KFC Annual Report 2012 · KFC Annual Report - 2011 -12 3 Kerala Financial Corporation (KFC) has...
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KFC Annual Report - 2011 -12
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Annual Report 2011-12
KFC Annual Report - 2011-12
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CONTENTSMessage From Hon. Chief Minister 03 |Financial Highlights 04 |Message From Hon. Finance Minister 05 | Board Directors 06 | Principal Offi cers 07 | Notice to shareholders 8 | Directors’ Report 9| Auditors’ Report 21 | Financial Statements 22 | Schedules forming part of fi nancial statements 24 | Accounting Policies 30 | Notes on Accounts 32 | Disclosure Requirements 34 | Cashfl ow Statement 36 | Summary of operations 37 | Highlights of performance 45| Proxy form 47
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Kerala Financial Corporation (KFC) has been responsible for providing a new sense of direction and purpose in the area of industrial fi nance. Being the case, KFC continues its contribution to the development of the State.
As the nodal agency of the newly declared dream project in the State - Kerala State Self Entrepreneur Development Mission - KFC’s commitment to the society, especially to the youth of Kerala has become all the more signifi cant and remarkable.
I hope that KFC would scale new heights in its endeavor to provide timely assistance to entrepreneurs, who are keen to have their dreams realized in the business and industrial domain of Kerala.
My best wishes to KFC and its customers.
OOMMEN CHANDY
OOMMEN CHANDYCHIEF MINISTER
GOVERNMENT OF KERALA
MESSAGE
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KFC Annual Report - 2011 -12
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K. M. MANIMINISTER FOR FINANCE, LAW & HOUSING
GOVERNMENT OF KERALA
MESSAGEKerala Financial Corporation, the Best Performing State Financial Corporation in India, has been extending fi nance to different projects at most competitive rates. It also extends all round support to them. The Corporation is also signifi cantly contributing to the Government exchequer, by way of taxes, dividend etc. The Corporation’s social commitment and contribution towards economic and social development of the State is notable. The Corporation’s performance as the nodal agency of the dream project of the State Government, ‘Kerala State Self Entrepreneur Development Mission’, adds another feather to its achievements.
I wish all the employees, customers and stake holders of KFC all success and progress .
K.M. Mani
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BOARD OF DIRECTORS
Sri. Yogesh Gupta, IPSChairman & Managing Director(FCA, FCMA, Masters in Management)
Sri Sanjay Garg, IASDirector
(Secretary, (Finance & Expenditure)Govt. of Kerala)
Sri. K.S. Sreenivas, IASDirector
(Special Secretary Industries (IP)Dept.Govt. of Kerala)
Sri. S. V.G. Nanda GopalDirector
(Chief General Manager, SIDBI)
Sri. Ravi JhaDirector
(General Manager (Treasury) SBT)
Smt. Indumathi SridharDirector
(Deputy General Manager, SIDBI)
Smt. Premilla .V. Nair, FCA Director
(Chartered Accountant)
Smt. Lekshmi KylasDirector
(Senior Divisional Manager, LIC of India)
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PRINCIPAL OFFICERSPRINCIPAL OFFICERS
GENERAL MANAGERS
Premnath RavindranathAsok Kumar. NDinesh. A.G
FINANCIAL CONTROLLER
Sabu Thomas
CORPORATE SECRETARY
Rengaswamy. C.R
DEPUTY GENERAL MANAGERS
Jayasankar. RMushtaq Ahamed. MJanardhanan. C
ASSISTANT GENERAL MANAGERS
Abdul Kadar. A.NAdarsh. RAjith Kumar. KAjith Kumar. K.G Anil John AbrahamAnnamma. MBabu.P.KGirish ChandranHaridas. M.RHariharan. NHiran Das. K.MManisankar. MMohanan. K.KRajagopal. SRajeev. K.S Shaheeda. AShaji Sukumar. SSivadasan. A.KSreekumar. P.BSreelatha SukumarVarghese JosephVenkitaraman. P.S
STATUTORY AUDITORS
Jose & Hemachandran, Chartered Accountants, Thiruvananthapuram
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NOTICE TO SHARE HOLDERS
Notice is hereby given that the 59th Annual General Meeting of the shareholders of Kerala Financial Corporation will be held at the Head Offi ce of the Corporation, Vellayambalam, Thiruvananthapuram on Wednesday, 11th of July, 2012 at 11.00 A.M. to transact the following business:1. To consider and adopt the Balance Sheet as at 31st March, 2012 and the Profi t & Loss account for
the year ended 31st March, 2012 of the Corporation, the Report of the Board of Directors on the working of the Corporation for the Financial Year 2011-2012 and the Auditor’s Report on the said Balance Sheet and Accounts.
2. To appoint Statutory Auditors of the Corporation for the Financial Year 2012-2013 under Section 37 (1) of the SFCs Act.
3. To declare dividend.Copy of fi nancial statements and Directors’ Report are enclosed.
By Order of the Board
Premnath Ravindranath
General Manager Place : Thiruvananthapuram,Date : 14.06.2012.
NOTES: 1. The Share Register of the Corporation shall remain closed and transfer of shares will be suspended
from 01.07.2012 to 11.07.2012 (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 offi cer 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 certifi ed by a notary public or a magistrate, is deposited at the Head Offi ce of the Corporation not less than 48 hours before the time fi xed 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 offi cials or any other person (not being an offi cer 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 certifi ed to be true copy by the Chairman of the meeting at which it was passed shall have been deposited at the Head Offi ce of the Corporation not less than 48 hours before the time fi xed for the meeting.
6. The State Government may, by order in writing, authorise any of its offi cers, 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 Offi ce of the Corporation before the time fi xed 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.
KERALA FINANCIAL CORPORATION(Incorporated under the State Financial Corporations Act No. LXIII Of 1951
H.O: Vellayambalam, Thiruvananthapuram - 695 033.Phone: 0471-2737500 (30 lines) Fax: 2311750,2318541, 2313813, 2722090
Email: [email protected] Website: www.kfc.org
Premnath Ravindranath
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Board of Directors of the Kerala Financial Corporation has great pleasure in presenting
the 59th Annual Report on the performance of the Corporation for the Financial Year
ended March 31, 2012. The f inancial statements for the year ended on that date are
attached.
Performance of the Corporation
When compared to the previous years, Kerala Financial Corporation has achieved
substantial growth in terms of sanction, disbursement and recovery of f inancial
assistance and made a turnaround as far as operational profit is concerned. An analysis
of the operational performance of the Corporation during the last three years is given
below:
DIRECTORS’ REPORT
The Corporation boasts of top PSU of Kerala now, and No. 1 State Financial Corporation
in the country in terms of profitabi l i ty and low level of NPA. Corporation has earned
the highest ever profit of ` . 45.65 crores during the FY 2011-12. The Non-performing
Assets are at the lowest level. The increase in profit is achieved despite KFC charging
very low rates of interest on Term Loans. This ref lects reduction in establ ishment cost
and eff ic iency in Funds Management. KFC is also having a favourable Asset Liabi l i ty
Management (ALM), which ref lects stabi l i ty
Financial Year 2011-12 2010-11 2009-10
Portfol io Size 123984 112481 88869
Sanctions 53901 50706 61593
Disbursements 46457 44344 41953
Recovery 46717 35473 29957
Total Income 21425 16598 16236
Total Expenditure 15162 10428 11571
Operating Profit 6263 6170 4665
Net Profit 4565 3640 3372
Capital Adequacy Ratio % 20.51 22.20 27.88
Net NPA % 1.30 1.88 2.41
(` In lacs)
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Operating Results: The chart below shows the net profit trend for the last ten years
Sanctions:Corporation sanctioned f inancial assistance of ` .539.01 Crores during the FY 2011-12
a growth of 6.30% when compared with the previous FY.
2011-12Segment
2010-11
No. Amount No. Amount
417 32595 Micro 683 43818
45 8934 Small 87 5285
Nil Ni l Medium Nil Ni l
103 12372 Others 96 1603
565 53901 Total 796 50706
(` . in Lacs)
(` In crores)
(` In crores)
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Disbursements
An amount of ` .464.57 crores was disbursed during FY 2011-12, recording a growth of
4.77% over previous year. The growth in sanction and disbursement when compared to
the previous f inancial year indicates the healthy contribution of the Corporation to the
development of the industr ial activ ity in the State.
Recovery
Total recovery during the year was ` .467.17 crores, out of this, principal recovery
was ` .293.17 crores and interest recovery amounted to ` .174.00 crores. Out of the
total recovery, an amount of ` . 30.57 crores was by way of compromise sett lement.
On the recovery front, the total amount col lected has gone up by 31.70%. The interest
income, which is an indicator of profitabi l i ty and net eff ic iencies, has gone up by 32%.
The high level of growth in these areas throw l ight on the effective functioning of the
organization in terms of qual ity lending and highly eff ic ient col lection of current dues.
(` In crores)
(` In crores)
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Asset Quality:
Scientif ic & practical compromise sett lement pol ic ies are in place for real ization of
amounts blocked in old and non-performing advances. These are also ref lected in the
fal l in the level of non-performing assets to 1.30% in terms of Net NPA, and to around
3.60% at the Gross Level which is maintained only by a few financial/banking institutions
with high standards. The reduced gap between sanction and disbursement indicates
the eff ic iency in processing and sanction of loan applications and disbursements. Apart
from policies for Compromise Sett lement, guidel ines have been prepared for monitoring
of loan accounts which help in avoiding sl ippage of loan accounts and thus to prevent
qual ity of loan portfol io from deteriorating.
Asset Classif ication & Provisioning:
Break up of principal outstanding as on 31.03.2011 and 31.03.2012 as well as provis ion
requirement thereon are given in the table below:
Capital Adequacy Ratio:
Capital to Risk - weighted Assets Ratio (CRAR) was at 20.51% during the year under report, as against the
minimum of 9% prescribed.
Category Principal Outstanding Provis ion
2011-12 2010-11 2011-12 2010-11
Standard 119519 103257 495 413
Substandard 4465 5642 2902 3667
Doubtful – I - 3582 - 3580
Total 123984 112481 3397 7660
(` . in Lacs)
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Dividend:
During this year the corporation has proposed a dividend of 7.5% on paid up share capital, amounting
to ` . 15.90 crores. This is the highest dividend declared by any PSU in Kerala.
ISO Certif ication:
The Quality Management Certifi cate was validated and changed over to new version IS/ISO 9001-2008 by
Bureau of Indian Standards after conducting surveillance/ renewal audit. The license has been renewed
and is valid till 21st June,2013. All offi ces of the Corporation continue to hold the Quality Management
System Certifi cate.
Share Capital:
The paid up share capital of the Corporation as on March 31st 2012 is at ` .211.97 crores.
(` In Crores)
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Refinance from SIDBI & LOC from Commercial Banks
The Corporation availed refi nance of `.79 crores from SIDBI by way of Line of Credit during the FY
2011-12 against `. 160.00 crores availed in the previous fi nancial year. Repayment during the year was
`.113.90 crores. Payment towards interest and service charges to SIDBI was `. 39.96 crores.
Aggregate of borrowing from SIDBI, outstanding at the year-end was `.438.71 crores. Corporation also
availed `. 115 crores LOC from various commercial banks during the FY 2011-12. Aggregate outstanding
LOC at the year end was `. 283.12 crores.
SLR Bonds:
The Corporation redeemed SLR Bonds of `. 36.55 crores during the FY and balance outstanding as on
31.03.2012 was `. 224.53 crores. An amount of `. 49.41 lakhs was paid to the State Government as
commission for guarantees extended for SLR Bonds.
Non-SLR Bonds:
During the year, the corporation issued Non-SLR Bonds for the fi rst time. A total of `..200 crore was
raised through this issue, including the green shoe option of `.100 crore. The bonds were issued with
unconditional and irrevocable guarantee by the Government of Kerala @ 9.99% p.a. payable half yearly.
The Bond issue which comes from Kerala after a gap of 6 years evoked unprecedented response from
Individuals / PF trusts / Societies/ Corporations / Institutions across India. The major investments have
come in from outside states like Gujarat, Maharashtra, Karnataka, Orissa, Jharkhand and Tamil Nadu. The
response to the bond issue at a rate of interest of less than 10% at a time, when market conditions were
adverse in terms of liquidity and interest rates, show increased confi dence of public in the management of
the Corporation. It also puts an onerous responsibility on KFC to maintain this trust.
Human Resources
Twenty employees retired from the service on attaining superannuation. Total staff strength as on
31.03.2012 was 228. Corporation recognizes that key resources for achieving high levels of excellence are
its people who need to be motivated and developed. During FY 2011-12, training was imparted to 130
offi cers through 10 training programmes and promotion given to 80 offi cers creating immense goodwill
and motivation among employees.
Corporate Governance:
The Corporation has been ensuring fairness, responsibility, accountability and transparency in all its
dealings. Loan Policy, Compromise Settlement Policy, Valuation Policy etc. were all reviewed and updated.
ISO procedures are scrupulously complied with. Information is provided under the RTI Act for information
seekers.
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Name of the director Designation Tenure
Prof. Sushil Khanna Professor, Indian Institute of Management, Kolkatta 20.03.07 - 16.05.11
Dr.A.K.Dubey IAS Principal Secretary (Finance) Govt. of Kerala 08.08.11 - 07.09.11
Shri Yogesh Gupta IPS Chairman & MD 07.09.11 -
Shri Sanjay Garg IAS Secretary (Finance & Expenditure) 15.12.10 -
Shri K.S.Srinivas IAS Special Secretary (Industries (IP)) 09.09.10 -
Dr. M.P.Sukumaran Nair Special Secretary to Chief Minister, Govt. of Kerala 22.07.10 - 26.09.11
Smt Premilla V Nair Chartered Accountant 26.09.11 -
Shri Saswata Chaudhuri General Manager (Treasury)State Bank of Travancore 03.12.09 - 18.05.11
Shri Ravi Jha General Manager (Treasury)State Bank of Travancore 18.05.11 -
Shri Saji Paul Senior Divisional Manager, LIC 01.10.09 - 07.06.11
Smt. Lekshmy Kylas Senior Divisional Manager, LIC 07.06.11 -
Shri K.Sathianandan General Manager, SIDBI, Mumbai 18.06.10 - 20.06.11
Shri Namgial Chief General Manager, SIDBI, Mumbai 20.06.11 - 20-01-12
Shri S.V.G.Nanda Gopal Chief General Manager, SIDBI, Chennai 20-01-12 -
Smt. Indumathi Sridhar Dy. General Manager, SIDBI, Ernakulam 18.06.10 -
Shri K.M.Nair Chief General Manager, SIDBI (on deputation as Managing Direrctor) 01.12.10 - 25.07.11
Resource Mobil isation Committee
The Corporation has put in place Resource Mobilisation Committee (RMC) with a view to manage liquidity,
asset liability mismatch and resource mobilisation. The Committee met 9 times during the year and
reviewed the maturity pattern, interest rate sensitivity, issue of Non-SLR bonds, LOC from banks/FIs etc.
Participative Management:
The Corporation believes in participative management. The rich experience of its offi cers can be fully
utilized by their participation in the decision making process. Realising this, wide delegation has been
given to different level of offi cers across the state at branch and zonal level. At head offi ce also, the
committee concept is used and the decision making has been very transparent. However in order to
ensure objectivity and fairness, checks and balances, through various internal control and audit procedure
have been introduced.
Board of Directors:
During the year the Board consisted of the following directors as per the table shown below.
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Annual General Meeting:
Last Annual General Meeting was held on 15.06.2011. M/s. Jose & Hemachandran, Chartered Accountants,
were appointed as Statutory Auditors of the Corporation for the fi nancial year 2011-12. The fi nancial
statements for the year 2010-11 were approved and a dividend @ 5% was also declared in the Annual
General Meeting.
Directors’ Responsibil ity Statement:
The Board of directors confi rm that in the preparation of Profi t and Loss Account for the year ended March
31, 2012 and the Balance Sheet as at that date-
i) the applicable guidelines prescribed for SFCs 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 fi nancial year and of profi t of the Corporation for
the year under review;
iii) the Directors have taken suffi cient care for maintenance of accounting records;
iv) the accounts for the year ended March 31, 2012 have been prepared on a going concern basis.
Right to Information
The Corporation has designated State Public information Offi cers, Assistant State Public Information
Offi cers and Appellate Offi cers for the Head Offi ce as well as all the Branch Offi ces. Prompt action is taken
for replying the petitions received under RTI.
Auditing
The accounts of the Corporation are audited on a quarterly basis by the Statutory Auditors. Concurrent
Audit of branch operations is also now in place through reputed Chartered Accountants on a monthly
basis. Further, post-sanction scrutiny of all loan sanction above `. 100 lakhs and compromise settlement
sanction of above `.25 lakhs are also carried out as a prudent control mechanism and risk mitigation
measure. A pre-disbursement audit for disbursements above `. 50 lakhs has also been introduced. The
internal control and auditing procedure in KFC are at par with prescribed industry standards.
The Comptroller & Auditor General of India conducted audit of the accounts of the Corporation up to the
F.Y 2010-11.
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Shareholder information:
The composition of shareholders as on March 31, 2012 is furnished below:
New Initiatives:
KSSEDM (Kerala State Self Entrepreneur Development Mission)
The KSSEDM scheme was announced in the Kerala state budget by Shri K.M.Mani, Hon’ble Minister
for Finance, Law and Housing to bring about a paradigm shift in the attitude of people towards
entrepreneurship and to reduce the unemployment of the educated youth of the state. The scheme was
inaugurated on 02-02-2012 with the joint participation of Public and Private sectors and Panchayats
(PPP Model) and KFC as the nodal agency. The scheme aims to create 10,000 enterprises, 50,000
entrepreneurs and 1,00,000 direct jobs and around 5 lakh indirect job opportunities. Each of the micro
enterprise, set up under the Mission will be given an interest free fi nancial assistance upto ̀ .20 lakhs. The
fi rst batch of training for the selected entrepreneurs has already been completed in all districts through
RSETIs created with the assistance of Central and State Government and operated by sponsoring banks.
The one month training provided includes fi eld visits of one week to the existing enterprises. Through
different institutions engaged in the process of funding for such projects, the enterprises will be provided
with Financial Assistance up to the level of 90% of the project cost. The SLBC subcommittee adopted the
scheme on 26-03-2012 and funding the units are under progress. Besides huge employment generation
KSSEDM will have a multiplier effect on development and growth in the state. It will enable improved
quality of local product and services, lower cost to customers with more convenience in purchasing it
locally, additional contribution to sales tax, service tax and state exchequer in general and make the youth
self-reliant, confi dent and attain dignity in their living standards.
E-Tender & Sale
Earlier sale of properties taken over under section 29 of SFCs Act were conducted by the corporation
through a system of closed tender and post tender negotiation. This procedure had limitations and
important one being a discretionary role for the offi cers to fi nalise the sale negotiation and the possibility
of the formation of a cartel by the bidders. By resorting to online public auction, these limitations can be
addressed. The Corporation has now implemented e-tender & sale for taken over assets u/s 29 of SFC’s
Act. The e-sale of assets will bring transparency, fairness & complete openness in the sale of assets of
defaulting borrowers. It will ensure wider participation and better price for the assets. A person sitting
Shareholders ` . in Lacs % of Shareholding
Government of Kerala 20573.81 97.06
SIDBI 613.33 2.89
LIC 7.10 0.03
SBT 2.10 0.01
Others 0.96 0.01
Total 21197.30 100.00
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anywhere in the world can participate in the e-tender /e-auction and make e-payment for EMD as well
as fi nal sale price , obviating any need for personal interaction with Corporation’s staff eliminating any
unhealthy practices. The e-portal was inaugurated by the Hon’ble Minister for Finance, Law & Housing
Sri. K.M. Mani on 30-11-2011.
Core Financial Solution & Integrated Administrative System (CFS&IAS)
Kerala Financial Corporation has implemented a core software solution (CFS & IAS) developed by TATA
Consultancy Services (TCS) which seamlessly integrates its multidisciplinary activities and caters to the ever
changing needs of the organization and it’s customers. The scope of the application encompasses all the
business functionality of the organization such as Loan Management, Financial & Loan Accounting, HR
Management, Payroll Processing, Fund Management, Asset Management, RTI & Grievance, Dashboard
and Reports. It also facilitates in the smooth internal administration and automated Messaging/SMS and
e-mail facility among others. The software solution brings in advanced features such as a Unifi ed Loans
Appraisal system, optimized fund management, centralized shared pool of data providing real time access
to critical information and accurate reporting capabilities. A parallel run is going on in all branch offi ces
and head offi ce along with the existing system and bugs, if any, will be removed to make the new system
perfect.
Website
KFC has updated its website (www.kfc.org) with dynamic contents. The website provide information
on all the activities and services of KFC including details of its loan schemes and KSSEDM. The site also
contains the contact details of all the branch locations with the support of maps. The site hits have
exceeded 13 lakhs so far. For the employees of the Corporation the site contains the latest information on
KFC’s activities, internal circular and e-Learning system. In the employee portal system the employees can
view their Pay slip, their personal information, details of other employees etc.
The KFC site now linked with the Finance Minister’s website http://fm.kerala.gov.in/ which was inaugurated
on 30-12-2011. The grievances registered by the public in the Finance Minister’s site will be replied within
5 days by the nodal offi cer of the Corporation.
M-Governance
KFC is now a part of m-governance implemented by Govt. of Kerala through IT mission. KFC customers
can send SMS to 53725 to know the information on branches, loans etc. Automated SMS are sent to
customers on loan schemes, account details etc.
Objective Rating Scale
KFC has implemented an objective rating scale continuum for credit rating of proposals during appraisal
of projects.
Future Plans:
The Corporation has been contemplating to achieve a portfolio size of over `.1500 crore in a couple of
years. During the FY 2012-13 corporation plans to disburse around ̀ . 500 crores to manufacturing sector,
hospitality sector, entertainment sector, housing and other real estate projects like shopping complex,
shopping malls etc. The concessional lending to energy saving sector, SC/ST and women entrepreneurs is
KFC Annual Report - 2011 -12
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continued in order to encourage these sectors. The other proposed initiatives are:
(a) Non SLR Bond issue
It is proposed to issue non-SLR bonds in the coming year also after obtaining credit rating and government
guarantee so as to meet the resource gap on increased disbursement commitments.
(b) Loans to the entertainment sector
Corporation has entered the entertainment sector by introducing new schemes for fi nancial assistance
for producing feature fi lms and TV serials and scheme for modernization of existing cinema theaters
and establishment of new multiplexes. This will open a new window for eligible entrepreneurs in the
entertainment sector
(c) After Sale Service – e-tender and sale
Web portal for e-tender has been launched during the year. This will facilitate sale of properties taken over
under section 29 of the SFCs Act, 1951 and sale through Revenue Recovery action in a transparent manner.
In a paradigm shift of its policy for sale of assets, KFC intends to introduce a two year after Sale Service
for e-sold assets. Till now the practice in all Financial Institutions is to sell assets on ‘as is where’ basis and
the FIs/SFCs wash their hand off any problems, once the asset has been auctioned. This causes very low
bidding and sale price for the assets resulting in large under recoveries and losses. Under the scheme the
Corporation would provide legal and logistic support to the buyers for two years after sale on account
of dispute of ownership, possession problems, statutory compliance etc. This will result in realization of
higher value for the assets.
(d) Techno- Financial Training academy
KFC intends to utilise its vast wealth of professional and human resources to start in-house training courses
on various aspects of techno-fi nancial studies of project and even to train managers of other business
houses, Financial Institutions, etc. KFC will also strengthen its project consultancy division.
Beginning of a new era for KFC:
Our efforts to update and streamline the procedures are a continuing process. The corporation has
taken steps to continually revise the policies and procedures as per the changing requirements. The
internal control systems have been strengthened. More fl exible and positive approach towards timely and
adequate support to the industrial sector is 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.
Acknowledgements
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, other SFCs, Federal Bank, Indian Bank, South
Indian Bank, Canara Bank, State Bank of India, IDBI Bank, Axis Bank, Punjab National Bank, New India
Assurance Company Ltd., M/s. Brickwork ratings, M/s. Tipsons Consultancy Services Pvt. Ltd., M/s. IDBI
Trusteeship Services Ltd., M/s. Cameo Corporate Services Ltd., Bombay Stock Exchange, Tata Consultancy
Services, HCL Info systems, Kerala State IT Mission, Department of Income Tax, CAG, Concurrent Auditors,
KFC Annual Report - 2011-12
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Statutory auditors, consultants and customers for their continued support, guidance and assistance. The
Board appreciates the entrepreneurs and the business community of the State for reposing confi dence 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 for the intensive efforts put in by all the employees
of the Corporation.
For and on behalf of the Board,
12.06.2012 Chairman & Managing Director
Thiruvananthapuram,
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AUDITORS’ REPORT
To The Shareholders of Kerala Financial Corporation
We have audited the attached Balance Sheet of Kerala Financial Corporation as at 31st March,2012 and the Profi t and Loss Account annexed there to for the year ended on that date in accordance with the provisions contained in Section 37 of the State Financial Corporations Act,1951. These fi nancial statements are the responsibility of the Corporation’s Management. Our responsibility is to express an opinion on these fi nancial 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 fi nancial statements are free of material misstatement(s). An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by the Management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We report that:
a) The Balance Sheet read with signifi cant 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 2012.
b) The Profi t and Loss account read with signifi cant accounting policies and notes thereon shows a true balance of Profi t for the year ended 31st March 2012.
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.
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 classifi cation 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 Accountants
Firm Reg. No.001360S
Krishna kumar S
Partner, M. No.229106
KFC Annual Report - 2011-12
22
SCHEDULE
` In Lacs
As at
31.03.2012
` In Lacs
As at
31.03.2011
SOURCES OF FUNDS
Shareholders’ Fund
Share Capital 1 21,197.30 20,406.00
Share Capital Advance 2 0.00 791.30
Reserves and Surplus 3 11,388.12 8,538.93
Loan Funds
Secured Loans 4 72,183.99 70,861.97
Bonds (Guaranteed by Government of Kerala) 5 22,453.00 6,108.00
Deferred Tax Liability (Net) 368.83 500.63
Other Liabilities 6 3,848.20 2,065.16
Provisions 7 5,966.86 10,256.56
TOTAL 137,406.30 119,528.55
APPLICATION OF FUNDS
Cash & Bank Balances 8 3,366.83 664.91
Loans & Advances 9 123,983.89 112,481.40
Investments . 10 4,635.00 288.56
Fixed Assets 11 274.81 275.98
Other Assets 12 5,145.77 5,817.70
TOTAL 137,406.30 119,528.55
Signifi cant Accounting Policies 18
Notes forming part of accounts 19
BALANCE SHEET AS AT 31.03.2012
Krishna Kumar S
Partner M No: 229106
Thiruvananthapuram
12.06.2012
As per our report of even date
For Jose & Hemachandran
Chartered Accountants
Firm Reg No: 001360S
Sabu Thomas
Financial Controller
Premnath Ravindranath
General Manager
Yogesh Gupta IPS
Chairman & Managing Director
Indumathi Sridhar
Director
Premnath RavindranathSabu Thomas
KFC Annual Report - 2011 -12
23
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st March 2012
SCHEDULE ` In Lacs
As at 31.03.2012
` In Lacs
As at 31.03.2011INCOME Income from Operations 13 19,809.12 16,459.39Other Income 14 1,615.85 138.64
TOTAL A 21,424.97 16,598.03EXPENDITUREOperating Expenses 15 8452.59 6044.49Employee Cost 16 1792.40 2464.08Administrative Cost 17 401.86 409.52Interest rebate on Loans 1378.06 951.38Depreciation 58.41 64.17
Bad Debts Written Off 3078.23 494.62 TOTAL B 15161.55 10428.26
Operating Profi t C 6263.42 6169.77Less: Provision for Income Tax 1216.67 1110.56Provision for Bad & Doubtful Debts 481.56 1419.19
TOTAL D 1698.23 2529.75Net Profi t for the year (C-D) 4565.19 3640.02Add: Provision for deferred tax liability 131.80 3.61 Provision for FBT written back 0.02 0.00Less:Appropriations Proposed Dividend 1589.80 1020.30 Provision for Dividend tax 258.02 169.46 Transfer to Reserve u/s 36 (1) (viii) 1252.68 1233.95Balance Profi t after appropriations 1596.51 1219.92Add: Balance in Profi t & Loss A/C B/f 3333.63 2113.71Balance Profi t carried to Balance sheet 4930.14 3333.63
Krishna Kumar S
Partner M No: 229106
Thiruvananthapuram
12.06.2012
As per our report of even date
For Jose & Hemachandran
Chartered Accountants
Firm Reg No: 001360S
Sabu Thomas
Financial Controller
Premnath Ravindranath
General Manager
Yogesh Gupta IPS
Chairman & Managing Director
Indumathi Sridhar
Director
Premnath RavindranathSabu Thomas
KFC Annual Report - 2011-12
24
` In Lacs
As at
31.03.2012
` In Lacs
As at
31.03.2011SCHEDULE : 1 SHARE CAPITALAUTHORISED CAPITAL3,50,00,000 shares of Rs.100 each 35000.00 35000.00Issued, Subscribed and Fully Paid up CapitalOrdinary Shares1,99,66,253 shares of Rs.100/- each 19966.25 19966.25791300 Shares of Rs.100/- each allotted during the year
791.30 0.00
20757553 shares of Rs.100/- each 20757.55 19966.25Special Shares4,39,750 shares of Rs.100/- each as per last B/S 439.75 439.75
TOTAL 21197.30 20406.00SCHEDULE : 2 SHARE CAPITAL ADVANCEAs per last Balance Sheet 791.30 0.00Add: Receipts during the year 0.00 791.30Less: Allotted during the year 791.30 0.00
TOTAL 0.00 791.30SCHEDULE : 3 RESERVES AND SURPLUS(a) Reserve u/s 36(1) (viia) of IT Act, 1961As per last Balance Sheet 0.00 504.20Less: Bad Debts Written Off adjusted to the extent of balance available under this head
0.00 504.20
Total of (a) 0.00 0.00(c) Spl. Reserve u/s 36(1)(viii) of IT Act, 1961As per last Balance Sheet 4955.30 3721.35Added during the year 1252.68 1233.95Total of (b) 6207.98 4955.30(c) Spl. Reserve u/s 35(A) of SFCs Act, 1951 250.00 250.00(d) Profi t & Loss Account 4930.14 3333.63
TOTAL {(a)+(b)+(c)+(d)} 11388.12 8538.93SCHEDULE : 4BORROWINGSFrom SIDBI 43871.49 47361.96LOC from Federal Bank 4062.50 10000.00LOC from South Indian Bank 9687.50 3500.00LOC from Indian Bank 9562.50 10000.00LOC from Canara Bank 5000.00 0.00
TOTAL 72183.99 70861.96
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
KFC Annual Report - 2011 -12
25
SCHEDULE : 5
BONDS
2011(IV) @ 9.90% Redeemable on 28.06.11 0.00 263.40
2011(II) @ 11.50% Redeemable on 02.09.11 0.00 392.50
2011(V) @ 8.35% Redeemable on 20.12.11 0.00 265.00
2012(I) @ 12.00% Redeemable on 08.01.12 0.00 315.00
2012(II) @ 12.00% Redeemable on 12.02.12 0.00 147.50
2012(III) @ 8.30% Redeemable on 20.02.12 0.00 2,271.60
2012(IV) @ 7.92% Redeemable on 25.07.12 1,100.00 1,100.00
2013(I) @ 6.75% Redeemable on 26.03.13 1,353.00 1,353.00
2011(I) @ 9.99% Redeemable on 28.12.21 20,000.00 0.00
TOTAL 22,453.00 6,108.00SCHEDULE : 6
OTHER LIABILITIES
State Subsidy 13.42 25.95
Margin Money 4.53 4.69
Other Advance from Govt of Kerala. 989.13 0.00
KSSEDM Advance from Govt. of Kerala 1,000.00 0.00
Interest subsidy 1.35 0.15
Earnest Money Deposit 13.21 25.50
Advance Received for sale of units 8.19 25.25
Self Employment Venture fund 26.48 26.48
Suspense Account 42.02 0.00
Tax Deducted at Source 0.00 0.10
Other Salary Deductions 0.24 0.00
Other Sundry Deposits 21.87 21.77
Service tax 0.80 0.66
Compromise Settlement Pending Appropriation 0.00 346.97
Outstanding Expenses 20.78 163.90
Revenue Recovery Pending Appropriation 0.00 230.65
Accrued Interest on Refi nance from SIDBI 275.42 310.82
Accrued Interest on SLR Bonds & Non SLR Bonds 536.05 65.45
Accrued Interest on LOC from banks 326.63 152.96
Audit Fee Payable 1.07 0.85
Concurrent Audit Fee payable 1.50 2.09
Contingent Provision against Standard. Assets 494.57 410.21
Staff Dues Retained 69.88 69.10
Sundry Creditors 0.00 44.00
Leave Encashment Payable 0.00 1.78
Unclaim dividend 0.02 0.01
Group Leave encashment payable 0.00 135.83
CGTMSE Fees Collection 1.04 0.00
TOTAL 3848.20 2065.17
KFC Annual Report - 2011-12
26
SCHEDULE : 7
PROVISIONS
(a) Provision for Taxation:
As per last Balance Sheet 1810.26 699.69
Less: Adjd against the Advance IT during the year 1810.26 0.00
Add: Provision made during the year 1216.67 1110.56
Total of (a) 1216.67 1810.26
(b) Provision for Fringe Benefi t Tax
As per last Balance Sheet 6.66 6.66
Less:Adjd aganst the Advance FBT during the year 6.66 0.00
Total of (b) 0.00 6.66
(c ) Provision for bad and doubtful debts
As per last Balance Sheet 7249.89 6038.68
Add: Provision made during the year 397.20 1211.20
Less:Provision Written Back 4744.72 0.00
Total of (c ) 2902.37 7249.88
(d ) Proposed Dividend for the year 1589.80 1020.30
(e) Provision for Dividend Tax 258.02 169.46
TOTAL 5966.86 10256.56
SCHEDULE : 8
CASH & BANK BALANCES
Cash in hand 49.59 18.80
Banks Accounts 3317.24 646.11
TOTAL 3366.83 664.91
SCHEDULE : 9
LOANS & ADVANCES
Loans and Advances 123983.89 112481.40
TOTAL 123983.89 112481.40
SCHEDULE : 10
INVESTMENTS
Keltron Counters Ltd. 1.47 1.47
Kerala Spinners Ltd. 2.00 2.00
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 150.00 150.00
Sub Total 193.67 193.67
Less : Provision for diminution in value of invest-ments
8.67 8.67
Investment in Mutual Funds 700.00 0.00
Fixed Deposit with Banks 3750.00 103.56
TOTAL 4635.00 288.56
KFC Annual Report - 2011 -12
27
SCH
EDU
LE 1
1 –
FIX
ED A
SSET
S
Part
icul
ars
Rate
%
Cost
as
on
31-0
3-20
11A
dditi
ons
durin
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e ye
ar
Del
etio
ns
durin
g th
e ye
ar
Cost
as
on
31-0
3-20
12D
epre
ciat
ion
upto
31-
03-
2011
Dep
reci
atio
n fo
r th
e ye
arD
epre
ciat
ion
upto
31-
03-
2012
WD
V a
s on
31
-03-
2012
WD
V a
s on
31
-03-
2011
12
34
56
78
910
11
Land
11.6
20.
000.
0011
.62
0.00
0.00
0.00
11.6
211
.62
Build
ing
1039
7.71
0.00
0.00
397.
7127
1.28
12.6
428
3.92
113.
7912
6.43
Mot
or V
ehic
le15
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8527
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5.52
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.18
5.78
99.5
344
.54
24.6
7
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es15
0.24
0.00
0.00
0.24
0.20
0.01
0.21
0.03
0.03
Elec
tric
al F
ittin
gs10
39.0
517
.25
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56.3
031
.22
2.27
33.4
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7.83
Air
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ition
er15
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8.33
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sfor
mer
152.
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360.
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00
Phot
ocop
ier
1518
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19.9
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.96
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15.7
84.
182.
94
Dup
licat
or15
1.68
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1.68
1.67
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1.67
0.01
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king
Mac
hine
150.
030.
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00
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pute
r60
261.
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170.
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214.
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9
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ers
156.
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160.
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170.
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06
Oth
er o
ffi ce
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ents
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0.06
35.6
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.70
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28.7
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27
Lift
159.
750.
000.
009.
752.
711.
063.
765.
997.
04
Oth
er F
urni
ture
1012
3.95
2.11
0.00
126.
0687
.05
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90.9
035
.17
36.9
1
Build
ing
Und
er
Cons
truc
tion
0.00
0.75
0.00
0.75
0.00
0.00
0.00
0.75
0.00
Tota
l10
55.7
359
.83
7.47
1108
.09
779.
7558
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833.
3127
4.81
275.
98
Tota
l (Pr
evio
us
Year
)96
2.01
93.7
20
1055
.73
715.
5964
.17
779.
7527
5.98
246.
43
KFC Annual Report - 2011-12
28
SCHEDULE : 12 OTHER ASSETSAdvance Income Tax 1494.39 2086.51Income Tax Deducted at source 45.93 39.03Advance Fringe Benefi t Tax 0.00 6.64Property Acquired in Satisfaction of Claims 400.34 400.34House Loans to Employees 426.24 470.37Conveyance Loan to Employees 79.32 86.75Computer Loan to Employees 2.18 3.28Advance to Employees 11.20 7.89Advance for Fixed Assets 109.49 20.20Deposit with P&T 0.09 0.09Other Deposits 13.30 14.53Stock of Stationery 0.00 0.00Library 0.00 0.00Deposit with KSEB 10.45 10.15Suspense Account 0.02 72.61Interest Accrued on Loans & Advances 1915.42 1992.25Interest Accrued on STD with Banks 1.76 0.29Interest Accrued on Staff Loans 531.90 537.22Deposit against Staff Dues Retained 69.88 69.10Other Advances 26.29 0.45Prepaid Guarantee Commission 7.57 0.00
TOTAL 5145.77 5817.70
SCHEDULE 13 :
INCOME FROM OPERATIONS
Interest Received On Loans & Advances 15729.82 12064.92Interest on Staff Loans 45.26 55.73Application Fees 0.80 0.85Loan Processing Fees 239.83 213.32Recovery from written off loans 3700.35 4047.95Premium on pre-closure 93.06 76.62
TOTAL 19809.12 16459.39
SCHEDULE 14 OTHER INCOMEInterest on Bank Deposits 98.33 18.13Dividend From Shares 0.07 0.06Miscellaneous Income 2.82 4.39Other Income 1223.68 0.22Rent Received 66.46 59.42Income from Insurance Agency 4.84 3.52RTI Application Fee Received 0.02 0.02Income from Mutual Fund 216.51 45.50Consultancy Service Division Receipts 2.81 0.96Profi t on sale of shares 0.00 5.25Profi t on sale of Fixed Assets 0.31 0.00CGTMSE Guarantee Receipt 0.00 0.64Rebate on Refi nance 0.00 0.53TOTAL 1615.85 138.64SCHEDULE 15 : OPERATING EXPENSESInterest on Bonds 1042.84 758.63Interest on Refi nance from SIDBI 3995.53 4217.31Interest on Line Of Credit from Banks 3170.38 853.89Guarantee Commission 49.41 79.32Bond Issue Expenses 101.65 11.13LOC Administrative Expenses 92.77 124.21TOTAL 8452.58 6044.49
KFC Annual Report - 2011 -12
29
SCHEDULE 16:EMPLOYEE COSTPay & Allowances 1552.58 1551.77Group Gratuity Insurance 51.22 571.63Contribution to Employees’ P.F 153.39 150.53Group E/L Encashment Insurance 0.00 135.83Other Staff Expenses 35.21 54.32TOTAL 1792.40 2464.08
SCHEDULE 17
ADMINISTRATIVE EXPENSESRent, Rates, Taxes & Insurance 85.01 57.94Postage, Telegram and Telephone 23.09 21.38Printing & Stationery 19.58 11.51Vehicle Running & Maintenance 12.30 11.91Repairs & Maintenance of Buildings & Equipments 10.29 17.22Revenue Recovery expenses 79.84 88.88Bank Charges and Commission 0.17 0.21Audit Fees 1.32 1.10Consultancy Charges 3.70 14.17Legal Expenses 5.64 6.23Books & Periodicals 1.36 1.09Other Expenses 72.22 76.73Travelling Expenses 12.58 14.82Board / E.C. Meeting Expenses 1.27 3.22Concurrent Audit Fee 7.59 6.56Servicetax paid 0.00 1.52Business Development Expenses 65.91 75.03TOTAL 401.87 409.52
Krishna Kumar S
Partner M No: 229106
Thiruvananthapuram
12.06.2012
As per our report of even date
For Jose & Hemachandran
Chartered Accountants
Firm Reg No: 001360S
Sabu Thomas
Financial Controller
Premnath Ravindranath
General Manager
Yogesh Gupta IPS
Chairman & Managing Director
Indumathi Sridhar
Director
Premnath RavindranathSabu Thomas
KFC Annual Report - 2011-12
30
SCHEDULE 18
SIGNIFICANT ACCOUNTING POLICIES:
Method of Accounting:
The fi nancial 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 classifi cation and provisioning’
prescribed by RBI/SIDBI. Recovery of loans and advances is appropriated fi rst towards recovery of expenses,
then towards interest and the balance, if any, 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 fi rst towards recovery of expenses and then towards principal amount and lastly
towards interest on satisfaction of the stipulated conditions.
Retirement Benefi ts:
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 classifi ed as Standard, Sub-standard and doubtful 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 have been written off as Bad Debts and recoveries from written off
accounts are shown as Other Income.
Fixed Assets:
Fixed Assets are carried at cost of acquisition less depreciation. Depreciation on fi xed assets has been
provided for on written down value method and at the rates prescribed under the Income Tax Act, 1961.
Investments
Long term investments are carried at cost. However provision for diminution is made to a 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 profi t and loss statement.
On disposal of an investment, the difference between carrying amount and net disposal proceeds are
charged or credited to the profi t and loss statement.
KFC Annual Report - 2011 -12
31
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 refl ects the effect of temporary timing differences between assets and
liabilities recognised for fi nancial reporting purposes and the amount that are recognised for current tax
purposes
Krishna Kumar S
Partner M No: 229106
Thiruvananthapuram
12.06.2012
As per our report of even date
For Jose & Hemachandran
Chartered Accountants
Firm Reg No: 001360S
Sabu Thomas
Financial Controller
Premnath Ravindranath
General Manager
Yogesh Gupta IPS
Chairman & Managing Director
Indumathi Sridhar
Director
Premnath RavindranathSabu Thomas
KFC Annual Report - 2011-12
32
SCHEDULE 19
NOTES FORMING PART OF ACCOUNTS:
1. Asset Classifi cation and Provisioning
In accordance with the guidelines of RBI / SIDBI on asset classifi cation, all loans and advances have been classifi ed into Standard, Sub Standard and Doubtful Assets and the provisioning is made as under.
Category of assets Minimum 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.
Loans & Advances under the Doubtful I & II category have been fully written off as bad debts.
Gross NPA as on 31-03-2012 is 3.60% (8.20% as on 31-03-2011) and Net NPA as on 31-03-2012 is 1.30% (1.88% as on 31-03-2011)
2. Other Advance
During the year the Corporation received a sum of Rs.989.13 lac from Government of Kerala towards advance for Revenue purpose. The Corporation has also received a sum of Rs.1000 lacs from Government of Kerala towards KSSEDM advance.
3. Investments
The investment with Kerala Venture Capital Fund amounting to Rs. 150 lac is in the nature of long term equity subscription.
4. Income Tax
Income tax returns have been fi led up to Assessment year 2011-12 and assessments have been completed up to Assessment year 2009-10. Appeals fi led by the Corporation is pending before the High Court for the Asst/Yr 1992-93 and 1995-96 and before Commissioner(appeals) for the Asst/Yrs 2004-05 and 2006-07 are pending before Income Tax Appellate Tribunal and for the Asst/Yr 1999-00 and 2002-03, it has been remanded to Commissioner (Appeals).
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 31.03.2011 For 2011-12 As on 31.03.2012
On Depreciation (48.52) (5.87) (48.69)
On Income not received 840.32 (45.72) 794.6
On Outstanding expenses (291.17) (85.92) (377.09)
Total 500.63 (137.51) 368.82
KFC Annual Report - 2011 -12
33
6. Impairment of Assets
The management is of the opinion that there is no material impairment of the fi xed assets. Hence the fi xed assets have been carried at WDV in the books.
7. Segment Reporting
The Corporation operates as a single unit with a single profi t centre and has concentrated its activity on term lending only on a single product.
8. Contingent Liabilities
Contingent liability is estimated as under:
(a) on account of suits fi led against the Corporation: Rs. 104.01 lac
(b) on account of Income tax: Rs. 2974.03 lac.
9. Assets acquired in satisfaction of claims
Assets acquired in satisfaction of claims amounting to Rs. 400.34 lakhs 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. Self Employment Venture Fund
Amount shown in Self Employment Venture Fund under the head Other Liabilities is unchanged from that of previous year.
11. Bad debts Written Off
During the year the corporation has written off Bad Debts for a sum of Rs.4744.72 lakhs against Provision for Bad & Doubtful debts.
12. Previous Year’s Figures
Previous year’s fi gures have been regrouped and reclassifi ed wherever found necessary.
Krishna Kumar S
Partner M No: 229106
Thiruvananthapuram
12.06.2012
As per our report of even date
For Jose & Hemachandran
Chartered Accountants
Firm Reg No: 001360S
Sabu Thomas
Financial Controller
Premnath Ravindranath
General Manager
Yogesh Gupta IPS
Chairman & Managing Director
Indumathi Sridhar
Director
Premnath RavindranathSabu Thomas
KFC Annual Report - 2011-12
34
(`. in lacs)
A. Capital 2011-12 2010-11
a) CRAR (%) 20.51 22.20
b) Risk Weighted Assets
1) On Balance Sheet items 123983.89 112481.40
c) Share holding pattern as Balance Sheet date
Amount % %
1. Government of Kerala (including advance) 20573.80 97.06 97.06
2. SIDBI 613.33 2.89 2.89
3. Commercial Banks, Insurance Cos. Pvt. Shareholders etc. 10.17 0.05 0.05
TOTAL 21197.30 100 100.00
d) Net worth 32585.42 29736.23
B. Asset Quality and Credit Concentration: Amount % %
a) Net NPAs to Net Loans and Advances. 1562.81 1.30 1.88
b) Net NPAs under the prescribed asset classifi cation categories
Sub Standard Assets & Doubtful Assets 1562.81 1.30 1974.73
c) Provisions:
2011-12 2010-11
1. Provision for Standard Assets 494.57 410.21
2. Provision for NPA 2902.37 7249.88
3. Provision for Investments 8.67 8.67
4. Provision for Income Tax 1216.67 1110.56
5. Provision for Deferred Tax Liability 368.82 500.63
6. Proposed Dividend 1589.80 1020.30
d) Movement in Net NPA (%)
2011-12 2010-11 Variance
Sub Standard and Doubtful Assets 1.30 1.88 -0.58
TOTAL 1.30 1.88 -0.58
SCHEDULE 20
DISCLOSURE REQUIREMENTS
KFC Annual Report - 2011 -12
35
C. Liquidity: ` in lacs
a) Maturity pattern of Rupee assets.
Items Less than or equal to 1 year
More than 1 year up to 3 years
More than 3 years up to 5 years
More than 5 years up to 7 years
More than 7 years up to 10 years
More than 10 years
Total
Total assets 24753.37 46360.99 32282.75 15685.09 4901.68 0.00 123983.88
Total Liabilities 20646.49 34292.10 16319.32 7527.57 15851.49 0.00 94636.97
D. Operating Results: 2011-12 2010-11` in lacs
a) Interest income as a percentage to average working funds - 15.44 12.69 Interest Income 15,873.41 12,138.78 Average Working Funds 102,808.06 95,676.61
b) Non-interest income as a percentage to Average Working Funds - 5.40 4.66 Non-interest income 5,551.56 4,459.25 Average Working Funds 102,808.06 95,676.61 c) Operating Profi t as a % to Average Working Funds - 6.09 6.45 Operating Profi t 6,263.42 6,169.77 Average Working Funds 102,808.06 95,676.61 d) Return on Average Assets - 4.92 5.83 Returns (operating profi t + depreciation) 6,321.83 6,233.94 Average Assets 128,467.43 106,857.60
e) Net profi t per employee 20.02 14.62 No. of employees 228 249 Net profi t 4,565.19 3,640.02
Krishna Kumar S
Partner M No: 229106
Thiruvananthapuram
12.06.2012
As per our report of even date
For Jose & Hemachandran
Chartered Accountants
Firm Reg No: 001360S
Sabu Thomas
Financial Controller
Premnath Ravindranath
General Manager
Yogesh Gupta IPS
Chairman & Managing Director
Indumathi Sridhar
Director
Premnath RavindranathSabu Thomas
KFC Annual Report - 2011-12
36
` In Lacs
FOR THE PERIOD 2011-12 2010-11 a Cash fl ows from operating activities
Interest and other Revenue receipts (A) 17,341.08 15,577.77 Interest and other Financial Charges (B) (8,452.58) (6,044.49)Payment to employees and Administrative expenses ( C) (5,272.49) (3,872.44)Operating profi t before changes in operating assets (A+B+C) 3,616.01 5,660.84 Increase in operating assets (Loans and advances) (16,247.21) (23,612.29)Net cash from operating activities before Income Tax (12,631.20) (17,951.45)Income Tax paid (1,218.00) (1,568.28)
Net cash from operating activities after tax (X) (13,849.20) (19,519.73)b Cash fl ows from investing activities
Interest received on deposits / Investments in Mutual Funds 314.84 63.63 Purchase of fi xed assets (59.84) (93.72)Sale of fi xed assets 2.59 Investment in shares and debentures (4,450.00) 19.50 Decrease in other current assets 671.92 (419.19)Increase in Other Liabilites 1,501.66 521.80 Net cash from investing activities (Y) (2,018.83) 92.02
c Cash fl ows from fi nancing activitiesShare Capital from State Government/Other Advance from Govt 989.13 791.30 KSSEDM Advance 1,000.00 Long term borrowings (Refi nance from SIDBI) 7,900.00 16,000.00 Repayment SIDBI Finance (11,390.48) - Non - SLR Bond issued 20,000.00 Repayment of Long term borrowings (Bonds) (3,655.00) (20,181.79)LOC from Banks 11,500.00 26,100.00 Repayment of LOC from Banks (6,687.50) (2,600.00)Dividend and Dividend Tax Paid (1,189.76) (954.96)Net cash from fi nancing activities (Z) 18,466.39 19,154.55 Net increase in cash and cash equivalents 2,598.36 (273.16)Cash and cash equivalent at the beginning of the Financial year 768.47 1,041.63 Cash and cash equivalent at the end of the Financial year 3,366.83 768.47
CASH FLOW STATEMENT
Krishna Kumar S
Partner M No: 229106
Thiruvananthapuram
12.06.2012
As per our report of even date
For Jose & Hemachandran
Chartered Accountants
Firm Reg No: 001360S
Sabu Thomas
Financial Controller
Premnath Ravindranath
General Manager
Yogesh Gupta IPS
Chairman & Managing Director
Indumathi Sridhar
Director
Premnath RavindranathSabu Thomas
KFC Annual Report - 2011 -12
37
SUM
MA
RY O
F LO
AN
OPE
RATI
ON
S A
S 0
N 3
1.03
.201
2
DU
RIN
G T
HE
YEA
R 20
11-
2012
SIN
CE
INC
EPTI
ON
UPT
O 3
1-03
-201
2
SSI
OTH
ERS
TOTA
LSS
IO
THER
STO
TAL
Part
icul
ars
No.
Am
ount
No.
Am
ount
No.
Am
ount
No.
Am
ount
No.
Am
ount
No.
Am
ount
1. A
pplic
atio
n pe
ndin
g a
s o
n 1
-4-2
011
512
13.9
27
800.
0012
2013
.92
00
00
00
2. A
pplic
atio
n re
ceiv
ed d
urin
g 20
11-1
223
918
103.
7244
344
176.
4468
262
280.
1630
154
2701
36.4
520
744
3922
92.1
450
898
6624
28.5
9
3.To
tal
App
licat
ion
for
cons
ider
atio
n24
419
317.
6445
044
976.
4469
464
294.
0830
154
2701
36.4
520
744
3922
92.1
450
898
6624
28.5
9
4.A
pplic
atio
n w
ithdr
awn/
reje
cted
or
othe
rwis
e di
spos
ed o
ff19
4372
.72
2237
60.5
441
8133
.26
5110
6898
8.61
1173
5549
0.53
6283
1244
79.1
4
5.A
pplic
atio
n S
anct
ione
d(G
ross
)22
114
836.
9241
839
175.
9063
954
012.
8225
044
2011
47.8
419
571
3368
01.6
144
615
5379
49.4
5
6.A
. App
licat
ion
canc
elle
d or
red
uced
out
of c
urre
nt y
ear’
s s
anct
ion
266
.80
312
0.05
518
6.85
00
00
00
B. A
pplic
atio
n ca
ncel
led/
redu
ced
out
of
prev
ious
yea
r sa
nctio
n12
2042
.30
1444
05.9
526
6448
.25
00
00
00
C. T
otal
can
cella
tion/
redu
ctio
n (6
A+
B)14
2109
.10
1745
26.0
031
6635
.10
1999
1229
2.48
737
1967
9.24
2736
3197
1.72
7. A
pplic
atio
n sa
nctio
ned
Effe
ctiv
ely(
5-6A
)21
914
770.
1241
539
055.
8563
453
825.
970
00
00
0
8 N
et S
anct
ions
(5-6
c)20
712
727.
8240
134
649.
9060
847
377.
7223
045
1888
55.3
618
834
3171
22.3
741
879
5059
77.7
3
9. A
mou
nt D
isbu
rsed
alo
ng w
ith
n
umbe
r of
new
ly a
ssis
ted
units
197
1111
7.77
334
3533
9.64
531
4645
7.41
2302
416
0609
.24
1768
025
5857
.82
4070
441
6467
.06
10.A
pplic
atio
n pe
ndin
g sa
nctio
n as
on
a
t t
he e
nd o
f t
he p
erio
d4
108.
0010
2040
.00
1421
48.0
0
PRO
FORM
A -
I(`
. In
lacs
)
KFC Annual Report - 2011-12
38
(`. I
n la
cs)
PRO
FORM
A -
II
SUM
MA
RY O
F LO
AN
OPE
RATI
ON
S A
S 0
N 3
1.03
.201
2
BRA
NCH
WIS
E B
REA
KUP
OF
LOA
N O
PERA
TIO
NS
DU
RIN
G T
HE
YEA
R 20
11-1
2
(`
. In
lacs
)
A
PPLI
CATI
ON
REC
EIV
ED
GRO
SS S
AN
CTIO
NSA
NCT
ION
CA
NCE
LLED
-RED
UCE
D
S.S.
I.O
THER
STO
TAL
S.S.
I.O
THER
STO
TAL
S.S.
I.O
THER
STO
TAL
BRA
NCH
NA
ME
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
THIR
UVA
NA
NTH
APU
RAM
161,
553.
9854
10,9
10.7
770
12,4
64.7
513
1,14
4.62
539,
112.
6166
10,2
57.2
30
0.00
00.
000
0.00
KOLL
AM
4
87.0
011
1,43
5.00
151,
522.
003
83.0
011
1,08
7.30
141,
170.
300
0.00
145
.00
145
.00
PATH
AN
AM
THIT
TA5
1,34
0.00
576
5.00
102,
105.
005
1,08
0.00
576
5.00
101,
845.
000
0.00
00.
000
0.00
ALA
PPU
ZHA
620
6.00
171,
936.
0023
2,14
2.00
414
6.00
151,
425.
7519
1,57
1.75
150
.00
00.
001
50.0
0
KOTT
AYA
M8
618.
0022
2,16
9.00
302,
787.
008
577.
0021
2,07
0.00
292,
647.
000
0.00
265
.00
265
.00
KATT
APA
NA
317
0.00
643
5.00
960
5.00
211
0.00
425
5.00
636
5.00
00.
000
0.00
00.
00
THO
DU
PUZH
A4
320.
0015
1,82
6.25
192,
146.
254
320.
0015
1,82
6.25
192,
146.
250
0.00
00.
000
0.00
ERN
AKU
LAM
151,
954.
0559
5,08
6.00
747,
040.
0515
1,88
9.05
534,
241.
0068
6,13
0.05
00.
000
0.00
00.
00
PERU
MBA
VO
OR
492,
845.
9131
951.
9080
3,79
7.81
491,
950.
2928
905.
7377
2,85
6.02
00.
000
0.00
00.
00
TRIS
SUR
2469
9.50
311,
813.
2255
2,51
2.72
2170
6.00
281,
804.
5149
2,51
0.51
00.
000
0.05
00.
05
PALA
KKA
D23
2,10
1.68
828
4.00
312,
385.
6823
1,78
1.50
859
2.00
312,
373.
500
0.00
00.
000
0.00
MA
LAPP
URA
M23
2,39
7.35
324,
337.
3555
6,73
4.70
181,
858.
0030
3,62
3.30
485,
481.
300
0.00
00.
000
0.00
KOZH
IKO
DE
162,
161.
0040
5,31
6.25
567,
477.
2515
1,60
8.40
415,
646.
7556
7,25
5.15
00.
300
0.00
00.
30
WAY
AN
AD
1857
1.50
342,
143.
0052
2,71
4.50
1747
8.50
311,
658.
0048
2,13
6.50
00.
000
10.0
00
10.0
0
KAN
NU
R15
725.
7518
1,77
8.00
332,
503.
7514
698.
7616
1,51
3.00
302,
211.
760
0.00
00.
000
0.00
KASA
RGO
D
1035
2.00
602,
989.
7070
3,34
1.70
1040
5.80
592,
649.
7069
3,05
5.50
116
.50
00.
001
16.5
0
GRA
ND
TO
TAL
239
1810
3.72
443
4417
6.44
682
6228
0.16
221
1483
6.92
418
3917
5.90
639
5401
2.82
266
.80
312
0.05
518
6.85
KFC Annual Report - 2011 -12
39
SUM
MA
RY O
F LO
AN
OPE
RATI
ON
S A
S 0
N 3
1.03
.201
2 PR
OFO
RMA
- II
I(`
. In
lacs
)
BRA
NCH
WIS
E BR
EAK
UP
OF
LOA
N O
PERA
TIO
NS
DU
RIN
G T
HE
YEA
R 20
11-1
2
Ef
fect
ive
Sanc
tion
Loan
Dis
burs
edRe
cove
ry
S.S.
I.O
THER
STO
TAL
S.S.
I.O
THER
STO
TAL
BRA
NCH
NA
ME
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
NO
AM
OU
NT
THIR
UVA
NA
NTH
APU
RAM
131,
144.
6253
9,11
2.61
6610
,257
.23
1235
6.01
395,
948.
4451
6,30
4.45
5746
.00
KOLL
AM
3
83.0
010
1,04
2.30
131,
125.
306
115.
099
816.
6215
931.
7116
71.0
0
PATH
AN
AM
THIT
TA5
1,08
0.00
576
5.00
101,
845.
005
641.
008
1,46
7.00
132,
108.
0014
46.0
0
ALA
PPU
ZHA
396
.00
151,
425.
7518
1,52
1.75
424
7.93
162,
079.
1220
2,32
7.05
3596
.00
KOTT
AYA
M8
577.
0019
2,00
5.00
272,
582.
008
646.
3020
2,46
0.48
283,
106.
7821
86.0
0
KATT
APA
NA
211
0.00
425
5.00
636
5.00
265
.00
533
8.99
740
3.99
734.
00
THO
DU
PUZH
A4
320.
0015
1,82
6.25
192,
146.
255
161.
0613
1,44
6.76
181,
607.
8212
41.0
0
ERN
AKU
LAM
151,
889.
0553
4,24
1.00
686,
130.
0513
2,01
9.03
514,
181.
0464
6,20
0.07
6351
.00
PERU
MBA
VO
OR
491,
950.
2928
905.
7377
2,85
6.02
461,
779.
2821
1,13
0.28
672,
909.
5637
36.0
0
TRIS
SUR
2170
6.00
281,
804.
4649
2,51
0.46
1688
1.14
242,
292.
9440
3,17
4.08
4319
.00
PALA
KKA
D23
1,78
1.50
859
2.00
312,
373.
5026
1,92
5.08
625
9.19
322,
184.
2727
93.0
0
MA
LAPP
URA
M18
1,85
8.00
303,
623.
3048
5,48
1.30
1458
0.95
203,
036.
5034
3,61
7.45
4060
.00
KOZH
IKO
DE
151,
608.
1041
5,64
6.75
567,
254.
850
716.
140
4,57
4.57
05,
290.
7144
70.0
0
WAY
AN
AD
1747
8.50
311,
648.
0048
2,12
6.50
1637
3.25
271,
305.
8043
1,67
9.05
1130
.00
KAN
NU
R14
698.
7616
1,51
3.00
302,
211.
7618
444.
2517
1,53
9.78
351,
984.
0317
74.0
0
KASA
RGO
D
938
9.30
592,
649.
7068
3,03
9.00
616
6.26
582,
462.
1364
2,62
8.39
1463
.00
GRA
ND
TO
TAL
219
1477
0.12
415
3905
5.85
634
5382
5.97
197
1111
7.77
334
3533
9.64
531
4645
7.41
4671
6.00
KFC Annual Report - 2011-12
40
SUM
MA
RY O
F LO
AN
OPE
RATI
ON
S A
S 0
N 3
1.03
.201
2 PR
OFO
RMA
- IV
(`. I
n la
cs)
KERA
LA F
INA
NCI
AL
CORO
PRA
TIO
N,
DIS
TRIC
T W
ISE
BREA
KUP
OF
LOA
N A
PPLI
CATI
ON
S RE
CEIV
ED, S
AN
CTIO
NED
AN
D D
ISBU
RSED
AS
ON
31-
03-2
012
APP
LICA
TIO
N R
ECEI
VED
LOA
N S
AN
CTIO
NED
EFF
ECTI
VEL
YLO
AN
DIS
BURS
ED
DIS
TRIC
T N
AM
EN
o.%
of
tota
l A
mou
nt%
of
tota
lN
o.%
of
tota
lA
mou
nt%
of
tota
lN
o.%
of
tota
lA
mou
nt%
of
tota
l
THIR
UVA
NA
NTH
APU
RAM
5531
10.8
783
,506
.35
12.6
144
6910
.65
63,4
16.7
012
.12
4461
10.9
651
,410
.85
12.3
3
KOLL
AM
47
429.
3244
,508
.64
6.72
3953
9.42
32,4
11.0
86.
1937
419.
1925
,939
.81
6.22
PATH
AN
AM
THIT
TA18
203.
5825
,912
.93
3.91
1644
3.92
22,6
81.5
54.
3415
613.
8416
,928
.88
4.06
ALA
PPU
ZHA
3050
5.99
36,8
68.0
15.
5724
845.
9226
,998
.92
5.16
2508
6.16
22,6
42.4
45.
43
KOTT
AYA
M32
926.
4732
,862
.34
4.96
2510
5.98
26,2
58.1
15.
0224
536.
0322
,495
.83
5.40
IDU
KKI
2823
5.55
33,4
18.3
05.
0425
676.
1226
,606
.95
5.09
2607
6.40
19,8
05.0
34.
75
ERN
AKU
LAM
7213
14.1
714
5,53
5.09
21.9
757
2613
.65
115,
444.
5722
.07
5260
12.9
289
,599
.96
21.4
9
TRIS
SUR
4420
8.68
59,5
68.4
28.
9933
147.
9048
,824
.58
9.33
4083
10.0
341
,231
.45
9.89
PALA
KKA
D28
465.
5940
,234
.98
6.07
2371
5.65
31,1
90.7
75.
9621
245.
2224
,528
.18
5.88
MA
LAPP
URA
M21
174.
1638
,380
.40
5.79
1810
4.31
31,5
85.4
66.
0415
623.
8425
,010
.85
6.00
KOZH
IKO
DE
6106
12.0
059
,943
.19
9.05
5147
12.2
747
,151
.51
9.01
4627
11.3
736
,095
.69
8.66
WAY
AN
AD
1763
3.46
17,3
88.9
62.
6316
053.
8314
,374
.57
2.75
1589
3.90
10,4
77.0
92.
51
KAN
NU
R36
387.
1526
,469
.89
4.00
3013
7.18
21,3
48.3
34.
0828
466.
9917
,927
.71
4.30
KASA
RGO
D
1540
3.03
17,8
31.0
92.
6913
473.
2114
,891
.45
2.85
1281
3.15
12,8
38.1
53.
08
GRA
ND
TO
TAL
5090
110
0.00
6624
28.5
910
0.00
4196
010
0.00
5231
84.5
510
0.00
4070
310
0.00
4169
31.9
210
0.00
KFC Annual Report - 2011 -12
41
AM
OU
NT-
WIS
E A
ND
SIZ
E-W
ISE
CLA
SSIF
ICA
TIO
N
OF
LOA
N S
AN
CTI
ON
ED A
S O
N 3
1-3-
2012
Sanc
tion
sin
ceEf
fect
ive
Sanc
tion
Sanc
tion
sin
ce
ince
ptio
nD
urin
g 20
11-1
2in
cept
ion
Till
31-0
3-20
11Ti
ll 31
-3-2
012
Part
icul
ars
No.
Am
ount
N
o.A
mou
ntN
o.A
mou
nt
Am
ount
-wis
e up
to R
s 1
lakh
7896
5044
.15
10.
3578
9750
44.5
0
Rs. 1
lakh
– R
s. 1
0 la
khs
2496
210
1937
.15
8253
0.31
2504
410
2467
.46
Rs.1
0 la
khs
– Rs
.50
lakh
s65
4214
4321
.63
363
1007
4.58
6905
1543
96.2
1
Rs.5
0 la
khs
- R
s. 1
00 la
khs
1394
6648
5.65
7657
10.7
314
7072
196.
38
Rs. 1
00 la
khs
– R
s.50
0 la
khs
501
1176
92.0
010
224
782.
0060
314
2474
.00
Rs.5
00 l
akhs
– R
s. 1
000
lakh
s22
1652
2.00
537
18.0
027
2024
0.00
Abo
ve R
s.10
00 la
khs
917
356.
005
9010
.00
1426
366.
00
TOTA
L41
326
4693
58.5
863
453
825.
9741
960
5231
84.5
5
Size
-wis
e
Smal
l Sca
le22
547
1777
02.8
421
914
770.
1222
766
1924
72.9
6
%54
.56
37.8
634
.54
27.4
454
.26
36.7
9
Oth
ers
1877
929
1655
.74
415
3905
5.85
1919
433
0711
.59
%45
.44
62.1
465
.46
72.5
645
.74
63.2
1
TOTA
L41
326
4693
58.5
863
453
825.
9741
960
5231
84.5
5
SUM
MA
RY O
F LO
AN
OPE
RATI
ON
S A
S 0
N 3
1.03
.201
2 PR
OFO
RMA
- V
(`.
In la
cs)
KFC Annual Report - 2011-12
42
DIS
TRIC
T W
ISE
CLA
SSIF
ICA
TIO
N O
F LO
AN
S A
ND
AD
VAN
CES
AS
ON
31-
03-2
012
EFFE
CTI
VE
SAN
CTI
ON
DIS
BURE
SEM
ENT
DIS
TRIC
T N
AM
EN
OA
MT
NO
AM
T
THIR
UVA
NA
NTH
APU
RAM
4469
6341
6.70
4461
5141
0.85
KOLL
AM
39
5332
411.
0837
4125
939.
81
PATH
AN
AM
THIT
TA16
4422
681.
5515
6116
928.
88
ALA
PPU
ZHA
2484
2699
8.92
2508
2264
2.44
KOTT
AYA
M25
1026
258.
1124
5322
495.
83
IDU
KKI
2567
2660
6.95
2607
1980
5.03
ERN
AKU
LAM
5726
1154
44.5
752
6089
599.
96
TRIS
SUR
3314
4882
4.58
4083
4123
1.45
PALA
KKA
D23
7131
190.
7721
2424
528.
18
MA
LAPP
URA
M18
1031
585.
4615
6225
010.
85
KOZH
IKO
DE
5147
4715
1.51
4627
3609
5.69
WAY
AN
AD
1605
1437
4.57
1589
1047
7.09
KAN
NU
R30
1321
348.
3328
4617
927.
71
KASA
RGO
DE
1347
1489
1.45
1281
1283
8.15
GRA
ND
TO
TAL
4196
052
3184
.55
4070
341
6931
.92
SUM
MA
RY O
F LO
AN
OPE
RATI
ON
S A
S 0
N 3
1.03
.201
2 PR
OFO
RMA
- V
I
(`.
In la
cs)
KFC Annual Report - 2011 -12
43
SUM
MA
RY O
F LO
AN
OPE
RATI
ON
S A
S 0
N 3
1.03
.201
2 PR
OFO
RMA
- V
II(`
. In
lacs
)
IND
UST
RY-W
ISE
CLA
SSIF
ICA
TIO
N O
F LO
AN
SA
NC
TIO
NED
AS
ON
31-
03-2
012(
EFFE
CTI
VE)
Sl N
o.Ty
pe o
f In
dust
ryS.
S.I
OTH
ERS
TOTA
L
AM
OU
NT
AM
OU
NT
AM
OU
NT
1M
inin
g24
264.
5831
29.5
227
394.
10
2Cr
ude
Petr
oleu
m22
9.73
34.6
626
4.39
3Pe
trol
eum
Refi
nin
g13
.37
0.00
13.3
7
4Su
gar
0.00
0.00
0.00
5O
ther
Foo
d Pr
oduc
ts27
444.
2441
54.6
531
598.
89
6Te
xtile
s59
32.8
168
01.0
012
733.
81
7Pa
per
and
Pape
r Pr
oduc
ts79
75.5
983
5.30
8810
.89
8Le
athe
r &
Lea
ther
Pro
duct
s11
16.3
729
1.00
1407
.37
9Ru
bber
Pro
duct
s22
430.
2114
39.7
323
869.
94
10Ch
emic
al a
nd C
hem
ical
Pro
duct
s72
31.2
014
91.4
487
22.6
4
12Ce
men
t11
0.20
0.00
110.
20
13Ba
sic
Met
als:
a) Ir
on &
Ste
el36
29.3
120
80.8
557
10.1
6
b) N
on-F
erro
us75
1.71
21.4
077
3.11
14M
etal
Pro
duct
s57
30.7
037
9.93
6110
.63
15Ca
pita
l Goo
ds
a) N
on-E
lect
rical
Mac
hine
ry15
99.7
673
3.14
2332
.90
b) E
lect
rical
Mac
hine
ry24
85.0
315
10.3
639
95.3
9
d)Tr
ansp
ort
Equi
pmen
t15
44.6
296
.60
1641
.22
16El
ectr
icity
Gen
erat
ion
109.
754.
2911
4.04
17Se
rvic
es
a) M
otel
s &
Sho
ppin
g co
mpl
ex11
693.
9819
0545
.44
2022
39.4
2
b) H
ospi
tals
2080
.94
2287
0.76
2495
1.70
c) O
ther
s10
919.
1744
197.
7755
116.
94
18O
ther
s57
510.
2947
763.
1510
5273
.44
TOTA
L19
4803
.56
3283
80.9
952
3184
.55
KFC Annual Report - 2011-12
44
SUM
MA
RY O
F LO
AN
OPE
RATI
ON
S A
S 0
N 3
1.03
.201
2 PR
OFO
RMA
- V
III
IND
UST
RY-W
ISE
CLA
SSIF
ICA
TIO
N O
F LO
AN
DIS
BURS
ED A
S O
N 3
1-03
-201
2
Sl N
o.Ty
pe o
f In
dust
ryS.
S.I
OTH
ERS
TOTA
L
AM
OU
NT
AM
OU
NT
AM
OU
NT
1M
inin
g18
419.
1120
97.0
120
516.
12
2Cr
ude
Petr
oleu
m10
0.71
19.0
211
9.73
3Pe
trol
eum
Refi
nin
g11
.31
0.00
11.3
1
5O
ther
Foo
d Pr
oduc
ts26
137.
0439
98.6
330
135.
67
6Te
xtile
s45
13.8
639
81.5
284
95.3
8
7Pa
per
and
Pape
r Pr
oduc
ts63
04.1
858
2.21
6886
.39
8Le
athe
r &
Lea
ther
Pro
duct
s28
4.95
266.
4555
1.40
9Ru
bber
Pro
duct
s20
110.
9664
6.11
2075
7.07
10Ch
emic
al a
nd C
hem
ical
Pro
duct
s61
55.0
399
4.05
7149
.08
12Ce
men
t84
.07
0.00
84.0
7
13Ba
sic
Met
als:
a) Ir
on &
Ste
el25
78.0
146
3.17
3041
.18
b) N
on-F
erro
us59
0.08
13.5
060
3.58
14M
etal
Pro
duct
s39
27.4
319
8.40
4125
.83
15Ca
pita
l Goo
ds
a) N
on-E
lect
rical
Mac
hine
ry13
34.2
467
4.65
2008
.89
b) E
lect
rical
Mac
hine
ry19
30.8
913
81.6
533
12.5
4
d)Tr
ansp
ort
Equi
pmen
t10
73.5
831
.34
1104
.92
16El
ectr
icity
Gen
erat
ion
34.9
50.
2935
.24
17Se
rvic
es
a) M
otel
s &
Sho
ppin
g co
mpl
ex10
154.
4315
4616
.29
1647
70.7
2
b) H
ospi
tals
891.
6516
531.
0817
422.
73
c) O
ther
s11
007.
9643
242.
2854
250.
24
18O
ther
s44
163.
9327
385.
9071
549.
83
TOTA
L15
9808
.37
2571
23.5
541
6931
.92
(`. I
n la
cs)
KFC Annual Report - 2011 -12
45
HIG
HLI
GH
TS O
F PE
RFO
RMA
NC
E (`
. In
lacs
)
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
12
34
56
78
910
App
licat
ions
Rec
eive
d N
o.79
359
846
840
654
156
761
985
570
269
4
App
licat
ions
Rec
eive
d A
mou
nt20
865
1978
918
820
1651
822
406
2824
643
658
7994
759
699
6429
4
App
licat
ions
San
ctio
ned
No
696
581
387
368
461
526
580
759
742
634
App
licat
ions
San
ctio
ned
Am
ount
1557
316
958
1098
112
113
1358
324
557
3491
061
593
5070
653
901
Disb
urse
men
t Am
ount
1123
111
902
8548
7852
9725
1864
329
394
4195
344
344
4645
7
Reco
very
Am
ount
2528
527
284
2446
821
413
1990
821
844
2692
529
954
3547
346
717
Arr
ears
Am
ount
5361
458
385
5963
869
561
7525
076
244
7741
4751
4352
2788
Num
ber o
f loa
n ac
coun
ts13
948
1519
711
896
1158
610
345
7797
6309
5949
6049
5985
Bala
nce
Out
stan
ding
Am
ount
1137
3611
3071
**10
6769
1062
7910
4489
9712
870
353
8883
911
2481
1239
84
Aut
horis
ed C
apita
l20
000
2000
020
000
2000
020
000
2000
035
000
3500
035
000
3500
0
PAID
-UP
CAPI
TAL
Stat
e G
over
nem
ent
1299
913
999
1419
914
399
1439
914
399
1978
319
783
2057
420
574
SID
BI14
8314
8314
8314
8314
8314
8361
361
361
361
3
Oth
ers
2424
2424
2424
1010
1010
Tota
l14
506
1550
615
706
1590
615
906
1590
620
406
2040
621
197
2119
7
INCO
ME
Inte
rest
on
Loan
s11
591
1179
087
6280
0383
9082
9310
192
9196
1206
415
730
Oth
er In
com
e21
225
074
211
7957
054
073
465
9945
3456
95
Tot
al11
803
1204
095
0491
8289
6088
3310
926
1579
516
598
2142
5
EXPE
ND
ITU
RE
Inte
rest
on
Bond
s43
4042
9540
8226
8416
8213
7111
2496
075
910
43
Inte
rest
on
Refi n
ance
4609
3338
2930
3237
2690
2409
2913
3776
4217
3996
Inte
ret o
n O
ther
Bor
row
ings
4949
3791
33
103
854
3170
Fund
Rai
sing
Fina
ncia
l Exp
ense
327
343
299
178
134
118
9817
411
6624
4
Pay
& A
llow
ance
s et
c85
010
0495
510
5012
3123
6224
0819
7824
6317
92
Esta
blish
men
t Exp
ense
s11
913
622
322
724
324
421
113
841
040
2
TOTA
L10
294
9165
8526
7467
5953
6507
6764
7029
9869
1064
7
KFC Annual Report - 2011-12
46
HIG
HLI
GH
TS O
F PE
RFO
RMA
NC
E
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
Profi
t b
efor
e D
epre
ciat
ion
/Writ
e of
f /P
rovi
sion
s11
7927
7497
841
830
0423
0141
6287
6667
2910
778
Dep
reci
atio
n84
5647
3838
3833
3664
58Ba
d D
ebts
Writ
ten
Off
1095
1765
878
1713
3291
1175
737
7349
530
78Pr
ovis
ion
for
Bad
& D
oubt
ful d
ebts
675
192
270
715
600
1310
-879
888
1419
482
Net
Pro
fi t /
Loss
(-) 6
3718
1
(-
)249
177
440
-281
511
7021
1436
4045
65A
ccum
ulat
ed L
oss
(-) 7
021
(-) 6
834
(-
)708
2(-
)727
7-7
685
-105
000
00
0N
et W
orth
9635
1118
611
156
1113
311
577
8762
2493
226
996
2973
632
585
Gro
ss N
PA (%
)64
.37
60.8
260
.37
65.1
859
.33
44.4
921
.00
9.04
8.20
3.60
Net
NPA
(%
)50
.04
54.0
652
.36
56.8
948
.52
28.6
813
.22
2.41
1.88
1.30
SOU
RCES
OF
FUN
DS
Shar
e Ca
pita
l10
3110
0020
020
00
015
000
079
10
Bond
s25
03
--
…
....
00
020
000
Refi n
ance
1728
4266
4582
3400
6333
7500
1600
020
989
160
7900
Fixe
d D
epos
its11
830
…..
..0
00
0Pl
ough
Bac
k19
972
0910
077
40-2
380
1415
510
162
6192
2156
5A
dvan
ce f
rom
Gov
t of
Ker
ala
1989
RBI B
orro
win
gs10
7370
0…
....
00
00
LOC
--
--
1000
..55
00
00
2620
011
500
USE
S O
F FU
ND
SRe
paym
ent
of B
onds
1100
2250
1351
031
1143
3120
4415
9297
736
4136
55Re
paym
ent
of R
efi n
ance
7920
8913
1926
3824
1083
046
8262
5716
386
1654
111
332
Repa
ymen
t of
FD
---
178
124
319
120
00
Repa
ymen
t of
Adh
oc B
orro
win
gs/L
OC
950
700
…10
0055
00
027
0066
88A
RREA
RS A
T TH
E BE
GIN
NIN
GPr
inci
pal
2327
9*2
3219
*
2540
226
056
2473
923
468
*766
682
636
2519
04In
tere
st30
328
2683
928
222
3632
044
822
5156
6*7
976
6215
1126
2448
Curr
ent
Dem
and
- P
rinci
pal
1654
816
029
1414
812
182
1039
410
213
1098
115
571
1532
119
370
Inte
rest
1904
114
519
1633
4 16
416
1520
312
962
8043
4323
1306
614
548
Tota
l Dem
and
- Pr
inci
pal
3982
739
248
**39
550
3823
835
133
3389
718
647
1639
718
946
2127
4In
tere
st49
369
4135
8**
4455
652
736
6002
564
528
1601
910
538
1419
216
996
Reco
very
- P
rinci
pal
1369
315
034
**15
594
1349
911
449
1371
517
821
#16
386
#19
645
#27
210
Inte
rest
1159
212
150
**88
7479
1484
5984
6691
0494
12
1174
415
806
Arr
ears
at
the
end
of t
he y
ear
- Pr
l.26
134
2421
4**
2395
624
739
2368
420
182
826
3625
1904
1598
Inte
rest
3777
729
208
**35
682
4482
251
566
5606
269
1511
2624
4811
90SU
B TO
TAL
6391
153
422
5963
869
561
7525
076
244
7741
4751
4352
2788
(`. I
n la
cs)
*The
arr
ears
at
the
begi
nnin
g of
the
yea
r an
d th
e de
man
d ha
s be
en r
e-w
orke
d fo
r gi
ving
eff
ect
of t
echn
ical
writ
e-of
f**
mis
take
s re
ctifi
ed#
Incl
udin
g pr
epay
men
t
KFC Annual Report - 2011 -12
47
KERALA FINANCIAL CORPORATION(INCORPORATED UNDER THE STATE FINANCIAL CORPORATIONS ACT No. LXIII OF 1951
H.O: ASWATHY, VELLAYAMBALAM, THIRUVANANTHAPURAM - 695 033.Phone: 0471-2737500 (30 lines) Fax: 2311750,2318541, 2313813, 2722090
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 offi ce at least 48 hours before the meeting.
Signature of
share holder on
Re.1 /-
Revenue Stamp
KFC Annual Report - 2011-12
48