The Board of Directors of Haryana Financial Corporation has pleasure in presenting the 57th Annual Report on the working of the Corporation together with the Audited statements of Accounts for the year ended 31st March, 2024.
Financial Results
During the financial year 2023-24 the Corporation has achieved the following working results.
( Rs.
in crore)
2023-24
2022-23
A.
Income
Income from operations
1.37
0.52
Other Income
30.19
4.42
Total Income
31.56
4.94
B.
Expenditure
Interest & Other Financial Expenses
0.04
Personnel Expenses
3.74
3.53
Administrative Expenses
0.55
0.76
Bad debts / Leasing Assets written off
0.03
...
Depreciation
0.01
0.12
Total Expenditure
4.37
4.45
C.
Operating Profit / (Loss) ( A - B )
27.19
0.49
D.
Add : Excess Provision against Investments and Income Tax written back
0.00
0.32
E.
Less : i) Provision against NPAs Loan Assets, Investments
0.10
0.09
ii) Provision against Income Tax
1.65
—
Net Profit / (Loss) ( C D - E )
25.44
0.72
Explaination :
* During the FY 2023-24, the Other Income was Rs. 30.19 crores which includes a sum of Rs. 26.43 crore, income from sale of Corporate Building at Panchkula and Rs. 2.27 crore (P.Y. 1.77 crore) as interest income from Bank deposits.
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 crore)
Performance for the Year 2023-24
Performance for the Year 2022-23
Sanction
Disbursement
Recovery
0.96
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
Since the State Government has already decided to wind up 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, 2024 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. 3.25 lakh plus GST to the Stock Exchange (BSE) within time. The State Govt. (being promoters) had 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 and the SEBI has granted certain exemptions/relaxations to the Corporation from delisting procedure subject to certain conditions.
Audit
The shareholders in its 56th Annual General Meeting held on 27.03.2024 as per provisions of section 37 of State Financial Corporations' Act, 1951 had appointed M/s Prem Ravinder & Co., Chartered Accountants, Chandigarh (on the panel of the RBI) as Statutory Auditors for the financial year 2023-24, (for 3rd term), who have conducted audit of the Financial Statements of the Corporation, which form part of the Report.
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 2024-25 is subject to confirmation of the same by the RBI. Accordingly, the RBI vide their letter dated 12.06.2024 have confirmed the eligibility of the Statutory Auditor for F.Y 2024-25.
Audit By Comptroller & Auditor General of India(CAG)
The Comptroller & Auditor General of India (CAG) had conducted the audit of the accounts of the Corporation upto FY 2023-24 and their reports has nill comments and the same shall form part of this Director's Report and is being forwarded to the Sate Govt. for placing before the the State Legislature.
Cash flow Statement
In conformity with the provisions of SEBI (LODR) Regulations, 2015, the Cash Flow Statement for the year ending on 31.03.2024 is annexed with the Annual Accounts.
Board of Directors
The composition of Board of Directors of your company as on 31.03.2024 is as under :
1.
Shri V Umashankar, IAS
Chairman
2.
Shri Anand Mohan Sharan, IAS
Director
3.
Smt. Amneet P. Kumar, IAS
4.
Shri C. G. Rajini Kaanthan,IAS
5.
Smt. Radhika Singh, HCS
6.
Shri Kashmiri Lal Kukreja
7.
Shri Piyush Bhargava
8.
Shri Shrawan Kumar Anand
9.
Shri Mohinder Kumar Chopra
10.
Shri Yash Garg, IAS
Managing Director
During the year under review, four meetings of Board of Directors were held on 24.06.2023, 21.09,2023, 09.11.2023 and 16.02.2024. The detail of the number of meetings of the Board held during the FY 2023-24 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 Merchant Banker for delisting procedure of the Corporation has already been appointed.
Further, the Board of Directors of the Corporation in its meeting held on 09.11.2023 had reconstituted the Winding up Committee, which comprises of the following :
1. Managing Director, HSIIDC Chairman
2. Nominee from Finance Deptt., Haryana Member
3. Nominee of SIDBI Member
4. Shri M.K. Chopra 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.