Haryana Financial Corporation (HFC) has made significant changes to its Board of Directors and released its financial results for the first quarter. The company's Board meeting, held on August 13, saw the appointment of three new directors and the approval of the unaudited financial results for the quarter ended June 30.

Board Appointments

The corporation announced the following appointments to its Board of Directors:

1. Shri Amit Kumar Agrawal, IAS, Commissioner & Secretary of the Industries & Commerce Department, has been appointed as a director representing the State Government, in accordance with the State Financial Corporations Act, 1951.

2. Shri Mohammed Shayin, IAS, Commissioner & Secretary of the Finance Department, has been appointed as an Independent Director, replacing Smt. Radhika Singh.

3. Shri Sonam Chhewang, Senior Divisional Manager at LIC Chandigarh, has been appointed as LIC of India's nominee director, as per the State Financial Corporations Act, 1951.

Financial Performance

HFC's financial results for Q1 reveal the following key figures:

The corporation reported a total income of ₹0.61 crore for the quarter, compared to ₹0.69 crore in the previous quarter and ₹0.49 crore in the same quarter last year. However, the total expenditure of ₹0.89 crore resulted in a net loss of ₹0.28 crore for Q1.

Other Notable Points

• The corporation's Gross Non-Performing Assets (NPAs) stand at 100.00%, while the Net NPA to net loans ratio is 0.00%.
• The paid-up equity share capital remains unchanged at ₹207.66 crore.
• The Basic and Diluted Earnings Per Share (EPS) for the quarter is ₹(0.01).

It's worth noting that HFC has recommended to the State Government for its winding up/liquidation under Section 45 of the State Financial Corporations Act, 1951. Additionally, the State Government has decided to delist the corporation's shares from the BSE Ltd., and this process is currently underway.

The Board meeting, which commenced at 11:00 AM and concluded at 12:40 PM on August 13, approved these financial results and the appointment of the new directors. The corporation continues to face challenges, as indicated by the ongoing losses and the recommendation for winding up, which may cast significant doubt on its ability to continue as a going concern.

Haryana Financial Corporation (HFC) has released its unaudited financial results for the quarter ended June 30, revealing a challenging financial situation and ongoing structural changes.

Financial Performance

HFC reported a net loss of ₹0.28 crores for the quarter, a significant decline from the net profit of ₹0.15 crores recorded in the previous quarter. The corporation's financial health showed signs of strain:

• Total income decreased to ₹0.61 crores from ₹0.69 crores in the prior quarter.
• Total expenditure stood at ₹0.89 crores, surpassing the income generated.
• The Basic and Diluted Earnings Per Share (EPS) for the quarter was negative at ₹0.01.

Winding Up Process and Delisting

In a significant development, HFC has recommended to the State Government its winding up/liquidation under Section 45 of the State Financial Corporations (SFCs) Act 1951. This move underscores the corporation's financial difficulties and its potential inability to continue operations.

Additionally, the State Government has decided to delist HFC's shares from the Bombay Stock Exchange (BSE). This process is currently underway, marking a major shift in the corporation's public trading status.

Auditor's Concerns

The limited review report by the auditors, M Ravinder & Co., highlighted a material uncertainty that may cast significant doubt on HFC's ability to continue as a going concern. This assessment is based on the ongoing winding up proceedings and the planned delisting from BSE.

Shareholding Structure

As of the latest report, HFC's shareholding structure remains:

The paid-up equity share capital stands at ₹207.66 crores, with a face value of ₹10 per share.

Looking Ahead

The financial results and the corporation's recommendation for winding up indicate significant challenges for Haryana Financial Corporation. As the delisting process continues and the state government considers the liquidation recommendation, stakeholders will be closely watching the next steps in HFC's corporate journey.

Investors and stakeholders are advised to monitor further announcements regarding the winding up process and the delisting of shares from BSE.