Current Events

20th AGM on 22 July 2010

Chairman’s Speech on the eve of 20th AGM

Performance during the year:

Due to recession in Real Estate market in India on account of adverse impacts of global financial crisis, your company faced   challenging market conditions.  However, domestic markets improved during the second half of the year after Government had taken stimulus measures to regulate financial markets and your company had went all out to  increase its home loan portfolios considerably. A thrust was made on rural housing scheme during the year and 90% of the total disbursals made was in rural areas.

Sanctions were at Rs.191.36 crores  against Rs.83.17crores in previous year and also  the disbursements climbed to Rs.171.88 crores, compared to Rs.72.74 crores  last year, thus a growth of  130%.

There has been a notable increase in the net profit of the company during the year under review, which grew by 36.20%.  In view of  this, your Directors have recommended a FINAL  DIVIDEND of  10%  (Re.1/- on each equity share of Rs.10/-) on the increased share capital, Thus a consistent dividend of 25 % has been maintained during the last five years.

RATIOS

RURAL HOUSING UNDER GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME
During the year under report, your company had approved 1994 cases under the  Golden  Jubilee  Rural Housing Scheme and disbursed a total amount of Rs.140.82  crores.

CREDIT RATING
Our present rating awarded by CRISIL for deposit is FAA-positive and for short term borrowings P1+.  For long term borrowings ICRA has awarded LA+ and  this performance was  due to the support given by parent  company Dewan Housing Finance Corporation Ltd.  and good performance of the company.

FAIR PRACTICE CODE
‘FAIR  PRACTICE CODE’ as per the guidelines issued by the NHB has been fully implemented during the year under report.

TECHNOLOGY UPGRADATION:
Your company is maintaining an upgraded on line technology from the previous year when with inter connectivity facilities was inducted and the facilities are being fruitfully utilized at all levels in the organization. Absorption of latest technologies are considered from time to time.

CAPITAL ADEQUACY NORMS:
Over the past several years, your Company  had  been maintaining much higher capital adequacy ratio and in that process, as against the requirement of 12%, your company has maintained a Capital Adequacy Ratio of  25.28% as at the end of the year.

CORPORATE GOVERNANCE:
Though the listing norms do not govern the company’s affairs as it is an unlisted company, your company has evolved a voluntary disclosure process to meet its obligations to the shareholders, its customers, Government authorities,  employees, lenders and the Society. 

Asset & Liability Committee. (ALCO)
The  Committee  comprises of the Managing Director, President, Executive Vice-President,   Company   Secretary   and   senior employees from Accounts and Computer Planning  Department, and its  object is to  constantly review the assets and liabilities under various time buckets within the norms prescribed by NHB,  the Committee ensures management of short term and long term liquidity to the maximum  advantage of the company.  Its reports are placed before the Audit Committee and Board of Directors from time to time for perusal.

Treasury Committee:
The Treasury Committee comprises of Managing Director, President, and Vice President-Accounts, meets periodically to deliberate and decide on matters connected to purchase / sale of instruments keeping in views,  the Investment Policy laid down  by the Board.

The Committee also decides on profitable deployment of funds and apart from making a review of all the investments held by the company at various points of time.

AUDITORS:
M/s. B.M Chaturvedi & Co, Chartered Accountants, Mumbai, are the Statutory Auditors of the Company.

FUTURE PLANS:
With the  healthy growth witnessed during the later part of the year, your Company proposes to tap wider range of markets in the southern part of the country  and in this exercise your company has  already made an inroad into the State of Kerala which remained untapped for a long time.  As a first step to explore market in Kerala, a  service centre  at Palghat has already been opened   and another at Thrissur district will be opened up shortly.  Opening of more branches in Calicut and Cochin in that state is in the offing. 

With a view to widening our market wings, opening new branches at Nasik (Maharastra) and Rajhamundry (A.P.), Madurai (Tamil Nadu) and new service centres at Veerar and Thane  (Mumbai), Chaken (Pune), Yelahanka and K.R. Puram(Bangalore) and Hosur, Nagercoil (Tamil Nadu)  have already been finalized and would be opened up shortly. With the future outlook promising a bright market, your Company is optimistic to proliferate its market share multi fold in the years to come.

ACKNOWLEDGEMENT
While your Directors on record the continued patronage, guidance and support given by its parent Organisation Dewan Housing Finance Corporation Limited, they are much pleased to place on record their sincere appreciation of the support received from its esteemed customers, NHB, Bankers, depositors and the shareholders.  Your Directors are confident to receive similar support, patronage and guidance in the years to come.

Your Directors also would like to place on record their deep sense of appreciation of the competence, hard work, solidarity, co-operation support and commitment of the employees at all levels which enabled the company to progress well.