,766 million, as per data published by Department of Industrial
Policy and Promotion (DIPP).
Thus, the emphasis is on a massive road connectivity plan which will
tie the region together and subsequently enhance economic objectives.
Also, agricultural gross domestic product (GDP) in the country is
projected to grow by over five per cent in the current agricultural
year (July 2013-May 2014).
OVERALL PERFORMANCE & OUTLOOK
The Business environment remains extremely challenging and the
recessionary economic conditions leading to slowdown in demand and
inflation pushed scale up of input costs left its adverse imprint on
overall perform- ance for 2013-2014.
Due to sluggishness in economy and lack of demand by consumers, Gross
income from operations remained at 9.58 Lac in comparison to last
years' figure of 10.16 Lac. In term of Net Loss, the same was of 0.20
Lac in comparison to last years' net Profit of 0.09 Lac.
The Company is in to the Business of Investment and Financing
activities.
The company is willing to continue to be in the business of Investment
in financing but is also willing to invest wisely so as the Company can
be a profit making entrepreneur during the year and thus can deliver to
its Shareholders.
DIVIDEND
In view of losses as well as carried forward losses, your Directors do
not recommend any Dividend for the year under review.
SUBSIDIARY COMPANY
The Company does not have any Subsidiary Company.
MANAGEMENT DISCUSSIONS & ANALYSIS
As required by Clause 49 of Listing Agreement, the Management
Discussion and Analysis is annexed and forms part of the Directors'
Report.
MANAGEMENT
There is no Change in Management of the Company during the year under
review.
DIRECTORS
There is no change in composition of Board during the Financial Year
under review.
Further, none of the Directors of the Company are disqualified under
sub-section (2) of Section 164 of the Companies Act, 2013.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000
the Directors confirm that:
1. In the preparation of the annual accounts, for the year ended 31st
March 2014, all the applicable accounting standards prescribed by the
Institute of Chartered Accountants of India have been followed;
2. The Directors had adopted 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. The 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. The Directors had prepared the annual accounts on a going concern
basis.
STATUTORY INFORMATION
The Company being basically in to the business of NBFC and is lending
its fund to Corporate Clients and HNIs. Beside this the Company is
investing its fund in the Capital Market. Due to said line of business,
the require- ment regarding and disclosures of particulars of
Conservation of Energy and Technology Absorption prescribed by the rule
is not applicable to us.
INFORMATION TECHNOLOGY
Your Company believes that in addition to progressive thought, it is
imperative to invest in research and development to ascertain future
exposure and prepare for challenges. In its endeavor to obtain and
deliver the best, your Company has invested its money for acquiring
latest Computer hardware and software.
RESEARCH & DEVELOPMENT
The Company believes that technological obsolescence is a reality. Only
progressive research and development will help us to measure up to
future challenges and opportunities. We invest in and encourage
continuous innovation. During the year under review, expenditure on
research and development is not significant in relation to the nature
size of operations of your Company.
AUDITORS
The Auditors M/s U. S. Agarwal & Associates, Chartered Accountants,
Kolkata who are Statutory Auditors of the Company and holds the office
until the conclusion of ensuing Annual General Meeting and ajre
recommended for re-appointment to audit the account". of the Company
from the conclusion of the 22n Annual General Meeting up to the
conclusion of the 25th consecutive Annual General Meeting (subject to
ratification by the members at every subsequent AGM). As required under
the provisions of Section 139 & 142 of the Companies Act, 2013 the
Company has obtained written confirmation from M/s. U. S. Agarwal &
Associates that their appointment, if made, would be in conformity with
the limits specified in the said Section.
COMMENTS ON AUDITOR'S REPORT :
The notes referred to in the Auditor's Report are self explanatory and
as such they do not call for any further explanation as required under
section 217(3) of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
The information as required by provisions of section 217(2A) of the
Companies Act, 1956 read with the companies (Particular of employees)
amendments rules, 1975 is reported to be NIL.
PARTICULARS UNDER SECTION 217 (1) (e) OF THE COMPANIES ACT, 1956
The Company is having no business other than the business of Investing
in Securities Market as well as to lend money to Corporate and HNIs
during the year under review and hence the information regarding
conservation of energy, Technology Absorption, Adoption and innovation,
the information required under section 217(1)(e) of the Companies Act,
1956 read with the Companies (Disclosure of particulars in the Report
of Board of Directors) Rules 1988, is reported to be NIL.
FOREIGN EXCHANGE EARNINGS AND OUTGO
The Company has not earned or used foreign exchange earnings/outgoings
during the year under review.
PUBLIC DEPOSITS
During the year under review, your Company has not accepted any
deposits from the public within the meaning of section 73 of the
Companies Act 2013 and the rules there under.
REPORT ON CORPORATE GOVERNANCE
The Company conforms to the norms of Corporate Governance as envisaged
in the Companies Act, 1956 and the Listing Agreement with the Bombay
Stock Exchange Limited. Pursuant to Clause 49 of the Listing Agree-
ment, a Report on the Corporate Governance and the Auditors Certificate
on Corporate Governance are annexed to this report.
APPRECIATION
Your Directors wish to place on record their appreciation towards the
contribution of all the employees of the Company and their gratitude to
the Company's valued customers, bankers, vendors and members for their
continued support and confidence in the Company.
Kolkata, May 27, 2014
By order of the Board
For MINOLTA FINANCE LIMITED
Registered Office : Sd/-
37 A&B, Stephen House DINESH KUMAR PATNIA
4, B.B.D. Bagh (East) (DIN : 01709741)
Kolkata-700 001 Chairman |