STANDARD CHARTERED INVESTMENTS AND LOANS (INDIA) LIMITED
ANNUAL REPORT 2010-2011
DIRECTOR'S REPORT
To
The Members
STANDARD CHARTERED INVESTMENTS AND LOANS (INDIA) LIMITED
The Board of Directors of your Company has pleasure in presenting the
Eighth Annual Report together with the Audited Accounts for the year ended
March 31, 2011.
FINANCIAL RESULTS
(Figures in INR '000)
Particulars For the year ended
31st March 31st March
2011 2010
Total Income 560348 816286
Total Expenditure 267308 501081
Profit/(Loss) before Tax 293040 315205
Provision for Tax/(Deferred tax Credit)/FBT 94784 109136
Profit/(Loss) after Tax 198256 206069
Proposed Dividend (Including Dividend
Distribution Tax) 3.0033% of paid up equity capital; 158605 178011
previous year 3.36%
Transfer to Statutory Reserve 39651 41214
Brought forward Profit/(Loss) 13156 -
Balance carried to Balance Sheet Earning per
equity share of Rs. 10/- face value 0.44 0.45
(Basic & diluted) (in Rs)
OPERATIONS REVIEW
Fiscal year 2010-11 was yet another year of consolidation and growth. The
NBFC sector in general showed good growth in assets under management.
Inflation was one of the major concern for the economy. In order to contain
inflation RBI continued its policy of rate hikes at periodic intervals. The
regulatory framework for NBFC's continued to be stable with no major
changes in regulations affecting the NBFC sector. The RBI in its recent
credit policy announced that it is in the process of rolling fresh
guidelines for the NBFC sector and has also set up a committee to frame the
guidelines.
In this backdrop your company focused mainly on portfolio consolidation and
focusing on large corporate relationships. Following our decision to stop
sourcing new consumer finance business with effect from July 2008 the
Consumer Finance asset portfolio has seen a substantial reduction during
the year. As a result, bad debts and costs have seen a substantial drop
during the year.
The Board of Directors are pleased to note that your Company meets all the
prudential norms prescribed by the Reserve Bank of India.
The Company enjoys the highest rating of P1+ for its short term debt
programme, AA+/Stable for its Non convertible Debenture Programme and
AA+(r)/Stable for its Privately Placed Debenture (with returns linked to
Equity benchmark) programme. All the three ratings were reaffirmed for the
year.
OUTLOOK FOR THE YEAR AHEAD
Good economic indicators promise better prospects for economic and business
growth.
The company will keep up the growth momentum in its wholesale business and
continue to focus on funding medium and large corporate entities. In
addition it is also exploring other opportunities in terms of various other
products which can effectively leverage the balance sheet. The company is
also in the process of framing a comprehensive strategy outlining the
future path for the company.
Your company's governance and business model would enable the company to
successfully manage the challenges and achieve good business growth.
DIVIDEND
Your Directors are pleased to recommend a dividend of 3.0033% aggregating
to INR 15.86 crores (approx), including dividend distribution tax.
The dividend, once approved by the members in the ensuing Annual General
Meeting will be paid to members whose names appear on the Register of
Members as at the date of the Annual General Meeting.
FIXED DEPOSITS
The Company did not accept any Fixed Deposits during the year under review.
STATUTORY DISCLOSURES
i. The information required under Section 217 (2A) of the Companies Act,
1956 read with Companies (Particulars of Employees) Rules 1975 and latest
amendment vide notification of Ministry of Company Affairs is annexed.
ii. The Companies (Disclosures of Particulars in Report of Board of
Directors) Rules 1988 require the disclosure of particulars regarding
conservation of energy in Form A and Technology Absorption in Form B
prescribed by the Rules. Not being a manufacturing company, Forms A & B do
not apply to the Company.
iii. On actual Basis-A sum of INR 152,656 (000's) (Previous year: Nil) in
respect of equity dividend was remitted during the year in respect of
dividend for the period 1 April 2009 to 31 March 2010 (excluding dividend
distribution tax) on 454,385 shares (000's) held by Standard Chartered
Bank. UK.
DIRECTORS
Mr. Pradeep Rana and Mr. V. Anantharaman were appointed as an Additional
Director with effect from February 25, 2011. Mr. Rana and Mr. Anantharaman
shall hold office up to the ensuing Annual General Meeting (AGM). In
accordance with the provisions of the Companies Act, 1956; resolution
seeking approval of the members for appointment has been incorporated in
the Notice of the forthcoming Annual General Meeting and the Explanatory
Statement thereto.
Mr. Hemant Mishr, Mr. Sreeram Iyer and Mr. Srinivasan Iyengar of the
Company, are due for retirement by rotation and are eligible for re-
appointment.
DIRECTORS' RESPONSIBILITY STATEMENT
The Board of Directors of the Company confirms that in the preparation of
the annual accounts for the financial year ended March 31, 2011:
i. The applicable accounting standards have been followed along with proper
explanation relating to material departures if any;
ii The Directors had 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 the
Company at the end of the financial year and of the profit of the Company
for that period;
iii. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv. The Directors have prepared the annual accounts on a going concern
basis.
AUDIT COMMITTEE
The Audit Committee of the Company comprises of Mr. Sreeram Iyer, Mr.
Dhiren Parekh, Mr. Hemant Mishr, Mr. V.Anantharaman, Mr. Anurag Adlakha and
Mr. Pradeep Rana.
AUDITORS:
The Company's Auditors, M/s. BSR & Co., Chartered Accountants having
Institute's Registration number 101248W, hold office until the conclusion
of the ensuing Annual General Meeting and are eligible for re-appointment.
The Board commends their reappointment to the members.
ACKNOWLEDGEMENTS
The Directors of your Company wish to convey their gratitude to the
Company's employees, clients, bankers and shareholders for their valued
support for the growth of the Company.
On behalf of the Board of Directors,
Sreerawr Iyer Dhiren Parekh
Chairman Managing Director
Place: Mumbai
Date : May 27, 2011.
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