sbi home finance ltd Management discussions

SBI HOME FINANCE LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS Financial Performance: The financial performance of the Company during this year related basically to the management of the realisation of funds locked up in the past in various receivables as a conscious decision was taken as far back as in 2003 to stop booking fresh businesses in its books. Hence the bottomline was simply an outcome of a run down of the receipt of meagre interest income on bank deposits and the expenses incurred towards Companys maintenance. The operating income thus represented interest income on realised funds parked with bank for temporary periods and the other income arising from miscellaneous sources like refund of excess stamp duty duly paid in the past and reversal of certain liabilities which were no longer considered necessary during this year particularly. Loss / Profit As expected the company recorded an increase in loss from Rs. 4.67 crores to Rs.18.25 crores, which was due to non accrual of sufficient income because of the fact that sources thereof were gradually getting dried up. The accumulated losses stood at Rs.309.56 crores. Risk Management Since the Company ceased to be an operational entity, its income and expenses are more or less on the anticipated lines and are not very much subject to uncertainties and widespread variances. Accordingly, the risk content of the truncated activities are negligible. The Company had been taking appropriate steps to guard against the systemic and other identified risks. Internal Control Systems and their adequacy Adequate internal control system commensurate with the size and the limited activities of the company was put in place. Future Outlook With huge debt burden, continued losses and insignificant income, the future for the Company, in short, continues to look gloomy. Declaration by the CEO on affirmation by Directors and Senior Management Personnel of compliance with the code of conduct I, G.I. Mondal, Managing Director and CEO of the company declare that all the Members of the Board of Directors and Senior Management Personnel have for the year ended 31st March 2008 complied with the code of conduct laid down by the Board of Directors in terms of the Listing Agreement with the Stock Exchanges. Sd/- Place : Kolkata (G.I. Mondal) Dated : 16th July, 2008 Managing Director & CEO