CIFCO Finance Ltd Management Discussions.

CIFCO FINANCE LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS: Amount (Rs. lacs) Year ended Year ended 31st March, 2012 31st March, 2011 Total Income 39.54 23.26 39.54 23.26 Profit/(Loss) before Depreciation (86.45) (37.40) (Add)/Less: Depreciation 8.01 9.40 (94.46) (46.80) Profit/(Loss) Before Tax (Add)/Less: Provision for Taxation - (14.14) Profit/(Loss) after Tax (94.46) (32.66) Add/(Less): Losses brought forward from previous year (2,232.64) (2,199,98) Surplus/(Deficit) carried to (2,327.10) (2,232.64) DIVIDEND: In view of the accumulated losses, the Directors do not recommend any dividend for the year under report. BUSINESS: The Company continued to be impeded by the restrictions for pursuing any activity of a Non-Banking Finance Company, as imposed by the Reserve Bank of India. Other income was on account of remission of interest. However, the quantum of revenues generated being nominal, it was inadequate to discharge the liabilities. In the absence of any employee on the payrolls, the Company continued to rely on the honorary help rendered by the personnel of Associate Companies, without any obligation, legal or otherwise, arising on the Company on account of such help being accepted by it, or any kind of binding on such personnel, legal or otherwise, on account of their rendering such help to the Company.