Annual Report - Kerala Financial Corporation (KFC ... · PDF fileKFC Annual Report - 2010-11 3 MESSAGE K. M. MANI MINISTER FOR FINANCE & LAW GOVERNMENT OF KERALA Kerala Financial Corporation

Annual Report - 2010-11

CONTENTSMessage From Hon. Finance Minister 03 | Board of Directors 04 | Principal Officers 06 | Notice to shareholders 07 | Directors’ Report 08 | Auditors’ Report 19 | Financial Statements 21 | Schedules forming part of financial statements 24 | Accounting Policies 31 | Notes on Accounts 33 | Disclosure Requirements 35 | Cashflow Statement 37 | Summary of operations 38 | Highlights of performance 46 | Proxy form

KFC Annual Report - 2010-11

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MESSAGE

K. M. MANIMINISTER FOR FINANCE & LAW

GOVERNMENT OF KERALA

Kerala Financial Corporation is one of the premier financial institution in

the State which plays a dominant role in the development of Kerala.

I am sure that Kerala Financial Corporation will become more and more

vibrant and a model for other State Financial Corporations. I wish Kerala

Financial Corporation and its stakeholders all success and prosperity.

K.M. Mani


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BOARD OF DIRECTORS

Prof. Sushil KhannaChairman

Dr. M.P. Sukumaran NairDirector

Sri Sanjay Garg, IASDirector

Sri K.M.NairManaging Directorfrom 01-12-2010

Sri K.S. Sreenivas, IASDirector

Sri V. Gopinathan, IFSManaging Directorupto 30-11-2010

Sri Saswata ChaudhuriDirector

Sri Saji PaulDirector

Smt Indumathi SridharDirector

Sri K. SathianandanDirector


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BOARD OF DIRECTORS

1 Prof. Sushil Khanna, Chairman Nominated by the Small Industries Development Bank

of India under Sub Section (1) of Section 15 and read with Section 10(a) of the SFCs Act

2 Dr. M.P. Sukumaran Nair, Nominated by the Government of Kerala under Section Special Secretary to Chief Minister, 10(b) of the SFCs Act. Govt. Secretariat, Thiruvananthapuram.

3 Sri K. Sathianandan, Nominated by the Small Industries Development Bank General Manager, of India under Section 10(c) of the SFCs Act. SIDBI, Overseas Towers, Door No. 756 L, Annasalai, Chennai - 600002

4 Smt Indumathi Sridhar, Nominated by the Small Industries Development Bank Deputy General Manager, of India under Section 10(c) of the SFCs Act. SIDBI, Finance Tower, 2nd Floor, Kaloor, Kochi - 682017. 5 Sri Saji paul, Nominated under section 10(d) of the SFCs Act. Senior Divisional Manager, LIC of India, Pattom, Thiruvananthapuram 6 Sri K.S. Sreenivas, IAS Co-opted under section 10(e)(iv) of SFC Act 1951 Special Secretary, Industries (IP) Department, Government Secretariat, Thiruvananthapuram 7 Sri Sanjay Garg IAS, Co-opted under section 10(e)(iv) of SFC Act 1951 Secretary, Dept. of Finance, Govt. Secretariat, Thiruvananthapuram 8 Sri Saswata Chaudhuri, Nominated under section 10(d) of the SFCs Act. General Manager (Treasury), SBT, HO, Poojappura, Thiruvananthapuram-695012

9 Sri K.M.Nair , Nominated by Government of Kerala under sub- section Managing Director (1) of section 17 of the SFCs Act.


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PRINCIPAL OFFICERS

GENERAL MANAGERS

Premnath Ravindranath

Asok Kumar N.

FINANCIAL CONTROLLER

Sabu Thomas

CORPORATE SECRETARY

Rengaswamy C.R.

DEPUTY GENERAL MANAGERS

Dinesh A.G.

Jayasankar R.

Mushtaq Ahamed M.

Janardhanan C.

ASSISTANT GENERAL MANAGERS

Adarsh R.

Ajith Kumar K.G.

Ajithkumar K.

Annamma M.

Antony M.V.

Francis Gomez

Ganesan C.

Hariharan N.

Joseph P.K.

Mohan A.V.

Mohanan K.K.

Narayanan T.P.

Rajeev K.S.

Sasidharan C.

Shaji Sukumar S.

Sreekumar P.B.

Sreelatha Sukumar

Thomas John K.

Varghese Joseph


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KERALA FINANCIAL CORPORATION(Incorporated under the State Financial Corporations Act No. LXIII Of 1951

H.O: Vellayambalam, Thiruvananthapuram - 695 033.Phone: 2318319 (7 lines) Fax: 2318541, 2311750, 2313813, 2313693

Email: [email protected] Website: www.kfc.org

NOTICE TO SHARE HOLDERS

Notice is hereby given that the 58th Annual General Meeting of the shareholders of Kerala Financial Corporation will be held at the Head Office of the Corporation, Vellayambalam, Thiruvananthapuram on Wednesday, 15th of June, 2011 at 3.30 P.M. to transact the following business:

1. To consider and adopt the Balance Sheet as at 31st March, 2011 and the Profit & Loss account for the year ended 31st March, 2011 of the Corporation, the Report of the Board of Directors on the working of the Corporation for the Financial Year 2010-2011 and the Auditor’s Report on the said Balance Sheet and Accounts.

2. To appoint Statutory Auditors of the Corporation for the Financial Year 2011-2012 as approved and on terms and remunerations as fixed by Reserve Bank of India, under Section 37 (1) of the SFCs Act.

3. To declare dividend. Copy of financial statements and Director’s Report will be sent separately.

By Order of the Board

Sd/-K.M. Nair

Managing DirectorThiruvananthapuram, Dated: May 18, 2011

NOTES:1. The Share Register of the Corporation shall remain closed and transfer of shares will be suspended from

June 5, 2011 to June 15, 2011 (both days inclusive).2. The form of proxy is enclosed. 3. Voting rights of the shareholders shall be determined in terms of the provisions under Section 4F of the

State Financial Corporations Act, 1951.4. Any shareholder entitled to attend and vote at the meeting shall be entitled to appoint another person

(whether a shareholder or not but not being an officer or employee of the Corporation) as his proxy to attend and vote instead of himself. No proxy shall be valid unless it is duly stamped and unless it, together with the power of attorney or other authority (if any) under which it is signed, or a copy of that power or authority certified by a notary public or a magistrate, is deposited at the Head Office of the Corporation not less than 48 hours before the time fixed for the meeting.

5. A shareholder being a Company including Small Industries Bank, Public Sector Banks, Co-operative Banks, Co-operative Societies and LIC may, by a resolution of its Directors, authorise any of its officials or any other person (not being an officer or employee of the Corporation) to act as its representative at the meeting. The copy of the resolution appointing him as a duly authorised representative certified to be true copy by the Chairman of the meeting at which it was passed shall have been deposited at the Head Office of the Corporation not less than 48 hours before the time fixed for the meeting.

6. The State Government may, by order in writing, authorise any of its officers, whether a Director of the Corporation or not, to act as its representative at the meeting. The copy of the order shall be deposited at the Head Office of the Corporation before the time fixed for the meeting.

7. The meeting shall be held, conducted, and the business thereat shall be transacted in adherence to the provisions of the State Financial Corporations Act 1951 (As amended up to date) and in terms of the provisions of the General Regulations of Kerala Financial Corporation.


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DIRECTORS’ REPORT

Board of Directors of the Kerala Financial Corporation have great pleasure in presenting the 58th Annual Report on the performance of the Corporation for the Financial Year ended March 31, 2011. The financial statements for the year ended on that date are attached.

An over view of the Financial Year 2010-11

Global Scenario

The world economy was relatively stable in 2010, but started deteriorating in 2011. Civil unrest in many African nations and the Middle East and civil war in Libya have sent the price of oil sky rocketing. The U.S. and most nations in Europe are also facing difficult time servicing their debts, desperately looking for tax revenues to increase. The global economy is more interconnected than ever, and so a major crisis in one area of the world can have a cascading effect on the rest of the globe.

Indian Economy

Indian economy, however, is on the upbeat. India is now rated one of the most attractive investment destinations across the globe. Agriculture sector has recorded a growth of 5.4% while industry has grown by 8.1% in 2010-11. Barring Europe and Japan, India’s other leading export partners are moving towards robust recovery. Strong household demand has led to rising sales growth for companies. Profits, however, have begun to come under pressure. Rising input costs - crude oil, raw materials including metals and food as well as rising wage cost have increased the costs of operation and production. Borrowing costs which remained favourable throughout the downturn have begun to rise and are being reflected in lower growth of bank borrowing by small enterprises. Inflation which is more than 7% continues to remain a concern, but it is expected that the RBI’s monetary policy would lead to moderation in inflation in the coming months. However, the borrowing costs for both businesses and consumers may go up further if persistent inflationary pressures continue .Though the food inflation has been in double digits for most of the current fiscal, emphasis on increasing agricultural productivity and improvement of distribution and marketing systems to bridge the gap between wholesale and retail prices is expected to curb food inflation. The economy is expected to grow at 9% in 2011-12. The overall growth of GDP at factor cost at constant prices, was 8.6 per cent in 2010-11.

Kerala Economy

Kerala’s relation with the outside world is reflected in every aspects of economy like producing export oriented agricultural produce, relying on tourism and also providing IT/ITES services to the outside world. Above all, the economic development of Kerala is often attributed to the flow of remittances from abroad. Thus, the changes in the global economy , particularly the middle east have a direct effect on Kerala economy. Kerala’s economy has been growing at a reasonably fast pace of eight to nine per cent in recent years. It recorded a growth of 9.89% in 2009-10 as against 7.5% for the country as a whole. At current prices, the growth rate of states income was 14.64% in FY 2009-10 compared to 14.70% in FY 2008-09. The contribution from primary, secondary and tertiary sectors to the state GDP was 12.01%, 21.71% and 66.28% respectively. State’s revenue grew by 18.49% in 2010-11 as against 10.22% in 2009-10. Kerala is ranked fourth among frontline States in terms of per capital own-revenue and the efficiency with which tax is collected. The total tax revenue collected during FY


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(` In Crores)

Financial Year 2010-11 2009-10 2008-09

Portfolio Size 1124.81 888.69 650.01

Sanctions 507.06 615.93 373.14

Disbursements 443.44 419.53 293.39

Recovery 354.73 299.57 269.25

Total Income 165.98 162.36 109.26

Total Expenditure 104.28 115.71 96.12

Bad debts written off 9.99 37.72 117.58

Operating Profit /Loss 61.70 46.65 (76.30)

Net Profit(+)/ Loss (-) for the Year 36.40 33.72 11.70

Capital Adequacy Ratio % 22.20 27.88 36.35

Net NPA % 1.88 2.41 13.22

2009-10 was `17625 crore and the budget estimate for 2010-11 is ` 20884 crore. The gross state domestic product has recorded a 13 per cent growth during the last five years. A major issue that Kerala economy is facing today, along with the rest of the country is the high prices of essential commodities. While the price increase in the case of commercial crops like rubber, spices, coconut, coffee and tea is beneficial to the producers, the high prices of essential commodities is having a major detrimental effect on the consumers.

Performance of the Corporation

The Corporation could register improvement in all key areas of operation during the year. Highlights of performance of the Corporation are given below:

OPERATING RESULTSSanctions: Corporation sanctioned financial assistance of ` 507.06 Crores during the current FY. A comparison of sanctions during last 11 years is given below.

` in crores


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Recovery

The Corporation continued to offer Compromise Settlement facility to defaulting borrowers so that hard and deserving cases can be settled without coercive steps. Totally 153 cases were sanctioned compromise settlement facility for an amount of `14.68 crores, involving a sacrifice of ` 57.81 crores during the financial year. Total recovery during the year was ` 354.73 crores; out of this, principal recovery was `196.45 crores and interest recovery amounted to ̀ 117.44 crores. Out of the total recovery, an amount of ` 24.92 crores was by way of compromise settlement. Recovery in last 11 years are reflected in the chart.

2010-11Segment

2009-10

No. Amount No. Amount

599 305.20 Micro 537 331.39

87 52.85 Small 38 80.77

6 8.41 Medium 5 60.50

98 86.94 CRE 118 102.97

76 53.66 Others 61 40.30

866 507.06 Total 759 615.93

(` in Crores)

Sanction to MSME Sector

The table below shows the comparison of sanction to MSME sector during the last two years.

Disbursements

The Corporation could disburse an amount of ` 443.44 crores during 2010-11 recording a growth of 5.7% over previous year. Disbursement during last 11 years were as under.

` in crores


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Asset Classification & Provisioning:Break up of principal outstanding as on 31.03.2010 and 31.03.2011 as well as provision requirement thereon are given in the table below:

Category Principal Outstanding Provision

2010-11 2009-10 2010-11 2009-10

Standard 1032.57 808.10 4.13 2.02

Substandard 56.42 49.77 36.67 29.87

Doubtful – I 35.82 30.82 35.80 30.52

Total 1124.81 888.69 76.60 62.41

(` in Crores)

Asset Quality:The Corporation continued its efforts on reducing NPA by adopting effective strategy during the year. Utmost importance was given to avoid slippage of standard assets into NPAs, and other cases were closely monitored to prevent further deterioration. Efforts made to upgrade NPAs to standard assets have yielded results and the level of net NPAs have come down to 1.88% as against 2.41% last year. Gross NPAs have comedown to 8.20% has against 9.04% of lasy year. Following chart shows Net & Gross NPA level during last 11 years.

` in crores

in %


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Branch Performance

The branch wise share for sanction, disbursement and recovery for FY 2010-11 is shown below.

Sanctions

Recovery

Disbursements

13%

3%

4%

3%

4%

2%

4%

19%

12%

3%

3%

9%

5%

1%

2%

16%

11%

6%

5%

5%

6%

2%

3%

17%

7%

12%

5%

6%

8%

2%

3%

2%

7%

7%

6%

9%

9%

3%

4%

3%

6%

7%

4%

9%

9%

5%

4%

2%


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Capital Adequacy Ratio:

Capital to Risk - weighted Assets Ratio (CRAR) was at 22.20% during the year under report, as against the minimum of 9% prescribed.

Dividend:

During the year the Corporation propose to declare a dividend of 5 % on paid up share capital.

ISO Certification:

The Quality Management Certificate was validated and changed over to new version of IS/ISO 9001-2008 by Bureau of Indian Standards after conducting surveillance/ renewal audit. The licence has been renewed and is valid till 21st June,2013. All offices of the Corporation continue to hold the Quality Management System Certificate.

Corporate Social Responsibility:

The “KFC-CARE” (Kerala Financial Corporation Centre for Assistance and Rehabilitation) established in March 2008 with the objective to assist and empower marginalized members of the society, continued its operations on a modest scale with the limited resources available to it. The Corporation propose to take the CSR activity on a wider scale in due course recognizing the role in true spirit.

Resources

Share Capital:

The paid up share capital of the Corporation as on March 31, 2011 has increased to ` 211.97 crores from ` 204.06 Crores as on 31st March 2010. The Government of Kerala have contributed an amount of ` 7.91 crores during the year by way of equity capital.

Plough Back

Total principal receipt during the year was at `196.45 crores and revenue surplus was ` 67.29 crores. `165.41 crores was utilized for repayment of principal to SIDBI, and ̀ 36.41 crores towards redemption of SLR Bonds. Plough back was ` 61.92 crores which constitutes 13.95 % of disbursement of ` 444 crores.

Refinance from SIDBI:

The Corporation availed refinance of ̀ 160 crores from SIDBI by way of Line of Credit during the current financial year against ` 209.89 crores availed in the previous financial year; this includes an amount of ` 25 crores of short term loan. Repayment during the year was `165.41 crores. Payment towards interest and service charges to SIDBI was ` 39.06 crores. Outstanding borrowing from SIDBI at the year-end was ` 473.62 crores.

SLR Bonds:

The Corporation redeemed SLR Bonds of ` 36.41 crores during the FY and balance outstanding as on 31.03.2011 was ` 61.08 crores. An amount of ` 0.79 crore was paid to the State Government as commission for guarantees extended for SLR Bonds.


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Employee Relationship:

Employee relationship remained cordial throughout the year. Twenty seven employees retired from the service on attaining superannuation. Total staff strength as on 31.03.2011 was at 247.

Skill Upgradation

Three employees were promoted during the period. Training was imparted to 235 employees through 24 training programmes. Two officers attended overseas training programme in Malaysia and Thailand. Officers were deputed to RBI’s College of Agri Banking, Pune, for skill updation.

Human Resources

Line of Credit

During the year KFC has availed lines of credit of `100 crores from Federal bank, `100 crores from Indian Bank, ̀ 35 crores from South Indian Bank and ̀ 26 crores from Kerala State Co-operative Bank. Sources and application of funds during FY 2011 were at ` 805.11 crores. The chart below shows the sources and application of funds during the year.

Sources of Funds

Application of Funds

55%

21%

9%

4%

3%

3%

2%

2%

1%

44%

20%

13%

13%

4%

3%

1%

1%

1%


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Name of the Director PositionNo. of meetings of the Board attended

Tenure

Prof. Sushil Khanna Chairman 7 20.03.2007-

Dr. M.P.Sukumaran Nair Director 806.07.2007-05.07.201022.07.2010-

Sri Saswata Chaudhuri Director 2 03.12.2009-

Sri Saji Paul Director 5 01.10.2009-

Sri A.Vikraman Director 2 25.05.2008-18.06.2010

Sri K.Sathianandan Director 6 18.06.2010-

Sri Namgial Director 1 06.02.2009-18.06.2010

Smt. Indumathi Sridhar Director 2 18.06.2010-

Dr. Debashis Chatterjee Director - 06.02.2010-25.01.2011

Sri K.S.Srinivas, IAS Director 2 09.09.2010-

Sri Sanjay Garg, IAS Director 1 15.12.2010-

Sri V.Gopinathan IFS Managing Director 306.08.2009 - 27.06.201015.11.2010 - 30.11.2010

Sri K.M.NairMD in charge

Managing Director5

28.06.2010-14.11.201001.12.2010-

Corporate GovernanceCorporation has ensured fairness, responsibility, accountability and transparency in corporate governance through the compliance of ISO procedures, publishing of various policies and loan schemes, furnishing of information under the RTI Act etc. and through various grievance redressal mechanism. These policies and procedures are reviewed regularly and necessary changes made to keep them robust and dynamic.

Board of Directors

As on March 31, 2011, the Board of Directors of the Corporation consisted of 9 members, all of whom were Non- executive Directors except Managing Director with whom the day-to-day affairs are entrusted. The Government of Kerala has appointed Shri.K.M.Nair as the Managing Director of the Corporation, in place of Shri V. Gopinathan IFS who was relieved on November 30, 2010. Shri. K.M. Nair also officiated as MD-in-charge during the period 28/06/2010 – 14/11/2010 when Shri. V. Gopinathan IFS was on leave. The Board places on record its deep appreciation of the services and contributions rendered by Shri V.Gopinathan IFS, during his tenure as the Managing Director of the Corporation.

Number of Meetings:

The Board of Directors of the Corporation met 8 times during the year. The details of attendance of directors are given in the following table.


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ALCO

The Corporation has put in place an Asset Liability Management Committee (ALCO) with a view to managing liquidity position, tracking maturity and cash flow mismatches, measuring funds requirement and examining funding options. The Committee is headed by the Managing Director of the Corporation and Senior officers are the members. The Committee met thrice during the year and reviewed maturity pattern, interest rate sensitivity, monthly cash budgets, funding options etc .

Sl. No.

Name of the Director PositionNo. of meetings of the Audit

Committee attended

1 Dr. M.P.Sukumaran Nair Chairman 2

2 Sri A.Vikraman Member 1

3 Sri Saswata Chaudhuri Member 1

4 Sri K. Sathianandan Member 1

Annual General Meeting:

Last Annual general Meeting was held on 22.07.2010. A special general meeting was also held on 06.10.2010 for appointment of the Statutory Auditors.

Directors’ Responsibility Statement:

The Board of directors confirm that in the preparation of Profit and Loss Account for the year ended March 31, 2011 and the Balance Sheet as at that date-

i) the applicable guidelines prescribed by SIDBI have been followed and there has been no material departure. Accrual method of accounting is followed for standard assets and cash basis for non-performing assets from 2005-06;

ii) the Directors selected such accounting policies which would give a true and fair view of the state of affairs of the Corporation at the end of the financial year and of profit / loss of the Corporation for the year under review;

The Executive Committee met nine times during the year as shown in the following table.

The Corporation has constituted an Audit Committee. The Committee met two times during the year. It has reviewed the audit reports of the concurrent and internal auditors, inspection reports of the Accountant General and SIDBI and given necessary guidance. The details of attendance of the Audit Committee meetings are as follows.

Sl. No.

Name of the Director PositionNo. of meetings of the EC

attended

1. Prof. Sushil Khanna Chairman 5

2. Dr. M.P.Sukumaran Nair Member 9

3. Sri A.Vikraman Member 3

4. Smt. Indumathi Sridhar Member 5

5. Sri V.Gopinathan IFS Member 4

6. Sri K.M.Nair Member 5


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Way Ahead:

The Corporation has been contemplating to achieve a portfolio size of over ` 1500 crore in a couple of years. The concessional lending to energy saving sector, women entrepreneurs, Non-resident Keralites and manufacturing sectors is continued in order to encourage these sectors. The Core Financial Solutions which is being implemented through TCS is in the final stages and will be fully operational in the coming Financial year in all the branch offices, Zonal offices and Head Office. It is proposed to issue non-SLR

Shareholders ` in Crores % of Shareholding

Government of Kerala 205.74 97.06

SIDBI 6.13 2.89

LIC 0.07 0.03

SBT 0.02 0.01

Others 0.01 0.01

Total 211.97 100.00

iii) the Directors have taken sufficient care for maintenance of accounting records;

iv) the accounts for the year ended March 31, 2011 have been prepared on a going concern basis.

Right to Information

The Corporation has designated State Public information Officers, Assistant State Public Information Officers and Appellate Officers for the Head Office as well as all the Branch Offices. A total number of 249 petitions were received and disposed of under the RTI Act during the year.

Auditors:

M/s. Jose & Hemachandran, Chartered Accountants, were appointed as Statutory Auditors of the Corporation for the financial year 2010-11, in the Special General Meeting held on 06-10-2010 on the terms and remuneration as prescribed by RBI.

Auditing

The Corporation introduced quarterly auditing of its accounts by the Statutory Auditors from the financial year 2010-11. Concurrent Audit of branch operations are undertaken through reputed Chartered Accountants on a quarterly basis. Corporation continues to have regular quarterly auditing of branch operations by its internal auditors. Further, post-sanction scuritiny of loan sanction and compromise settlement sanction of above ` 25 lakhs are also carried out as a prudent control mechanism and risk mitigation measure.

The Comptroller & Auditor General of India conducted audit of the accounts of the Corporation up to the F.Y 2009-10.

Shareholder information:

The composition of shareholders as on March 31, 2011 is furnished below:


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bonds in the coming year after obtaining credit rating and government guarantee so as to meet the resource gap on increased disbursement commitments.

The Corporation has taken various steps to streamline procedures, introduced major policy improvements, strengthen internal controls and systems, simplified schemes of assistance and speeded-up credit dispensation. More flexible and positive approach towards timely and adequate support to the industrial sector are being attempted. The Corporation has been able to orient its focus towards customer satisfaction and bring about attitudinal changes in its dealings with the customers keeping in view the over-all objective of improving the industrial activities and economic scenario of the State.

Acknowledgment:

The Directors wish to place on record their appreciation to the Government of Kerala, Small Industries Development Bank of India, Reserve Bank of India,COSIDICI, Federal Bank, Indian Bank, South Indian Bank, Kerala State Co-operative Bank, IDBI Bank, Axis Bank, State Bank of India, Accountant General, Concurrent Auditors, Statutory auditors and customers for their continued support, guidance and assistance. The Board appreciates the entrepreneurs and the business community of the State for reposing confidence in the Corporation.

The Board would like to place on record its appreciation and gratitude to all the members of the Board of Directors existing as well as retired, who have ably guided the management of the Corporation during the period. The Board place on record its appreciation of the intensive efforts put in by all the employees of the Corporation.

For and on behalf of the Board,

Thiruvananthapuram Sd/-

Chairman


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AUDITORS’ REPORTTo The Shareholders of Kerala Financial Corporation

We have audited the attached Balance Sheet of Kerala Financial Corporation as at 31st March,2011

and the Profit and Loss Account annexed thereto for the year ended on that date in accordance with

the provisions contained in Section 37 of the State Financial Corporations Act,1951. These financial

statements are the responsibility of the Corporation’s Management. Our responsibility is to express an

opinion on these financial statements based on our audit.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those

standards require that we plan and perform the audit to obtain reasonable assurance about whether

the financial statements are free of material misstatement(s). An audit includes examining, on a test

basis, evidence supporting the amounts and disclosures in the financial statements. An audit also

includes assessing the accounting principles used and significant estimates made by the Management,

as well as evaluating the overall financial statement presentation. We believe that our audit provides a

reasonable basis for our opinion.

We report that:

a) The Balance Sheet read with significant accounting policies and notes thereon is a true and fair

balance sheet containing the necessary particulars and is properly drawn up so as to exhibit a true

and fair view of the affairs of the Corporation as at 31st March 2011.

b) The Profit and Loss account read with significant accounting policies and notes thereon shows a

true balance of Profit for the year ended 31st March 2011.

c) We have obtained all the information and explanations, which to the best of our knowledge and

belief were necessary for the purposes of our audit and have found them to be satisfactory.

d) The transactions of the Corporation that have come to our notice have been within the powers of

the Corporation.


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e) The returns received from the branches of the Corporation have been found adequate for the

purposes of our audit.

f) The operations of the Corporation have been conducted in accordance with the provisions of the

SFCs Act,1951.

g) The income recognition, asset classification and provisioning have been done as per guidelines

issued by the RBI / SIDBI from time to time.

h) The investment of surplus fund is made in accordance with the prudential norms laid down by

the Board of Directors.

For JOSE & HEMACHANDRAN Chartered AccountantsThiruvananthapuram Firm Reg. No.001360S23.05.2011

JOSE ZACHARIAH Partner, M. No.80570


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BALANCE SHEET AS AT 31st March 2011

Schedule` In Lacs

As at31.03.2011

` In LacsAs at

31.03.2010

SOURCES OF FUNDS

Shareholders' Fund

Share Capital 1 20,406.00 20,406.00

Share Capital Advance 2 791.30 0.00

Reserves and Surplus 3 8,538.93 6,589.26

Loan Funds

Secured Loans 4 70,861.96 47,902.66

Bonds (Guaranteed by Government of Kerala) 5 6,108.00 9,749.10

Deferred Tax Liability 500.63 504.24

Other Liabilities 6 2,065.17 1,335.38

Provisions 7 10,256.56 7,700.00

TOTAL 119,528.55 94,186.64

APPLICATION OF FUNDS

Cash & Bank Balances 8 768.47 1,041.63

Loans & Advances 9 112,481.40 88,869.11

Investments 10 185.00 199.25

Fixed Assets 11 275.98 246.43

Other Assets 12 5,817.70 3,830.22

TOTAL 119,528.55 94,186.64

Significant Accounting Policies 18

Notes forming part of accounts 19

Thiruvananthapuram 23.05.2011

Jose Zachariah Partner M.No.80570

Sabu Thomas K M NAIR Sanjay Garg IAS Financial Controller Managing Director Director

As per our report of even date

For Jose & HemachandranChartered AccountantsFirm Reg No.001360S


22

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st March 2011

Schedule` In Lacs

As at31.03.2011

` In LacsAs at

31.03.2010INCOME

Income from Operations 13 16,459.39 14,131.70

Other Income 14 138.64 2,104.42

TOTAL A 16,598.03 16,236.12

EXPENDITURE

Operating Expenses 15 6,044.49 4,912.94

Employee Cost 16 2,464.08 1,977.99

Administrative Cost 17 409.52 430.82

Interest rebate on Loans 951.38 441.24

Depreciation 64.17 36.07

Bad Debts Written Off 494.62 3,772.41

TOTAL B 10,428.26 11,571.47

OPERATING PROFIT C 6,169.77 4,664.65

Less :

Provision for Income Tax 1,110.56 699.70

Provision for Deferred Tax Liability 0.00 504.24

Provision for Wealth Tax 0.00 0.05

Provision for Bad & Doubtful Debts 1,419.19 88.41

TOTAL D 2,529.75 1,292.40


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Net Profit for the year (C-D) 3,640.02 3,372.25

Less: Prior Period Expenses 0.00 26.55

Less:Dividend Deficit written off 0.00 327.58

Add: Prov for deferred tax liability written back 3.61 0.00

Less:Appropriations

Proposed Dividend 1,020.30 816.24

Provision for Dividend tax 169.46 138.72

Transfer to Reserve u/s 36 (1) (viia) 0.00 233.23

Transfer to Reserve u/s 36 (1) (viii) 1,233.95 886.29

Balance Profit after appropriations 1,219.92 943.64

Add: Balance in Profit & Loss A/c b/f 2,113.71 1,170.07

Balance Profit carried to Balance sheet 3,333.63 2,113.71







24

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS

` In Lacs

As at31.03.2011

` In LacsAs at

31.03.2010SCHEDULE : 1

SHARE CAPITAL

AUTHORISED CAPITAL

3,50,00,000 shares of Rs.100 each 35,000.00 35,000.00

Issued, Subscribed and Fully Paid up Capital

Ordinary Shares

1,99,66,253 shares of Rs.100/- each 19,966.25 6,966.25

Shares of Rs.100/- each allotted during the year 0.00 13,000.00

1,99,66,253 shares of Rs.100/- each 19,966.25 19,966.25

Special Shares

4,39,750 shares of Rs.100/- each as per last B/S 439.75 439.75

TOTAL 20,406.00 20,406.00

SCHEDULE : 2

SHARE CAPITAL ADVANCE

As per last Balance Sheet 0.00 13,000.00

Add: Receipts during the year 791.30 0.00

791.30 13,000.00

Less: Allotted during the year 0.00 13,000.00

TOTAL 791.30 0.00

SCHEDULE : 3

RESERVES AND SURPLUS

(a) Reserve u/s 36(1) (viia) of IT Act, 1961

As per last Balance Sheet 504.20 270.96Less: Bad Debts Written Off adjusted to the extent of balance available under this head

504.20 0.00

Added during the year 0.00 233.23

Total of (a) 0.00 504.20

(b) Spl. Reserve u/s 36(1)(viii) of IT Act, 1961

As per last Balance Sheet 3,721.35 2,835.06

Added during the year 1,233.95 886.29

Total of (b) 4,955.30 3,721.35

(c) Spl. Reserve u/s 35(A) of SFCs Act, 1951 250.00 250.00

(d) Profit & Loss Account 3,333.63 2,113.71

TOTAL {(a)+(b)+(c)+(d)} 8,538.93 6,589.26


25

SCHEDULE : 4

BORROWINGS

From SIDBI 47,361.96 47,902.66

LOC from BANKS 23,500.00 0.00

TOTAL 70,861.96 47,902.66

SCHEDULE 5 - BONDS (Guaranteed By Govt. Of Kerala U/S 7 Of The Sfc’s Act, 1951)

Sl. No.

Date of issue

Name of the series

Amount outstanding on 31-03-11 (Rs in lakhs)

Amount out-standing on

31-03-10 (Rs in lakhs)

Interest Rate %

Redemption Date

1 2 3 4 5 6 7

1 07-06-00 2010(IV) 0.00 1137.00 10.52 07-06-10

2 26-06-90 2010(II) 0.00 270.00 11.50 26-06-10

3 27-06-00 2010(V) 0.00 90.00 11.33 27-06-10

4 13-11-90 2010(III) 0.00 342.50 11.50 13-11-10

5 13-02-91 2011(I) 0.00 165.00 11.50 13-02-11

6 28-03-01 2011(III) 0.00 1636.60 10.50 28-03-11

7 28-06-01 2011(IV) 263.40 263.40 9.90 28-06-11

8 02-09-91 2011(II) 392.50 392.50 11.50 02-09-11

9 20-12-01 2011(V) 265.00 265.00 8.35 20-12-11

10 08-01-92 2012(I) 315.00 315.00 12.00 08-01-12

11 12-02-92 2012(II) 147.50 147.50 12.00 12-02-12

12 20-02-02 2012(III) 2271.60 2271.60 8.30 20-02-12

13 25-07-02 2012(iv) 1100.00 1100.00 7.92 25-07-12

14 26-03-03 2013(i) 1353.00 1353.00 6.75 26-03-13

Total 6,108.00 9,749.10


26

SCHEDULE : 6

OTHER LIABILITIES

State Subsidy 25.95 22.21

Margin Money 4.69 0.75

Interest subsidy 0.15 0.00

Earnest Money Deposit 25.50 18.51

Advance Received for sale of units 25.25 25.57

Self Employment Venture fund 26.48 26.48

Suspense Account 0.00 15.05

Tax Deducted at Source 0.10 0.00

Other Sundry Deposits 21.77 20.23

Gratuity Payable 0.00 1.36

Service tax 0.66 0.00

Compromise Settlement Pending Appropriation 346.97 148.35

Outstanding Expenses 163.90 96.76

Pay Revision Arrears Payable 0.00 87.23

Revenue Recovery Pending Appropriation 230.65 201.63

Accrued Interest on Refinance from SIDBI 310.82 296.30

Accrued Interest on SLR Bonds 65.45 133.28

Accrued Interest on LOC from banks 152.96 0.00

Audit Fee Payable 0.85 0.55

Concurrent Audit Fee payable 2.09 2.19

Contingent Provision against Standard. Assets 410.21 202.22

Staff Dues Retained 69.10 33.37

Sundry Creditors 44.00 1.49

Leave Encashment Payable 1.78 1.85

Unpaid dividend 0.01 0.00

Group Leave encashment payable 135.83 0.00

TOTAL 2,065.17 1,335.38SCHEDULE : 7 PROVISIONS(a) Provision for Taxation: As per last Balance Sheet 699.69 0.00Add: Provision made during the year 1,110.56 699.70Total of (a) 1,810.25 699.70(b) Provision for Fringe Benefit TaxAs per last Balance Sheet 6.66 6.66Add: Provision made during the year 0.00 0.00Total of (b) 6.66 6.66(c ) Provision for bad and doubtful debtsAs per last Balance Sheet 6,038.68 6,020.09Add: Provision made during the year 1,211.20 18.59Total of (c ) 7,249.89 6,038.68(d ) Proposed Dividend for the year 1,020.30 816.24(e) Provision for Dividend Tax 169.46 138.72

TOTAL 10,256.56 7,700.00


27

SCHEDULE : 8 CASH & BANK BALANCESCash in hand 18.80 15.11

Banks Current Accounts 646.11 672.96

Banks Deposit Accounts 103.56 353.56

TOTAL 768.47 1,041.63

SCHEDULE : 9 LOANS & ADVANCESLoans and Advances 112,481.40 88,869.11

TOTAL 112,481.40 88,869.11SCHEDULE : 10 INVESTMENT Keltron Counters Ltd. 1.47 1.47

Kerala Spinners Ltd. 2.00 2.00

Kerala Rubber & Reclaims Ltd. 0.00 1.50

Vanjinad Leathers Ltd. 4.91 4.91

KITCO 0.29 0.29

India SME Asset Reconstrution Co. 35.00 35.00

Kerala Venture Capital Fund 150.00 164.25

Sub Total 193.67 209.42

Less : Provision for diminution in value of investments 8.67 10.17

TOTAL 185.00 199.25 SCHEDULE : 12 OTHER ASSETSAdvance Income Tax 2,086.51 518.23

Income Tax Deducted at source 39.03 32.85

Advance Fringe Benefit Tax 6.64 6.63

Property Acquired in Satisfaction of Claims 400.34 400.34

House Loans to Employees 470.37 523.74

Conveyance Loan to Employees 86.75 78.10

Computer Loan to Employees 3.28 7.05

Advance to Employees 7.89 8.10

Advance for Fixed Assets 20.20 3.22

Deposit with P&T 0.09 0.09

Other Deposits 14.53 11.07

Stock of Stationery 0.00 0.00

Library 0.00 0.00

Deposit with KSEB 10.15 9.94

Suspense Account 72.61 0.00

Interest Accrued on Loans & Advances 1,992.25 1,672.37

Interest Accrued on STD with Banks 0.29 0.04

Interest Accrued on Staff Loans 537.22 524.09

Deposit against Staff Dues Retained 69.10 33.36

Other Advances 0.45 1.00

TOTAL 5,817.70 3830.22


28

SCH

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LE 1

1 -

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11.6

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29

SCHEDULE 13 :

INCOME FROM OPERATIONS

Interest Received On Loans & Advances 12,064.92 9,637.18

Interest on Staff Loans 55.73 32.83

Sale of Application Forms 0.85 1.19

Loan Processing Fees 213.32 253.83

Recovery from written off loans 4,047.95 4,152.25

Premium on pre-closure 76.62 54.42

TOTAL 16,459.39 14,131.70

SCHEDULE 14

OTHER INCOME

Interest on Bank Deposits 18.13 9.83

Dividend From Shares 0.06 0.06

Miscellaneous Income 4.39 18.68

Other Income 0.22 1,976.35

Rent Received 59.42 55.16

Income from Insurance Agency 3.52 2.31

Service tax Income 0.00 0.02

RTI Application Fee Received 0.02 0.02

Income from Mutual Fund 45.50 39.23

Consultancy Service Division Receipts 0.96 0.79

Lease Rental 0.00 1.97

Profit on sale of shares 5.25 0.00

CGTMSE Guarantee Receipt 0.64 0.00

Rebate on Refinance 0.53 0.00

TOTAL 138.64 2104.42

SCHEDULE 15 :

OPERATING EXPENSES

Interest on Bonds 758.63 960.44

Interest on Fixed Deposits 0.00 0.01

Interest on Refinance from SIDBI 4,217.31 3,776.28

Interest on Line Of Credit from Banks 853.89 2.50

Guarantee Commission 79.32 172.65

Bond Issue Expenses 11.13 1.06

LOC Administrative Expenses 124.21 0.00

TOTAL 6,044.49 4,912.94


30

SCHEDULE 16:

EMPLOYEE COST

Pay & Allowances 1,551.77 1,480.60

Group Gratuity Insurance 571.63 10.46

Contribution to Employees' P.F 150.53 146.93

Group E/L Encashment Insurance 135.83 301.98

Other Staff Expenses 54.32 38.02

TOTAL 2,464.08 1,977.99

SCHEDULE 17

ADMINISTRATIVE EXPENSES

Rent, Rates, Taxes & Insurance 57.94 65.99

Postage, Telegram and Telephone 21.38 14.99

Printing & Stationery 11.51 13.78

Vehicle Running & Maintenance 11.91 11.30

Repairs & Maintenance of Buildings & Equipments 17.22 31.58

Revenue Recovery expenses 88.88 0.00

Bank Charges and Commission 0.21 0.31

Audit Fees 1.10 0.55

Consultancy Charges 14.17 1.72

Legal Expenses 6.23 6.46

Books & Periodicals 1.09 1.18

Conference & Seminars 6.18 4.07

Publicity & Advertisement 68.44 173.07

Other Expenses 76.73 52.40

Travelling Expenses 14.82 14.24

Board / E.C. Meeting Expenses 3.22 2.91

Concurrent Audit Fee 6.56 4.82

Servicetax paid 1.52 16.23

Business Development Expenses 0.41 15.22

TOTAL 409.52 430.82







31

SIGNIFICANT ACCOUNTING POLICIES:

SCHEDULE 18

Method of Accounting:

The financial statements have been prepared and presented under the historical cost convention and on

accrual basis of accounting unless otherwise stated and are in accordance with the generally accepted

accounting principles and circulars and guidelines issued by RBI/SIDBI and applicable accounting

standards.

Revenue Recognition:

Income is recognised on accrual basis on performing assets and on realisation basis in respect of

non-performing assets as per the ‘prudential norms on income recognition, asset classification and

provisioning’ prescribed by RBI/SIDBI. Recovery of loans and advances is appropriated first towards

expenses, then towards interest and then towards principal. However, in the case of Compromise

Settlement and sale of units taken over under the SFCs Act, 1951 and Revenue Recovery proceedings,

the proceeds are apportioned first towards recovery of expenses then towards principal amount and

last towards interest, on satisfaction of the stipulated conditions.

Retirement Benefits:

The Corporation contributes to the Provident Fund which is administered by duly constituted and

approved independent trust by name KFC Employees Provident Fund Trust and such contributions are

charged to revenue every year. Gratuity liability of employees is covered under the approved Group

Gratuity Scheme of LIC of India. Contributions paid under the scheme are charged to revenue. The liability

for terminal encashment of earned leave to the employees is covered under the Group Leave Encashment

Scheme of LIC of India and the contributions paid under the scheme are charged to revenue.

Advances:

Advances have been classified as Standard, Sub-standard Doubtful and Loss Assets and provisions for

possible losses on such advances are made at estimated rates which is equal to or more than the rates

prescribed in the prudential norms, circulars and directives issued by RBI/SIDBI.

All advances which have become Non-performing for more than 2 years are written off as Bad Debts

and recovery from written off accounts are shown as Operating Income.

Fixed Assets:

Fixed Assets are carried at cost of acquisition less depreciation. Depreciation on fixed assets has been

provided for on written down value method and at the rates prescribed under the Income Tax Act, 1961.


32

Investments

Long term investments are carried at cost. However provision for diminution is made to recognise a

decline, other than temporary, in the value of investments determined for each investment individually.

Reduction in the carrying amount and reversals of such reductions are charged or credited to the Profit

and Loss Account. On disposal of an investment, the difference between carrying amount and net

disposal proceeds are charged or credited to the Profit and Loss Account .

Income Tax

Tax expenses comprising of both current tax and deferred tax are considered in determining the net

working results for the year. Deferred tax reflects the effect of temporary timing differences between

assets and liabilities recognised for financial reporting purposes and the amount that are recognised

for current tax purposes.







33

NOTES FORMING PART OF ACCOUNTS:

SCHEDULE 19

1. Asset Classification and Provisioning

In accordance with the guidelines of RBI / SIDBI on asset classification, all loans and advances have been

classified into Standard, Sub Standard and Doubtful Assets and the provisioning is made as under.

Category of assetsMinimum Provision

required ( % )Provision actually made

( % )

Standard Assets -SME 0.25 0.25

Standard Assets – CRE 1.00. 1.00.

Sub Standard Assets 10.00 65.00.

Doubtful Category I 20.00 100.00.

Loans & Advances under the Doubtful II / Loss category have been fully written off as bad debts.

Gross NPA as on 31-03-2011 is 8.20% (9.04% as on 31-03-2010) and Net NPA as on 31-03-2011 is

1.88% (2.41% as on 31-03-2010)

2. Share Capital Advance

During the year the Corporation received a sum of ` 791.30 lac from Government of Kerala towards

share capital against which shares have not been issued and hence shown as share capital advance.

3. Investments

The investment with Kerala Venture Capital Fund amounting to ` 150 lac is in the nature of long term

equity subscription.

4. Income Tax

Income tax returns have been filed up to Assessment year 2010-11 and assessments have been completed

up to Assessment year 2008-09. Appeals filed by the Corporation for the Assessment years 1993-94 and

1995-96 are pending before the High Court of Kerala and for the Assessment year 2003-04 is pending

before ITAT and for the Assessment years 2004-05 and 2006-07 are pending before CIT(Appeals). Appeals

filed by the Income Tax Department for the Assessment year 2001-02 is pending before ITAT. ITAT had

remitted the case to CIT (Appeals) for the Assessment years 1995-96, 1999-2000 and 2002-03 .

5. Deferred Tax Assets and Liabilities

The break up of deferred tax liabilities /(assets) into major components of the respective balances

is as given below.

Particulars As on 31.03.2010 For 2010-11 As on 31.03.2011

On Depreciation (31.27) (17.25) (48.52)

On Income not received 746.59 93.73 840.32

On Outstanding expenses (211.08) (80.09) (291.17)

Total 504.24 (3.61) 500.63


34

6. Impairment of AssetsThe management is of the opinion that there is no material impairment of the fixed assets. Hence the

fixed assets have been carried at WDV in the books.

7. Segment ReportingThe Corporation operates as a single unit with a single profit centre and has concentrated its activity

on term lending only as a single product.

8. Contingent LiabilitiesContingent liability is estimated as under:

(a) on account of suits filed against the Corporation: ` 118.01 lac.

(b) on account of Income tax: ` 2970.03 lac.

9. Assets acquired in satisfaction of claimsAssets acquired in satisfaction of claims amounting to ̀ 400.34 lac relates to M/s. Jayalakshmi Builders,

Trivandrum which is retained as such since the Hon. High Court of Kerala has ordered ‘Status Quo’

regarding possession.

10. Loans and advancesThe aggregate amount of loans and advances as per subsidiary loan ledger is less by ` 95.05

lac as compared to control account in the General Ledger. The difference has been debited to suspense

account for the time being for subsequent rectification while implementing the proposed new accounting

software in 2011-12.

11. Suspense account comprises of a debit balance of ̀ 95.05 lac being difference as per Note-10

and a net credit balance of ̀ 24.48 lac being amount pending appropriations to loan accounts and other

items for which entries are to be passed in subsequent year after collecting the required information.

12. Profit on sale of investmentsThis represents the entire sale proceeds of shares which were carried at nil value due to 100% provision

for diminution in value made in earlier years and sold during the year

13. Previous Year’s Figures Previous year’s figures have been regrouped and reclassified wherever found necessary.







35

(Amount `. in lacs)

A. Capital 2010-11 2009-10

a) CRAR (%) 22.20 27.88

b) Risk Weighted Assets

on Balance Sheet items 112481.40 88275.00

c) Share holding pattern as on Balance Sheet date

Amount % %

1. Government of Kerala (including advance) 20573.8 97.06 96.94

2. SIDBI 613.33 2.89 3.01

3. Commercial Banks, Insurance Cos. private shareholders etc.

10.17 0.05 0.05

TOTAL 21197.30 100 100

d) Net worth 29736.23 26996.00

B. Asset Quality and Credit Concentration: Amount % %

a) Net NPAs to Net Loans and Advances. 1974.73 1.88 2.41

b) Net NPAs under the prescribed asset classification categories

Sub Standard Assets & Doubtful Assets 1974.73 1.88 1990.84

c) Provisions:

2010-11 2009-10

1. Provision for Standard Assets 410.21 202.22

2. Provision for NPA 7249.88 6038.68

3. Provision for Investments 8.67 10.17

4. Provision for Income Tax 1110.56 699.70

5. Provision for Deferred Tax Liability 500.63 504.24

6. Proposed Dividend 1020.30 954.96

d) Movement in Net NPA (%)

2010-11 2009-10 Variance

Sub Standard and Doubtful Assets 1.88 2.41 -0.53

TOTAL 1.88 2.41 -0.53

SCHEDULE 20 - DISCLOSURE REQUIREMENTS:


36

C. Liquidity: ` in lacs

a) Maturity pattern of Rupee assets.

ItemsLess than or equal to 1 year

More than 1 year up to 3 years

More than 3 years up to 5 years



More than 10

yearsTotal

Total assets 8469.03 7247.97 22306.90 34796.33 39398.19 262.98 112481.40

Total Liabilities 16700.42 35251.10 18132.59 6885.86 0.00 0.00 76969.97

D. Operating Results: 2010-11 2009-10

` in lacs

a) Interest income as a percentage to average working funds - 12.69 12.12

Interest Income 12,138.78 9,679.84

Average Working Funds 95,676.61 79,884.62

b) Non-interest income as a percentage to Average Working Funds - 4.66 7.65

Non-interest income 4,459.25 6,115.04


c) Operating Profit as a % to Average Working Funds - 6.45 5.84

Operating Profit 6,169.77 4,664.65


d) Return on Average Assets - 5.83 5.49

Returns (operating profit + depreciation) 6,233.94 4,700.72

Average Assets 106,857.60 85,561.24

e) Net profit per employee 14.74 12.68

No. of employees 247 266

Net profit 3,640.02 3,372.25







37

CASH FLOW STATEMENT ` in Lacs

FOR THE PERIOD 2010-2011 2009-10

a Cash flows from operating activities

Interest and other Revenue receipts (A) 15,577.77 15,523.90

Interest and other Financial Charges (B) (6,044.49) (4,929.98)

Payment to employees and Administrative expenses (C) (3,872.44) (2,237.38)

Operating profit before changes in operating assets (A+B+C) 5,660.84 8,356.54

Increase in operating assets (Loans and advances) (23,612.29) (27,639.64)

Net cash from operating activities before Income Tax (17,951.45) (19,283.10)

Income Tax paid (1,568.28) (233.00)

Net cash from operating activities after tax (X) (19,519.73) (19,516.00)

b Cash flows from investing activities

Interest received on deposits / Investments in Mutual Funds 63.63 54.19

Purchase of fixed assets (93.72) (24.81)

Investment in shares and debentures 19.50 -

Decrease in other current assets (419.19) (34.62)

Increase in Other Liabilites 521.80 140.76

Net cash from investing activities (Y) 92.02 135.52

c Cash flows from financing activities

Share Capital from State Government 791.30 -

Long term borrowings (Refinance from SIDBI) 16,000.00 20,988.52

Repayment of Long term borrowings

(20,181.79) (14,696.94)

LOC from Banks 26,100.00 -

Repayment of LOC from Banks (2,600.00) -

Dividend and Dividend Tax Paid (954.96) -

Net cash from financing activities (Z) 19,154.55 6,291.58

Net increase in cash and cash equivalents (273.16) (13,089.00)

Cash and cash equivalent at the beginning of the Financial year 1,041.63 14,130.62

Cash and cash equivalent at the end of the Financial year 768.47 1,041.63







38

PRO

FORM

A-I

(` in

Lac

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SUM

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F LO

AN

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No.

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1. A

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ff7

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6945

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5092

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1.81

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5. A

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823

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976

4839

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6. A

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licat

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canc

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ou

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cur

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6.94

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B. A

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3872

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62

7. A

pplic

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Effe

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5-6A

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411

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8 N

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6445

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5971

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9. A

mou

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alo

ng w

ith

n

umbe

r of

new

ly a

ssis

ted

units

255

1051

4.61

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3338

4.05

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4436

3.52

2282

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9491

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622

0518

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4017

337

0474

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10.A

pplic

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g sa

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on

a

t t

he e

nd o

f t

he p

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1213

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780

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2013

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39

A

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S.S.

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NO

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NO

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NO

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NO

AM

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NO

AM

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NO

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NO

AM

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NO

AM

OU

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TRIV

ANDR

UM

1031

2.10

4733

32.9

757

3645

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1979

6.80

5955

69.7

578

6366

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00

00.

000

0.00

KOLL

AM

8

528.

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966.

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737

8.50

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5.00

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00

01

20.0

01

20.0

0

PATH

AN

AM

THIT

TA9

1087

.00

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6.50

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63.5

011

1095

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65.5

00

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KOTT

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DU

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00

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6776

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KOZH

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KASA

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GRA

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252

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450

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7.18

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PRO

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TH

E YE

AR

2010

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(` in

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40

PRO

FORM

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I

(` in

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NC

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OPE

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TH

E YE

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DIS

TRIC

T

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Dis

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cove

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S.S.

I.O

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S.S.

I.O

ther

sTo

tal

No

Am

ount

No

Am

ount

No

Am

ount

No

Am

ount

No

Am

ount

No

Am

ount

THIR

UVA

NA

NTH

APU

RAM

1979

6.80

5955

69.7

578

6366

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1767

0.26

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91.7

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5161

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3826

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KOLL

AM

7

378.

5016

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1283

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1034

3.43

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41.6

224

1485

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1974

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PATH

AN

AM

THIT

TA11

1093

.00

997

0.50

2020

63.5

02

102.

008

1054

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1011

56.5

017

28.9

4

KOTT

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M3

266.

9516

1673

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1919

40.2

16

471.

8613

1590

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1920

62.1

521

13.7

0

ALA

PPU

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929

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26.8

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81.5

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5918

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1206

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3315

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2392

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TRIS

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2283

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94.6

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2872

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KAN

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GRA

ND

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3.52

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3.06


41

DIS

TRIC

T

APP

LICA

TIO

N R

ECEI

VED

LOA

N S

AN

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ECTI

VEL

Y

LO

AN

DIS

BURS

ED

No.

% o

f to

t A

mou

nt%

of

tot

No.

% o

f to

t A

mou

nt%

of

tot

No.

% o

f to

t A

mou

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of

tot

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5315

9.47

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344

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4510

6.40

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8

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539

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5331

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6737

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106.

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PATH

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AM

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103.

6023

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933.

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31

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AD

1711

3.41

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4.46

2.44

5138

447

1557

3.77

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KAN

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30

KASA

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1470

2.93

1448

9.39

2.41

4301

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1279

3.09

1185

2.45

2.53

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3.03

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9.76

2.76

LAKS

HA

DW

EEP

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029.

880.

0016

4625

96

0.01

5.03

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60.

015.

030.

00

GRA

ND

TO

TAL

5021

910

0.00

6001

48.4

310

0.00

4132

610

0.00

4693

58.5

810

0.00

4017

210

0.00

3704

74.5

110

0.00

PRO

FORM

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(` in

Lac

s)

DIS

TRIC

T W

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BREA

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OF

LOA

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42

PRO

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OF

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2010

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011

Sanc

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Till

31

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011

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mou

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o.A

mou

nt

Am

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to R

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34.6

3

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1

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046

9439

07.9

62

1.56

4696

3909

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21.5

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338

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2.54

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55.8

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302.

7641

326

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58.5

8


43

DIS

TRIC

T

EFFE

CTIV

E SA

NCT

ION

DIS

BURE

SEM

ENT

NO

AM

TN

OA

MT

THIR

UVA

NA

NTH

APU

RAM

4403

5315

9.47

4410

4510

6.40

KOLL

AM

39

4031

285.

7837

2625

008.

10

PATH

AN

AM

THIT

TA16

3420

836.

5515

4814

820.

88

KOTT

AYA

M24

8323

676.

1124

2519

389.

05

ALA

PPU

ZHA

2466

2547

7.17

2488

2031

5.39

IDU

KKI

2542

2409

5.70

2582

1779

3.22

ERN

AKU

LAM

5581

1064

58.5

051

2980

490.

33

TRIS

SUR

3265

4631

4.12

4043

3805

7.37

PALA

KKA

D23

4028

817.

2720

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343.

91

MA

LAPP

URA

M17

6226

104.

1615

2821

393.

40

KOZH

IKO

DE

5085

3989

1.63

4621

3079

9.95

WAY

AN

AD

1557

1224

8.07

1546

8798

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KAN

NU

R29

8319

136.

5728

1115

943.

68

KASA

RGO

DE

1279

1185

2.45

1217

1020

9.76

LAKS

HA

DW

EEP

65.

036

5.03

GRA

ND

TO

TAL

4132

646

9358

.58

4017

237

0474

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PRO

FORM

A-V

I

(` in

Lac

s)

DIS

TRIC

T W

ISE

CLA

SSIF

ICA

TIO

N O

F LO

AN

S A

ND

AD

VAN

CES

AS

ON

31st

MAR

CH 2

011


44

(` in

Lac

s)

Sl

No

Type

of

Indu

stry

S.S.

IO

THER

STO

TAL

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2.71

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9.94

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45

Sl

Type

of

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No

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46

2001

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(` in

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s)


48

KERALA FINANCIAL CORPORATION(INCORPORATED UNDER THE STATE FINANCIAL CORPORATIONS ACT No. LXIII OF 1951

H.O: ASWATHY, VELLAYAMBALAM, THIRUVANANTHAPURAM - 695 033.Phone: 2318319 (7 lines) Fax: 2318541, 2311750, 2313813, 2313693

Email: [email protected] Website: www.kfc.org

P R O X Y

I/We ...........................................................................................................................................(folio No.)

of ..................................................................being a share holder of the Kerala Financial Corporation

holding shares Nos. ........................................................................................................... hereby appoint

Shri/Smt. ................................................................................. of ............................... (or failing him

Shri/Smt. ................................................................ of ..........................................................) as my/our

proxy to vote for me/us and on my/our behalf at the meeting of the shareholders of the Corporation to be

held at ........................................on the ...................................day of .......................................and at any

adjournment thereof.

Signed this the........................ day of .................................

Notes

1. The proxy need not be a member of the Corporation.

2. The proxy form signed across Re.1/- Revenue Stamp should reach the Corporation’s Registered office at least 48 hours before the meeting.

Signature of

share holder on

Re.1 /-

Revenue Stamp

Documents

Annual Report - Kerala Financial Corporation (KFC ... · PDF fileKFC Annual Report - 2010-11 3 MESSAGE K. M. MANI MINISTER FOR FINANCE & LAW GOVERNMENT OF KERALA Kerala Financial Corporation