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HIMCONHimachal Consultancy Organisation Ltd.HIMCONHimachal Consultancy Organisation Ltd.

HIMCONHimachal Consultancy Organisation Ltd.


Himachal Consultancy Organisation Limited

2011-2012

35TH ANNUAL REPORT

New Bridge View Estate, The Mall, Shimla-171 001Tel.: 0177-2654537, 2652488 Fax: 0177-2655722

e-mail: [email protected]: www.himcon.org

(i)



SPECTRUM OF SERVICES OFFERED1. Project Identification2. Information data on products, processes, marketing, raw material,

plant and machinery, incentives etc.3. Assistance in site selection for a project4. Industrial potential surveys5. Techno - Economic Research surveys6. Market Research7. Preparation of project reports and profiles8. Pre- Feasibility and Feasibility studies9. Techno - Economic Feasibility studies10. Assistance in filing application for provisional registration11. Assistance in technology transfer in project implementation12. Assistance in preparing loan application for financial assistance13. Credit syndication from financial institutions and Banks14. Coordination with Govt. agencies for various approvals & clearances15. Monitoring the project implementation and end use of funds16. Investment appraisals for Govt. and other agencies17. Management consultancy and corporate planning18. Valuation of assets of industrial units19. Stock audit20. Assessment of working capital21. Advice for improving financial health of an industrial unit22. Diagnostic studies and preparation of rehabilitation packages23. Monitoring the rehabilitation plan24. Rural industrial development25. Entrepreneurship development programmes and awareness camps26. Awareness programmes for scheduled castes/tribes27. Skill Development Programmes28. Training and consultancy on tourism (Specially on eco-tourism)29. Event management30. Carrying out concurrent appraisals of various schemes of Govt.31. Micro enterprise development32. Conducting cost benefit studies and surveys33. Hydro Power-Project Reports and Surveys etc.34. Loan Syndication35. TEVR studies (Techno-Economic Viability Studies)36. Disinvestment/Sale of Assets/units37. Due diligence of NPA acquisition cases

(ii)


Board of Directors 1

Directors' Report 2

Annexure 9

Auditor’s Report 10

Balance Sheet 13

Profit and Loss Account 14

Schedules 15

Schedule-VI -Balance Sheet Abstractand Company’s General Business Profile 26

CONTENTS

(iii)


1) IFCI Ltd.

2) Small Industries Development Bank of India (SIDBI).

3) ICICI Bank Ltd.

4) H.P. Financial Corporation

5) H.P. State Industrial Development Corporation Ltd.

6) H.P. State Forest Corporation Ltd.

7) H.P. State Small Industries and Export Corporation Ltd.

8) H.P. Agro Industries Corporation Ltd.

9) State Bank of India

10) State Bank of Patiala

11) Punjab National Bank

12) UCO Bank

13) Bank of India

14) Union Bank of India

15) Central Bank of India

OUR PROMOTERS

(iv)


CHAIRMAN : Shri N. K. DuggalMANAGING DIRECTOR : Shri D. K. JainDIRECTORS : Shri J. S. Rana, IAS

Shri Bharat Khera, IASShri Madan Chauhan, HASShri P. M. BhanotShri V. K. GoyalShri Mam Chand Dhiman

BANKERS : Punjab National Bank,Lift Road, The Mall, Shimla-171001

AUDITORS : M/s Dhawan & Company,Chartered Accountants,Cozi Home, Shimla-171001

INTERNAL AUDITORS : M/s Rajeev Sood & Company,Chartered Accountants,71, Middle Bazar, Shimla-171001

REGISTERED OFFICE : New Bridge View Estate,The Mall, Shimla-171001

BRANCH OFFICES : HAMIRPURHouse No. 78, Ward No. 9,Bhota Road, Hamirpur-177 001 (Himachal Pradesh)

PROJECT OFFICE : NALAGARHGrameen Hatt Building, (SGSY)Behind Truck Union, Nalagarh (Himachal Pradesh)

BAIJNATHGanesh Bazar, Near Civil Court,Baijnath-176 125 (Himachal Pradesh)

DEHRADUN1. "ONKAR" House, Saraswati Puram (Miyan Wala),

P.O. Harra Wala, Dehradun-248 001 (Uttarakhand)

2. House No. 75-A/1, Near Bagicha Restaurant, Dharampur,Mothra Wali Road, Dehradun-248 001 (Uttarakhand)

BOARD OF DIRECTORS

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REPORT OF THE BOARD OF DIRECTORS(FOR THE FINANCIAL YEAR ENDED 31.3.2012)

(Under Section 217 (1) of the Companies Act, 1956)Dear Shareholders,

The Directors of your company are pleased to present 35th Annual Report together with the audited Balance Sheetand Profit & Loss Account of the company for the financial year ending as of 31st March, 2012.

1. ECONOMIC SCENARIO:World Economy:The year 2011-12 has been a year of major turbulence in the global economy triggered by the Euro Crisis,emanating from Greece, Ireland, Portugal and Cyprus and spreading to Italy and Spain, impacting not onlyEurope but the whole of the world and culminating into an overall economic crisis.

The year was replete with a mixed sense of optimism and concerns. The optimism was attributed to a somewhatencouraging ‘two speed’ recovery in advanced and emerging economies, after a major slump. As per WorldBank study, Indian economy is expected to grow faster than China. As inflation has emerged a major concernacross the border too, China has seen the back of its fiscal stimulus. China and India have seen rapid growthand have helped push-up the global growth rate.

Indian Economy:The Economy of India is the ninth largest in the world by nominal GDP and the third largest by purchasingpower parity (PPP). The Indian economy has benefited from robust domestic demand. However, increasinginterest rates are expected to shave off a few basis points from the overall growth rate. As per the CentralStatistical Organization, India’s GDP growth in 2011-12 was 6.9% compared to the growth of 8.6% in thecorresponding period last year. The Index of Industrial Production recorded a growth of 7.0% during 2011-12compared to 7.8% during previous year.

There has been a good recovery in international trade and exports increased by 21% in US dollar terms duringApril-March 2011-12, while imports registered a growth of 32%. The overall financial crises in Global economyhas affected the FII investment as they have invested a net amount of US$ 18.26 billion in Indian equity andDebt markets during April- March 2011-12 compared to an inflow of US$ 32.20 billion in the same period ofprevious year.

This, together with foreign direct investment inflow, has resulted in India’s foreign exchange reserves decreasingto US$ 294.40 billion as at the end of March 2012. Due to global increase in commodity prices, a host of fiscaland monetary measures have been taken by the Government of India and Reserve Bank of India. The ReserveBank has hiked key rates thirteen times since March 2010 in its bid to check rising inflation. During 2011-12,Government of India launched a new Wholesale Price Index Series by shifting base year from 1993-94 to2004-05 besides revising the weights and the basket of commodities covered under the WPI. During the year,WPI inflation declined from 8.98% in March 2011 to 8.80% in March 2012. Notwithstanding good monsoons,inflation remained at elevated levels particularly on account of high food prices. The Union Budget 2012-13has maintained the standard rate of central excise duty at 12% with reduction in exemptions as a prelude toimplementation of the Uniform Goods and Service Tax.

OUTLOOK FOR 2012-2013:India’s economic growth was 6.9% in 2011-12, from an earlier projection of 7% on weak global and domesticdemand. In its World Economic Outlook (WEO) as per IMF international economic growth rate would godown to 3.5% from 3.9% in 2012-13. With due caution, more efforts as well as expanding economy andemerging markets internationally India can achieve growth of 7.3% during 2012-13.

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Therefore, it is imperative that in the developing countries and emerging markets, policies should be gearedtowards ensuring a positive growth momentum in an environment of moderately soft lending regime.

HIMACHAL:Himachal Pradesh has emerged as a leading economy in the Country and is also a leader in Hill Area Development,Agriculture & Horticulture revolution. Himachal is an ideal destination for investment in Power and Tourismsector. Responsive Administration and conducive macro economic conditions have induced a competitiveenvironment in the economy and has led to a robust economic performance in the state of Himachal Pradesh.

The economy of the state has been rapidly transformed from one of the most backward in the country to oneof most advanced, ranking fourth in respect of per capita income and progressing at a uniform pace and hasachieved a high growth rate of 7.6 percent in the current financial year which is comparatively better than thenational growth of 6.9 percent. Fifty seven awards bagged by the State is the result of this extraordinaryperformance of the economy. The State has succeeded in attracting investments of Rs 40,130 crores eversince the Special Industrial package was announced in 2003.

The Per Capita Income, which was Rs. 65536 in the year 2010-11, has gone upto Rs. 73608 in 2011-12. TheGross Domestic Product of the State has increased to Rs. 63083.69 crore and Literacy rate also increased to83.78 percent in 2011-12. Food Production of the State has increased to about 16 lakh metric tonnes and FruitProduction has gone upto 10 lakh metric tonnes. Vegetable production is contributing about 3.3 percent to theGross State Domestic Product. There are 3813 health institutions, over 16000 educational institutions. Roadsthe pre-requisite for development of hilly areas has been paid special attention, as a result of which, roadlength in the State has gone upto 34000 kms in 2011-12.

2. FINANCIAL PERFORMANCE:During the year ended March, 2012, your Company has achieved a turnover of Rs. 306.30 lakh as against thebudgeted target of Rs. 300.00 lakh. The profit before tax for the year was Rs. 15.96 lakh.

The segmental income as compared to the previous year is summarized below:

2012 2011

1. GROSS INCOME 306.30 207.09

2. PROFIT BEFORE TAX 15.96 5.86

3. PROVISION FOR TAX 5.05 1.93

4. NET PROFIT 10.86 3.93

5. PROPOSED DIVIDEND 1.50 1.50

6. TAX ON PROPOSED DIVIDEND 0.25 0.25

7. DEFFERED TAX LIABILITIY (-) 0.05 (-) 0.14

8. AMOUNT TRANSFERREDTO GENERAL RESERVES

9.11 2.04

Sl. No. Segmental Income YEAR ENDED (Rs. in Lakhs)

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During the year under review, Department of Science & Technology (DST), National Safai Karamcharies Finance& Development Corporation (NSKFDC), National Schedule Caste Finance & Development Corporation (NSCFDC),National Backward Classes Finance Development Corporation (NBCFDC), Government of Himachal Pradesh,Government of Uttarakhand, Khadi and Village Industries Commission (KVIC), Banks, Financial Institutions (FIs)and Corporates have sanctioned various assignments for conducting Entrepreneur and Skill DevelopmentProgrammes, carrying out valuations, preparation of Techno Economic Viability Reports (TEVRs), Sale of Assetsand Loan syndications etc. Few Important Assignments are as under:

Disinvestment of HPMC land at Chennai. STED programme at Hamirpur. Techno Economic Feasibility Report of Kudos Agroholes Limited. ISO 9001-2008 certification for H P State Pollution Control Board. Technical assistance in Appraisal Report of M/s Bhanu Farms Ltd. Seminar on “Global Solar Water Heating Market Transformation and Strengthening initiative programme”

on behalf of Ministry of New and Renewable Energy (MNRE) and on “Food Preservation and Processingfor existing and Prospective Entrepreneurs as well as Fruit Growers” on behalf of Ministry of FoodProcessing Industries, New Delhi and also Awareness Camps on behalf of Department of Tourism &Civil Aviation.

Skill Development Training Programmes and Entrepreneurship Development programmes on behalf ofvarious Corporations and Departments.

Awareness camps on Credit Guarantee Scheme programme. Trainings under IWMP scheme. Corporate Social Responsibility (CSR) – Community Development Programmes (Skill Development

Trainings) assigned by the NHPC Limited. On job Training under Special Project under SGSY, (GOI).

Your company is also expanding its base and competencies in varied fields such as: Consultancy for Power Sector including Physical verification for MNRE Loan Syndication TEVR Studies Disinvestment/Sale of Assets/Units Due diligence of NPA acquisition cases Empanelment with NIFTEM for Consultancy/Training in Food Processing Sector

3. DIVIDEND:In view of the satisfactory performance of the company during the year, the Directors of your company arepleased to recommend a dividend @ 10% for the year 2011-2012 on the paid up equity share capital.

4. HIGHLIGHTS OF ACTIVITIES:Your Company has completed 458 assignments during the year which includes 38 Pre-Feasibility/FeasibilityReports, 97 Surveys/Studies including assets valuation/miscellaneous and 323 training programmes and currentlyis working on 94 assignments.

TRAINING PROGRAMMES:During the current financial year your Company has expanded its training activities and completed 323training programmes in various trades in the states of Himachal Pradesh, Haryana, Punjab, Jammu &Kashmir and Uttrakhand. Few important trainings conducted are as under:

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Twenty Entrepreneurship Awareness Camps (EACs), Three Women Entrepreneurship DevelopmentProgrammes (WEDPs), Four Technology based Entrepreneurship Development Programmes (TEDPs)and Two S&T EDPs were successfully completed in the state of Himachal Pradesh on behalf ofDepartment of Science & Technology.

The Skill development programmes for Schedule Caste, Schedule Tribes, Backward Classes, Minoritiesand People below Poverty line envisage a fair deal to the communities in terms of opportunities foremployment and socio-economic upliftment.

Seven Skill Development Training Programmes were conducted on behalf of National SafaiKaramcharies Finance and Development Corporation on Fashion Designing, Soft Toys, Motor Driving,Beautician and Computer Hardware & Software etc. and Two Skill Development Training Programmeswere conducted on behalf of NSKFDC-REC on Electric Wiring in the State of Himachal Pradesh, inassociation with HP SC/ST Development Corporation for Safai Karamcharies and their dependentsand Two Skill Development Training on Domestic Electrical Appliance Repair and Maintenance andComputer Hardware in the State of Punjab in association with Punjab Scheduled Caste and FinanceDevelopment Corporation.

During the period your Company had conducted Five Entrepreneurship Development Programmes(EDPs) in the state of Uttrakhand on Fruit Processing at Mussoorie, Tihri, Pauri Gharwal, Nainitaland Uttarkashi, 5 EDP’s in State of J&K at Kathua, Udhampur, Samba, Doda and Srinagar and 5EDP’s in the state of HP at Baijnath, Ghumarwin, Hamirpur, Mandi and Theog. Your Company alsoconducted seminars on Food Processing at 5 locations in Himachal Pradesh i.e. at Kullu, Mandi,Chamba, Paonta Sahib and Una on behalf of Ministry of Food Processing Industries, Govt. of India.

Your Company has successfully completed assignment received from CGTMSE for conducting30 awareness programmes in Himachal Pradesh.

Four Awareness Camps for Taxi Drivers, EDP’s on Home Stay scheme at 9 locations,11 awarenesscamps on Har Gaon Ki Kahani and required attitude of Police & Home Guard personal to facilitatethe tourists were also conducted on behalf of Department of Tourism. Trainings for development oflocal youth as tourist guides were also conducted during the year at Shimla, Kangra, Dharamshala,Una and Chamba.

One hundred three Skill Development Training Programmes were conducted on behalf of BDOs indistrict Kangra, Hamirpur, Bilaspur, Una, Chamba, Kullu, Shimla and Mandi.

Twenty Eight EDPs have been successfully conducted in Uttrakhand at Almorha, Didihat, Gangolihat,Vikasnagar, Lamgada, Barenag, Danya, Laksar, Rishikesh, Chaniyalisour, Puhana, Ranikhet, Chakrutia,Bhikiyasn, Dharchulla, Mussoorie, Naugaon, Purola, Teyuni, Sultanpur, Jagjeetpur and Pithoragarhand 2 Follow up EDP’s at Udhamsinghnagar and Chamoli on behalf of Directorate of Industries,Uttrakhand.

Two Skill Development Trainings on fruit processing at Mandi on behalf of DIC Mandi, One EDP’seach at Dharamshala & Hamirpur on behalf of DIC Dharamshala & Hamirpur and Three EDP’s atKullu on behalf of DIC Kullu have been successfully conducted.

Five EDPs for PMEGP beneficiaries of Shimla, Kinnaur and Hamirpur Districts on behalf of KVIChave been conducted at Shimla, Hamirpur and Recong Peo.

Successfully completed Workshop on Solar Water Heater held at Shimla & Dharamshala on behalfof MNRE under Jawaharlal Nehru Solar Mission.

Two Skill Development Training Programmes under Corporate Social Responsibility have beenconducted at Sainj and Godsa in Kullu District of Himachal Pradesh on behalf of Parbati H.E.Project Stage II, NHPC Ltd.

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ASSIGNMENTS UNDER SARFA & ESI ACT, 2002: Assignments under SARFA & ESI Act, 2002 on behalf of UCO Bank, Regional offices Shimla and

Dharamshala and Central Bank of India are also being carried out successfully. TECHNO ECONOMIC FEASIBILITY REPORTS & PRE-FEASIBILITY REPORTS:

Your Company has prepared various Techno Economic Feasibility Reports and Pre-Feasibility Reportsfor Banks and Corporates during the year.

TEFRs has been prepared for M/s Kudos Agroholes Limited and M/s Kudos Chemic Ltd., Punjab. Prepared DPR on Rural area development towards Tourist Destination in HP for Department of

Tourism & Civil Aviation, Govt. of H.P. Preparation of DPRs for M/s Kufri Hotels (P) Ltd., Kufri and Kudos Agrichem, Derabassi and its

subsidiaries. VALUATION REPORTS:

Your Company has undertook Valuation of assets for HPFC, HPSIDC, H.P. State CooperativeBank, Central Bank of India, IFCI, IIDL, ACRE, Commercial banks, Corporate houses and also forvarious private clients.

IMPORTANT STUDY/SURVEYS: During the year your Company has done techno economic viability studies for three units namely

M/s Sri Rama Steels Ltd., M/s Chandigarh Iron & Steel Co. Ltd. and M/s M. M. Ferro Chem Ltd. Successfully completed Physical verification of PMEGP units in the State of Himachal Pradesh on

behalf of Khadi Village Industries Commission (KVIC), Shimla. Strategic Plan (XII Five year plan) study on behalf of NSFDC, New Delhi. ISO 9001-2008 certification of Himachal Pradesh State Pollution Control Board.

5. STAFF WELFARE:The Board believes in keeping the morale and motivation of the employees high, considers employees as itsmost important assets and accords high priority to their welfare. The Company undertook various staff welfareactivities including Insurance cover for employees under group insurance scheme and Annual Health Check-up scheme.

6. Opportunities, Threats and Future Outlooks:Our growth is linked to the state’s economic growth primarily and overall national economic development.With the expertise and experience gathered over three decades, we are consolidating our position as thecatalyst of economic growth in the state for effecting a purposeful role. Our expertise and services have beenrecognized outside the boundaries of the states also. Despite compression in the inflows due to lukewarmsupport from various quarters, namely (i) Change in “Govt. Policies” for in training programmes for variousschemes and (ii) Withdrawing of “Fiscal Package” for Industrial Development in the hill states, the financialperformances of the Company is quite promising.

The Company is devising strategies to sustain its growth and financial performance. The management is alsoexploring other areas for consultancy and also pursing new Govt. scheme and have been able to get itselfempanelled as consultant with NIEFTEM for providing consultancy to the existing and new industries at thenational level.

Your Company has the requisite expertise, skill set and infrastructure support system to carry out the assignmentsin diverse segments and in the current year entered in the CSR segment of activities on behalf of NHPC.Looking at the skills and capability of the team, there exists ample scope to take up activities under CSR at alarger extent for various institutions for which necessary initiative has already been taken by the Management.

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Implementation of Special Project under SGSY received very good response and recognition at the state level.504 BPL youth have been able to get employment in industries in Himachal Pradesh after attaining threemonths employable skills training under the project till 31st March, 2012.

Looking at the success and utility of the concept Department of Rural Development Government of HimachalPradesh has approved a Pilot Project on the similar lines under Integrated Water Management Project (IWMP)through CEO State Level Nodal Agency (SLNA) for the children of small and marginal farmers of HimachalPradesh. On completion of the Pilot Project this activity clubbed with skill development for self/group employmentwill be taken up at the Block level of all the Districts in the State. These projects will also serve the purpose ofbecoming partners in socio economic development of the state.

For the year 2012-2013 the company has projected a turnover of Rs. 425 lakhs. With regards to assignmentson hand and various efforts put in by the management, commitment of the dedicated team, support of theesteemed sponsoring institutions, the goal is achievable. The motto of the company is to provide services with“Quality Output in time” have stood the test of time.

7. BOARD OF DIRECTORS:During the year under review, S/Shri K. K. Pant, Satya Pal, Kashmir Chand and Shri Sonjoy Sethee, retiredfrom the Directorship of the Company and Shri N.K. Duggal, Chief General Manager, IFCI Ltd.,Shri Bharat Khera, (IAS), Managing Director, HPFC and HPSIDC, Shri Mam Chand Dhiman, AssistantGeneral Manager, SIDBI, Chandigarh, and Shri V. K. Goyal Dy. General Manager, Punjab National Bankhave joined as the Directors of the Company. The Board of Directors record their deep appreciation andgratitude for the services rendered and the active participation by the outgoing Directors in the deliberations ofthe board and also welcomes the new Directors.

8. INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956:Information as per section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars ofemployees) Rule 1975 and forming part of the Directors Report for year ended March 31, 2012 is NIL asthere is no such employees.

9. INFORMATION UNDER SECTION 217 (1) (e) OF THE COMPANIES ACT, 1956:The particulars required for disclosure under Section 217 (1)(e) relating to the conservation of Energy, TechnologyAbsorption, Foreign Exchange, earnings and outgo are:

NIL

10. DIRECTOR’S RESPONSIBILITY STATEMENT:The Board of Directors hereby states that in the preparation of the annual accounts, the applicable accountingstandards have been followed:a). That the accounting policies are consistently applied and reasonable, prudent judgment and estimates are

made so as to give a true and fair view of the state of affairs of the company as on the 31st March, 2012and of the profit or loss of the company for the year ended on that date.

b). That they have taken proper and sufficient care for the maintenance of adequate accounting records inaccordance with the provisions of Company’s Act, 1956 for safeguarding the assets of the company andpreventing and detecting fraud and other irregularities.

c). That they have prepared the annual accounts on a going concern basis.

11. SECRETARIAL COMPLIANCE REPORT:The Company has obtained Compliance Certificate pursuant to Section 383 A of the Companies Act, 1956.

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12. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGNEXCHANGE EARNINGS AND OUTGO:The Company is not a manufacturing Company and does not use energy for production. Therefore, variousprovisions in this regard are not applicable to the company being a consultancy organization. Similarly, theCompany is not a manufacturing/trading company and no technology is to be absorbed by the Company in itsoperations.

13. ACKNOWLEDGEMENTS:The Directors are grateful for the confidence, faith and trust reposed by the shareholders viz: IFCI Ltd., ICICIBank Ltd., Small Industries Development Bank of India (SIDBI), Nationalised Banks and State Corporationsfor their continued guidance and assistance. The Board also acknowledge the support and encouragementreceived from the Department of Science and Technology (DST), Entrepreneurship Development Institute ofIndia (EDI), Ministry of Food Processing Industries (MOFPI), Ministry of Rural Development, Govt. of India,Department of Rural Development & Panchayati Raj, Govt. of Himachal Pradesh, SLNA, DWDAs, NIEFTEM,National Scheduled Caste Finance and Development Corporation (NSFDC), National Backward ClassesFinance & Development Corporation (NBCFDC), National Safai Karamcharies Finance DevelopmentCorporation (NSKFDC), National Scheduled Tribes Finance and Development Corporation (NSTFDC),Directorate of Industries, Govt. of Himachal Pradesh, District Industries Centre (DICs), Directorate ofTourism & Civil Aviation, Govt. of H.P., Block Development Officers of Himachal Pradesh, Punjab andHaryana Scheduled Caste and Scheduled Tribe Development Corporation, KVIC, HPSFAC, CGTMSEMumbai, Directorate of Industries, Govt. of Uttarakhand. The Board of Directors also acknowledges thesupport and cooperation received from the Government of Himachal Pradesh and also the clients, Bankers,Associates and appreciate the confidence reposed by them in the Company. The Board also wishes to recordthe appreciation of the devoted services rendered by the Members of the staff at all levels during the year.

D. K. JainManaging Director

N. K. DuggalChairman

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For and on Behalf of the Board


ANNEXURE-I

SUMMARY OF OPERATION(APRIL, 2011 TO MARCH, 2012)

1. No. of Enquires Materialized as Firm Assignments 5212. No. of Assignments on Hand at the beginning of the year

- Feasibility Reports 00- Pre- Feasibility Reports 03- Surveys/Studies (including assets Valuations) 09- Training Programmes 19- Miscellaneous 00Total: 31

3. Details of Assignments Handled during the year(Including Assignments of the previous year)- Feasibility Reports 18- Pre-Feasibility Reports 22- Surveys/ Studies (including assets Valuation) 104- EDPS/IAPS/SGSY/STST 399- Miscellaneous 09Total: 552

4. Assignments Completed during 2011-2012- Feasibility Reports 18- Pre-Feasibility Reports 20- Surveys/Studies (including assets Valuations) 92- Training Programmes 323- Miscellaneous 05Total: 458

5. Assignments on hand as on 31st March, 2012- Feasibility Reports 00- Pre- Feasibility Reports 02- Surveys/Studies (including assets Valuations) 12- Training Programmes 76-Miscellaneous 04Total: 94

S.No. PARTICULARS Nos.

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AUDITOR'S REPORTAuditors' report to the members of

HIMACHAL CONSULTANCY ORGANISATION LIMITED

1. We have audited the attached Balance Sheet of HIMACHAL CONSULTANCY ORGANISATION LIMITED (HIMCON),THE MALL, SHIMLA as at 31st March, 2012 and the Profit and loss Account for the year ended on that date annexedthereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to expressan opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles used and significant estimatesmade by the Management, as well as evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.

3. As required by the “Manufacturing and other Companies (Auditor’s Report) Order 2003,” issued by the Central Governmentof India in terms of sub section (4A) of section 227 of the Companies act, 1956, we enclose in the annexure a statementon the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the annexure referred to above, we report that:i). We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary

for the purpose of our audit.ii). In our opinion, proper books of account as required by law have been kept by the company so far as appears from

our examination of those books.iii). The balance sheet and profit and loss account dealt with by this report is in agreement with the books of account

(and with the audited returns from the branches).iv). In our opinion, the balance sheet and profit and loss account dealt with by this report comply with the accounting

standards referred to in sub-section (3C) of section 211 of the Companies act, 1956.v). On the basis of written representation received from the directors, as on 31st March 2012 and taken on record by the

Board of Directors, we report that none of the directors is disqualified as on 31st March 2012 from being appointedas a director in terms of clause (g) of sub section (1) of section 274 of the Companies act, 1956.

vi). In our opinion and to the best of our information and according to the explanations given to us, the said accountsread together with significant accounting policies and notes to accounts in schedule “J” and those appearingelsewhere in the accounts give the information required by the Companies act, 1956 in the manner so required andgive a true and fair view in conformity with the accounting principles generally accepted in India:a). In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012 andb). In the case of Profit and Loss account, of the profit of the Company for the year ended on that date.

B.Com. (Hons.) F.C.A.Inderjeet Dhawan

SHIMLADATED: 28/04/2012

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ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THEACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2012

OFHIMACHAL CONSULTANCY ORGANISATION LIMITED

On the basis of such checks as we considered appropriate and according to the information and explanationsgiven to us during the course of audit, we state that:

i). a). The Company has maintained proper records showing full particulars including quantitative details andsituation of fixed assets.

b). The assets have been physically verified by the management during the year which, in our opinion, isreasonable having regard to the size of the company and the nature of its assets. No materialdiscrepancies were noted on such verification.

c). During the year, there was no sale of substantial part of fixed assets and hence the going concern of theCompany is not affected.

ii). a). The inventory has been physically verified during the year by the management. In our opinion, thefrequency of verification is reasonable having regard to the size of the Company and nature of itsbusiness.

b). The procedures of physical verification of inventories followed by the management are reasonable inrelation to the size of the Company and the nature of its business.

c). The Company is maintaining proper records of inventory. The discrepancies noticed on verificationbetween the physical stocks and the book records were not material.

iii). The Company has not taken/ granted any loans, secured or unsecured, from/to companies firms, or otherparties listed in the register maintained under the provisions of Section 301 of the Act.

iv). In our opinion and according to the information and explanations given to us, there are adequate internalcontrol procedures commensurate with the size of the company and the nature of its business with regardto purchase of inventory, fixed assets and with regard to the sale of goods.

v). According to the explanation and information given to us we are of the opinion that there are no transactionsthat need to be entered into the register maintained u/s 301 of the Companies Act, 1956.

vi). In our opinion and according to the information and explanations given to us the company has not accepteddeposits from the Public.

vii). In our opinion, the Company has an internal audit system commensurate with the size and nature of itsbusiness.

viii). The Company is not required to maintain records pursuant to the rules made by the Central Governmentfor the maintenance of cost records under section 209 (I) (d) of the Companies Act, 1956.

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ix). The Company is regular in depositing with appropriate authorities undisputed statutory dues includingProvident Fund and other material statutory dues applicable to it.

x). The Company does not have any accumulated losses as at 31st March, 2012. The Company has notincurred any cash losses during the financial year covered by our audit and the immediately precedingfinancial year.

xi). In our opinion and according to the information and explanation given to us, the Company has not defaultedin repayment of dues to financial institutions and banks.

xii). In our opinion and according to the information and explanation given to us, the Company has not grantedany loans and advance on the basis of security by way of pledge of shares, debentures and other securities.

xiii). In our opinion the Company is not chit fund or a nidhi / mutual benefit fund / society. Therefore, theprovisions of clause 4(iii) of the Companies (Auditor’s report) order, 2003 are not applicable to theCompany.

xiv). In our opinion, the Company is not dealing in or trading in shares, securities, debentures and otherinvestments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditor’s report) order, 2003are not applicable to the Company.

xv). The Company has not given guarantees for loans taken by others from banks or financial institutions.

xvi). The Company has not taken any term loans.

xvii). According to the information and explanations given to us. We report that no funds are raised on shortterm and long term basis by the company.

xviii). The Company has not made any preferential allotment of shares during the year to parties and Companiescovered in the register maintained under section 301 of the companies act, 1956.

xix). The Company has not issued any debentures during the year and therefore the question of creating securityin respect thereof does not arise.

xx). The Company has not made any public issues during the year and therefore the question of disclosing theend use of money does not arise.

xxi). According to the explanations and information given to us, based upon the audit procedures performedand representations made by the management, we report that no fraud on or by the Company has beennoticed or reported during the course of our audit.


12


(Rupees)Schedule As at 31st As at 31st

No. March, 2012 March, 2011

I. EQUITY & LIABILITIES1). Shareholders’ Funds

- Share Capital I 1,500,000.00 1,500,000.00- Reserves and Surplus II 11,713,009.17 10,806,227.17

2). Non-current Liabilitiesa). Long-term Borrowings (Unsecured) III 0.00 0.00b). Other Long-term Liabilities IV 0.00 0.00c). Long-term Provisions V 31,134.00 26,045.00

3). Current Liabilitiesa). Short-term Borrowings VI 0.00 0.00b). Trade Payables VII 0.00 0.00c). Other Current Liabilities VIII 2,274,191.50 1,516,720.00d). Short-term Provisions IX 502,606.00 347,414.00

TOTAL: 16,020,940.67 14,196,406.17

II. ASSETS1). Non-current Assets

a). Fixed Assets XGross Block 2,978,463.08 2,828,135.58Less: Depreciation 2,532,811.88 2,410,980.88Net Block 445,651.20 417,154.70Capital work-in-progress 0.00 0.00

b). Non-current Investments XI 0.00 0.00c). Deferred Tax Asset (Net) 0.00 0.00d). Long-term Loans & Advances XII 0.00 0.00e). Other non-current assets XIII 0.00 0.00

2). Current Assetsa). Current Investments XIV 0.00 0.00b). Trade Receivables XV 6,245,945.00 6,954,062.00c). Cash and Cash Equivalents XVI 7,854,285.97 5,932,084.47d). Short-term Loans and Advances XVII 1,205,872.50 513,409.00e). Other Current Assets XVIII 269,186.00 379,696.00Significant Accounting Policies and Notes on Accounts XXIV

TOTAL: 16,020,940.67 14,196,406.17

HIMACHAL CONSULTANCY ORGANISATION LIMITEDNEW BRIDGE VIEW ESTATE, THE MALL, SHIMLA-171001 (H.P.)

BALANCE SHEET AS AT 31/03/2012

(BALBIR SINGH)MANAGER (FINANCE)

(D.K.JAIN) MANAGING DIRECTOR

(N.K.DUGGAL)CHAIRMAN


13


(Rupees)Schedule For the year For the year

No. ended 31st ended 31stMarch, 2012 March, 2011

I. INCOMEIncome from Operations XIX 30,051,991.00 20,414,606.00Other Income XX 577,633.00 294,034.00TOTAL INCOME (A) 30,629,624.00 20,708,640.00

II. EXPENDITURECost of Borrowings XXI 0.00 0.00Payments to and provisions for employees XXII 11,847,688.00 6,260,689.00Establishment and Other Expenses XXIII 17,068,287.00 13,738,842.00Depreciation (Net of transfer from Revaluation Reserve) Rs. 122015.00 117,476.00 123,190.32Less: Charged to Capital Grant Reserve (-) 4539.00

TOTAL EXPENDITURE (B) 29,033,451.00 20,122,721.32III. PROFIT BEFORE PROVISIONS/ WRITE OFF (A-B) 1,596,173.00 585,918.68IV. Bad and Doubtful Loans & Advances and other Assets

Write-off 0.00 0.00Provision u/s 36(1)(viia)(c) 0.00 0.00Provision Reversal 0.00 0.00

V. PROFIT BEFORE TAX 1,596,173.00 585,918.68Provision for Taxation- Income Tax 504,850.00 193,448.00- Deferred Tax Charge (Net) 5,089.00 13,508.00

VI. PROFIT AFTER TAX 1,086,234.00 378,962.68Surplus brought forward from Previous Year 0.00Profit available for appropriation 1,086,234.00 378,962.68

VII. APPROPRIATIONS:Reserve u/s 45IC of RBI Act 0.00 0.00Capital Redemption Reserve 0.00 0.00General Reserve 0.00 0.00Special Reserve u/s 36(1)(viii) 0.00 0.00Staff Welfare Fund 0.00 0.00Corporate Social Responsibility Fund 0.00 0.00Proposed Dividend 0.00 0.00- Equity 150,000.00 150,000.00- Preference 0.00 0.00Tax on Distributed Profits 0.00 0.00- Equity 24,914.00 24,914.00- Preference 0.00 0.00Balance carried over to Balance Sheet 911,320.00 204,048.68

1,086,234.00 3,78,962.68Significant Accounting Policies and Notes on Accounts XXIV

HIMACHAL CONSULTANCY ORGANISATION LIMITEDNEW BRIDGE VIEW ESTATE, THE MALL, SHIMLA-171001 (H.P.)

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31/03/2012





14


Schedules forming Part of the AccountsSCHEDULE-ISHARE CAPITAL

(Rupees)Note As at As atNo. 31st March, 2012 31st March, 2011

AUTHORISED AUTHORISED2000 equity shares of Rs.1000/- each 2,000,000.00 2,000,000.00

2,000,000.00 2,000,000.00ISSUED ISSUED SUBSCRIBED AND PAID UP:

1500 Equity shares of Rs.1000/- each fullypaid up (Previous year same) 1,500,000.00 1,500,000.00

SUBSCRIBED ISSUED SUBSCRIBED AND PAID UP:1500 Equity shares of Rs.1000/- each fullypaid up (Previous year same) 1,500,000.00 1,500,000.00

PAID UP ISSUED SUBSCRIBED AND PAID UP:1500 Equity shares of Rs.1000/- each fully

(A) paid up (Previous year same) 1,500,000.00 1,500,000.00

TOTAL (A) 1,500,000.00 1,500,000.00(B) PREFERENCE 0.00 0.00

TOTAL (B) 0.00 0.00TOTAL (A + B) 1,500,000.00 1,500,000.00

Note:

SCHEDULE-IIRESERVES AND SURPLUS

(Rupees)As at Additions/ Deduction/ As at

1st April, transfers transfers 31st March2011 during the period during the period 2012

A). Capital Reserve 34,803.20 1.00 17,669.00 17,135.20B). Capital Redemption Reserve -C). Securities Premium Account -D). Debenture Redemption Reserve -E). Revaluation Reserve -F). Grant received from GOI under KfW Loans -G). Special Reserve under Section 36(1)(viii)

of the Income Tax Act, 1961- for the period upto 31.03.97 -- after 01.04.97 -

H). Reserve u/s 45IC of RBI Act -I). Benevolent Reserve -J). General Reserve 10,771,423.97 924,450.00 11,695,873.97K) Profit & Loss Account -

TOTAL 10,806,227.17 924,451.00 17,669.00 11,713,009.17

Previous Year 2010-11 10,806,227.17

15


SCHEDULE-VLONG-TERM PROVISIONS


Deferred Tax Assets/Liabilities 31,134.00 26,045.00

TOTAL 31,134.00 26,045.00

SCHEDULE - VIIIOTHER CURRENT LIABILITIES

(Rupees)Note As at As at

No. 31st March, 2012 31st March, 2011

A). Current maturities of Long-term debt 0.00 0.00B). CURRENT LIABILITIES

Sundry CreditorsAdvance Consultancy Fee 60,000.00 178,260.00(advance for the portions forwhich value has still to be given)Advance Against EDP 1,507,150.00 0.00Other LiabilitiesExpenses payable 634,429.50 1,338,460.00Interest booked but not due on staff loans 26,043.00 0.00Other Payables 46,569.00 0.00

C). TOTAL (A+B) 2,274,191.50 1,516,720.00D). PROVISIONS

For Income TaxLess: Advance Tax/T.D.SBalance payable/RefundableTOTAL 2,274,191.50 1,516,720.00

SCHEDULE - IXSHORT-TERM PROVISIONS


A). Employee Benefits For Proposed Incentives 327,692.00 172,500.00B). Proposed Dividend 150,000.00 150,000.00C). Tax on Proposed Dividend 24,914.00 24,914.00

TOTAL 502,606.00 347,414.00

16


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17


SCHEDULE - XIIIOTHER NON-CURRENT ASSETS

(Rupees)Note As at As at 31st

No. 31st March, 2012 31st March, 2011

A). Advance Tax paid (net of provisions) For Income Tax 504,850.00 193,448.00i). Income Tax Less: Advance Tax/T.D.S 600,161.00 552,291.00ii). Interest Tax

B). MAT Credit EntitlementC). Lease Rental Receivable

- Less than 6 months- More than 6 monthsLess: Provision

D). Long-term Trade Receivables *- Less than 6 months

- More than 6 months Less: Provision

E). Other Loans and advances TOTAL -95,311.00 -358,843.00

* Note :Out of the above,i). Considered good -95,311.00 -358,843.00ii). Considered doubtful 0.00 0.00

-95,311.00 -358,843.00

SCHEDULE - XVTRADE RECEIVABLES


SUNDRY DEBTORSTrade debtors (unconfirmed and unsecured)Considered good. 2,950,512.00 3,558,000.00Debt outstanding for a period of not exceeding 6 months

3,295,433.00 3,396,062.00Less: Provision 0.00 0.00

TOTAL 6,245,945.00 6,954,062.00Note :

Out of the above,i). Considered good 6,245,945.00 6,954,062.00ii). Considered doubtful 0.00 0.00

18


SCHEDULE - XVICASH & CASH EQUIVALENTS


CASH & BANK BALANCES.Cash in hand (including postage stamps) 8,339.96 26,625.49Cheques on hand & under collection and remittances in 0.00 0.00transit Cheques and Drafts in Hand 0.00 0.00Balances with Reserve Bank of India Balance with scheduled banks- Current AccountBalances with Scheduled Banks- Current Account in IndiaIn current Accounts 320,669.01 2,419,630.98- Unclaimed dividend Account (Contra) 0.00 0.00- Deposit Account in IndiaIn Fixed Deposits with Scheduled Banks 7,525,277.00 3,485,828.00- Current Account outside India 0.00 0.00TOTAL: 7,854,285.97 5,932,084.47

SCHEDULE - XVIISHORT-TERM LOANS & ADVANCES


A). Other Loans and advances(Un-secured, unconfirmed, considered good) 0.00 0.00(advances recoverable in cash or in kind or forvalue to be received)Loans and Advances to Staff 666,941.50 325,050.00

B). Security deposits 123,850.00 130,269.00C). Pre-paid expenses 3,551.00 5,403.00D). Other recoverable 411,530.00 52,687.00

TOTAL: 1,205,872.50 513,409.00

19


SCHEDULE - XVIIIOTHER CURRENT ASSETS


A). Current maturities of Long-term Loans 0.00 0.00 B). Accrued Income (Interest accrued but not due on fixed deposits) 173,875.00 20,853.00

i). Interest and commitment charges on Loans Tax Deducted at Source/Advance Tax Paid 95,311.00 358,843.00ii). Interest on Investments 0.00 0.00iii). Other Income 0.00 0.00

C). Assets acquired in settlement of dues and held for sale 0.00 0.00TOTAL: 269,186.00 379,696.00

SCHEDULE - XIXINCOME FROM OPERATIONS


A). On Lending Operations (including funded interest) 0.00 0.00B). On Investment Operations 0.00 0.00

i). Dividend (Gross) 0.00 0.00- long term 0.00 0.00- current 0.00 0.00

ii). Interest (Gross) 0.00 0.00iii). Profit on sale of Shares/ Units/ Debentures (Net) 0.00 0.00

-Assistance under financing - long term 0.00 0.00-Investments - long term 0.00 0.00-Investments - current 0.00 0.00

C). Leasing Operations 0.00 0.00i). Lease Rentals etc. 0.00 0.00ii). Lease Equalisation Account 0.00 0.00

D). Business Services Fees and CommissionConsultancy Fee 5,363,816.00 2,215,060.00EDP & Other Trainings 24,688,175.00 18,199,546.00

E). Exchange Fluctuation Gains/ (Loss) 0.00 0.00F). Provision/ Write off/ Liability no longer required written back* 0.00 0.00

TOTAL: 30,051,991.00 20,414,606.00

20


SCHEDULE - XXOTHER INCOME


A). Interest on Fixed Deposits 525,745.00 232,106.00B). Miscellaneous Income 51,888.00 61,928.00C). Rental Income 0.00 0.00

TOTAL: 577,633.00 294,034.00

SCHEDULE - XXIIPAYMENTS TO AND PROVISIONS FOR EMPLOYEES


PERSONNELSalaries 5,255,527.00 4,073,264.00Contribution on provident Funds 624,923.00 586,960.00Medical expenses 90,671.00 76,148.00Staff Welfare Expenses 124,808.00 99,031.00Group Insurance Expenses 35,835.00 13,401.00Liveries 9,000.00 9,720.00Leave Fare Concessions 10,359.00 16,738.00Lunch Subsidy 37,839.00 0.00Ex-gratia 360,616.00 312,263.00Gratuity Premium 2,793,396.00 203,363.00Leave Encashment Premium 2,370,174.00 55,616.00REMUNERATION TO MANAGING DIRECTORSalary 0.00 614,413.00Contribution to Provident Fund 0.00 85,416.00Leased Accommodation 108,000.00 99,000.00Medical Expenses 26,540.00 12,152.00Ex-gratia 0.00 3,204.00

TOTAL: 11,847,688.00 6,260,689.00

21



Office Rent 134,083.50 134,083.00Insurance 9,463.00 19,500.00Bank Interest & Bank charges 441.50 9,182.00Travelling Expenses (M.D.) 89,018.00 53,293.00Travelling Expenses (Staff) 138,007.50 128,337.00CPF Administrative Expenses 63,156.00 66,135.00Printing & Stationery Expenses 100,899.00 112,105.00AGM Expenses 10,265.00 24,620.00Board Meeting Expenses 56,610.00 17,104.60Bad Debts 0.00 801,664.00Car Repair and Maintenance Expenses 208,872.03 177,455.00Audit Fees 19,854.00 14,890.00Tax Audit 0.00 2,758.00Misc. Expenses 7,299.00 5,684.00Repair (Office Equipment & Electricals) 15,260.00 11,087.00Business Promotion 26,029.00 11,479.00Office Maintenance Expenses 64,252.00 40,432.09Water & Electricity Expenses 185,701.00 140,303.00Advertisement Expenses 5,000.00 7,500.00Legal & Professional Charges 101,561.00 79,677.00Local Conveyance Expenses 60,436.00 22,463.00Photostat Expenses 47,969.00 40,871.00Postage and Telephone Expenses 144,763.00 149,192.00Internet Expenses 56,762.00 42,600.00Binding Exp. 0.00 92.00News Papers and Periodicals 3,274.00 3,240.00EDP/MPM/MEGSAT Expenses (Direct) 11,939,299.50 7,923,369.31STEDS Expenses (HAMIRPUR) Direct 886,567.00 915,000.00Special Project SGSY (RD) Expenses 1,085,193.50 1,568,894.50Project Expenses 1,321,320.00 574,461.50Income Tax paid 0.00 19,120.00Service Tax Paid 0.00 140,456.00Securitization Expenses 112,477.00 230,372.00Investigation of Properties Exp. 39,335.00 70,500.00Loss on sale of Assets 35,949.50 0.00Transferred TA Expenses 15,138.00 0.00Recruitment expenses 2,766.00 13,620.00TA on Retirement (MD) Exp. 0.00 100,827.00Typing Charges 0.00 80.00Computer expenses 80,140.97 66,395.00Training expenses 1,125.00 0.00TOTAL: 17,068,287.00 13,738,842.00

22

SCHEDULE - XXIIIESTABLISHMENT AND OTHER EXPENSES


NOTES FORMING PART OF ACCOUNTSCONTINGENT LIABILITIES, ACCOUNTING POLICIES AND NOTES

A. CONTINGENT LIABILITIES:i). Claims against the Company not acknowledges as debts - NIL. (Previous Year Same)ii). Cases against the Company not acknowledged as debts - NIL. (Previous Year Same)iii). Liabilities for death, retirement gratuity, to the extent not covered by the Group Gratuity Scheme of

L.I.C. of India. Amount Unascertained (Previous Year Same)iv). Other money for which the Company is contingently liable - NIL. (Previous Year Same)v). Bank Guarantees for Rupees 2,86,015/- against the Assignments awarded by Central Government

Organisation / Corporations fully secured by 100% margin against Bank Fixed Deposit Receipts.B. ACCOUNTING POLICIES:

1. BASIS OF PREPARATION OF FINANCIAL STATEMENT:The Financial Statements are prepared as accrual basis under the historical cost convention in accordancewith the applicable standard issued by the Institute of Charted Accountants of India and relevant provisionof the Companies Act, 1956.

2. FIXED ASSETS:Fixed Assets are stated at cost of acquisition/construction less depreciation.

3. INVESTMENT:Investments are stated at cost.

4. DEPRECIATION:Depreciation of assets is provided on Written Down Method Basis at the rates and in the mannerspecified in schedule XIV to the Companies Act, 1956 (as amended).

5. ENCASHMENT OF EARNED LEAVE:1). The company has provided liability of leave encashment based on actuarial valuation done by LIC

of India. The Company pays premium under “Group Leave Encashment Scheme of L.I.C.” througha trust as per the demand raised by L.I.C. to cover liability on account of leave encashment payableto all eligible employees.

6). REVENUE RECOGNITION:i). The Company accounts the amounts received as grants for Entrepreneurship Development

Programmes/Industrial Awareness Programmes as income at the stage of completion of instructionalphase of each EDP/IAP by which time substantial expenditure on the same has been incurred. Forthe purpose of ascertainment of utilization of sanctioned amount, indirect expenses are allocated inratio of approximate, turnover percentage and added to direct expenditure.

ii). Amount receivable from Rural Department Govt. of India/ H.P. Programme is accounted for asincome to the extent of and to corresponding actual direct expenditure in the Profit and LossAccount.

iii). Income of project related studies/project reports in progress/pending delivery are accounted for asincome, based upon the proportion of work completed, as certified by the consultants of theCompany.

7. EXPENSES:A. The following expenses being of reimbursable nature etc. are accounted for on cash basis:

i). Expenditure under Special Project SGSY of Rural Department Govt. of India/ H.P. Programme.ii). Entrepreneurship Development Programme Expenses.

Schedule-XXIV

23


B. Other Expenses accounted for on cash basis:i). Gratuity and Leave Encashment Premium as per demand of L.I.C.ii). Additional liabilities arising after completion of Income Tax and service Tax Assessments/

Appeals.iii). ADA/ Increment/ Ex-gratia.

8. DEFERRED TAXATION:Deferred Tax is recognized on all timing differences being the difference between the taxable incomesand accounting income originate in one period and are capable of reversal in one or more subsequentperiod as per AS-22 issued by the ICAI.

C. NOTES:1). Stock of raw material, stores and goods produced, related to various training programmes under the

STST/EDP/STED/SDTP are not considered in the Balance Sheet being of insignificant value.2). The Company pays premium under “Group Gratuity-cum-Life Insurance Scheme of L.I.C.” through a

trust as per the demand raised by L.I.C. to cover liability on account of gratuity and leave encashmentpayable to all eligible employees.

3). Balances representing amount receivable and payable are subject to confirmation by the respectiveparties.

4). The values of current assets, loans & advances is subject to confirmation and in the opinion of theBoard, if realised in the ordinary course of business shall not be less than the amount at which the sameare stated in the Balance Sheet. The provision for all known liabilities are adequate and are not in excessof the amount considered reasonably necessary.

5). Depreciation Rs. 4,539.00 (previous year Rs 5,853.00) on Grant-in-Aid asset has been charged tocapital Grant Reserve as per last year practice.

6). Additional information’s pursuant to paras 3, 4, 4-c, 4-d, of part II of Schedule VI of the CompaniesAct, 1956 (1 of 1956) are not applicable to the Company.

7). Others:a). Persons employed throughout the financial year was in receipt of remuneration for that year which

in aggregate, was not less than Rs. Sixty Lakh for the year: orb). Persons employed for a part of the financial year was in receipt of remuneration for any part, of that

year, at a rate which in the aggregate was not less than Rs. Five Lakh per month.-NIL-

24


c). Amount paid to Directors including Managing Director of the Corporation as under:

Salary and Allowances - - - - 0.00 6,99,829.00

Travelling - - - - 89,018.00 53,293.00

Leased Accommodations - - - - 1,08,000.00 99,000.00

Medical - - - - 26,540.00 12,152.00

L.F.C. - - - - 0.00 0.00

Ex-Gratia - - - - 0.00 3,204.00

DIRECTORSCHAIRMAN MANAGING DIRECTOR

CurrentYear

PreviousYear

CurrentYear

PreviousYear

CurrentYear

PreviousYear

Amount(Rupees)

Managing DirectorB.Com. (Hons), M.A. (Eco), LLB, CAIIB,P.G. Dip. Bkg & Fin., Cert. Computer ApplicationsManagerial & Administrative Responsibilities

Name and Age Designation, Qualification and Nature of Duties Date of Joining

D.K. JAIN55 Years

10.11.2010 2,23,558.00

9. Previous year figures have been regrouped, recast and rearranged to make the same comparable with thefigure of the current year.

10. Schedule “I” to “XXIV” form an integral part of Balance Sheet.

11. Deferred Tax Assets/ Liabilities: As on 31.03.2012

Opening Balance as on 31.03.2011 26,045.00

Add (less) for the year (-) 5,089.00

Closing Balance 31,134.00

25






INFORMATION PURSUANT TO THE PROVIONS OF PART IV OF SCHEDULE VI TO THE COMPAINES ACT, 1956BALANCE SHEET ABSTRACT AND COMPANY’S

GENERAL BUSINESS PROFILEI. Registration detailsRegistration No. State Code

3 7 2 1Balance Sheet Date

II. Capital Raised during the year (Amount in Rs. Thousands)Public Issue Right Issue

III. Position of Mobilization and Development of Funds ( Amount in Rs. Thousands)Source of Funds

0 6

N I L

Paid up Capital Reserves and Surplus

Total Liability Total Assets

Secured Loans Unsecured Loans

Net Fixed ASSETS Housing LoanApplication of Funds

Investments Net Current Assets

Miscellaneous Expenditure Accumulated Losses

IV. Performance of Company (Amount in Rs. Thousands)Turnover Total Expenditure

Profit before Tax Profit after Tax

Earning Per Share in Rupees Dividend Rate %

Item No.CONSULTANCY & TRAINING

3 1 0 3 2 0 1 2

Bonus Issue Private Placement

V. Generic Names of Three Principal/Service of Company (As per Monetary Terms)

Product Description

N I L

N I L N I L

1 5 0 0 1 1 7 4 4

2 7 7 7 1 5 5 7 5

N I L N I L

N I L4 4 6

N I L 1 2 7 9 8

N I L N I L

3 0 6 3 0 2 9 0 3 4

1 5 9 6 1 0 9 1

7 2 7 1 0

N.A.

N.A.

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