Coimbatore Lakshmi Investment & Finance Co. Ltd. के निदेशक की रिपोर्ट

Mar 31, 2011

Dear Members,

The Directors present the 21st Annual Report and Audited Statement of Accounts for the financial year ended 31st March 2011.

FINANCIAL RESULTS

The Financial Results of the Company for the year under review are summarized below:

(Rs. in lacs)

For the For the Particulars Year ended year ended 31.03.2011 31.03.2010

Profit / (Loss) before depreciation (4.99) (19.87)

Fringe Benefit Tax - -

Income Tax - -

Depreciation - -

Profit / (Loss) before Tax for the year (4.99) (19.87)

Brought forward Loss (2617.17) (2597.30)

(2622.17) (2617.17)

OPERATIONS

The Reserve Bank of India barred our Company from accepting or renewing the deposits and the company was not allowed to enter into any fresh hire purchase / lease business. During the year, the Company has made a loss of Rs. 4.99 lacs as against a loss of Rs. 19.87 lacs in the previous year.

DEPOSITS

The total Fixed Deposits outstanding as at 31.03.2011 is Rs. Nil.

REGISTRATION WITH RESERVE BANK OF INDIA

The Registration granted by the Reserve Bank of India expired on 31.03.2004 and the same has not been considered for renewal. The Company has preferred an appeal before the Appellate Authority for NBFC's, which is pending disposal.

PREFERENCE SHARES

The company had issued preference shares on 09.03.1998 aggregating Rs. 80.35 lacs. The shares are required to be redeemed in three installments. Due to the poor performance of the Company, the Company could not declare any dividend to the preference shareholders. As the preference shares can be redeemed only out of profits or fresh issue, no redemption is possible as the company continues to incur losses and no fresh issue is possible due to changed market conditions.

DIRECTORS

Sri. K. Rajagopal

With deep regret, we inform the members about sad demise of our beloved Founder Director and Chairman of the Company Sri. K. Rajagopal, on - 16/01/2011. Sri. K. Rajagopal has been an inspiring leader throughout his life time and his contribution to the society and the entire textile industry is truly unforgettable. The Board of Directors places on record its appreciation for the valuable services rendered by Sri. K. Rajagopal and for the wholehearted support & advice given to the company during his tenure.

Sri. V. Ramanathan retires by rotation at the ensuing Annual General Meeting. The retiring Director being eligible, offers himself for re-appointment.

CONSERVATION Of ENERGY, RESEARCH AND DEVELOPMENT TECHNOLOGY ABSORPTIONS AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

Furnishing of details regarding Conservation of Energy, Research and Development, Technology absorptions and Foreign Exchange Earnings and Outgo are not applicable to the Company.

AUDIT COMMITTEE

The Audit committee consists of following Directors viz., Smt. Mani Rajagopal, Sri. M. R. Achayakumar, and Sri, V. Ramanathan.

AUDITORS

M/s. Suri& Co., Auditors of the Company will retire at the ensuing Annual General Meeting and they have given their consent for re-appointment. The requisite certificate from Auditors, pursuant to Section 224(1 B) of the Companies Act, 1956 has been received.

DIRECTORS' RESPONSIBILITY STATEMENT

In terms of the provisions of Section 21 7(2AA) of the Companies Act, 1956, your directors confirm-

a. That in the preparation of the Annual Accounts, the applicable accounting standards had been followed.

b. That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as so to give a true and fair view of the state of affairs of the Company at the end of the financial year and the loss of Company for that period.

c. That the directors had taken proper and sufficient care of 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;

d. That the directors had prepared the annual accounts on a going concern basis.

AUDITORS QUALIFICATION

With reference to the remarks of the Auditors in their report, we wish to state as under;

a)&b) Regarding non-reconciliation of certain accounts and subsidiary records, the Company is in the process of reconciling the accounts and arriving at the correct difference. The provision may not be required on completion of reconciliation of accounts.

c) Regarding confirmation of balance from parties, confirmation letters have been sent,

d) The company accounts are maintained on a going concern basis. The repayment to depositors have been periodically reviewed by the Company Law Board and the Reserve Bank of India.

INFORMATION AS PER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956

Your Company has no activity relating to conservation of energy and technology absorption. The Company did not have any foreign exchange or outgo.

PERSONNEL

Your company has no employees drawing remuneration as prescribed under subsection (2A) of Section 217 of the Companies Act, 1956 read with Rule 1A of Companies (Particulars of Employees) Amendment Rules, 2011, during the period under review.

REPORT ON CORPORATE GOVERNANCE

A detailed report on Corporate Governance is annexed to this report. The Company has complied with the Conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement. The Certificate from the Auditors of the Company confirming compliance of Corporate Governance reguirements is also attached to this report.

ACKNOWLEDGEMENT

Your Directors wish to thank the Company's bankers, for their continued co-operation. Your Directors also wish to thank the customers and the depositors for their support. Your Directors place on record their appreciation of the good work done by the employees of the Company.

By order of the Board

For Coimbatore Lakshmi Investment and Finance Company Limited

(Sd.)V.RAMANATHAN

Director

Coimbatore 28.05.2011

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Mar 31, 2010

The Directors present the 20th Annual Report and Audited Statement of Accounts for the financial year ended 31st March 2010.

FINANCIAL RESULTS

The Finance Results of the Company for the year under review are summarized below:

(Rs. in lacs)

For the For the Particulars Year ended Year ended 31.03.2010 31.03.2009

Profit / (Loss) before depreciation (19.87) 13.56

Fringe Benefit Tax - 0.01

Income Tax - 48.21

Depreciation - 0.67

Profit / (Loss) before Tax for the year (19.87) (35.33)

Brought forward Loss (2597.30) (2561.96)

(2617.17) (2597.29)

OPERATIONS

The Reserve Bank of India barred the Company from accepting or renewing the deposits and the company was not allowed to enter into any fresh hire purchase / lease business. During the year, the Company has made a Loss of Rs.l 9.87 lacs as against a Loss of Rs.35.33 lacs in the previous year mainly due on account of write off of Fixed Assets.

DEPOSITS

The total Fixed deposits outstanding as at 31.03.2010 is Rs.Nil.

REGISTRATION WITH RESERVE BANK OF INDIA

The Registration granted by the Reserve Bank of India expired on 31.03.2004 and the same has not been considered for renewal. The Company has preferred an appeal before the Appellate Authorily for NBFCs, which is pending disposal.

PREFERENCE SHARES

The company had issued preference shares on 09.03.1998 aggregating Rs.80.35 lacs. The said shares are required to be redeemed in three installments. Due to the poor performance of the Company, the Company could not declare any dividend to the preference shareholders. As the preference shares can be redeemed only out of profits or fresh issue, no redemption is possible as the company continues to incur bsses and no fresh issue is possible due to depressed market conditions.

DIRECTORS

Shri. M.R. Achayakumar retires by rotation at the ensuing Annual General Meeting. The retiring Director being eligible, offers himself for re-appointment.

CONSERVATION OF ENERGY. RFSFARCH AND DFVFIOPMENT. TECHNOLOGY ABSORPTIONS AND FORFIGN EXCHANGE EARNINGS AND OUTGO:

Furnishing of details regarding Conservation of Energy, Research and Development, Technology absorptions and Foreign Exchange Earnings and Outgo are not applicable to the Company.

AUDIT COMMITTEE

The Audit committee consists of following Directors viz., Smt. Mani Rajagopal, Sri. M.R. Achayakumar, and Sri. V. Ramanathan.

AUDITORS

M/s. Suri & Co., Auditors of the Company will retire at the ensuing Annual General Meeting and they have given their consent for re-appointment.

A letter under Section 224 of the Companies Act, 1956 has been received from them.

DIRECTORS RESPONSIBILITY STATEMENT

In terms of the provisions of Sections 217(2AA) of the Companies Act 1956, your directors confirm.

a. That in the preparation of the Annual Accounts, the applicable accounting standards had been followed.

b. That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as so to give a true and fair view of the state of affairs of the Company at the end of the financial year and the loss of Company for that period.

c. That the directors had taken proper and sufficient care of 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 ;

d. That the directors had prepared the annual accounts on a going concern basis.

AUDITORS QUALIFICATION

With reference to the remarks of the Auditors in their report, we wish to state as under:

a) & b) regarding non-reconciliation of certain accounts and subsidiary records, the Company is in the process of reconciling the accounts and arriving at the correct difference. The provision may not be required on completion of reconciliation of accounts.

c) Regarding confirmation of balance from parties, confirmation letters have been sent.

d) The company accounts are maintained on a going concern basis. The repayment to depositors has been periodically reviewed by the Company Law Board and the Reserve Bank of India.

e) As regards sales of assets of Bangalore Branch, the Company had initiated legal proceedings against the employee for rendering correct account of sale proceeds and other remaining assets.

INFORMATION AS PER SECTION 217(1 )(e) OF THE COMPANIES ACT, 1956.

Your Company has no activity relating to conservation of energy and technology absorption, The Company did not have any foreign exchange or outgo.

PERSONNEL

Your company has no employees drawing remuneration as prescribed under subsection (2A) of Section 217 of the Companies Act, 1956 during the period under review.

REPORT ON CORPORATE GOVERNANCE

A detailed report on Corporate Governance is annexed to this report. The Company has complied with the Conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement The Certificate from the Auditors of the Company confirming compliance of Corporate Governance requirements is also attached to this report.

ACKNOWLEDGEMENT

Your Directors wish to thank the Companys bankers, for their continued co-operation.

Your Directors also wish to thank the customers and the depositors for their support. Your Directors place on record their appreciation of the good work done by the employees of the Company.

By order of the Board

Coimbatore (Sd.) K.RAJAGOPAL

20.08.2010 Chairman