lloyds finance ltd Management discussions

LLOYDS FINANCE LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS You are aware that the Company is functioning under the management of the Special Committee appointed by the Honble High Court of Bombay instead of Official Liquidator in Company Petition No. 1017/2002 vide Order dated 12th March 2004. In pursuance to Order dated 12th April, 2004 passed by the Honble High Court of Bombay, the Board of Directors are working under the superintendence of the Special Committee. The major thrust of the Special Committee is to recover the dues from defaulters of the Company, reduction of expenses and formulate scheme of the repayment to the fixed deposit holders, other secured and unsecured creditors. The Special Committee pursuant to the direction of the Honble High Court is concentrating on recoveries and in addition to pursuing the legal recourse, is calling the defaulters for settlement of their dues with a view to expedite the recovery. The Company is currently not engaged in business of Non-Banking Finance Company (NBFC) w.e.f. 14th May, 1998 as per restrictions imposed by Reserve Bank of India and the thrust is on recovery of its dues and repayment of its liability in a phased manner. The Company, under the direction of the Special Committee appointed by the Honble High Court of Bombay, is complying with all the requirements of the Listing Agreement, The Companies Act, 1956 and Reserve Bank of India like submission of various forms and returns to Stock Exchanges, Registrar of Companies and Reserve Bank of India. The Honble High Court of Bombay reviewed the working of the Company under the management of the Special Committee and vide order dated 14,h March, 2007 appraised that the Special Committee has acted in earnest and has made best possible efforts to effectuate the purpose of the constitution of the Special Committee and that a substantial amount of work has been done by the Special Committee towards realization of the outstandings, settlement of dues of the Secured Creditors, Debenture holders and Fixed deposit holders. The Special Committee comprises of Mr. Justice V. R. Datar (Retd. Judge of High Court of Bombay) as Chairman, Mr. S. C. Malhotra I.P.S., D.G.P. (Retd.) Maharashtra, Mr. P. K. Bansal, I.P.S., D.G.P. (Retd.), Gujarat as Members. The Special Committee has addressed to all class of creditors i.e. Banks and Financial Institutions, Debenture Holders and Fixed deposit holders by formulating scheme for repayment based on the availability of funds from the debtors of the Company. Adequacy of Internal Control: Considering the size and nature of activities, the Company has adequate Internal Control System covering both accounting and administrative control. In addition, the internal audit is carried out periodically. The management is ensuring an effective internal control system so that the financial statements and reports give a true and fair view. Human Resources/Industrial Relation: Inspite of Company facing financial difficulties, the morale of the employees remained high. The organization culture and the commitment of the Company to its people reflect in the motivation levels and the acknowledgment of its employees. Future Outlook: Pursuant to the responsibility vested with Special Committee with regard to formulation of Scheme for all class of creditors i.e. Banks and Financial Institutions, Debenture Holders and Fixed Deposit Holders, the management is pleased to inform that under superintendence of the Special Committee, all above referred class of creditors have been addressed with regard to its liability as referred herein separately. The efforts are being made to take further initiative to recover dues from debtors of company and redress the grievances of its creditors.