ASSAM FINANCIAL CORPORATION 54th ANNUA L ...India’s real GDP was projected to grow by 8.8 per cent in 2007-08. Services industries was the driver of India’s GDP growth for yet

54th ANNUA L REPORT

ASSAM FINANCIAL CORPORATION

2007-08

Highlights 1

Chairman’s Message 2

From MD’s Desk 5

Principal Bankers 7

Board of Directors 8

Principal Officers 9

Address of Offices 10

Notice to Shareholders 11

Report of the Board of Directors 14

Success stories 22

Auditor’s Report 26

Comments on Auditor’s Observation 28

Balance Sheet 29

Profit & Loss Account 30

Schedules 31

Cash Flow Statement 43

Disclosure as per SIDBI Guideline 44

Sources and Uses of Fund 47

Index to Annexures 50

Annexures 51

Proxy Form

Contents

1

POSITION OF THE PRINCIPAL PORTFOLIOS DURING THE LAST THREE YEARS

N.B.* The Balance Sheet figure for 31-03-2007 have been re-grouped/re-arranged wherever necessary to conform to thecurrent year’s presentation.

** NPA provision written back on recovery#Includes Rs.108.79 Lacs recovered earlier and adjusted during FY 2007-08.

PARTICULARS 31st.March,2008 31st.March,2007 31st.March,2006LOAN SANCTIONED 546.40 442.75 87.50

LOAN DISBURSED 474.48 179.40 49.74

RECOVERY # 841.33 1032.65 300.93

GROSS INCOME 610.88 1069.26 194.75

TOTAL EXPENDITURE 462.23 772.74 2025.51

OPERATING PROFIT 148.65 296.52 (-)1830.76

PROVISION FOR BAD &DOUBTFUL DEBTS **519.27 255.42 0.00

NET PROFIT BEFORE TAX 667.92 41.10 (-)1830.76

PROFIT(+)/LOSS(-) (+) 605.22 (+)41.10 (-)1830.76

CAPITAL ADEQUACY RATIO(%) 92.58 50.29 (-)55.82

NET WORTH 1029.77 404.07 (-)1180.99

31st.March,2008 31st.March,2007 31st.March,2006

PAID-UP CAPITAL 342.97 1342.97 1342.97 1342.97

RESERVE 726.61 *7744.63 319.12

GOVT.OF ASSAM (Bond Fund) 0.00 0.00 5810.42

BORROWINGS

1.Bonds 400.00 400.00 1250.60

2.Refinance(IDBI & SIDBI) 0.00 678.46 1662.72

CUMULATIVE EFFECTIVE SANCTION 12453.91 11980.01 11537.26

CUMULATIVE DISBURSEMENT 12104.03 11629.55 11450.15

OUTSTANDING LOAN 3455.71 4124.06 4900.75

HIGHLIGHTS(Rs.in Lacs)

FINANCIAL YEAR ENDINGPARTICULARS

(Rs.in Lacs)

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Dear Shareholders,

It gives me great pleasure to present the Annual Results of Assam Financial Corporation for FY 2007-08. It isheartening to inform you that the Corporation has been able to maintain the momentum of “turn around” madein the last financial year with improvement in all key indicators.Though the Corporation passed through difficulttimes during the last decade, yet the hurdles are now slowly being converted into opportunities which are beingwell utilised by the dedicated work force to turn around the Corporation. Before highlighting the performanceof the Corporation, I would like to briefly mention about the overall economic scenario during the year underreview.

ECONOMIC SCENARIO

As per the estimates released by the Central Statistical Organization, real GDP at factor cost grew by 9 per centin 2007-08 after recording a 9.6 per cent growth in 2006-07. The nine per cent growth of the Indian economywas slightly higher than was expected. India’s real GDP was projected to grow by 8.8 per cent in 2007-08.

Services industries was the driver of India’s GDP growth for yet another year. The service sector grew by 10.8per cent after clocking an 11.1 per cent growth in 2006-07. The trade, hotels, transport and communicationsegment grew by 12 per cent, while the growth in the financing, insurance, real estate & business services wasequally impressive at 11.8 per cent. Community, social & personal services reported a 7.3 per cent rise in GDPin 2007-08. While services continued to grow robustly, the industry reported a slight slowdown in growth in2007-08.

Industrial growth at 8.5% in 2007-08 was considerably lower than the 11% growth recorded in 2006-07. Themanufacturing sector grew by 8.8% vis-a-vis the strong 12% growth clocked last year. Growth in the constructionsector was 9.8% as compared to 12% in 2006-07. While the mining and quarrying sector grew by 4.7% on topof the 5.7% last year.The growth in electricity,gas and water supply accelerated to 6.5% from 6% in 2006-07.The agricultural sector grew by healthy 4.5% in 2007-08 as compared to the 3.8% growth in 2006-07.

Reserve Bank in its annual credit policy projected the country’s GDP to grow by 8-8.5% for 2008-09 assumingthat global financial and commodity markets and real economy will be broadly aligned with the central scenarioand normal monsoon conditions prevail.

During the year the Corporation achieved remarkable progress in its operations. The Corporation made a netprofit of Rs.6.05 crs during the year under review. This is a quantum jump over the net profit of Rs 41.10 Lacsmade during the last financial year (2006-07).

CHAIRMAN’S MESSAGE

The loan sanctions of the Corporation has improved considerably from Rs 442.75 lacs in 2006-07 to Rs 546.40Lacs during 2007-08, an increase of 23.41% over the previous year. Against the loan disbursement figure of Rs179.40 Lacs in 2006-07, the corresponding figure for 2007-08 is Rs 474.48 Lacs, an increase of 164.48 %.

In the loan recovery segment also, the Corporation could recover an amount of Rs. 841.33 lacs during the FY2007-08.This has enabled the Corporation to bring down the gross NPA from 94.35 % to 79.63% and net NPAfrom10.11% to 2.77 %. With improved performance during the year, the Corporation’s net worth increasedby155 % from Rs404.00 Lacs to Rs 1030.00 Lacs. The Capital to Risk Weighted Asset(CRAR) ratio has turnedpositive in the FY 2006-07 at (+)50.29%and then rose to (+)92.58% in the FY 2007-08 after remaining negativefrom FY 2003-04 upto 2005-06.This is way beyond the stipulated 9% as per Basel-II norms. We anticipate thatwith enhanced level of operation the CRAR will move downwards to 30% in the next financial year (2008-09).This would improve the leveraging of the Corporation.

QUALITY MANAGEMENT SYSTEM

The Corporation has during the year under review initiated the process to obtain ISO 9001:2000 and hasappointed National Productivity Council as a consultant for the same.

OFFICE AUTOMATION

The Corporation has taken a massive plan to computerize all the offices of the Corporation with onlineManagement Information System (MIS). All the branches have been provided with internet facility for betterand fast communication. The Corporation has already entrusted a consultant to implement the ManagementInformation System (MIS) for the entire Corporation which is expected to be ready by mid FY.09.

HUMAN RESOURCE DEVELOPMENT

The financial year 2007-08 was an eventful year for the Corporation. During the financial year under reviewalmost all the officers and staff of the Corporation were imparted various need based training programme bothinside and outside the state. During the period a total of 20 training programmes were conducted comprising ofboth in-house and in various reputed institutions of the country covering various subjects.

STEP FORWARD

The Corporation’s primary focus in 2008-09 would be “Customer Centric Approach”, to enhance its operationalactivities and to work closely with the customers. The Corporation has set focusing goals to fulfil its operationalobjectives of sanction and disbursement to MSME sector and overall improvement in the recovery performancefor the FY 2008-09.

I feel proud to inform you that the Hon’ble Chief Minister of Assam, Sri Tarun Gogoi, for the second time insuccession, during his Budget speech has praised the performance of Assam Financial Corporation andannounced to provide equity support of Rs.500.00 Lacs to AFC to gear up the term lending activities of theCorporation.

The Hon’ble Chief Minister also announced in the budget speech to provide Rs 1000.00 Lacs interest free loanto Assam Financial Corporation for providing finance under the Chief Minister’s Microfinance DevelopmentFacility Scheme-2008(CMMFDF). The Government of Assam has designated the Corporation as the ImplementingAgency for the Scheme. Assam Financial Corporation, as the implementing agency shall leave no stone unturnedto reach out to the genuine beneficiaries and make the scheme a resounding success and contribute to theeconomic development of Assam.

As stated in my last year speech, the Corporation has already started a Consultancy cell under the name ofConsultancy and Business Promotion Cell This cell, in addition to providing entrepreneurial assistance shallhelp the Corporation to earn additional revenue by providing some fee based services like preparatio n of

3

project reports, providing accounting & legal consultancy, acting as third party monitoring agency to monitorGovt. aided projects etc.

In order to operationalise the CMMFDF scheme and also to provide the above non- fund based services in amost transparent and professional manner, a separate Branch office is proposed to be opened in the Head Officepremises in the FY 2008-09.

CORPORATE GOVERNANCE

The Board of Assam Financial Corporation continues to strive for excellence in good governance and responsiblemanagement practices. Corporate governance is not merely compliance but it is always an ongoing process forquality and superior fulfilment of the Corporation’s objectives, creating a culture of consciousness, transparency,fairness, accountability and identification of opportunities to bring in the best in the Corporation’s deliverymechanism.

ACKNOWLEDGEMENT

Ladies and Gentlemen, let me on behalf of the Board and on my own behalf acknowledge with deep appreciationthe support, co-operation and valuable guidance extended by the State Government of Assam, Meghalaya,Manipur,Tripura, IDBI, SIDBI, RBI, LICI,COSIDICI and other State and National Level Financial andDevelopment Institutions, Commercial and Co-operative Banks.

My special thanks goes to the dedicated employees of the Corporation whose untiring efforts produced thedesired result during the year.

Last but not the least, I would like to express my heartfelt thanks to the share holders of the Corporation fortheir continued support. Further, I would also like to thank our valued customers, the cornerstone of all ourbusiness activities, for their support and faith on us which I hope will go a long way in maintainin g ourrelationship.

Ladies and Gentlemen, my best wishes to all of you.

Thank you,

Place : Guwahati

Dated : 25-07-2008( Abhijit Barooah)

CHAIRMAN

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This year is special for AFC and our valued customers. The Corporation which was weighed down by accumulatedlosses for the last few years is in the process of finally turning around. Duing the year 2008 your Corporationhas achieved a net profit of Rs.605.22 Lacs. This is the culmination of the co-ordinated efforts of the Board ofDirectors and Employees of the Corporation, enterprising borrowers, Government of Assam and SIDBI. Myhearty congratulations to all of you.

The Corporation’s achievements during the year have been very noteworthy. The highlights of the performance

of the Corporation during 2007-08 in comparison to the previous year are as under :

Net Profit improved to Rs. 605.22 Lacs compared to the last year’s figure of Rs.41.10 Lacs. The

Corporation has been earning Profit for last two years.

Sanction of loan increased to Rs.546.40 Lacs from Rs. 442.75 Lacs in the previous year, registering a

growth of 23.41 %.

Disbursement increased to Rs.474.48 Lacs from Rs.179.40 Lacs in the previous year, growth of 164.48%.

During the year under review an amount of Rs.841.33 Lacs was recovered. There is a reduction of

around 18.53% in recovery compared to last year which is primarily because a large number of NPAaccounts were settled or closed during the last FY ie 2006-07.

The Corporation has carefully dealt with the NPA management to reduce Gross NPA from 94.35% to

79.63% and Net NPA from 10.11% to 2.77%.

Net worth rose to Rs.1029.77Lacs from Rs.404.07 Lacs, an increase of 155%.

During the year under review CRAR has increased to (+)92.58% from (+)50.29%,which is expected to

improve in the next financial year.

Opening of new Branch office at Guwahati to provide prompt and better service to the clients of the

Kamrup District.

New Appraisal Techniques using the ‘Herberger Model’ implemented from the year under review.

The Corporation also initiated few path breaking steps to streamline the operations under review. A few initiativesare highlighted below:

Strengthening of all BOs

All the 13 Branch offices of the Corporation have been strengthened by posting senior level officers as heads,increasing the number of employees and by delegating more power to the Branches in order to achieve promptand efficient service.

From Managing Director’s Desk

5

Promotion to staff

In order to motivate the work force and fill up the existing vacancies, a good number of officers and staff fromthe rank of Junior Assistants to Managers have been promoted to the next higher rank.

ISO certification

The Corporation in order to put in place a sound Quality Management System has opted for ISO 9001: 2000certification. The National Productivity Council (NPC) has been appointed as the consultant for the job and weare hopeful to receive the certification by August, 2008.

On-line computerization & Branch Networking

To bring about a qualitative as well as quantitative change in the operations of the Corporation, initiative hasbeen taken to link up all the Branch offices with the Head Office through on-line computerization network. AKolkata based consultant has been appointed for this work and the process is expected to be completed withinAugust, 2008. The head office and the branch offices of the Corporation have been provided with internetfacility for better MIS and better customer service.

Non-Fund Business Activities

The Corporation, in order to augment its revenue generation and provide some value based services to itsclients has started offering some fee based services like preparation of project reports, providing accounting &legal consultancy, acting as third party monitoring agency to monitor Govt. aided projects etc. and offeringgeneral Insurance services with a tie up with New India Assurance Co. Ltd.

Plans on the anvil for the coming financial year:

Introduction of ‘Know Your Customer’ Policy (KYC) and ‘Anti-money Laundering’(AML) Standards.

Implementation of Quality Management System (QMS).

Implementation of On-Line connectivity of all Branch Offices with the Head-Office.

Implementing term lending activity for microfinance under CMMFDF Scheme-2008.

Opening of second Branch office at Guwahati exclusively for New business(non- fund business activities)

and carrying out Micro financing business under CMMFDF Scheme-2008.

Enhancing the sanction & disbursement target for the FY 2008-09 to Rs. 4000.00 Lacs.

Further reduction of NPA accounts through OTS.

In the year 2008-09, the Corporation will concentrate to provide quality service to customer, intensify thecore business, improve in the systems and procedures, enhance recovery from loss assets, and improve thequality of loan portfolio. This will help to effectively reduce the CRAR and the Net NPA. Further the Corporationshall take advantage by targeting industries which are eligible for incentives under the new Industrial Policy(NEIIPP-2007).

The Corporation has been receiving support and guidance from all quarters in general and Government ofAssam and SIDBI in particular, and hope to receive continued support in the years to come to enable us toachieve our objectives.

(G.D.Tripathi,IAS)

MANAGING DIRECTOR

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7

7

PRINCIPAL

BANKERS

STATE BANK OF INDIAA.T.Road BranchGuwahati-781001

STATE BANK OF INDIADispur Branch

Guwahati-781006

PUNJAB NATIONAL BANKZoo Road BranchGuwahati-781005

BANK OF BARODAA.T.Road BranchGuwahati-781001

BOARD OF DIRECTORS(FY : 2007 – 2008)

Shri Abhijit BarooahChairman

Shri G.D. Tripathi, IASManaging Director

Shri R.C. Joshi, IASDirector

Shri Arindom Baruah, FCA (w.e.f. 09-12-2002 to

29-03-2008).

Shri D.K. Das Dy. General Manager, SIDBI

(w.e.f. 16-05-2005 to 31-07-2007).

Shri N.B. NarjareeGeneral Manager, SIDBI

Shri Rajkamal Bhuyan, FCAChartered Accountant(w.e.f. 29-03-2008)

Shri Vibhor SwaroopDy. General Manager, SIDBI

(w.e.f. 31-07-2007).

Shri S. Mukherjee, IASManaging Director(On charge)

(w.e.f. 05-06-2007 to 06-08-2007).

88

99

PRINCIPAL OFFICERS

SRI R. PHUKANManager ( Recovery & Legal)

SRI R.C.DUTTAManager (i/c Bongaigaon Branch Office)

SRI D.J. DASManager ( i/c Tezpur Branch Office)

SMTI. K.S. DASSManager ( Guwahati Branch Office)

SRI G.P. GUPTAManager (General Accounts)

SRI P.K.BORDOLOIManager ( i/c Silchar Branch Office)

SRI A.BHATTACHARYYAManager (Appraisal)

SRI F.AZADManager ( C&BP)

SRI J.DHADUMIAManager(i/c Jorhat Branch Office)

SRI G. C. LIKHARUDeputy General Manager

(i/c Guwahati Branch Office)

SRI D.K. BORADeputy General Manager

(General Accounts)

SRI M. SHARMADeputy General Manager

( Appraisal & C&BP)

SRI S.BARUAHManager (Administration)

ADDRESS OF OFFICESFY : 2007-08

Head Office Vittiya Bhavan Tel: 0361-2513448/2633658M.S.Road,Paltanbazar Email:[email protected] &Guwahati-781008.Assam. [email protected]

www.afconline.gov.in

Guwahati Branch Office The Dy.General ManagerVittiya Bhavan M.S.Road, Tel: 0361-2513448/2633658Paltanbazar, Guwahati-781008.Assam. Email:[email protected]

Jorhat Branch Office The Manager-in-ChargeMalow Ali(Near Telephone Exchange) Tel: 0376-2320462Jorhat-785001.Assam. Email: [email protected]

Tezpur Branch Office The Manager-in-ChargeSouth Hazarapar(Near Agriculture Colony) Tel: 03712-2206761Tezpur-784001.Assam. Email:[email protected]

Agartala Field Office The Asstt. Manager-in-ChargeColonel Chowmohani Tel: 0381-2324662Agartala-799001.Tripura-(West). Email:[email protected]

Imphal Field Office The Asstt.Manager-In-ChargeHotel Excellency Premises, Tel: 0385-2230906,2230907Sega Road (Airport Road) Email:[email protected].

Shillong Field Office The Asstt.Manager-In-ChargeUpper Lachaumiere Tel: 0364-2223343Shillong-793001.Meghalaya. Email:[email protected]

Silchar Branch Office The Asstt.Manager-In-ChargeAshram Road P.O.Vivekananda Road Tel: 03842-266914Silchar-788007.Assam. Email:[email protected]

Nagaon Branch Office The Asstt.Manager-In-ChargeR.K.B.Road , Christian Patty Tel: 03672-233830Nagaon-782001.Assam. Email:[email protected]

Bongaigaon Branch Office The Manager-In-ChargeMain Road , Barpara Tel: 03664-230478Bongaigaon-783380.Assam. Email:[email protected]

Tinsukia Branch Office The Asstt.Manager-In-ChargeNamghar Road, Bordoloi Nagar Tel: 0374-2339857Tinsukia-786125.Assam. Email:[email protected]

Dibrugarh Branch Office The Asstt.Manager-In-ChargeJiban Phukan Nagar Tel: 0373-2313601Chowkidingee, Dibrugarh-786001. Assam Email:[email protected]

Nalbari Branch Office The Asstt.Manager-In-Charge Tel: 03624-220593Hajo Road,Nalbari.Assam. Email:[email protected]

North Lakhimpur Field Office The Asstt.Manager-In-Charge Tel: 03752-222564A.B.Road, Ward No.12 Email:[email protected] Lakhimpur, Assam.

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NOTES :

01. Certified copies of the resolution appointing duly authorized representative by Companies etc. shouldreach Head Office of the Corporation at Guwahati not later than four (4) clear days before the date fixedfor the Annual General Meeting i.e. on or before 20th July, 2008.

02. Proxies should reach the Head office of the Corporation at Guwahati not later than seven(7) clear daysbefore the date fixed for the Annual General Meeting i.e. on or before 17th July, 2008.

03. List of Share holders of the Corporation will be available at the Head Office of the Corporation at Guwahati,at a price of Rs 5.00 per copy three weeks before the date fixed for the Annual General Meeting.

AFC/ADMN/AGM/54/2008-09 Date 03-07-2008

NOTICE is hereby given that the (54th) Annual General Meeting of the Shareholders of the Assam FinancialCorporation will be held on Friday, 25th July, 2008 at 11.30 am in the Head Office of the Corporation at VittiyaBhavan, Paltan Bazar, Guwahati-781 008 to transact the following business :

1 . To read and consider the Audited Balance Sheet and Profit & Loss Account, Profit &Loss AppropriationAccount and Cash flow statement of the Corporation for the year ended 31st March,2008 together withthe Auditors Report thereon and a Report of the Board of Directors on the working of the Corporationduring the FY 2007-2008.

2. To appoint Statutory Auditors of the Corporation for the FY 2008-2009.

3. To consider and approve Capitalisation of Govt. of Assam (Bond Fund) and Appropriation towardsaccumulated losses of the Corporation.

The Share Register of the Corporation will remain closed and registration of transfer suspended from the 16thJuly, 2008 to 25th July , 2008 both days inclusive.

NOTICE

Dated,Guwahati the 3rd July,2008 By Order of the Board

Managing Director


11

REPORT OF THEBOARD OF DIRECTORS

TO THE SHARE HOLDERS

Blank

Dear Shareholders,

The Board of Directors have the pleasure inpresenting the 54th Annual Report on the working ofthe Assam Financial Corporation together with theAudited Balance Sheet and Statement of Accountsfor the year ended 31st March, 2008 before the Share-holders on this auspicious day of the 54 th AnnualGeneral Meeting. Before proceeding further on theperformance of the Corporation, a brief account onthe economic scenario of the country vis-à-vis thestate is highlighted below.

I. MACRO ECONOMIC ENVIRONMENT

NATIONAL SCENARIO

Buoyancy in agriculture sector lifted India’seconomic growth to 9% in FY 2007-08 from theearlier projection of 8.7% (Advance Estimate). Theupward revision in the GDP growth rate is mainly onaccount of the revisions made in the estimatedproduction of agricultural crops by the Departmentof Agriculture and Co-operation. The agriculturalgrowth was revised to 4.5 per cent from advanceestimate of 2.6 per cent. At the same time, the growthrate for industry has been revised downwards from8.6 per cent to 8.1 per cent. The services sector’sgrowth has been marginally upped, at 10.7 per cent,from the advance estimate of 10.6 per cent. This isthe third year in a row, when the Indian economygrew at the rate of 9% and above. In 2005-06, theeconomy grew at 9.4% followed by 9.6% in 2006-07. On the whole, the period from 2003-04 to 2007-08 marks a five-year dream run unprecedented inIndia’s recorded economic history, with an annualaverage GDP growth rate of 8.8 per cent.

The sectors which showed growth rates of 5 per centor more, are ‘manufacturing’ (8.8 per cent),‘electricity, gas and water supply’ (6.3 per cent),‘construction’ (9.8 per cent), ‘trade, hotels, transportand communication’ (12.0 per cent), ‘financing,insurance, real estate and business services’ (11.8per cent), and ‘community, social and personalservices’ (7.3 per cent).

THE STATE ECONOMY : AN OVERVIEW

The State economy has started looking up. Duringthe Tenth Plan Period from 2002-2007 the annual

average growth rate of Gross State Domestic Product(GSDP) at constant (1999-2000) prices has shown agrowth of 5.75 percent. This is a significantimprovement over the 2.8 percent and 2.1 percentGSDP Growth rate of Assam during the Eighth andNinth Plan periods respectively. The growth rate ofAssam’s GSDP in real terms at constant prices was8.0 percent during the year. This was 7.6 percentduring 2006-07 and 6.0 percent in 2005-06. InAssam the GSDP growth rate has been increasingsteadily in the past few years and gap between thestate and national average is being reduced.

II. REVIEW OF OPERATIONS

GROWTH IN SANCTION ANDDISBURSEMENT

The financial year 2007-08 turned out to be asignificant year for the Corporation from the point ofimprovement in the performance in the key sectors.The Corporation could surpass the sanction anddisbursement achievement of the previous year.

The performance in the key sectors of sanction anddisbursement were remarkable in the year underreview. During the year the Corporation has received75 nos. of applications involving an amount of

REPORT OF THE BOARD OF DIRECTORSTO THE SHARE HOLDERS

Rs.2239.00Lacs as against 50 nos. of loanapplications involving an amount of Rs.485.38Lacsthe previous year.The Corporation has sanctionedan amount of Rs.546.40 Lacs to 58 nos.of applicantsas against 49 nos. of applications involving an amountof Rs.442.75Lacs in the previous year, showing anincrease in sanction of 23.41% over the previous

546.

40

87.5

0

442.

75

49.7

4

474.

48

179.

40

0.00

100.00

200.00

300.00

400.00

500.00

600.00

2005-2006 2006-2007 2007-2008YEAR

RS

IN L

AK

HS

SANCTION DISBURSEMENT

PERFORMANCE IN SANCTION AND DISBURSEMENT

14

year. Further, against the previous year’s loandisbursement figure of Rs.179.40 lacs, theCorporation could disburse an amount of Rs474.48lacs during the current year showing a growthof 164.48 % in disbursement over the previous.

With the carried over 4nos. of applications involvingan amount of Rs.56.83Lacs, the Corporation hasconsidered 79 nos. of loan applications involvingan amount of Rs.2295.83Lacs and cleared 58nos. ofapplications by sanctioning an amount of Rs. 546.40Lacs.

RECOVERY

The Corporation offered One Time settlementPackage under the OTS-2007 scheme to borrowersso that deserving cases were settled. OTS was allowedwherever possible under the new OTS-2007 scheme.The total recovery for the FY 2007-08 was Rs.841.33 Lacs as against Rs. 1032.65 Lacs in theprevious year. The Corporation proposes to gear upthe recovery during the next financial year by giving

recovered Rs. 332.79 Lacs as interest during the FY2007-08 as against the previous receipt of Rs. 540.95Lacs thereby showing a reduction of 38.48%. Thereduction in the interest recovery during the year isbecause of a number of settlement/waival of interestof bad & doubtful/loss accounts.

NET PROFIT :

The Corporation could also post a healthy net profit

more thrust on one time settlement, focusing onaccounts under doubtful category of more than threeyears and loss cases pending for a long time.

The total principal recovery of Rs. 508.54 Lacs madeduring the FY 2007-08 is about 3.42% more thanthe previous year i.e. Rs. 491.70 Lacs. This isattributed to the timely receipt from the regular (nodefault) units and also increase in the payment ofprincipal from the settlement of loan accounts.

The Corporation during the year under review has

of Rs.605.22 Lacs (after tax)in the year 2007-08,after making additional income tax provision forprevious years and provision towards retirementbenefits of the retired employees of the Corporation.

SECTOR WISE ASSISTANCE:

During the year under review the Corporation hassanctioned Rs.186.90 Lacs to 33nos.of units in SSIsector and Rs.359.50 Lacs to 25 nos.of units in sectorother than SSI.The Corporation disbursed an amount

of Rs.178.72 Lacs to SSI sector and Rs.295.76 Lacs toother than SSI sector during the year under review.

-1830.76

41.1

605.22

-2000

-1500

-1000

-500

0

500

1000

2005-2006 2006-2007 2007-2008

YEAR

RS

IN L

AK

HS

NET PROFIT AFTER TAX

NET PROFIT AFTER TAX

68

253.

45

186.

9

189.

3

359.

5

19.5

442.

75

546.

4

87.5

0

100

200

300

400

500

600

2005-2006 2006-2007 2007-2008YEAR

RS

IN L

AK

HS

SMALL SCALE OTHERS TOTAL

SECTOR WISE LOAN ASSISTANCE

RECOVERY PERFORMANCE

300.

93

148.

83

152.

10

1032

.65

491.

70

540.

95

841.

33

332.

79508.

54

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

PRINCIPAL INTEREST TOTAL

RECOVERY

RS

IN

LAK

HS

2005-2006 2006-2007 2007-2008

15

A Modern Offset Printing Press financed by the Corporation at Imphal

An inside view of a Nursing Home financed by the Corporation at Jorhat

16

RESOURCES

The Corporation’s resource base mainly comprisesof recovery. During the year the Corporation didnot avail refinance from SIDBI and also did not raiseany bond.

The Corporation has cleared the entire refinanceliabilities of SIDBI by clearing the last instalment ofrefinance liability amounting to Rs. 508.84 Lacsunder the One Time Settlement Package during theyear under review. The Corporation has alreadycleared bond liabilities of various Bondholders undersettlement package out of the fund of Rs. 7425.51Lacs received from the Govt. of Assam. The totalamount of Rs. 6974.59 Lacs was repaid under thishead in the previous year. However, an amount ofRs. 450.92 Lacs remained to be disbursed to NationalAirport Authority Provident Fund Trust during theyear under review.

INCOME AND EXPENDITURE

The business income of the Corporation comprisinginterest on loans and advances and other incomeduring the year stood at Rs. 439.24 Lacs againstprevious year’s amount of Rs. 823.20 Lacs. Thedecline in income during FY2007-08 in comparisonto FY 2006-07 may be attributed to the fact that inFY 2006-07,a substantial amount of interest onloans was adjusted from pending sundrydeposit(borrowers)account which were recoveredprior to FY 2006-07 under one time settlement/negotiated settlement.

CAPITAL ADEQUACY

Capital to Risk Weighted Asset Ratio stood at 92.58 %as on 31.03.2008 against 50.29 % as on 31.03.2007.

ASSET QUALITY AND REDUCTION IN NPAs

The Standard Assets have gone up substantially fromRs.233.09 Lacs as on 31.03.2007 to Rs.703.90Lacsas on 31.03.2008,while the NPA accounts havedeclined. The sub-standard Assets were broughtdown from Rs.29.14 Lacs as on 31.03.2007 toRs.22.32 Lacs as on 31.03.2008. The assets underthe Doubtful category also reduced considerablyfrom Rs. 1668.90 Lacs as on 31.03.2007 toRs.1207.05 Lacs as on 31.03.2008. Further the LossAssets were brought down from Rs.2192.89 Lacs ason 31.03.2007 to Rs.1522.44 Lacs as on 31.03.2008.

-55.82%

50.29%

92.58%

-80.00%-60.00%-40.00%-20.00%

0.00%20.00%40.00%60.00%80.00%

100.00%

2005-2006 2006-2007 2007-2008

YEAR

RA

TIO

CAPITAL ADEQUACY RATIO

CAPITAL TO RISK WEIGHTED ASSET RATIO

66.6

5

4900

.75

4834

.1

233.

09 4124

.02

3890

.93

703.

9

3455

.71

2751

.81

0

1000

2000

3000

4000

5000

6000

STANDARDASSET

NPA TOTAL

ASSETS

RS

IN L

AK

HS

2005-2006 2006-2007 2007-2008

ASSET QUALITY

The gross NPA of 94.35% during the FY2006-07have been reduced to 79.63% during the FY 2007-08 and the Net NPA has been brought down from10.11% to 2.77% during the financial year underreview.

The Corporation could bring down the NPAssubstantially by implementing constant persuasionand collection. Provision against loans & advancesclassified as standard and Non-Performing Assets, ismade in accordance with the guidelines on assetclassification and provisioning prescribed for StateFinancial Corporations by SIDBI for the year.

III. FINANCIAL PERFORMANCE

17

Asset Quality FY 2006-2007 FY 2007-2008

1. Standard Asset Rs. 233.09 Lacs Rs. 703.90 Lacs

2. Sub-Standard Asset Rs. 29.14 Lacs Rs . 22.32 Lacs

3. Doubtful Assets Rs. 1668.90 Lacs Rs. 1207.05 Lacs

4. Loss Assets Rs. 2192.89 Lacs Rs 1522.44 Lacs

TOTAL Rs. 4124.02 Lacs Rs 3455.71 Lacs

The comparative position of Asset Quality betweenFY 2006-2007 and FY 2007-2008

TREASURY OPERATIONS

The Corporation has made a modest beginning in thearea of treasury management during the year underreview. The Corporation has managed funds byinvestment of surplus funds in STDR with Banks andLiquid Plus Fund with UTI.

PLANTATION DEVELOPMENT FUND

The Governor of Assam in exercise of powerconferred by sub-section (3) of section 8 of the AssamAgricultural Income Tax Act,1939 has introducedthe Plantation Development Fund, Assam, Finance(Taxation) Department Notification No. FTX/20/94/79 dated 17th. November, 1994.

The total amount received by the Corporation againstthe scheme is Rs.176.25Lacs from 13(Thirteen)companies and an amount of Rs.172.95Lacs havebeen withdrawn upto 31st March,2008.

AUDIT COMMITTEE

The Audit Committee constituted with non-executive professional directors of the Corporation,has reviewed various aspects and gave its suggestionsin respect of performance in key result areas, internalaudit reports, accounting policies, financialstatements including P & L account and Balance Sheet.The Committee met once during the year 2007-08.

HUMAN RESOURCE DEVELOPMENT

The financial year 2007-08 was an eventful year forthe Corporation. During the financial year underreview almost all the officers and staff of thecorporation were imparted various need based

training both in and outside the state for their capacitybuilding. During the period a total of 20 trainingprogrammes were conducted comprising of both in-house and in various reputed institutes of the countrycovering various subjects. One of such trainings onProject Appraisal helped the Corporation toimplement the new appraisal technique usingHerberger’s model. Few of the noteworthy trainings

imparted to officers and staff of the corporation are –

State Govt. sponsored in- house training on

Financial Investment Appraisal conducted byDr. DNS Dhakal, Visiting Professor of Duke University,Durham, USA.

DONER sponsored training on various aspects

of Industrial development at NIMSME, Hyderabad.

A participant receiving certificate of appreciation on successfulcompletion of the training programme on ‘Financial InvestmentAppraisal’ from Sri H.S. Das, IAS, Principal Secretary, Finance,

Govt. of Assam.

18

SIDBI sponsored training on Legal aspects,

NPA Management, Risk Management,Asset Valuation conducted by APSFC, Hyderabad.

NIC sponsored training programme on basics

of Computer application at the training institute ofNIC at Guwahati.

MAN-POWER

The staff strength as on 31.03.2008 was 169comprising of MBAs, LLBs, Engineers, Graduates andPost Graduates. During the year under review, twoemployees retired and one employee expired.

BRANCH NETWORK

During the year under review a new branch officeheaded by Deputy General Manager was opened inGuwahati and three branch offices namely Silchar,Bongaigaon and Tezpur have been upgraded, manned

SHARE HOLDING PATTERN

(Rupees in lakhs)

58.43%

4.50%

1.88%

33.08%

0.72%

1.05%

0.15%

0.19%

Sl No. Shareholders Share Capital Special Share Total % of holding

Capital

1 Govt. of Assam 674.74 110.00 784.74 58.43%

2 Govt. of Tripura 60.45 0.00 60.45 4.50%

3 Govt. of Manipur 25.28 0.00 25.28 1.88%

4 SIDBI 334.18 110.00 444.18 33.08%

5 LIC of India 9.60 0.00 9.60 0.72%

6 Scheduled Banks 14.15 0.00 14.15 1.05%

7 Co-operatives Banks 2.00 0.00 2.00 0.15%

8 Others including individual 2.57 0.00 2.57 0.19%

Total 1122.97 220.00 1342.97 100.00%

by Manager level officers as Branch Head forproviding better customer service. To facilitate theprocess of decentralization, all loan ledgers, loan fileshave been transferred to respective branch officeswith adequate delegation of power to the respectivebranch incharge.

COMPLIANCE TO RIGHT TO INFORMATION ACT., 2005

The Corporation published the Information HandBook as required under Section 4(i) of the Right toInformation Act, 2005, and designated PIOs, APIOsand the Appellate Authority in each of its Branch/Field Offices including Head Office, Guwahati.

The Corporation has received 6 Nos of applicationsup to March, 2008 seeking information on variousaspects and all the applications have been disposedoff.

Govt. of Assam

Govt. of Tripura

Govt. of Manipur

SIDBI

LIC of India

Scheduled Banks

Co-operatives Banks

Others includingindividual

19

BOARD OF DIRECTORS

CHAIRMAN

Sri Abhijit Barooah continued as the non- executiveChairman of the Corporation for the second year insuccession after his tenure was extended by SIDBIon 05-09-2007.

MANAGING DIRECTOR

Sri G.D. Tripathi, IAS, has been functioning as theManaging Director of the Corporation since 31-07-2006.

DIRECTORS

During the year under review the Board of Directorsof the Corporation transacted business with 6(six)Directors including Chairman and ManagingDirector. Sri R.C. Joshi, IAS, Director of Industriesand Commerce and Sri Arindom Barua, FCA,represented Govt. of Assam and Sri N.B. Narjaree,GM, SIDBI and Sri D.K. Das, Dy. GM, SIDBI,represented SIDBI in the Board of Assam FinancialCorporation. However, there were few changes in theBoard of Directors during the FY 2007-08. ShriVibhor Swaroop, Dy. General Manager, SIDBI,Guwahati was nominated by SIDBI to representSIDBI in the Board of AFC as Director vice ShriD.K.Das, Dy. General Manager, SIDBI,Guwahati whoceased to be a Director of AFC. Shri R.K. Bhuyan,FCA, Guwahati was nominated by the Governmentof Assam in the Board of AFC as Director vice ShriA.Baruah,FCA,Guwahati who ceased to be a Directorof AFC.

The Board places on record its appreciation for thevaluable services rendered by the outgoingDirectors.

BOARD MEETING

During the year 2007-08, there were 8 nos. of sittingsof the Board of Directors to transact various businessof the Corporation.

NON FUND BUSINESS ACTIVITIES

The Corporation, in order to augment its revenuegeneration and provide some value based servicesto its clients has started offering some fee basedservices like preparation of project reports,providing accounting & legal consultancy, acting asthird party monitoring agency to monitor Govt. aidedprojects etc. and offering general Insurance serviceswith a tie up with New India Assurance Co.Ltd.

FUTURE OUTLOOK

The Corporation’s primary focus in 2008-09 wouldbe to enhance its operational activities and to workclosely with the customers, recognizing theirenhanced business needs in tandem with the pace ofgrowth in industry and to evolve an effective userfriendly strategy to deal with the intensifiedcompetition in SME funding. The Corporation, in itspursuit towards progress and success, has setchallenging targets for its main operational portfolioof sanction, disbursement and recovery for the FY2008-09.

The Corporation, with its rich experience andinspired workforce is well geared up to achieve thetargets set in. The Corporation has set a target tosanction and disburse a minimum of Rs 40.00 crs. toenhance the asset base of the Corporation. Inaddition, the Microfinance scheme under the ChiefMinister’s Micro Finance Development Facility,CMMFDF Scheme – 2008 is proposed to be set inmotion. The State Govt. has set aside an amount of Rs10.00 crs for this purpose. This amount is to beprovided to AFC as an interest free loan for providingrefinance credit to reputed Microfinance FinancialInstitutes (MFIs) and Non GovernmentalOrganisations (NGOs) for onward lending to Self HelpGroups (SHGs) to develop the SHG movement in theState of Assam.

20

The generation of business through Non FundBusiness activities is to be streamlined in the nextyear to achieve a challenging target. It is hearteningto inform you that the Govt. of Assam, appreciatingthe performance of the Corporation in the last coupleof years, has agreed to provide an equity support ofRs 5.00 crs for the FY2008-09. Again, theCorporation has taken up with SIDBI for providingadequate refinance assistance to the Corporation,which is under their active consideration. TheCorporation proposes to transact its business in theFY: 2008-09 with active support of Government ofAssam, SIDBI and out of fund to be generated by wayof recovery of loans and non-fund based activities.

STATUTORY & AG AUDIT

In terms of Section 37(i) of the SFCs(Amended)Act,2000,the RBI has recommended M/s N.R.&Associates, Chartered Accountants, MaligaonChariali,Guwahati-11 as Statutory Auditor of theCorporation for FY 2007-08.Accordingly,shareholders of the Corporation in its General Meeting heldon 31.07.2007 appointed the above firm asStatutory Auditor for the FY 2007-08.The Auditorshave audited the accounts of the Corporation for theyear under review and have also furnished theAuditor’s Report with observations on accounts tothe shareholders of the Corporation. The auditedstatement of Accounts along with Auditor’s Reportand observations together with the Corporation’sreply thereon have also been published in theAccounts part of this report.

The accounts and other affairs of the Corporationhave also been audited by the Office of theAccountant General, Assam, upto the financial year2005-2006 in terms of Section 37(6) of the SFCsAct,1951, as amended.

CORPORATE GOVERNANCE

The Board of Assam Financial Corporation consistsof a healthy mix of professional Directors withbackground in banking and industry. Severalpolicies, guidelines and direction laid down by theBoard during the year yielded desired results for theCorporation. I place on record my gratitude to mycolleagues on the Board for extending their time and

knowledge in effectively carrying out the proceedingsof the Board.

The Board is committed to continue its goodcorporate practices of higher level of transparency,integrity, honesty, accountability and responsibility.

ACKNOWLEDGEMENT

The Board of Directors wish to place on record itsheartfelt thanks to the Govt.of Assam for theinvaluable and continuous support- both financialand otherwise, for restructuring the Corporation andenabling it to make a noteworthy turnaround. Therole played by the Finance Department, Govt. ofAssam deserves special mention. It alsoacknowledges the support extended by the Govt. ofManipur, Meghalaya and Tripura during the yearunder review.

The Board of Directors also offers its special thanksto SIDBI for the guidance and support in enablingthe Corporation to clear the refinance liabilities bothwith SIDBI and IDBI. The Corporation would also liketo place on record its indebtedness to IDBI, RBI, LICI,State and National level Financial and DevelopmentInstitutions, Directorate of Industries andCommerce, Department of Public Enterprises,Govtof Assam for their support.

The Board expresses its profound gratitude to theshareholders of the Corporation for their unstintedfaith reposed in the Corporation.

The Board extends sincere thanks to the valuedcustomers, for their tremendous confidence reposedin the Corporation in achieving improvedperformance in all the key portfolios.

Last, but not the least, the Board would like to thankall the Officers and Staff of the Corporation for theirdedicated service and team spirit , which resulted inachieving commendable performance in the year2007-08.

For and on behalf of the Board

Place: Guwahati

Date: 25-07-2008.

(Abhijit Barooah)

Chairman

21

M/S VALERY ENTERPRISE, GUWAHATI

There are examples galore of people doing somethingextraordinary, even though coming from a humblebackground. One such example is the story of Smti.Koushalya Basumatari, a 47 year old ladyentrepreneur of Guwahati, who with dint of her hardwork and creativity has created a niche for herself inthe field of making decorative items out of naturalresources.

From her childhood, Smti. Basumatari was attractedto making items out of roots of trees and plants,coconut shells etc. She is a self taught artist and hasreceived no formal training and has developedan unique style of her own. Gradually, her passionencouraged her to develop her creative art into abusiness venture. She started attending variousexhibition to promote her products and during onesuch occasion she could impress our erstwhileManaging Director, Sri U.Sharma with her products.Sri Sharma encouraged her to expand her businessand sanctioned a loan of Rs 1.00 lakhs to increaseproduction. With the financial support provided bythe Corporation, Smti. Basumatari could expand herbusiness.

SUCCESS STORIES

With the new found enthusiasm, she attended varioustrade fairs and exhibitions in various parts of Assam,Haryana, Kolkata,Mumbai etc. where her productssold instantly and received lots of appreciation fromdomestic as well as foreign visitors. Her products nowdons the premises of prominent personalities of ourcountry and has also reached the shores of USA, UK,Germany, Japan, Australia etc.

In the year 2007, Smti. Basumatari approached theCorporation for an additional loan for constructionof a factory building to broad base her activities. TheCorporation once again sanctioned Rs 3.00 lakhs toher for the said purpose. It is worthwhile to mentionthat in spite of her hectic schedule she has beenrepaying the loan regularly which is again a hallmarkof a successful entrepreneur. We wish her all successin life.

The promoter busy in her workshop

A product from the unit M/s. Valery Enterprise

22

M/S BAJAJ AUTOMOBILES, GUWAHATI

The association of Sri SK Bajaj with AFC started in avery humble manner way back in the early 80’s whenhe approached the Corporation for a loan of Rs0.80lakhs to buy a mini truck to be utilized in acommercial venture. The loan was sanctioned andSri Bajaj ran his small transport businesssuccessfully. His association with the automobileindustry grew along with his business.

In 1987 Sri Bajaj was awarded a letter of Intent byMaruti Udyog Limited to operate a MarutiAuthorised Service Station (MASS) at Ganeshguri,Guwahati. Once again, Assam Financial Corporationwas there to finance a part of the project andextended a credit limit of Rs 2.65 lakhs. This loanwas also repaid in time. By dint of his hard work andsincerity Sri Bajaj received several awards fromMaruti Udyog Limited for quality performance andexcellence(last 5 years in a row) and today hisauthorized service station is counted as one of theleading MASS of the entire North Eastern region.

With the boom in theautomobile sector which isgrowing by leaps and bounds,the existing set up of M/s BajajAutomobile has becomeinadequate. In order to expandhis business, he has planned asecond unit at Sarusajai,Guwahati at an estimatedproject cost of Rs 46.00 lakhsand has again approached

Sri S.K. BajajProp. M/s. Bajaj Automobiles

Assam Financial Corporation for financialaccommodation and the Corporation, in turn, haswelcomed him.

In his own words, Sri Bajaj says that he has come upthe hard way and has become successful in life butAFC and its band of dedicated officers deserves equalcredit. He describes AFC in his own humble way as:

“MIND AND BODY,HEART AND SOUL, AFC HAIRATNA ANMOL”

Inside view of the Workshop

23

ANNUAL ACCOUNTSFY. 2007-2008

Blank

ToThe Shareholders of Date :12.06.2008Assam Financial CorporationGuwahati – 781 008

1 . We have audited the attached Balance Sheet of ASSAM FINANCIAL CORPORATION, Guwahati as at March31, 2008 and the Profit & Loss Account for the year ended on that date annexed thereto, in which areincorporated the Returns of 1 Branch Office audited by us and 8 Branch & 4 Field Offices not audited atbranch and field level. 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.

2. We have 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 whetherthe financial statements are free of material misstatement. An audit includes examining on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by the management as well asevaluating the overall financial statement presentation. We believe that our audit provides a reasonablebasis for our opinion.

3. The Balance Sheet, the Profit & Loss Account and the Profit & Loss Appropriation Account - Sch-B1 havebeen drawn up as per Schedule A and B of the General Rules and Regulations of the Corporation to theextent possible.

4. We are unable to determine and express the aggregate impact on the profit for the year as well as theaccumulated losses as on the end of the year and / or on various components of assets and liabilitiesconsequent to the effect of the following Accounting Policies and Notes on Accounts as elaborated inSchedule “N” and “O”, which may possibly be material, though not presently ascertained in some cases:

a) Non provision against suspense balance ( Refer Notes on Accounts – Item 17 )

b) Non adjustment of Sundry Deposits Accounts of some of the Borrowers

( Refer Schedule “D” : Current Liabilities, item 2 )

c) Non provision of liability on account of Leave Encashment Benefit

( Refer item 12 – Schedule “N” : accounting policies )

AUDITORS’ REPORT

26

5. Subject to the limitations of the audit as indicated in Para 1 above and as required by the State FinancialCorporation Act, 1951 and also subject to the limitations of disclosures required therein as well as ourobservations as above read together with the Accounting Policies and Notes on Accounts in Schedule “N”& “O”, we report that :

a) In our opinion and to the best of our information and according to the Explanations given to us and asshown by the books of accounts of the Corporation :

i) The Balance Sheet is a full and fair Balance Sheet containing the necessary particulars andis properly drawn up so as to exhibit a true and fair view of the state of affairs of the Corporation as at 31st

March, 2008.

ii) The Profit & Loss account and the Profit & Loss Appropriation Account show a true balance ofprofit for the year ended on 31st March, 2008.

b) We obtained all the information and explanations, which to the best of our knowledge and belief werenecessary for our audit and have found them to be satisfactory.

c) The Returns received from the Branch and Field Offices of the Corporation, although unaudited, havebeen found adequate for the purpose of our audit.

For N.R. & ASSOCIATESCHARTERED ACCOUNTANTS

( N.R. CHAKRABARTY)Partner

Place : Guwahati.Date : 12th June, 2008

27

Statutory Auditor’s observation in the report Comment of the Corporation

4 (a) Non provision against suspense balance (Refer Notes on Accounts-Item 17)

4 (b) Non adjustment of Sundry Deposits Account of Some of the borrowers(Refer Schedule ‘D’: Current Liabilities,Item 2)

4 (c) Non Provision of liability on account of Leave Encashment Benefit(Refer item 12-Schedule

‘N’:Accounting Policies)

COMMENTS OF THE CORPORATION ON THE OBSERVATION MADE BY THE

STATUTORY AUDITOR FOR THE FY 2007-08


Necessary provision for meeting leaveencashment liability would be made in theFY 2008-09.

No Provision is considered as theCorporation has been realizing thedefalcated amount under SuspenseAccount. An amount of Rs.15,300.00 hasalready been realized from one delinquentemployee. The recovery from the otherdelinquent employee is pending due to thematter being subjudice.

During the current FY an amount ofRs. 108.79 Lacs has been adjusted. Asmall amount of Rs.15.66 Lacs is leftwh ich wi ll be neu tralised within t heFY 20 0 8-0 9 .

28

ASSAM FINANCIAL CORPORATIONBALANCE SHEET AS AT 31ST MARCH, 2008

Capital and Liabilities : Schedule 2008 2007

Share Capital A 134296900 134296900

Reserves and Surplus B 72661301 774462676

Borrowings C 40000000 107846081

Current Liabilities & Provisions D 12729745 18781384

Deposit under PDFS - 1994 549435 1790989

TOTAL 260237381 1037178030

Property and Assets : 2008 2007

Cash and Bank Balances E 58825066 115589185

Investments F 66000 66000

Loans & Advances (Net of NPA provision) G 72398703 25935953

Fixed Assets H 11514429 10023178

Current Assets & Other Assets I 15746472 21553446

Profit & Loss Appropriation Account B1 101686711 864010268

TOTAL 260237381 1037178030

Accounting Policies NNotes on Accounts O

Note : The Schedules referred to above form an integral part of the Balance Sheet. In terms of our separate report of even date.

(Rupees)

Place : GuwahatiDate : 12th June, 2008

(A.Barooah)Chairman

( G.D.Tripathi,IAS )Managing Director

CA N.R.ChakrabartyPartner

For and on behalf of the Board of Directors For N.R. & AssociatesChartered Accountants.

29

ASSAM FINANCIAL CORPORATIONPROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2008

The Schedules referred to above form an integral part of the Profit and Loss AccountIn terms of our separate report of even date.

Schedules 2007-2008 2006-2007

Income :

Interest on Loans & Advances 33279259 74298933

Other Income J 10644845 8021273

Waiver of Borrowed Money - SIDBI/IDBI 16961865 24606039

Grant received from Govt of Assam towards

reimbursement of Training Expenses 201660 0

TOTAL : 61087629 106926245

Expenditure :

Interest and other Financial Expenses K 0 45548997

Personnel Expenses L 34835939 27091501

Administrative Expenses M 4450751 3833912

Depreciation H 1337745 799384

Provision for Bad & Doubtful Debts 0 25542000

Provisions for retirement benefits of employees 1829659

Waival of loan 3768596 0

TOTAL 46222690 102815794

Operating Profit 14864939 4110451

Add :

Provision on NPAs written back 51926735 0

Profit before Tax 66791674 4110451

Less :

Provision For Taxes :

(a) MAT 245514 0

(b) Income Tax (MAT) for earlier years 6023978 0

(c) Fringe Benefit Tax (FBT) 0 0

TOTAL : 6269492 0

Profit after Tax carried to P&L Appropriation a/c B1 60522182 4110451

(Rupees)


(A.Barooah)Chairman



For N. R. & AssociatesChartered Accountants

For and on behalf of the Board of Directors

30

Share Capital : As at 31.03.2008 As at 31.03.2007

Authorised :20,00,000 Shares of Rs 100/-each 200000000 200000000

Issued, Subscribed and Paid up :a) 11,22,969 Shares of Rs 100/- each issued under Section 6(i) of the State Financial Corporations Act, 1951 112296900 112296900

b) 2,20,000 Shares of Rs 100/- each issued under Section 4A(1) of the State Financial Corporations Act, 1951 as Special Class of Shares 22000000 22000000

TOTAL 134296900 134296900

Schedule B (Rupees)

Reserves and Surlpus As at 31.03.2008 As at 31.03.2007

a) Reserve Fund (under Sec.35 of SFCs Act,1951) 0 4143159b) Special Reserve Fund (u/s. 35A of the SFCs Act,1951) 2295000 2295000c) Reserve (U/s.36(1)(viii) of the I.T. Act,1961) 25273699 25273699d) Bond Redemption Reserve 0 200000e) Capital Reserve 45092602 742550818

TOTAL 72661301 774462676

Schedule A(Rupees)


31

Schedule B1 (Rupees)

Profit and Loss Appropriation Account As at 31.03.2008 As at 31.03.2007

Loss brought forward from Previous Balance Sheet 864010268 862856200Add Prior period adjustment 0 5264519Balance 864010268 868120719Less: Net Profit carried from Profit & Loss Account 60522182 4110451Govt of Assam (Bond Fund) - beingCapital Reserve (Sec.43 of SFC’s Act,1951) 697458216 0Reserve Fund (Under Sec 35 of the SFC’s Act, 1951) 4143159 0Bond Redemption Reserve 200000 0Balance carried to Balance Sheet 101686711 864010268

Schedule C (Rupees)

Borrowings As at 31.03.2008 As at 31.03.2007

Bonds :

11.50% Bonds, 50,000 Bonds of Rs. 100/-each redeemable in 2010 A.D. 5000000 500000012.30% Bonds, 1,75,000 Bonds of Rs. 100/-each redeemable in 2007 A.D. 17500000 1750000012.30% Bonds, 1,75,000 Bonds of Rs. 100/-each redeemable in 2008 A.D. 17500000 17500000

40000000 40000000Refinance from SIDBI :

Head Office 0 62316794Agartala Branch 0 1741190Shillong Branch 0 2647550Imphal Branch 0 1140547

TOTAL 40000000 107846081


32

As at 31.03.2008 As at 31.03.2007

Current Liabilities & Provisionsa. Current Liabilities:1. Unclaimed Dividends 101293 1012932. Sundry Deposit Sundry Deposit (Party) 1566484 4521378 Sundry Deposit (General) 0 4124573 Sundry Deposit (RO/BO) 0 37995773. Interest Suspense Account 56967 56967 Sundry Deposit ‘SC’ Account 35356 35356 Sundry Deposit ‘M’ Account 651019 6510194. IDBI (For NEITCO Share) 44000 440005. Interest Tax Account 1870722 17275296. Subvention 0 3532914

b. Provisions :

1. Contingent Provision against Standard Assets 175975 580002. Provision for MAT 2455143. Provision for Income Tax (MAT) for ealier years 60239784. Provision for Retirement benefits of employees 18296595. Decree Purchased 128778 128778

TOTAL 12729745 18781384

Schedule D (Rupees)

As at 31.03.2008 As at 31.03.2007

Cash and Bank Balances

a. Cash in hand 1094975 1237373 Cheques in hand 231742 0b. Remittances in Transit 0 0c. Balances with Banks : i) Reserve Bank of India 0 176672 ii) SBI & Other Scheduled banks Corporation’s Fund 18887300 25905418 Agency Fund 686376 686376 Plantation Development Fund Scheme, 1994 13084 5677 iii) Fixed Deposits with Banks Corporation’s Fund 37375238 85792357 Plantation Development Fund Scheme, 1994 536351 1785312

TOTAL 58825066 115589185

Schedule E (Rupees)


33

Schedule F (Rupees)

As at 31.03.2008 As at 31.03.2007

Investment (at Cost)

Investment in Shares of NEITCO 66 Nos Equity Shares of Rs. 1000/- each fully patd 66000 66000

TOTAL: 66000 66000

As at 31.03.2008 As at 31.03.2007

Loans and AdvancesHead Office 0 297468005Guwahati Branch Office 129495181 0Tinsukia Branch Office 16105552 6992388Tezpur Branch Office 22516324 18820596Bongaigaon Branch Office 16847346 11610253Nalbari Branch Office 22035311 4335080Shillong Branch Office 4533336 3846183Silchar Branch Office 15044937 12595886Agartala Branch Office 6275586 3927459Imphal Branch Office 11081698 5613557Dibrugarh Branch Office 17707120 8863963Jorhat Branch Ofice 48367365 31509612Nagaon Branch Office 21300886 6822971North Lakhimpur Branch Office 14259989 0

345570632 412405953Less : Provision against Non-Performing Assets : 386528000Less : Prudential write offto Shadow Ledger : 61253361Recovery made from 386470000earlier years provisions : 51926735Contingent Provision for Standard Assets : 175975 113356071 273171929

TOTAL 72398703 25935953

Schedule G (Rupees)


34

35

SCHEDULE ‘H’: FIXED ASSETS (Rupees)


940483810023178146093287993841380994424632506089783151989323214782Previous Year

10023178115144291594707313377451460932827461502725183805399166824632506Total

429735449039162347949079157440020725187251465854450200413510%Furniture & Fixture9

386870785632153130264835088295223169340706797340315126982260%Computer8

592227959162134997697419125255723091380164789299565184478410%Office Equipment7

41738375649766641749349213523000013523010%Fire Extinguisher6

1683211514895404961683252366469198500069198510%Electric Goods5

4802340820319811720331260836063100036063115%AC4

40645051404291495690713824243142899800198305123069315%Motor & Bicycle3

3664814429168195693874239759145412138610680951809990331281022610%Building2

42850004285000000428500000042850000%Land1

01-10-07 to

31.3.2008Upto

30.09.07As at

01.04.2007As at

31.03.2007As at

31.03.2008Upto

31.03.2008

Depreciat-ion for the year 2007.08

Upto31.03.2007

Total as on 31.03.2008

Sales during

the year

Additions

Net ValueDEPRECIATIONGROSS BLOCK

Rate of depreciationParticulars

slno

940483810023178146093287993841380994424632506089783151989323214782Previous Year

10023178115144291594707313377451460932827461502725183805399166824632506Total

429735449039162347949079157440020725187251465854450200413510%Furniture & Fixture9

386870785632153130264835088295223169340706797340315126982260%Computer8

592227959162134997697419125255723091380164789299565184478410%Office Equipment7

41738375649766641749349213523000013523010%Fire Extinguisher6

1683211514895404961683252366469198500069198510%Electric Goods5

4802340820319811720331260836063100036063115%AC4

40645051404291495690713824243142899800198305123069315%Motor & Bicycle3

3664814429168195693874239759145412138610680951809990331281022610%Building2

42850004285000000428500000042850000%Land1

01-10-07 to

31.3.2008Upto

30.09.07As at

01.04.2007As at

31.03.2007As at

31.03.2008Upto

31.03.2008

Depreciat-ion for the year 2007.08

Upto31.03.2007

Total as on 31.03.2008

Sales during

the year

Additions

Net ValueDEPRECIATIONGROSS BLOCK

Rate of depreciationParticulars

slno

SCHEDULE I(Rupees)


As at 31.03.2008 As at 31.03.2007

Current AssetAdvance to Employees : a. For Construction of Building 9655546 10976970 b. For Purchase of Conveyance 2055119 2851985 c. Temporary Cash Advance 0 8053 d. Against Medical Treatment 203500 254175 e. For Purchase of Computer 164165 130440Sub total A 12078330 14221623 Advance to Employees for Expenses : a. General Advance 522882 258538 b. Legal Advance 0 5569 c. Interim Relief Advance 0 804590 d. Festival Advance 1500 3500Sub total B 524382 1072197 Suspense Account 76532 82532Stationery & Stroes 144195 0Decree Purchased 128778 128778Income Tax Refund Receivable 0 26673Security Deposit with ASEB 16312 14362Advance Payment of Income Tax 1943465 1639888Dividend Deficit Account 834479 4367393Sub total C 3143761 6259626 TOTAL (A+B+C) 15746472 21553446

36

SCHEDULE J(Rupees)

As at 31.03.2008 As at 31.03.2007

Other Income :Service charges 401279 181160Sale of Loan Application Forms 39200 5440Other Receipts 953532 1294049Interest on Bank Deposits 8461676 6047108Interest on Income Tax Refund 17323 0Interest on Staff Advances 321835 493516Rent received, Forfeiture of EMDs & Others 450000 0 TOTAL 10644845 8021273

SCHEDULE K

As at 31.03.2008 As at 31.03.2007Interest and other Financial Expenses :

Interest on Borrowings from SIDBI 0 0Interest on Bonds 0 45548997Interest on borrowings from Banks & Others 0 0 TOTAL 0 45548997 SCHEDULE L

As at 31.03.2008 As at 31.03.2007

Personnel Expenses :Salaries and Allowances: a. Managing Director 0 163955 b. Staff & Others 30461710 26094224Medical Expenses : a. Managing director 0 4360 b. Staff & Others 28903 0Contibution to Pension - MD 0 11944Gratuity (including contribution to Group Gratuity Scheme) 3869495 735024Remuneration & Wages 229096 77144Staff Training Expenses 246736 4850 TOTAL 34835939 27091501


37

SCHEDULE M (Rupees)

As at 31.03.2008 As at 31.03.2007

Administrative Expenses

Travelling Expenses :

i) Managing Director 6220 54158 ii) Directors 0 0 iii) Staff & Others 1036783 638046Sitting Fees to Directors & Committee Members 69400 39467Rent & Taxes 258686 594661Insurance 69339 39230Telephone 258371 185156Postage and Telegrams 52704 55805Cost of Fuel & Lubricants 217622 149749Printing & Stationery 235067 167365Advertisement & Publicity 275776 319820Books, Periodicals & Newspapers 35917 16667Repairs & Maintenance of Office Equipment & Assets 160925 134154Conveyance 98956 74631Miscellaneous Expenditure 58819 50131Bank Charges & Commission 113237 128851Remuneration to Auditors : i) Audit Fees 22472 18520 ii) Tax Audit Fees 6742 11122 iii) Incidental Expenses 0 10200Legal Charges 439522 322883Professional & Consultancy Charges 253796 11225Power Charges (Lighting) 250988 276333Meeting Expenses 29332 64626Membership Fees / Subscription to Institutions 25000 25000Expenses on Taking Over Units Under Section 29 435481 408753Other Expenses : Washing 3840 7691 Board Meeting Expenses 27528 21050 Entertainment Expenses 8228 8618

TOTAL 4450751 3833912


38

Schedule ‘N’

ACCOUNTING POLICIES

General

1 . The financial Statements have been prepared under the historical cost convention, by following going

concern concept and conform to the prevailing statutory provisions of the State Financial Corporations

Act, 1951 and practices, unless otherwise stated.

Method of Accounting

2. The financial statements of the Corporation are prepared on cash basis, except for:

(a) Depreciation on fixed assets

(b) Provision for Bad and Doubtful Debts

(c) Bad debts written off / written back

(d) Provision on retirement benefits of employees

(e) Provision for Income Tax

3. The cheques and other negotiable instruments received on the borrowers accounts are credited as

soon as the receipts are acknowledged.

Income Recognition

4. All income is recognized on realization basis. Interest accrued and due on Loans and Advances are

calculated on quarterly basis and debited to the individual Memorandum Ledger Accounts of the

borrowers. The interest is recognized as income when it is realized.

Provisions

5. Provision against loans and advances classified as standard and Non-Performing assets, is made in

accordance with the guidelines on asset classification and provisioning prescribed for State Financial

Corporations by SIDBI for the year.


39

Appropriation of Recoveries

6. The amounts received from the borrowers is first appropriated to Other Expenses incurred on their

behalf, thereafter towards Interest dues and lastly towards Principal amount except in regard to units sold U/s 29

of the SFCs Act, 1951, where sale proceeds received is first appropriated to Principal, thereafter to other

expenses incurred on behalf of the borrowers and lastly to Interest. Receipts under One Time Settlement (OTS)

which is apportioned in the order of Principal, Other Expenses incurred on behalf of the borrowers and lastly

towards Interest dues. (AS 9).

Fixed Assets

7 . The fixed assets are carried at cost of acquisition and other expenses incurred till such assets are put to

use less depreciation.

Depreciation

8. Depreciation on fixed assets has been provided for on written down value method and at the rates

prescribed and applicable for the year under the Income Tax Act, 1961. (AS 6)

Investments

9. Investments are stated at cost.

Retirement Benefits

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

approved independent trust by name of AFC Employees’ Provident Fund Trust and such contributions

are charged against revenue every year.

11 . Gratuity of employees is covered under Group Gratuity Scheme of LICI. The Corporation’s annual

contribution under the group gratuity scheme is based on the actuarially determined demand of LIC of

India. (AS 15)

12. Accrued liability on account of Leave Encashment Benefits on retirement is not determined and not

provided for.

For N. R. & Associates

Chartered Accountants

Place: Guwahati CA N. R. Chakrabarty

Date: 12th June, 2008 Partner

40

Schedule ‘O’

NOTES ON ACCOUNTS

1 . The Corporation has prepared a Cash Flow Statement for the year as per AS 3.

2. Dividend Deficit Account of Rs. 8,34,479.00 shown on the asset side of the Balance Sheet (Schedule I :Current Assets) represents the balance amount of guaranteed dividend (since paid to the shareholders–Rs.43,67,393.00) after adjustment of the Subvention amount of Rs. 35,32,914.00

3. There is a contingent liability on account of pending appeal in respect of a demand of Rs 12, 46, 435.00 byIncome Tax Department for the Assessment Year 1989-90.

4. Shares held by Industrial Development Bank of India (IDBI) amounting to Rs 4, 44, 17,500.00 has beentransferred to Small Industries Development Bank of India (SIDBI) in terms of Sec 4H of State FinancialCorporations (Amendment) Act, 2000 during the financial year in terms of the Govt of India NotificationNo 6(1) /2001-IF.II dated January 17, 2008.

5 . Provision on Non-Performing Assets (NPAs) and Standard Assets as on 31.03.2008 is made in accordancewith the guidelines on asset classification and provisioning norms issued by Small Industries DevelopmentBank of India (SIDBI) up to 31.03.2008, including revised guidelines issued on 24th April, 2006. Accordingly,the total provision is worked out to Rs 2733.48 lakhs, including contingent provision of Rs 1.76 lakhs onStandard Assets. (Total provision in the previous year was Rs 3865.28 lakhs, including contingent provisionof Rs 0.58 lakhs for Standard Assets).

6. The contingent provision of Rs 1.76 lakhs for Standard Assets is shown under Current Liabilities & Provisionsin Schedule D.

7 . The asset category-wise details of the outstanding loan balances and the total provision made as on31.03.2008 is as follows:


(Rupees in Lacs)

259.32723.993865.282733.484124.023455.71Total

002192.891522.44100.00%100.00%2192.891522.44Loss

001668.901207.05100.00%100.00%1668.901207.05Doubtful-III

000050.00%30.00%00Doubtful-II

0000NA20.00%00Doubtful-I

26.2320.092.912.2310.00%10.00%29.1422.32Sub-standard

233.09703.900.581.760.25%0.25%233.09703.90Standard

FY07FY08FY07FY08FY07FY08FY07FY08

ProvisionRate of provisionAsset Category

Net loan outstanding (Principal + Other

Expenses)

Gross loan outstanding

(Principal + Other Expenses)

259.32723.993865.282733.484124.023455.71Total

002192.891522.44100.00%100.00%2192.891522.44Loss

001668.901207.05100.00%100.00%1668.901207.05Doubtful-III

000050.00%30.00%00Doubtful-II

0000NA20.00%00Doubtful-I

26.2320.092.912.2310.00%10.00%29.1422.32Sub-standard

233.09703.900.581.760.25%0.25%233.09703.90Standard

FY07FY08FY07FY08FY07FY08FY07FY08

ProvisionRate of provisionAsset Category

Net loan outstanding (Principal + Other

Expenses)

Gross loan outstanding

(Principal + Other Expenses)

41

8. Letters seeking confirmation of outstanding balances in loan accounts were sent by the Corporation toborrowers. Confirmations are received from some of the borrowers. However, those who have not returnedand confirmed the balance, it is assumed that the balances as intimated by the Corporation is correct.

9. During the year, under One Time Settlement, the Corporation waived interest/ penal interest of Rs 37.38lakhs (Previous Year Rs 52.64 lakhs) for settling bad and doubtful loans and for regularization of thedefaulted loan accounts.

10. The Corporation operates as a single unit with a single profit centre and has concentrated its activity ofterm lending only, on single product (AS 17).

11 . Key management Personnel of the Corporation during the year: Shri Gyanendra Dev Tripathi, IAS,Managing Director. Salary and other payments are drawn from the Govt of Assam as he is also holding thecharge of the Additional Secretary (Finance) to the Govt of Assam. Other payments are shown underPersonnel and Administrative Expenses in Schedule L and M respectively (AS 18)

12. No provision has been made on the outstanding balances related to various staff advances as they areconsidered to be fully secured.

13. The refinance liabilities to SIDBI has been settled under OTS and the amount of Rs 1,69,61,865 beingwaiver of principal amount of refinance loan. The same is shown under the head “Waiver of BorrowedMoney – SIDBI/IDBI” which has been credited to “Profit & Loss Account” as per prudential norms.

14. The liabilities in respect of SLR Bonds guaranteed by the Govt. of Assam has been settled and clearedunder negotiated settlement except for the bondholder namely M/s National Airport AuthorityEmployees’ Provident Fund Trust against whom an enquiry from CBI is in progress on the investmentsmade by them. Therefore the amount of Rs 4, 50, 92,602.00 has been held in the account Capital Reservein the liability side of the Balance Sheet.

15. The amount of SLR Bonds liabilities released by the Govt. of Assam amounting to Rs. 74,25,50,818.00 istreated as Capital Reserve in terms of Section 43 of the State Financial Corporations Act, 1951 and as per AS12.

16. During the year loan accounts classified under Doubtful -III and Loss categories not secured by anysecurities aggregating Rs. 6,12,53,360.87 have been prudentially written off and transferred to ShadowLedger.

1 7 An amount of Rs. 76,532.00 appearing under the head “Suspense Account” represents cashembezzlements by two of the employees, against whom necessary departmental action has beenundertaken.

18. Previous year’s figures have been regrouped/rearranged wherever necessary to conform to the currentyear’s presentation.


Place : GuwahatiPlace : 12th June, 2008



42

CASH FLOW STATEMENT (FOR THE YEAR ENDING 31.03.2008)


(Rupees)

For and on behalf of theBoard of Directors



(A.Barooah)Chairman



PARTICULARS

(A) CASH FLOW FROM OPERATING ACTIVITIESProfit before Tax 66791674Add:- Depreciation 1337745Add:- Provision for retirement benefits of employees 1829659Bad Debts written off 0Less: Profit on sale of Fixed Assets(Net of loss on sale) 0Profit on Sale of Investments/ Profit on waiver of Refinance Loan 16961865Dividend on Shares 0Cash from Operations 51167554ADJUSTMENT FOR(Increase)/decrease in Loans & advances(Net of Written off) -46462750Increase /(decrease) in Borrowings (Including Subvention) -50884216Increase/ (decrease) in deposits -1241554Increase / (decrease) in Bonds 0(Increase) / decrease in other assets 6287694Increase / (decrease) in other liabilities -14150790Direct Taxes paid (FBT) -480720Net Cash from Operating Activities (A) -53935123B) CASH FLOW FROM INVESTMENT ACTIVITIESPurchase of Fixed Assets -2829721Sale of Fixed Assets 725Sale of Investments 0Dividend on Share 0Net Cash from investment activities (B) -2828996C) OTHER CASH FLOWSIncrease in Share Capital / Subordinated Debts 0Other Net cash flow (C ) 0NET CASH FLOW (A+B+C) -56764119Net increase / (decrease) in cash and Cash equivalents -56764119Cash & Cash equivalents at beginning of the year 115589185Cash & Cash equivalents at the end of the year 58825066

43

DISCLOSURE REQUIREMENT AS PER SIDBI GUIDELINESSTATEMENT OF NET CAPITAL BASE AND NET RISK WEIGHTED ASSETS.

1. CAPITAL FY-2007-08A Share Holders Equity

1 Paid up Capital 1342.972 Reserves U/S 35 03 Reserves U/S 36(i)(viii) of IT Act 252.744 Capital Reserve 450.93

Total (A) 2046.64

B Deduct1 Accumulated Losses 1016.872 Intangible Assets 03 Income wrongly recognized 04 Additional Loan Loss Provision Required 05 Addl provision required for any other liability 0

(tax, gratuity, pension etc)

Total (B) 1016.87

C Core Capital (Tier - I) (A - B) 1029.77D Supplementary Capital (Tier - II) 0E Total Capital (C + D) 1029.77

RISK WEIGHT ADJUSTED ASSETS Amount Risk Risk Productas per B/S weights

F On Balance Sheet Items1 Cash and Bank Balances

(a) With RBI 0 0% 0(b) With other Banks 195.87 20% 39.174(c) cash in hand 13.27 0% 0

2 Short Term Deposits with Banks 379.12 20% 75.8243 Investments 0.66 102.50% 0.6765

(a) Government and other trustee securities 0 2.50% 0(b) Government Guaranteed Bonds 0 2.50% 0(c) Others 0 102.50% 0

4 Loans and Advances(a) Guaranteed by Govt/ECGC/DICGC 0 0% 0(b) Other Loans 723.99 100% 723.99(c) Bills Discounted (equipments) 0 20% 0(d) Bills Discounted (components) 0 100% 0(e) others 0 100% 0

5 Fixed Assets (Net) 115.14 100% 115.146 Other Assets(all current Assets) 157.46 100% 157.46

(a) Staff Loans(b) Others(c) Intangibles

Total F 1585.51 1112.26


44

RISK WEIGHT ADJUSTED ASSETS Amount Risk Risk Productas per B/S weights

G Off Balance Sheet items1 Guarantees / LC 0 100% 02 Claims against SFC not acknowledged as debt 0 100% 03 Capital accounts contracts remaining to be executed 0 100% 04 Other items (as applicable) 0 100% 0

Total (G) 0 0

H Total of Assets (F+G) 1585.51 111226.452007-08 2006-07

(a) CRAR (E*100%/H) 92.58% 50.29%

(b) Net Worth 1029.77 404.07

( c) Risk Weighted Assets 111226.45 803.53

Sl. Shares held by Equity Special Share Total % of No. Share Capital holding

Capital

1 Govt. of Assam 674.74 110 784.74 58.43%

2 Govt. of Tripura 60.45 0 60.45 4.50%

3 Govt. of Manipur 25.28 0 25.28 1.88%

4 SIDBI 334.18 110 444.18 33.08%

5 LIC of India 9.60 0 9.60 0.72%

6 Scheduled Banks 14.15 0 14.15 1.05%

7 Co-operatives Banks 2.00 0 2.00 0.15%

8 Others including individual 2.57 0 2.57 0.19%

Total 1122.97 220 1342.97 100.00%

(d) SHARE HOLDING PATTERN (Rupees in lakhs)

2 ASSETS QUALITY AND CREDIT CONCENTRATION 2007-08 2006-07

a) Percentage of net NPAs to net Loans & Advances 2.77% 10.11%

b) Value and percentage of Net NPA to Net Loans and Advances

2007-08 2006-07Asset Category Net Loan Net NPAs % to total % to total

net loans net loans

Standard 703.90 0 0 0

Sub Standard 20.09 20.09 2.77 10.11

Total 723.99 20.09 2.77 10.11

45


(c) PROVISIONS FOR THE YEAR

Provisions for the Year

Sl/No Assets & Others 2007-08 2006-07

1 Loans & Adv.

i. Standard assets 1.76 0.58

ii.Sub-Standard assets 2.23 2.91

iii.Doubtful assets 1207.05 1668.90

iv Loss assets 1522.44 2192.89

2 Income Tax 62.70 0

3 Employees retirement benefit 18.30 02814.48 3865.28

(d) OPERATING RESULTS

Sl/No Item 2007-08

1 Interest income as percentage to average working funds 332.79/1658.59 20.06%

2 Non interest income as a percentage to average working funds 108.47/1658.59 6.53%

3 Operating profit as a percentage to average working funds 148.65/1658.59 8.96%

4 Return on average assets 605.22/1658.59 36.49%

5 Net profit per employee (Rs. In lakhs) 605.22/170 3.56

6 Operating profit per employee (Rs. In lakhs) 148.65/170 0.87

7 Return on capital employed 605.22/6317.82 9.58%

In terms of our separate report of even date

For N.R.Associates For and on behalf of the Board of Directors Chartered Accountants


(A.Barooah)Chairman



46

SOURCES AND USES OF FUNDS :


2005-06 2006-07 2007-08SOURCES:Opening Cash & Bank Balance 686.3 974.56 1155.89Increase in Share Capital 0 0 0Borrowing froma) IDBI 0 0 0b) SIDBI 0 0 0Fund received from GOA for redemption of Bond under OTS 5810.43 1615.08 0Fund received from GOA for training etc. 0 0 2.02Other Receipt ( Staff Adavnce) 21.52 28.82 27.28Deposit 0 0 0Central / State Govt. Subsidy 3.85 0 0Recovery of Loan 152.1 491.7 455.67Recovery under OTS 163.52 0 0Others 0 0 0Revenue receipta) Interest on Loans and advances 148.83 540.95 276.87b)Other Income 45.92 71.98 98.64TOTAL 7032.47 3723.09 2016.37

(Rs.in Lacs)

2005-06 2006-07 2007-08

USES:

Disbursement of term loan 49.74 179.4 474.47

Disbursement of Subsidy 6.9 0 0

Redumption of Bonds 0 0 0

Redumption of SLR Bond under OTS 3970 850.6 0

Repayment of Borrwoing to

i) IDBI 0 329.35 0

ii)SIDBI 0 408.84 508.84

Repayment of deposit 0 0 12.42

Purchase of Fixed Assets 0 14.18 28.29

Revenue payment

a) Interest of Bonds under OTS 1699.09 455.49 0

b) Administrative & Other Expenses 320.54 309.25 392.87

c) Income Tax 0 0.62 4.8

d) Dividend 0 0 0

e) Others(Staff Advance) 11.64 19.47 6.43

Closing Cash & Bank Balance 974.56 1155.89 588.25

TOTAL 7032.47 3723.09 2016.37

47

CORPORATE PERFORMANCE 2007-2008

Blank

INDEX TO ANNEXURES

CONTENTS OF ANNEXURES ANNEXURE PageNo. No.

1. Statement of applications for loan received, sanctioned, pending etc., upto 31st March,2008. A 521.1 Office wise position of loan applications received and disposed during FY 2007-08. A1(a) 53

1.2 Statement of comparative position of loan applications dealt with by the Corporation during thelast three years A1(b) 54

1.3 Statement of age-wise position of applications pending as at 31st March,2008 A2 54

1.4 Statement of loan sanctioned by different authorities during last three years A3 55

1.5 Statement of State-wise sanction of loans during last three years A4 55

1.6 Statement of Size-wise classification of loans during last three years A5 56

1.7 Statement of net effective sanction, disbursement and outstanding of loans &Advances since inception till 31st March,2008 A6 56

1.8 Statement of Financial Assistance under different schemes A7 57

1.9 Statement of break-up of disbursement and comparative position of disbursement

of term loan to effective sanction during the last three years A8 58

2. Amount-wise classification of loans and advances as at 31st March,2008 B 59

3. Industry-wise classification of loans and advances as at 31st March,2008 C 60

4. State/District-wise classification of loans and advances as at 31st March,2008 D 61

5. Constitution-wise classification of loans and advances as at 31st March,2008 E 62

6. Statement showing the lag between sanction and disbursement of loansduring last three years F 62

7. Statement showing the defaulted units of the Corporation as at 31st March,2008 G 63

7.1 Position of repayment for principal and payment of Interest as at 31st March,2008 G1 64

8. Age-wise analysis of arrears as at 31st March,2008(excluding suit filed cases) H(a) 65

9. Amount-wise break-up of arrears as at 31st March,2008(excluding suit filed cases) H(b) 65

10. Sector wise break-up of arrears as at 31st March,2008(excluding suit filed cases) I 66

11. Industry-wise classification of default as at 31st March,2008(excluding suit filed cases) J 66

12. State/District-wise classification of default as at 31st March,2008(excluding suit filed cases) K 67

13. Particulars in respect of loans and advances referred to in the balance sheet L 68

50

STATISTICALANNEXURES

51

Statement of Applications for loan

received, sanctioned, pending etc.,

upto 31st March, 2008

ANNEXURE – ‘A’

(Rs. in Lacs)

1566.00101198.005368.0051566.00101198.005368.005APPLICATIONS PENDING AS ON

31-3-2008

15542.1030822758.2113612783.892946183.4311159.33724.104

APPLICATIONS WITHDRAWN,LAPSED,REDUCED ETC. DURING

FY-2007-2008

16199.9467994009.4531112190.496488546.4058359.5025186.9033APPLICATIONS

SANCTIONED DURING FY-2007-2008

33308.0498917965.6645225342.3894392295.83791716.8337579.0042APPLICATIONS DEALT

WITH DURING FY 2007-2008

______2239.00751660.0033579.0042APPLICATIONS

RECEIVED DURING FY-2007-2008


31-3-2007

AMOUNTNOAMOUNTNOAMOUNTNOAMOUNTNOAMOUNTNOAMOUNT.NO

TOTALOTHERSSMALL SCALETOTALOTHERSSMALL SCALE

SINCE INCEPTION UPTO 31 ST MARCH,2008DURING THE YEAR -2007-2008

PARTICULARS


31-3-2008

15542.1030822758.2113612783.892946183.4311159.33724.104

APPLICATIONS WITHDRAWN,LAPSED,REDUCED ETC. DURING

FY-2007-2008

16199.9467994009.4531112190.496488546.4058359.5025186.9033APPLICATIONS

SANCTIONED DURING FY-2007-2008

33308.0498917965.6645225342.3894392295.83791716.8337579.0042APPLICATIONS DEALT

WITH DURING FY 2007-2008

______2239.00751660.0033579.0042APPLICATIONS

RECEIVED DURING FY-2007-2008


31-3-2007

AMOUNTNOAMOUNTNOAMOUNTNOAMOUNTNOAMOUNTNOAMOUNT.NO

TOTALOTHERSSMALL SCALETOTALOTHERSSMALL SCALE

SINCE INCEPTION UPTO 31 ST MARCH,2008DURING THE YEAR -2007-2008

PARTICULARS

52

OFFICE WISE POSITION OF LOAN APPLICATIONS RECEIVEDAND DISPOSED OF DURING 2007-08

ANNEXURE-A 1 (a)

(Rs. in Lacs)

1566.00183.43546.402295.832239.0056.83AMOUNT

10115879754NUMBERTOTAL

0.000.0018.0018.0018.000.00AMOUNT

005550NUMBERAGARTALA

FIELD OFFICE

0.000.000.000.000.000.00AMOUNT

000000NUMBERIMPHAL FIELD

OFFICE

0.000.000.000.000.000.00AMOUNT

000000NUMBERSHILLONG

FIELD OFFICE

4.000.0026.5030.5030.500.00AMOUNT

303660NUMBERNORTH LAKHIMPUR

FIELD OFFICE

6.003.7019.8029.5029.500.00AMOUNT

107880NUMBERNALBARI BRANCH OFFICE

4.000.0011.5015.5015.500.00AMOUNT

103440NUMBERNAGAON BRANCH OFFICE

0.000.009.009.009.000.00AMOUNT

001110NUMBERTINSUKIA BRANCH OFFICE

0.000.0026.0026.0026.000.00AMOUNT

004440NUMBERDIBRUGARH BRANCH OFFICE

25.0013.0040.5078.5078.500.00AMOUNT

124770NUMBERSILCHAR BRANCH OFFICE

0.007.0034.8041.8041.800.00AMOUNT

016770NUMBERBONGAIGAON BRANCH OFFICE

0.008.90106.30115.20115.200.00AMOUNT

011011110NUMBERTEZPUR BRANCH OFFICE

6.0011.00146.00163.00152.0011.00AMOUNT

12912102NUMBERJORHAT BRANCH OFFICE

1521.0094.00108.001723.001723.000.00AMOUNT

33612120NUMBERGUWAHATI BRANCH OFFICE

0.0045.830.0045.830.0045.83AMOUNT

020202NUMBERHEAD OFFICE

APPLICATION PENDING AT THE END

OF THE YEAR

APPLICATION LAPSED,WITH-

DRAWN,REDUCED, CLOSED ETC.

APPLICATION SANCTIONED

APPLICATION DEALT WITH

APPLICATION RECEIVED DURING

THE YEAR

APPLICATION PENDING AT THE

BEGINNING OF THE YEAR

OFFICE

1566.00183.43546.402295.832239.0056.83AMOUNT

10115879754NUMBERTOTAL

0.000.0018.0018.0018.000.00AMOUNT

005550NUMBERAGARTALA

FIELD OFFICE

0.000.000.000.000.000.00AMOUNT

000000NUMBERIMPHAL FIELD

OFFICE

0.000.000.000.000.000.00AMOUNT

000000NUMBERSHILLONG

FIELD OFFICE

4.000.0026.5030.5030.500.00AMOUNT

303660NUMBERNORTH LAKHIMPUR

FIELD OFFICE

6.003.7019.8029.5029.500.00AMOUNT

107880NUMBERNALBARI BRANCH OFFICE

4.000.0011.5015.5015.500.00AMOUNT

103440NUMBERNAGAON BRANCH OFFICE

0.000.009.009.009.000.00AMOUNT

001110NUMBERTINSUKIA BRANCH OFFICE

0.000.0026.0026.0026.000.00AMOUNT

004440NUMBERDIBRUGARH BRANCH OFFICE

25.0013.0040.5078.5078.500.00AMOUNT

124770NUMBERSILCHAR BRANCH OFFICE

0.007.0034.8041.8041.800.00AMOUNT

016770NUMBERBONGAIGAON BRANCH OFFICE

0.008.90106.30115.20115.200.00AMOUNT

011011110NUMBERTEZPUR BRANCH OFFICE

6.0011.00146.00163.00152.0011.00AMOUNT

12912102NUMBERJORHAT BRANCH OFFICE

1521.0094.00108.001723.001723.000.00AMOUNT

33612120NUMBERGUWAHATI BRANCH OFFICE

0.0045.830.0045.830.0045.83AMOUNT

020202NUMBERHEAD OFFICE

APPLICATION PENDING AT THE END

OF THE YEAR

APPLICATION LAPSED,WITH-

DRAWN,REDUCED, CLOSED ETC.

APPLICATION SANCTIONED

APPLICATION DEALT WITH

APPLICATION RECEIVED DURING

THE YEAR

APPLICATION PENDING AT THE

BEGINNING OF THE YEAR

OFFICE

53

THE COMPARATIVE POSITION OF LOAN APPLICATIONS DEALT WITH BY THECORPORATION DURING THE LAST 3 (THREE) YEARS

Age-wise position of applications pending as on31st March, 2008

PROPOSALS UNDER ENQUIRY

No. Amount

More than 2 years - -

More than 1 year but less than 2 years - -

More than 9 months but less than 1 year - -

More than 6 months but less than 9 months - -

More than 3 months but less than 6 months - -

More than 1 month but less than 3 months 10 1566.00

Less than 1 month - -

Total 10 1566.00

2005-2006 2006-2007 2007-2008

No. Amount No. Amount No. Amount

Applications dealt with 19 230.72 58 583.07 79 2295.83

Applications sanctioned 6 87.5 49 442.75 58 546.40

Applications lapsed/ reduced/

withdrawn etc 5 45.53 5 83.49 11 183.43

Applications pending at

the close of the year 8 97.69 4 56.83 10 1566.00

ANNEXURE-A 1 (b)

ANNEXURE-A2

(Rs. in Lacs)

(Rs. in Lacs)

54

2005-2006 2006-2007 2007-2008

No. Amt No. Amt. No. Amt.

Board of Directors 6 87.50 7 74.40 3 160.00

Executive Committee _ _ _ _ 0 0.00

Head Office _ _ 14 224.80 5 98.00Level Credit Committee

General Manager _ _ _ _ 0 0.00

Regional Managers _ _ 3 19.00 0 00.00

Branch Managers _ _ 25 124.55 0 0.00

Zonal Credit Committee _ _ _ _ 50 288.40

Total 6 87.50 49 442.75 58 546.40

LOANS SANCTIONED BY DIFFERENT AUTHORITIES DURING LAST 3 YEARS :

2005-2006 2006-2007 2007-2008

No. Amt No. Amt. No. Amt.

State of Assam 6 87.50 47 425.75 53 528.40

State of Tripura _ _ 2 17.00 5 18.00

State of Manipur _ _ _ _ 0 0.00

State of Meghalaya _ _ _ _ 0 0.00

Total 6 87.50 49 442.75 58 546.40

STATE-WISE SANCTION OF LOANS DURING LAST 3 YEARS :

(Rs. in Lacs)ANNEXURE-A3

(Rs. in Lacs)

ANNEXURE-A4

55

SIZE-WISE CLASSIFICATION OF LOANS DURING LAST 3 YEARS :

THE CORPORATION’S NET EFFECTIVE SANCTION, DISBURSEMENT AND OUTSTANDINGLOANS AND ADVANCES SINCE INCEPTION TILL

THE 31ST MARCH,2008

(Rs. in Lacs)

Size of Loans 2005-2006 2006-2007 2007-2008

No. Amt. No. Amt. No. Amt

01. Loans upto Rs. 10,000/- – – – – – –

02. Loans from Rs. 10,000/- to Rs. 25,000/- – – – – – –

03. Loans from Rs. 25,000/- to Rs. 50,000/- – – – – – –

04. Loans from Rs. 50,000/- to Rs. 1,00,000/- 1 1.00 – – 4 3.65

05. Loans from Rs. 1,00,000/- to Rs. 2,00,000/- – – 10 17.10 4 7.30

06. Loans from Rs. 2,00,000/- to Rs. 5,00,000/- 1 3.00 14 51.65 19 70.60

07. Loans from Rs. 5,00,000/- to Rs. 10,00,000/- 1 8.00 13 106.50 23 206.85

08. Loans from Rs.10,00,000/- to Rs. 20,00,000/- 2 31.50 5 84.50 3 53.50

09. Loans from Rs.20,00,000/- to Rs. 30,00,000/- – – 6 148.00 2 44.50

10. Loans from Rs.30,00,000/- to Rs. 60,00,000/- 1 44.00 1 35.00 2 70.00

11.Loans Exceeding Rs. 60,00,000/- – – – – 1 90.00

Total 6 87.50 49 442.75 58 546.40

Small Scale Others TotalParticulars No. Amt. No. Amt. No. Amt.

SANCTIONLoans 5767 9325.59 533 3128.32 6300 12453.91Underwritings – – 3 3.50 3 3.50Direct Subscription 1 0.95 1 0.95 2 1.90

DISBURSEMENTLoans – 9147.91 – 2956.12 – 12104.03Underwritings – – – 2.17 – 2.17Direct Subscription – 0.95 – 0.60 – 1.55

OUTSTANDINGLoans 1891 2494.20 146 961.51 2037 3455.71Underwriting – – – – – –Direct Subscription – – – – – –

(Rs. in Lacs)

ANNEXURE - A5

ANNEXURE - A6

56

Name of the Scheme Current Year Cumulative PositionPosition as on 31-03-2008

No. Amount No. Amount

01. Financial Assistance to Technocrats 0 0.00 129 195.29

02. Financial Assistance to Medical Graduate 2 16.50 50 213.46

03. Small Loan Scheme 0 0.00 231 118.88

04. Composite Loan Scheme 0 0.00 2775 791.45

05. Financial Assistance to SC/ST Entrepreneurs 0 0.00 699 467.81

06. Financial Assistance to Misguided Youth 0 0.00 59 78.90

07. Transport Loan 0 0.00 378 809.09

08. Special Capital Scheme 0 0.00 18 25.94

09. Equipment Finance Scheme 0 0.00 30 387.92

10. Financial Assistance to Women Entrepreneur 2 14.00 667 459.50

11. Ex-Servicemen Scheme (SEMFEX) 0 0.00 43 54.42

12. Small Hospital/Nursing Home Scheme 1 90.00 33 883.16

13. Scheme of assistance for Construction of Warehouse 0 0.00 1 15.75

14. Single Window Scheme (SWS) 10 37.25 706 1260.00

15. Loan under National Equity Fund Scheme (NEF) 0 0.00 187 87.34

16. Loans not covered by above schemes 43 388.65 793 10351.03

Total 58 546.40 6799 16199.94

UNDERWRITING OPERATION

No proposal for underwriting of share, debentures etc. was received during the year under review.

FINANCIAL ASSISTANCE UNDER DIFFERENT SCHEMES

(Rs. in Lacs)

ANNEXURE-A7

57

ANNEXURE -A 8

.

DISBURSEMENT:

TOTAL DISBURSEMENT OF LOAN DURING THE FINANCIAL YEAR 2007-2008 Rs. 474 .48 Lacs

TOTAL DISBURSEMENT OF LOAN DURING THE FINANCIAL YEAR 2006-2007 Rs. 179.40 Lacs

BREAK-UP OF DISBURSEMENT :

A) UNDISBURSEMENT COMMITMENT AT THE BEGINNING OF THE YEAR Rs. 350.46 Lacs

B) ADD :NET SANCTION DURING THE YEAR Rs. 473.90 Lacs

C) LESS: AMOUNT DISBURSED DURING THE YEAR Rs. 474.48 Lacs

D) UNDISBURSED COMMITMENT AT THE CLOSE OF THE YEAR Rs. 349.88 Lacs

CUMMULATIVE CUMMULATIVE EFFECTIVE COMMITMENT % OF CUMMULATIVESANCTION DISBURSEMENT AT THE END DISBURSEMENT TO

YEAR (EFFECTIVE) OF THE YEAR CUMMULATIVESANCTION

2005-2006 11537.26 11450.15 87.11 99%

2006-2007 11980.01 11629.55 350.46 97% .

2007-2008 12453.91 12104.03 349.88 97%

COMPARATIVE POSITION OF DISBURSEMENT OF TERM LOAN TO EFFECTIVE SANCTION

DURING THE LAST 3 YEARS

58

Sl. Size of Assistance Amount % over Amount % over Amount % OverNo. sanctioned total disbursed total outstanding total

(Effective)

01. Loans not exceedingRs. 0.25 lakhs 266.03 2.14% 266.03 2.20% 72.72 2.10%

02. Loans exceedingRs. 0.25 lakhs but notExceeding Rs. 0.50 lakhs 546.54 4.39% 546.54 4.52% 184.58 5.34%

03. Loans exceedingRs. 0.50 lakhs but notexceeding Rs. 1.00 lakhs 570.88 4.58% 567.78 4.69% 189.60 5.49%





08. Loans exceedingRs. 30.00 lakhs 2153.90 17.29% 1985.37 16.40% 746.93 21.61%

Total 12453.91 100.00% 12104.03 100.00% 3455.71 100.00%

Amount-wise classification of Loans and Advnacesas at 31st March, 2008.

ANNEXURE – ‘B’

(Rs. in Lacs)

59

Sl. Type of Industry Amount Sanctioned Amount Disbursed Amount OutstandingNo. (Effective)

Small Scale Others Samll Scale Others Small Scale OthersNo. Amt. No. Amt. Amount Amount Amount Amount

01. Stone, Clay, Cement etc. 120 498.12 – – 481.12 – 143.56 –02. Food Mfg. Industries

(Except BeverageIndustries) 379 1229.30 – – 1211.15 – 447.53 –

03. Beverages Industries 97 540.60 – – 540.60 – 38.40 –04. Mfg. of Textile (Including

Jute Industries) 71 616.73 – – 595.20 – 296.56 –05. Mfg. of Wood & Plywood 128 387.35 – – 387.35 – 15.07 –06. Mfg. of Furniture &

Fixtures 92 89.58 – – 74.08 – 53.72 –07. Mfg. of Paper and

Paper Pdts. 07 28.91 – – 28.91 – 49.46 –08. Printing, Publishing and

Allied Industries 200 896.60 – – 896.60 – 149.76 –09. Mfg. of Leather and

Fur Pdts. 08 41.01 – – 41.01 – 4.86 –10. Mfg. of Chemical &

Chemical Products 83 597.91 – – 588.16 – 220.55 –11. Mfg. of Products of

Coal and Petroleum 9 124.38 – – 124.38 – 71.36 –12. Mfg. of Metal and

Metal Pdts. 263 723.82 – – 713.70 – 187.16 –13. Mfg. of Electrical

Products 59 96.87 – – 96.87 – 34.00 –14. Mfg. of Transport

Equipments 133 294.86 – – 294.86 – 50.48 –15. Hotel Industry 0 0.00 116 1319.00 0.00 1260.84 _ 370.2316. Mfg. of Electricity

Gas etc. 26 246.59 – – 246.59 – 75.61 –17. Road Transport

Operators etc. 0 0.00 36 724.91 0.00 718.05 _ 203.1218. Nursing Home 0 0.00 34 785.85 0.00 681.35 _ 219.4819. Real Estate/Market 0 0.00 12 112.00 0.00 111.80 _ 90.30

Complex etc.20. Misc. Mfg. Industries (including village &

Cottage, Artisan,Handloom,Weaving Ind.) 4092 2912.96 10 186.56 2827.33 184.08 656.12 78.38

Total 5767 9325.59 533 3128.32 9147.91 2956.12 2494.20 961.51

Industry-wise classification of Loans and Advnacesas at 31st March, 2008.

ANNEXURE – ‘C’

(Rs. in Lacs)

60

Sl. State/District Amount Sanctioned (Effective) Amount Disbursed Loan Outstanding

No. Small Scale Others Small Scale Others Small Scale Others

No. Amt. No. Amt. Amt. Amt. Amt. Amt.

A. ASSAM01. Kamrup 982 2935.46 235 1612.35 2879.34 1591.19 915.68 379.2702. Nalbari 120 164.03 11 54.70 151.73 47.20 106.40 21.8503. Barpeta 137 213.31 8 39.56 212.31 38.06 92.10 0.0004. Tinsukia 150 383.39 23 150.69 374.39 150.69 99.60 61.4605. Dibrugarh 747 919.16 18 88.94 916.16 82.46 146.84 30.2306. Sivsagar 333 665.64 46 199.74 665.64 109.74 110.64 79.0607. Jorhat 277 546.74 31 186.51 542.74 182.51 98.25 109.0008. Golaghat 126 283.69 6 36.49 278.69 31.49 77.90 8.8209. Nagaon 367 564.95 10 79.34 532.62 73.84 158.56 27.4110. Morigaon 19 41.78 19 3.04 39.58 3.04 23.46 0.0011. Sonitpur 301 364.56 20 89.77 348.68 84.27 97.44 28.3312. Darrang 189 233.78 11 115.96 233.78 115.96 63.69 35.7013. North-Lakhimpur 339 207.66 12 61.91 204.66 58.91 56.50 36.7814. Dhemaji 29 14.48 2 12.08 14.48 12.08 31.42 17.9015. Karbi-Anglong 55 58.74 6 14.92 58.74 14.92 2.33 1.2516. Goalpara 142 199.34 4 15.70 192.84 15.70 25.69 0.0017. Bongaigaon 217 143.27 10 47.22 141.02 41.22 52.67 14.2818. Kokrajhar 158 108.58 4 23.41 108.58 23.41 14.34 0.0019. Dhubri 85 105.64 4 19.01 105.64 17.51 57.99 3.5020. Cachar 250 382.76 11 50.79 372.26 37.59 89.60 0.0021. Karimganj 97 49.62 3 20.98 49.62 20.98 32.05 22.1522. Hailakandi 7 2.48 0 0.00 2.48 0.00 3.30 0.0023. N.C. Hills 40 15.27 3 21.46 15.27 21.46 3.35 0.00

Sub-Total 5167 8604.33 497 2944.57 8441.25 2774.23 2359.80 876.99

B. MEGHALAYA 243 302.46 13 98.69 302.46 98.69 31.16 14.18

C. MANIPUR 172 139.37 10 32.12 139.37 32.19 61.53 49.29

D. TRIPURA 185 279.43 13 52.94 264.83 51.08 41.71 21.05

Grand-Total 5767 9325.59 533 3128.32 9147.91 2956.12 2494.20 961.51

State/District-wise classification of Loans & Advancesas at 31st March,2008.

ANNEXURE – ‘D’

(Rs. in Lacs)

61

Constitution-wise classification of Loans & Advancesas at 31st March, 2008.

Sl. Type of Constitution Amount Sanctioned Amount Disbursed Amount OutstandingNo. (Effective)

Small Scale Others Small Scale Others Small Scale OthersNo. Amt. No. Amt. Amount Amount Amount Amount

01. Public Limited Company 17 38.17 52 450.70 38.17 450.70 – 40.95

02. Private Limited Company 153 1833.37 92 1365.01 1833.37 1365.01 460.19 147.74

03. Co-operative & otherSocieties 10 77.10 – – 77.10 – 46.37 –

04. Joint Hindu Family 1 0.75 – – 0.75 – – –

05. Partnership 292 1389.28 41 519.61 1341.60 414.45 337.94 73.21

06. Proprietorship 5294 5986.92 348 793.00 5856.92 725.96 1649.70 699.61

Total 5767 9325.59 533 3128.32 9147.91 2956.12 2494.20 961.51

Sl. Year Ended Loan Sanctioned (Effective) Loan Disbursed Loan UndisbursedNo. Amount Amount Amount

01. March 31st, 2006 11537.26 11450.15 87.11

02. March 31st, 2007 11980.01 11629.55 350.46

03. March 31st, 2008 12453.91 12104.03 349.88

Statement Showing the lag between Sanction & Disbursemrnt ofLoans during last three years.

ANNEXURE – ‘E’

(Rs. in Lacs)

ANNEXURE – ‘F’

(Rs. in Lacs)

62

SL. PARTICULARS NO. OF AMOUNT % OVERNO UNITS TOTAL

1. UNITS AGAINST WHICH SUIT HAVE BEEN FILED 512 1364.10 6.87%.U/S-31 & 32(G) OF THE SFC’S ACT,1951

2. UNITS TAKEN OVER U/S-29 OF THE SFC’S ACT, 1951 103 4474.12 22.52%

3. CLOSED UNITS 873 8615.15 43.36%

4. UNITS TAKEN OVER BY GOVT. 0 0.00 0.00%

5. SICK UNITS 0 0.00 0.00%

6. UNITS UNDER IMPLEMENTATION 12 28.95 0.14%

7. IRREGULAR UNITS 447 5386.30 27.11%

8. REGULAR UNITS (NO DEFAULT) 90 0.00 0.00%

TOTAL 2037 19868.62 100.00%

THE DEFAULTED UNITS OF THE CORPORATION AS ON 31-03-2008

ANNEXURE – ‘G’

(Rs. in Lacs)

63

Position of repayment for principal and payment of interestas at 31st March,2008

ANNEXURE – ‘G’1

(Rs. in Lacs)

64

19868.62108.79TOTAL ADJUSTED OUT OF S/D UNDER OTS(B+D)

19977.4120631.07732.5441341.020.0041341.023069.9316283.5621987.53GRAND TOTAL (A+C)

17322.7155.92ADJUSTED OUT OF S/D UNDER OTS(D)D

17378.6316763.31276.8734418.810.0034418.812789.1013574.4918055.22TOTAL (C)

12493.6813132.83247.0625873.570.0025873.571305.3510553.6414014.58Regular Units4

3841.982824.8522.536689.360.006689.361451.682433.082804.60Units taken over U/S -29 of the SFC's Act.3

988.90615.876.791611.560.001611.5632.07586.73992.76Cases of litigation U/S -32 (G) of the SFC's Act.2

54.07189.760.49244.320.00244.320.001.04243.28Cases of litigation U/S-31 of the SFC's Act1

INTERESTC

2545.9152.87ADJUSTED OUT OF S/D UNDER OTS(B)B

2598.783867.76455.676922.210.006922.21280.832709.073932.31TOTAL (A)

1645.513024.24348.355018.100.005018.1086.732034.772896.60Regular Units4




PRINCIPALA

POSITION AS ON 31-3-2008

AMOUNT COMPROMISED /TRANSFERRED/

WRITTEN-OFF ETC.

AMOUNT REALISED

DURING THE YEAR

AMOUNT DUE

AMOUNT REPHASED/DEFERRED

TOTAL DUE

DUE DURING THE YEAR BEFORE

REPHASEMENT/SALE OR

TRANSFER

LOAN ACCOUNTS

TRANSFERRED FROM H.O.

POSITION AS ON 31-3-2007PARTICULARSSL.

NO

19868.62108.79TOTAL ADJUSTED OUT OF S/D UNDER OTS(B+D)

19977.4120631.07732.5441341.020.0041341.023069.9316283.5621987.53GRAND TOTAL (A+C)

17322.7155.92ADJUSTED OUT OF S/D UNDER OTS(D)D

17378.6316763.31276.8734418.810.0034418.812789.1013574.4918055.22TOTAL (C)

12493.6813132.83247.0625873.570.0025873.571305.3510553.6414014.58Regular Units4




INTERESTC

2545.9152.87ADJUSTED OUT OF S/D UNDER OTS(B)B

2598.783867.76455.676922.210.006922.21280.832709.073932.31TOTAL (A)

1645.513024.24348.355018.100.005018.1086.732034.772896.60Regular Units4




PRINCIPALA

POSITION AS ON 31-3-2008

AMOUNT COMPROMISED /TRANSFERRED/

WRITTEN-OFF ETC.

AMOUNT REALISED

DURING THE YEAR

AMOUNT DUE

AMOUNT REPHASED/DEFERRED

TOTAL DUE

DUE DURING THE YEAR BEFORE

REPHASEMENT/SALE OR

TRANSFER

LOAN ACCOUNTS

TRANSFERRED FROM H.O.

POSITION AS ON 31-3-2007PARTICULARSSL.

NO

Age-wise analysis of arrears as at 31-03-2008(excluding suit filed cases)

Amount of arrears No. of Units Principal Interest Total

a) Upto Rs. 1 Lakh 512 147.93 938.86 1086.79

b) Rs. 1 lakhs–Rs. 2 lakhs 328 199.57 1623.21 1822.78

c) Rs. 2 lakhs –Rs. 5 lakhs 234 220.32 2413.98 2634.30

d) Rs. 5 lakhs –Rs. 10 lakhs 125 212.52 1784.25 1996.77

e) Rs. 10 lakhs–Rs. 20 lakhs 67 200.48 1484.81 1685.29

f) Rs. 20 lakhs–Rs. 30 lakhs 27 193.07 1143.15 1336.22

g) Rs. 30 lakhs –Rs. 60 lakhs 24 263.49 1970.90 2234.39

h) Above Rs. 60 lakhs 15 155.26 1078.60 1233.86

TOTAL 1332 1592.64 12437.76 14030.40

Amount-wise break-up of arrears as at 31-03-2008(excluding Suit filed cases)

ANNEXURE – ‘H’ (a)

(Rs. in Lacs)

ANNEXURE – ‘H’(b)

(Rs. in Lacs)

Age of Arrears No. of units Amount of ArrearsPrincipal Interest Total

1 2 3 4 5

a) Upto 6 Months 47 4.49 5.78 10.27

b) 07-12 Months 0 0.00 0.00 0.00

c) 13-24 Months 3 5.20 7.65 12.85

d) 25-36 Months 7 73.14 38.86 112.00

e) 37-48 Months 63 8.11 28.86 36.97

f) 49-60 Months 88 68.51 148.35 216.86

g) Above 60 Months 1124 1433.19 12208.26 13641.45

TOTAL 1332 1592.64 12437.76 14030.40

65

Sector-wise break-up of arrears as on 31-03-2008(excluding suit filed cases)

Sector No. of Units Outstanding Principal & (3) as % of (4) as % ofBalance Interest Total Total

Outstanding Outstanding

1 2 3 4 5 6

Small Scale 1230 12296.82 12182.19 85.82% 85.02%

Other than Small Scale 102 2031.31 1848.21 14.18% 12.90%

Total 1332 14328.13 14030.40 100.00% 97.92%

Sl. Type of Industry No. of Balance Principal Interest TotalNo. Unit Outstanding default default default

01. Stone, Clay, Sandpits etc. 29 178.56 26.31 134.33 160.6402. Food Mfg. Industries (Except Beverages Ind) 174 1521.94 190.94 1325.00 1515.9403. Beverage Industries 4 35.31 11.10 24.21 35.3104. Mfg. of Textile (Including Jute Industries) 91 1269.58 114.06 1136.69 1250.7505. Mfg. of Wood & Cork 12 42.03 4.34 37.69 42.0306. Mfg. of Furniture and Fixtures 79 333.28 23.10 270.93 294.0307. Mfg. of Paper Products 17 181.58 22.45 158.66 181.1108. Printing, Publishing & Allied Industries 71 979.16 97.22 869.02 966.2409. Mfg. of Leather & Fur Products 2 24.83 2.36 22.47 24.8310. Mfg. of Chemical & Chemical Products 27 1714.97 139.26 1573.74 1713.0011. Mfg. of product of Petroleum & Coal 18 763.32 47.37 715.95 763.3212. Mfg. of Metal and Metal Products 56 618.55 84.87 516.41 601.2813. Mfg. of Electrical Machinery Supplies 8 138.67 9.78 128.89 138.67 Apparatus etc

14. Mfg. of Transport Equipments 15 304.70 46.68 258.02 304.7015. Hotel Industry 19 812.92 70.35 603.18 673.5316. Electricity, Gas, Steam etc. 18 602.21 76.48 525.73 602.2117. Transport (Road Transport Operators etc) 62 1008.45 126.11 874.34 1000.4518. Nursing Home 9 158.79 100.82 57.96 158.7819. Real Eatate/Market Complex 12 51.15 14.73 0.72 15.4520. Misc. Mfg. Industries (including Artisans 609 3588.13 384.31 3203.82 3588.13

Village & Cottage Industry)

TOTAL 1332 14328.13 1592.64 12437.76 14030.40

Industry-wise classification of default as on 31-3-2008(excluding suit filed cases)

ANNEXURE – ‘I’

(Rs. in Lacs)

ANNEXURE – ‘J’

(Rs. in Lacs)

66

Sl. Name of District Balance Principal Interest TotalNo. Outstanding default default default

A. ASSAM01. Kamrup 5770.17 550.84 4999.62 5550.4602. Nalbari 870.05 82.08 787.97 870.0503. Barpeta 763.92 72.10 691.82 763.9204. Tinsukia 450.01 107.35 342.66 450.0105. Dibrugarh 939.53 122.79 816.74 939.5306. Sivsagar 381.00 54.40 326.60 381.0007. Jorhat 507.81 146.01 361.80 507.8108. Golaghat 215.79 56.02 159.77 215.7909. Nagaon 258.72 35.49 177.05 212.5410. Morigaon 55.93 7.43 48.50 55.9311. Sonitpur 307.03 35.79 260.59 296.3812. Darrang 192.58 27.19 144.20 171.3913. North Lakhimpur 610.84 65.17 545.67 610.8414. Dhemaji 85.65 29.32 56.33 85.6515. Karbi-Anglong 65.47 2.63 62.84 65.4716. Goalpara 182.16 13.01 169.15 182.1617. Bongaigaon 368.41 43.17 325.24 368.4118. Kokrajhar 182.16 13.01 169.15 182.1619. Dhubri 174.56 24.55 150.01 174.5620. Cachar 318.80 15.65 303.15 318.8021. Karimganj 88.30 7.52 80.78 88.3022. Hailakandi 0.00 0.00 0.00 0.0023. N. C. Hills 0.00 0.00 0.00 0.00

Sub-Total 12788.89 1511.52 10979.64 12491.16

B. MEGHALAYA 298.72 26.58 272.14 298.72C. MANIPUR 970.12 31.92 938.20 970.12D. TRIPURA 270.40 22.62 247.78 270.40

Grand Total 14328.13 1592.64 12437.76 14030.40

State/District-wise default position as on 31st March, 2008(Excluding suit filed cases)

ANNEXURE – ‘K’

(Rs. in Lacs)

67

Figures as on 31st March, 2008(Rs in lacs)

I. PARTICULARS OF LOANS & ADVANCES :

1. According to the Guidelines of IDBI, the loans and advances are

classified as under :

A) Standard Assets : 7, 03, 90,000

B) Sub-Standard Assets : 22, 32,000

C) Doubtful Assets :12, 07, 05,000

D) Loss Assets :15, 22, 44,00034,55,71,000

2. Debts due by concerns in which one or more Director

of the Corporation are interested as Directors, Partners

Proprietor or Managing Director or in the case of

Private Companies as member : Nil

3. Total amount of loans disbursed during the year to concern in

which one or more Directors of the Corporation are interested

as Directors, Partners, Proprietor or Managing Director or in

the case of Private Companies, as member : Nil

4. (i) Total amount of instalments, whether of principal or interest

of which default was made at any time during the year

Interest : Rs.13,79,89,000

Principal : Rs. 1,42,47,00015,22,36,000

(ii) Total amount of instalments, whether of principal or interest

overdue at the end of the year 140,30,40,000

(iii) Total amount of instalments, whether of principal or interest

overdue by concerns in which the Directors of the

Corporation are interested Nil

ANNEXURE – ‘L’(Rs. in Lacs)

PARTICULARS IN RESPECT OF LOANS ANDADVANCES REFERRED TO IN THE BALANCE SHEET

68

(iv) Total amount due from the industrial concerns against whomlegal action has been taken for the recovery of the dues(Decreed Rs. 1,10,46,000) 13,64,10,000

(v) Total amount due from the industrial concerns against whomlegal action has been taken for the recovery of the dues in whichone or more Directors of the Corporation are interested Nil

5. Debts guaranteed by the State Government, Scheduled Banks, etc. Nil

6. Debts due from loanee concerns whose management or possessionor both have been taken over by the Corporation 44,74,12,000

7. Decree obtained /purchased by the Corporation 1,28,778

II. CLASSIFICATION OF LOANS & ADVANCES ACCORDING TO

THE SIZE OF THE INDUSTRIAL UNITS :

1. Debts due from small scale industrial concerns 24,94,20,000

2. Debts due from industrial concerns other than those 9,61,51,000indicated in 1 above

34,55,71,000

III. CLASSIFICATION OF LOANS & ADVANCES ACCORDING TO THE

CONSTITUTION OF INDUSTRIAL UNITS :

1. Proprietorial Concerns 23,49,31,000

2. Partnership Concerns 4,11,15,000

3. Joint Hindu Family Concern Nil

4. Co-operative Societies 46,37,000

5. Private Limited Companies 6,07,93,000

6. Public Limited Companies 40,95,00034,55,71,000

69


PROXY FORM

I/ We—————————————————————————————————————————————————————

of———————————————————————————————————————————————————being a

Shareholder(s) of the Assam Financial Corporation holding Shares Nos.——————————————————

hereby appoint——————————————————————————————— of————————————————

——————————————————————or failing him————————————————————————————

—————————————————— of—————————————————————————————————————

—————————————————————— as my /our proxy to vote for me/us and on my/our behalf at a

meeting of the Shareholders of the Corporation to be held at————————————————————————

on the day of————————————————————————————————————————————————

and at any adjournment thereof.

Dated this ————————————————————————— day of——————————————————

———————————————————————.

Signature :

Address :

Notes

Notes

Dr. D.N.S Dhakal, Visiting Professor, Duke University, USA being felicitated by Sri H.S. Das, IAS, PrincipalSecretary, Finance, Govt of Assam at the end of the Training Programme on ‘Financial Investment Appraisal’

A View of participants undergoing a training on ISO 9001 : 2000 conducted by senior official of National Productivity Council(NPC) Guwahati.


VITTYA BHAWAN, MD.SHAH ROAD,PALTANBAZAR,GUWAHATI-781008. ASSAM.

PHONE:0361-2513448/2633658FAX:0361-2519859

EMAIL:[email protected]/[email protected]:www.afconline.gov.in

ASSAM FINANCIAL CORPORATION 54th ANNUA L ...India’s real GDP was projected to grow by 8.8 per cent in 2007-08. Services industries was the driver of India’s GDP growth for yet

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