During the year under review, the Company has earned a net profit of Rs. 941.70 Lakh as against net profit of Rs. 395.48 Lakh earned during the previous year.
During the year under review, provision for Non-Performing Assets no longer required has been written back to the tune of Rs. 7.44 Lakh while additional provision for NPA to the tune of Rs.8.31 Lakh was made during the year. The provision for diminution in the value of Investment amounting to Rs. 13.47 Lakh was made during the year.
DIVIDEND
The Directors do not recommend any dividend for the year ended 31 st March 2009.
TREASURY OPERATIONS
Profit booking was resorted to at regular intervals taking advantage of favourable market scenario. Moreover, long term investments in Mutual Fund Units were duly redeemed thereby availing benefit of double indexation. In order to diversify the investment portfolio, AIIBank Finance Ltd. made investments in high yielding Corporate Bonds and tax free Infrastructure Bonds. A term-deposit of Rs. 5 Crore was kept with Allahabad Bank with long term perspective.
MERCHANT BANKING
The Company successfully concluded four IPOs during the year and also earned fee based income through other activities . The total income earned was Rs 134.58 Lakh (previous year Rs. 109.25 Lakh).
DISTRIBUTION OF MF SCHEMES
The Company earned brokerage income through distribution of Mutual Fund Units, eventhough substantial portion of revenue is through treasury operations of Allahabad Bank.
COMPLIANCE OF SEBI GUIDELINES
Various guidelines/ directives issued by SEBI for the Merchant Bankers are being complied with.
PERSONNEL
No employee of the Company is drawing remuneration in excess of the limits prescribed by the Companies Act. Therefore, the statement under section 217(2A) of the Companies Act. 1956, read with the rules framed thereunder, is not being annexed.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOINGS.
The Company has nothing to report under this head.
PRUDENTIAL NORMS APPLICABLE TO NON-BANKING FINANCE COMPANIES
The Company is now no more an NBFC. However, Various guidelines/directives issued by Reserve Bank of India on prudential norms for income recognition, Accounting Standards, Asset Classification, provisioning for bad and doubtful debts, Capital Adequacy and so on as applicable in respect of old outstanding Loan Accounts are adhered to.
DIRECTORS
Consequent upon Shri A.C.Mahajan taking over as Chairman and Managing Director of Canara Bank, Sri K.R Kamath took charge of AIIBank Finance Ltd. as its Chairman w.e.f. 2nd August 2008 The Board placed on record the services rendered by Shri A.C.Mahajan during his tenure as Chairman of the Company.
No Director of the Company has been disqualified during the year for becoming Director or continuing as Director of another Company, U/s. 274 (1)(g) of the Companies Act. 1956.
DIRECTORS’ RESPONSIBILITY STATEMENT
As required Under Section 217 (2AA) of the Companies Act, 1956, your Directors confirm having followed, in the preparation of the Annual Accounts, the applicable Accounting Standards, with proper explanation relating to material departures, selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company at the end of the Financial Year and of the profit of your Company for that year; taken proper and sufficient care for the maintenance of adequate Accounting records in accordance with the provisions of the Companies Act. 1956, for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities, and prepared the Annual Accounts on a going concern basis.
AUDIT COMMITTEE
The Audit Committee of the Company comprised of Shri K.K Agarwal Executive Director Allahabad Bank, Shri D. P. Khullar, Director and Shri A. B. Bhattacharjee General Manager, Allahabad Bank and Director of the Company. Three meetings were held during the year and Audit Committee dealt with activities as per Section 292A of the Companies Act, 1956.
AUDITORS
M/s. De & Bose Chartered Accountants, were appointed Auditors for the year 2008-2009 U/s. 619(2) of the Companies Act, 1956 by the Office of the Comptroller and Auditor General of India. New Delhi.
MANAGEMENT’S REPLY TO THE AUDITORS’ REPORT
The Auditors made no specific qualification during the course of their audit.
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
The Comptroller and Auditor General of India are yet to commence audit.
ACKNOWLEDGEMENTS
The Board of Directors places on record its deep appreciation for the help and support received from the Company's stakeholders. Bankers and the members of staff for their devotion and commitment towards the growth of the Company.
For and on behalf of the Board of Directors.
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