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BHAGWANDAS AUTO FINANCE LIMITED
ANNUAL REPORT 2010-2011
DIRECTOR'S REPORT
Dear Shareholders,
Your Directors have pleasure in presenting the Annual Report along with the
Audited Accounts of the Company for the year ended 31st March, 2011.
1. FINANCIAL RESULTS:
(Rupees in Lacs)
2010-2011 2009-2010
Gross Income 572.14 814.15
Profit before depreciation and Tax 184.80 381.99
Depreciation 522.59 652.01
Profit before Tax (337.79) (270.02)
Provision for Taxation Current - -
Deferred 148.43 88.06
Fringe Benefit Profit/(Loss) after Tax (189.36) (181.96)
Add : Provision for Loans/Assets 222.61 2.60
Add : Income Tax for earlier years - -
Add : Balance brought forward (1137.07) (952.51)
Balance carried forward (1549.04) (1137.07)
2. OPERATIONAL REVIEW:
During the year under review your company earned Gross Income of Rs. 572.14
Lacs as against Rs. 814.15 Lacs in the corresponding previous year. The
company has incurred a loss of Rs. 411.97 Lacs as against a loss of
Rs. 184.55 Lacs.
3. DIVIDEND:
Due to loss in the year under consideration the Directors express their
inability to declare any dividend in the current year.
4. OPERATIONS/FUTURE PROSPECTS:
The company incurred a loss of Rs. 411.97 lacs during the year which is
higher than the loss of Rs 184.55 lacs incurred in the previous year due
to write back of Rs 380.50 lacs on waiver of interest/principal on
settlement of Loan. The Company is also in discussion with some lenders for
settlement of its loans and is also involved in court cases in respect of
its dues to some lenders. Due to the above and also due to lack of working
capital the company's business and operations are adversely affected. The
company is not hopeful of improved performance in the coming year till it
over comes the financial and other constraints.
5. DIRECTORS:
Sri Mani Shankar Dixit and Shri Gorakh Nath Bhakta, Directors of the
Company, retire by rotation at the forthcoming Annual General Meeting and
are eligible for re-election.
6. DIRECTOR'S RESPONSIBILITY STATEMENT:
As required under Section 217 (2AA) of the Companies Act, 1956 your
Directors confirm that:
i) In the preparation of the annual accounts, the applicable Accounting
Standards have been followed.
ii) The Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent and so as to give a true and fair view of the state of affairs of
the Company as on 31st March, 2011 and of the loss of the Company for the
year ended 31st March, 2011.
iii) The Directors have taken proper and sufficient care of the provisions
of the Companies Act, 1956 for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv) The Directors have prepared the annual accounts on a going concern
basis.
7. AUDITORS REPORT:
Observations of the Auditors on the audited annual accounts of the company
have been dealt with in the Notes on Accounts annexed are self explanatory
and do not require any clarification.
8. PARTICULARS OF EMPLOYEES:
There are no employees in respect of whom particulars pursuant to Section
217 (2A) of the Companies Act, 1956 are required to be given.
9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO:
Particulars in respect of conservation of energy, technology absorption as
required under Section 217(1)(e) of the Companies Act, 1956 are not
applicable to the Company since the Company being a finance company does
not consume energy of any significant level. Foreign Exchange outgo during
the year for purchase of trading goods was Rs. 4,95,166.
10. AUDITORS:
M/s Dangi Jain & Co., Chartered Accountants, Auditors of the Company,
retire and being eligible offer themselves for re-appointment.
11. APPRECIATION:
Your Directors place on record their appreciation and wish to thank the
Company's shareholders, Banks, Non Banking Financial Companies and
Financial Institutions for their continued support.
For and on behalf of the Board
SD/-
Ravinder Nath Agarwalla
(Managing Director)
SD/-
Vishal Agarwalla
Executive Director
SD/-
Nina Agarwalla
Whole Time Director
Place: 194, S.P. Mukherjee Road, Kolkata 700 026.
Dated: 3rd day of September, 2011
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