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