haryana financial corporation ltd share price Directors report


The Board of Directors of Haryana Financial Corporation has pleasure in presenting the 55th Annual Report on the working of the Corporation together with the Audited statements of Accounts for the year ended 31st March, 2022.

Financial Results

During the financial year 2021-22 the Corporation has achieved the following working results.

( Rs. in crore)
2021-22 2020-21
A. Income
Income from operations 30.94 0.01
Other Income 4.40 3.61
Total Income 35.34 3.62
B. Expenditure
Interest & Other Financial Expenses 0.26 0.04
Personnel Expenses 4.21 3.96
Administrative Expenses 0.71 0.56
Bad debts / Leasing Assets written off 4.72 0.32
Depreciation 0.14 0.16
Total Expenditure 10.04 5.04
C. Operating Profit / (Loss) ( A - B ) 25.30 (1.42)
D. Add : Excess Provision against Investments written back 4.72 2.99
E. Less : i) Provision against NPAs Loan Assets & Investments 4.29
ii) Provision against Income Tax 4.00
Net Profit / (Loss) ( C + D - E ) 21.73 1.57

Operational Highlights

The Corporation has already stopped sanction of the loans w.e.f. May, 2010 as already stated in the previous Annual Reports. The details of the operations of the Corporation i.e recovery of its dues during the year are given as under:-

( Rs. in Lakh)

Performance for the Year 2021-22
Sanction 0.00
Disbursement 0.00
Recovery 0.77

Resources Management

The Corporation has stopped fresh Sanctions since May, 2010. No borrowings from the market/banks have been made during the year. As stated earlier, the Corporation has since repaid its borrowings and there is no outstanding loan against the Corporation. The Corporation utilized its limited resources for meeting the commitments/liabilities during the year.

Share Capital from State Government

Due to present position of the Corporation, the State Govt. has not sanctioned/released any amount towards share capital during the year.

Corporate Governance/ Management Discussion & Analysis Report

The Corporate Governance and Management discussion and Analysis report as per SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 is annexed as Annexure with the Directors Report. A certificate from M/s Sharma Sarin & Associates, Company Secretaries on the above for the year ending on 31st March, 2022 is also annexed with this report.

DEMATERIALIZATION FACILITY

The demat facility of the Corporation has been activated. The ISIN No. issued to the Corporation is INE737G01016

Listing

The equity shares of the Corporation are listed at Bombay Stock Exchange Ltd. (BSE Script Code No. 530927). The Corporation has paid the Annual Listing fee of Rs. 3.00 lakh plus GST to the Stock Exchange (BSE) within time. The State Govt. (being promoters) has filed an exemption application with SEBI in accordance with Regulation 42 of SEBI (Delisting of equity shares) regulations, 2021 for delisting of shares of the Corporation from Bombay Stock Exchange.

Audit

The shareholders in its 54th Annual General Meeting held on 07.07.2022 as per provisions of section 37 of State Financial Corporations Act, 1951 appointed M/s Prem Ravinder & Co., Chartered Accountants, Chandigarh (on the panel of the RBI) as Statutory Auditors for the financial year 2021-22, (for 1st term), who have conducted audit of the Corporation

As per RBI guidelines, in the normal course, an audit firm may continue for a term of 4 years in one spell. The re-appointment of existing Statutory Auditors M/s Prem Ravinder & Co., Chartered Accountants, Chandigarh for F.Y 2022-23 is subject to confirmation of the same by the RBI. Accordingly, the RBI vide their letter dated 21.09.2022 have confirmed the eligibility of the Statutory Auditor for F.Y 2022-23.

Audit By Comptroller & Auditor General of India

The Comptroller & Auditor General of India (CAG) had conducted the audit of the accounts of the Corporation upto FY 2020-21 and their reports have been placed before the State Legislature as per provisions of State Financial Corporations Act, 1951 upto F.Y 2016-17. The reports for F.Y 2017-18, 2018-19 and 2019-20 have been sent to Industries Deptt., but are yet to be placed before the State Legislature. The report for F.Y 2020-21 is yet to be sent to the Industries Deptt., Haryana for being placed before the State Legislature in view of revised norms of State Legislature for Paper less functioning.

Cash flow Statement

In conformity with the provisions of SEBI (LODR) Regulations, 2015, the Cash Flow Statement for the year ending on 31.03.2022 is annexed with the Annual Accounts.

Board of Directors

The list of the Board of Directors as on 31.3.2022 has separately been given in the Annual Report.

During the year under review, two meetings of Board of Directors were held on 08.06.2021 and 11.02.2022. The detail of the number of meeting of the Board held during the FY 2021-22 forms part of the Report on Corporate Governance in terms of regulation 34(3) of SEBI (LODR) Regulations, 2015.

Position of Winding Up/Liquidation of Corporation

It was already informed to the shareholders in the previous Annual General Meetings that the proposal for liquidation/ winding up of the Corporation has been forwarded to the State Govt and the State Govt. has appointed MD, HSIIDC as the Nodal Officer for commencing and completing the liquidation proceedings.

Further, the Board of Directors of the Corporation in its meeting held on 11.02.2022 reconstituted the Winding up Committee, which comprises of the following :

1. Managing Director, HSIIDC Chairman
2. Director of Industries & Commerce, Haryana Member
3. Nominee from Finance Deptt., Haryana Member

Acknowledgements

The Board of the Haryana Financial Corporation wishes to place on record its special thanks and gratitude to Govt. of Haryana, Department of Industries & Commerce and Small Industrial Development Bank of India (SIDBI) for their continuous co-operation and support in all the operational/financial matters.

The Board wishes to take the opportunity to thank the Banks and shareholders for extending their support and cooperation.

The Board of Directors placed on record its appreciation of the contribution made by the outgoing Directors.

The Board placed on record its appreciation for the services rendered by the staff of the Corporation at different levels during the year.

For and on behalf of Board of Directors
Dated : 27th Oct., 2022
Place : Chandigarh Managing Director