INDIAN CLEARING CORPORATION LIMITED
ANNUAL REPORT 2010-2011
DIRECTOR'S REPORT
To
The Members,
Your Directors have pleasure in presenting the Fourth Annual Report on the
operations of the Company, together with the Audited Statement of Accounts
for the year ended on
31' March,2011.
Financial Results :
The financial results for the year ended 31st March, 2011 are as follows:
(Amount in Rs.)
PARTICULARS For the For the
year ended year ended
31-03-2011 31-03-2010
Total Income 48,865,615 16,075,182
Total Expenditure 15,164,878 1,869,435
Profit / (Loss): before,
Depreciation & Tax 33,700,747 14,205,747
Less: Depreciation NIL NIL
Profit / (Loss): before Tax 33,700,747 14,205,747
Less: Provision for Tax
including Deferred tax 10,620,058 4,100,000
Profit / (Loss): after Tax 23,080,689 10,105,747
Add: Balance in P & L
Balance carried to Balance
Sheet 32,780,364 9,699,675
During the year under the review the performance of your Company was
satisfactory and it recorded a total income of Rs.48,865,625 as compared to
Rs.16,075,182 in the previous year. The net profit increased to
Rs.23,080,689 as compared to Rs.10,105,747 in the last year. The Company is
striving to achieve better results in the future.
Performance & Operations : In the current financial year, in addition to
Bombay Stock Exchange Limited's Mutual Fund Segment (BSE StAR MF) Phase II
and Corporate Bond Segment (ICDM), the Company's operations have expanded
to commence Clearing and Settlement activities for Currency Derivatives
Segment of United Stock Exchange of India Limited.
The shifting of Risk Management activities for BSE's equity / equity
derivative segment to the Company is complete.
Dividend :
With a view to conserve the financial resources for future operations of
the Company, your Directors have deemed it prudent not to declare any
dividend for the year ended 31st March, 2011.
Directors :
Mr. Madhu Kannan & Mr. Nehal Vora, Directors of the Company are liable to
retire by rotation and being eligible, offer themselves for re-appointment
at the ensuing Annual General Meeting.
Mr. Arun Ramanathan and Mr. M. B. N. Rao were appointed as Additional
Directors by the Company.
The Company has received Notices under Section 257 of the Companies Act,
1956 from Bombay Stock Exchange Limited, the Holding Company along with
requisite deposit signifying its intention to propose Mr. Arun Ramanathan
and Mr. M. B. N. Raofor appointment as Directors of the Company.
Accordingly, resolutions have been proposed in the Notice of the ensuing
Annual General Meeting for their respective appointment.
Mr. L. P. Aggarwal ceased to be a Director of the Company w.e.f. 16th
September, 2010. The Directors placed on record their appreciation for the
services rendered by Mr. L. P. Aggarwal to the Company during his tenure as
Director of the Company.
Audit Committee :
Mr. Arun Ramanathan was appointed as Member of the Audit Committee by
passing a circular resolution dated 1st October, 2010 which was noted by
the Board at their meeting held on 12th October, 2010.
Mr. M. B. N. Rao was appointed as a Member of the Audit Committee at the
Board Meeting held on 12th October, 2010 and was elected as Chairman of the
Committee by the Members at their Meeting held on 6th January, 2011.
During the year under review, 4 (four) meetings of Audit Committee were
held.
Directors' Responsibility Statement:
As required by the provisions of Section 217(2AA) of the Companies Act,
1956, your Directors confirm the following:
that in the preparation of the annual accounts, the applicable Accounting
Standards have been followed and there was no material departure from such
standards;
that the Directors have selected such accounting policies and applied them
consistently and made judgment and estimates that were reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year on 31st March, 2011 and of the
profit of the Company for the said financial year;
that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act,for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
that the Annual Accounts for the year ended on 31st March, 2011 have been
prepared on a going concern basis.
Auditors :
The Statutory Auditors, M/s. Deloitte Haskins & Sells, Chartered
Accountants, retire at the ensuing Annual General Meeting and have
confirmed their eligibility and willingness to accept the office, if re-
appointed.
Auditors' Report:
The Auditors' Report on the financial statements of the Company for the
financial year ended 31st March, 2011 does not contain any reservation,
qualification or adverse remark.
Deposits :
During the year under review, the Company has not accepted/ renewed any
Deposits from the public as covered under the provisions of Section 58A of
the Companies Act, 1956 read with the Companies (Acceptance of Deposits)
Rules, 1975.
Particulars Of Employees :
During the year under review, the Company did not have any employee
receiving remuneration equal to or exceeding the limits prescribed under
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Amendment Rules, 2011. Accordingly, no statement
containing details of employees is required to be attached.
Conservation Of Energy, Technology Absorption And Foreign Exchange Earnings
And Outgo :
(A) Conservation of Energy, Technology Absorption :
Considering the nature of operations of the Company, your Directors have
nothing to report pursuant to Section 217(1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988.
(B) Foreign Exchange Earning and Outgo:
The particulars of foreign exchange earning and outgo during the year under
review are furnished here under
Foreign Exchange Earning: Nil
Foreign Exchange Outgo: Rs. 1,574,825
Acknowledgements :
We acknowledge the commitment, dedication, devotion and contribution of the
employees at all levels, which are the backbone of the Company, for their
performance.
We also take the opportunity to express their gratitude to the Bankers,
Statutory Authorities, Service Providers and its stake-holders for the
support and co-operation extended by them from time to time.
For and on behalf of the Board
Arun Ramanathan
Chairman
Place: Mumbai
Date: 29th April, 2011
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