I have great pleasure in welcoming you to the Twenty-Ninth Annual General Meeting of your company. The Director’s Report and the Audited Financial Statements for the year ended 31st March, 2014 have been with you for some time and, with your permission, I shall take them as read.
During the year 2013-2014, the Advances under hypothecation stood at Rs. 2078.69 lakhs as against Rs. 1735.63 lakhs in the previous year. The total disbursements during the year were Rs.1945.24. lakhs. During the year under review, your company had continued to perform well registering a growth of 20.45 %.
The Company has continued to maintain its presence in the finance sector in-spite of the stiff competition from banks and multinational companies. The Company’s gross income has grown to Rs. 556.43 lakhs from Rs. 491.40 lakhs of the previous year registering a growth of 13.23 %
Deposits and RBI Directions:
As per the directions of Reserve Bank of India, your company is eligible for accepting deposits from the public without Credit Rating up to 1.50 times of net owned funds of Rs. 931.71 Lakhs, which works out to Rs. 1397.56 Lakhs as on 31st March, 2014 but restricted to Rs.1000 Lakhs. The amount of public Deposits as on 31st March, 2014 is at Rs. 901.01 Lakhs as against Rs. 817.03 lakhs in the previous year. The Capital to Risk Assets Ratio of the company is at 43.04 % as on 31st March, 2014, well above the benchmark of 15% prescribed by the Reserve Bank of India.
The profit of company has been satisfactory and the Board has decided to recommend a dividend of 12% (Rs.1.20 per equity share of Rs 10 each)
Your company’s fortunes are closely linked to those of the automotive industry. Consequently, the growth prospects for 2014-15 are likely to be broadly reflective of those trends. In the projected scenario of low to moderate growth, continuing inflation and higher interest costs, your Company will continue to strive for meaningful growth, focusing as always on, delivering good service and efficient cost management, in order to sustain profitability.
The Board of Directors take this occasion to thank all our Depositors, Customers, Bankers, Shareholders, the Employees and all other Stakeholders for their full co-operation and assistance extended to the Company and look forward to their continuous, constructive support.
26th September, 2014 Chairman