leafin india ltd Directors report

1996 LEAFIN INDIA LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting the 10th Annual Report of your Company together with the Audited Accounts for the year ended 31st March, 1996. DIVIDEND Your Directors are pleased to recommend a dividend @ 22% on the Equity Capital amounting to Rs. 2.20 per equity share of Rs. 10/- each (subject to deduction of tax at source) for the year ended 31st March, 1996. OPERATIONS Your Directors are pleased to report your Company has performed reasonably well considering the constrains the NBFCs have faced in mobilising resources during the year under review. Total Income for the year under review has risen to Rs. 1276.29 lacs as compared to Rs. 901.45 lacs during the previous financial year representing an increase of around 41%. The Net Profit for the year stood at Rs. 197.52 lacs as against previous years figure of Rs. 232.40 lacs. The decline in profits was mainly attributable to the increase in the bank lending rates, an overall increase in the administration costs and the delay in recoveries on account of the tight money market situation during the year. FINANCE DIVISION During the year under review, the total disbursals amounted to Rs. 1468 lacs as against Rs. 1500.42 lacs during the previous year ending March 31, 1995. The stock on hire as at 31st March, 1996 stood at Rs. 2772.46 lacs and the gross assets on lease at Rs. 1549.79 lacs. The Company has compiled the accounts for the year adhering to the Prudential Norms for income recognition, asset classification and provisioning prescribed by the Reserve Bank of India. INTERNATIONAL BUSINESS DIVISION The leather garments division recorded a turnover of Rs. 206.35 lacs representing an increase of around 88% over the previous year. Your Company has broad based its clientele and the benefits are expected to accrue in the current year. RESOURCES During the year under review no additional limits were sanctioned by the banks due to the tight credit situation and the restrictions imposed by the Reserve Bank of India. Your Company, however, was successful in mobilising deposits from the public and at the end of the financial year the public deposits stood at Rs. 821.45 lacs. As on 31st March, 1996, 75 deposits aggregating Rs. 10.01 lacs remained unclaimed. As on the date of this report, 73 depositors out of the above having an aggregate deposit amount of Rs. 8.47 lacs have yet to claim the same and close follow up is being made to obtain such depositors instructions. Except the above, the Company does not have any unclaimed or unpaid deposits. DIRECTORS Smt. G Manjula Reddy and Sri R Vijayaraghavan retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for re-election. AUDITORS REPORT The Auditors Report together with the Notes forming part of the Accounts are self-explanatory and therefore do not call for any further comments. AUDITORS M/s. Bhavani & Co., Chartered Accountants retire from the Office of Auditors at the conclusion of the ensuing Annual General Meeting and being eligible offer themselves for re-appointment as Auditors of the Company. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO Information pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors Rules, 1988 is annexed and forms part of this Report. PARTICULARS OF EMPLOYEES The information required under sub-section 2A of Section 217 of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended, in respect of certain employees of the Company is annexed and forms part of this Report. PERSONNEL Your Directors take the opportunity to record their appreciation of the sincere efforts and team work displayed by the entire staff who have contributed to the success of the Company. ACKNOWLEDGEMENTS Your Directors wish to express their thanks for the assistance and support extended by the Commercial Banks and the Financial Institutions. ANNEXURE I TO DIRECTORS REPORT Information pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is given below: A. CONSERVATION OF ENERGY The Company is not covered in the list of industries who should furnish information in Form A relating to energy consumption and energy consumption per unit of production. B. TECHNOLOGY ABSORPTION 1. Research and Development The Company is taking all possible steps to improve the quality of the items manufactured in its unit. No specific research and development activity has been carried out during the year. 2. Technology Absorption, Adaptation and Innovation No technology has been imported by the Company during the year. C. FOREIGN EXCHANGE EARNINGS AND OUTGO Foreign Exchange Earnings 206.35 Foreign Exchange Outgo NIL For and on behalf of the Board D. RAVISHANKAR Chairman & Managing Director Place : Hyderabad Date : 30th June, 1996.