sarla credit and securities ltd Directors report

ANNUAL REPORT 1998-99 SARLA CREDIT SECURITIES LIMITED DIRECTORS REPORT Dear Members, Your Directors have pleasure in presenting the Seventh Annual Report of the company together with the Audited Accounts for the year ended 30th June, 1999. OPERATIONS: The company is going through turbulent period and therefore has reported a higher loss of Rs 86.69 lacs .The company expects for the market to improve and enable it to restratize on it businesses as a Non-Banking Financial Company. It is difficult at present to forecast the future profitability of the company. DIRECTORS Sh.Raghunandan Prasad, Director of the Company retire by rotation at the ensuing Annual General Meeting and being eligible, offer for re- appointment. The Board recommends their reappointment. Sh.Naresh.C.Varshney, director of the Company ceases to be a Director of the Company u/s. 283(1)(g) of the Companies Act,1956 and Sh.Harvinder Singh has been appointed as additional Director of the Company. His term of office expires on the date of the forthcoming Annual General Meeting. However, being eligible he offers himself for reappointment as director, liable to retire by rotation. SUBSIDIARY COMPANY As required u/s 212 of the Companies Act 1956, a statement relating to the SGP Holdings Private Limited, a wholly owned subsidiary of the company is attached with the Annual Report. PUBLIC DEPOSITS Your Company has not accepted any deposits from public or otherwise during the financial year 1998-99. The information as required by Non Banking Financial Companies (Reserve Bank) Directions, 1977 may be taken as NIL. PARTICULARS RELATING TO CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO UNDER SECTION 217(1)(e) OF THE COMPANIES ACT,1956 As the Company is engaged in Finance, Leasing & Share Business the particulars relating to conservation of energy, technology absorption and foreign exchange earning & outgo as specified in the Companies (Disclosure of particulars in the report of Board of Directors) Rules,1988 are not applicable to the company. PARTICULARS OF EMPLOYEES The Company does not has any employee drawing the salary exceeding the limits prescribed under Rule 1A of Companies (Particulars of Employees) Rules 1975, as amended. AUDITORS M/S A.T.RAGHAVAN & Co. Chartered Accountants, New Delhi retire as the Auditors of the Company at the conclusion of this Annual General Meeting. Further, a notice from a member of the Company has been received proposing the name of M/s. Ashwini & Associates for appointment as auditor of the Company and requisite Certificate u/s. 224(1B) of the Companies Act, 1956 has been received by the said auditor. Therefore it is now proposed to appoint M/s.Ashwini & Associates as auditor of the Company to hold the office till the conclusion of the next Annual General Meeting The Board recommends their appointment. UNPAID DIVIDEND Unpaid Dividend for the financial year of 1994-95 of the Company has been transferred to the Central Government Account. Any shareholder or member of the company entitled to claim the dividend for the said financial year can submit claim to the Registrar of Companies, Delhi & Haryana according to the prescribed rules & regulations. LISTING The Shares of the company are listed on the Delhi, Bombay,Ludhiana and Kanpur Stock Exchanges. The annual listing fees for the 1998-99 are yet to be paid to the Bombay, Ludhiana and Kanpur Stock Exchanges. Y2K COMPLIANCE The company has already upgraded its hardware and modified the software to make its Y2K compliant. ACKNOWLEDGEMENT The Directors thank the shareholders and investors for their support and confidence in the company. Your Directors also wish to place on record their deep appreciation for the service rendered by the Officers, Staff etc. of the company at all levels. For and on behalf of the Board SARLA CREDIT & SECURITIES LTD. Sd/- Sd/- DIRECTOR DIRECTOR Date : 20-11-99 Place: New Delhi.