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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No. 273] NEW DELHI, TUESDAY, AUGUST 14,1962/SRAVANA 23, 1884

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 14th August 1962

S.O. 2599.—Whereas the scheme for the division of the assets and liabilities of the Bombay State Financial Corporation and its reconstruction set out in Annex- ure I hereto, having been approved by the Corporation at a general meeting by its resolution dated the 28th April, 1961, was submitted to the Central Govern- ment for sanction;

And whereas the modifications set out in Annexure II hereto, required by the Central Government to be made in the said scheme have been approved by the Corporation at a general meeting by its resolution dated the 27th July, 1962;

And whereas the Central Government has sanctioned the scheme with the modifications aforesaid;

Now, therefore, in exercise of the powers conferred by sub-section (4) of section 70 of the Bombay Reorganisation Act, 1960 (11 of 1960), the Central Gov- ernment hereby certifies the scheme so modified and specifies In accordance with clause 2 thereof that the following series of the 4½ per cent Bombay State Finan- cial Corporation Bonds 1967 shall be allocated to the Gujarat State Financial Corporation, namely: —

Value

Denomination

No. of scrips

Sl.No. of Bonds

Rs.

10,00,000

25,000

40

1—40

10,00,000

10

1,50,000

6

2,50,000

10

1 2 , 0 0 , 0 00 123—132 133—138 154—163 183—230

2,00,000

48 2

4 , 0 00 245—246 366—369

75,000

25,000

25,000

1,00,000

25,000

25,000

25,000

1,00,000

r,ooo

25,000

5,000

25,000

4 3 5 1

436—438 439—443 447

39,29,000

(1901)

ANNEXURE I

Scheme Jlor the division of the assets and liabilities of the Bombay Stute Fin- ancjal Corporation and for the reconstitution of- tliVsaid Corporation to be named the "Mahurashtra Stale Financial Corporation" in terms of the provisions oi Sec- tion 70 of the Bombay Reorganisation Act, 1960.

"Whereas it has become necessary in terms of the provisions of Section 70 of the Bombay Reorganisation Act, 1960, to frame a Scheme in respect of the exist- ing Bombay State Financial Corporation, established under Sub-section (6) of Section 102 of the States Reorganisation Act, 195b (hereinafter referred to as "the said Corporation") for reconstituting it as a Corporation for the State of Maharashtra and also to divide the assets and liabilities of the said Corporation as between the Gujarat State Financial Corporation which has already been established and the proposed Maharashtra State Financial Corporation to be constituted as hereinafter provided. Now the following shall be the scheme for the division of the assets and liabilities of the said Corporation and for rcconsti- itution of the said Corporation.

Scheme for the division of the assets and liabilities

1. The date for the purpose of division of the assets and liabilities of the said Corporation shall be 30th April 1960. However, the Bombay State Financial Cor- poration shall continue to exist till the scheme is duly certified by the Central Government in terms of Section 70 of the said Act. A statement of assets and liabilities as on 30th April 1960 has been prepared by the auditors of the Bombay State Financial Corporation for the purpose of division of the assets and liabili- ties and is annexed and marked A. The said assets and liabilities shall be divided in accordance with this Scheme with such modifications as may be duly made by the Central Government in terms of Section 70 of the said Act and approved at a General meeting of the said Corporation,

2. The right to recover existing loans and advances (inclusive of debentures) of the said Corporation, as may be determined on the basis of the statement of accounts prepared as on 30th April 1960 and annexed (except those referred to in Annexure B hereto) shall vest in the Gujarat State Financial Corporation along "with securities, if any, in respect thereof and the reconstituted Bombay State Fin- ancial Corporation proposed to be called the Maharashtra State Financial Corpo- ration respectively as they may exist in the respective areas of Gujarat and Maha- rashtra. The right to recover the loans and advances which are referred to in Annexure B shall remain vested in the proposed Maharashtra State Financial Corporation notwithstanding their location. Correspondingly, out of the existing bonds issued by the said Corporation, liability in respect of the bonds of the value equivalent to the loans and advances (inclusive of Debentures) taken over by the Gujarat State Financial Corporation and the value of such other assets as mentioned hereinafter to be taken over by that Corporation shall be the liability of the Gujarat State Financial Corporation. The Central Government shall specify by reference to their distinctive numbers and other particulars the Bonds to be so allocated and upon such allocation the Bonds so specified shall be deemed to be the bonds issued by the Gujarat State Financial Corporation. The Bonds so transferred to the Gujarat State Financial Corporation shall stand guaranteed as to payment of interest, as already determined and repayment of principal by the Government of Gujarat while the balance of the Bonds to be retained by the pro- posed Maharashtra State Financial Corporation shall remain guaranteed as to payment of interest as already determined, and repayment of principal by the Government of Maharashtra. The balance of the liabilities and assets inclusive of all Reserves for bad debts and other reserves as may be determined after the necessary adjustments shall be the assets and liabilities of the proposed Maha- rashtra State Financial Corporation, which shall be deemed to be the continuing Corporation of the said Corporation for all purposes.

3. The existing liability of the said Corporation as on 30th April 1960 to repay the subvention granted to it (or to its predecessor institutions) from time to time by the State Government shall be divided equally between the Gujarat State Fin- ancial Corporation and the proposed Maharashtra State Financial Corporation.

4 Minor assets office furniture, library, vehicles, telephones etc. already loca- ted tn Gfujarat shall be transferred to the Gujarat State Financial Corporation.

5 In order to strike the balance sheet in pursuance of the above proposals, adjustments shall be made in the quantum of Bonds which would be transfer- able to the Gujarat State Financial Corporation as provided in clause 2 above.

The division shall be made in such manner as may be agreed to by both the Cor- porations and in default of agreement as determined by the Central Government.

6. The Gujarat State Financial Corporation shall be entitled to and be paid the income accrued to or received in respect of the loans and advances to be trans- ferred to it from 1st May 11)60 after deducting therefrom the proportionate ex- penses found to be incurred by the said Corporation from 1st May 19fi0. The Gujarat State Financial Corporation shall also be liable to pay interest accrued due from 1st May 1960 on the bonds to be allocated to the Gujarat State Financial Corporation as provided hereinabove. In case of dispute regarding the quantum of expenses to be shared by the two Corporations as herein provided, the deci- sion of the Central Government in this regard shall be binding on both the Guja- rat State Financial Corporation and the proposed Maharashtra State Financial Corporation.

Scheme of reconstitution of the said corporation

7. Upon division of the assets and liabilities of the said Corporation and the adjustments of accounts as aforesaid, the said Corporation as established under Section 3 of the State Financial Corporations Act, 1951, shall be the State Finan- cial Corporation for the State of Maharashtra and shall be called the 'Maha- rashtra State Financial Corporation'.

8. The Authorised, Issued, Subscribed and Paid up share capital of the Maha- rashtra State Financial Corporation shall be Rupees One Crore comprising of 100,000 shares of Rs. 100 each fully paid up which shall stand guaranteed by the Government of Maharashtra as provided under sub-section (1) of Section' 6 of the State Financial Corporations Act, 1951 as to repayment of principal and pay- ment of the minimum dividend at 3i per cent per annum.

9. Out of the existing share capital of Rupees Two Crores of the said Corpora- tion prior to reconstitution, which stands divided into 200,000 shares of Rs. 100 each fully paid up, 100,000 shares of Rs, 100 each fully paid up shall be deemed to be the share capital of the Maharashtra State Financial Corporation, whilst the balance of 100,000 shares of Rs. 100 each amounting to Rs. 1 crore shall stand con- verted into new Bonds of the Maharashtra State Financial Corporation of equi- valent value.

The terms of the new issue have been fixed by the Government of Maharashtra on the recommendation of the Board of Directors of the said Corporation made in consultation with the Reserve Bank of India. The terms shall be as given in An- nexure 'C hereto. The Bonds issued and allocated in pursuance of the schc-me will be governed in all matters by the Issue of Eonds Regulations 1957 of the Bombay State Financial Corporation as if they had been issued under Section 7 of the Act. The one lakh shares to be converted into Eonds shall consist of those held by individuals or institutions residing in or having their registered offices in the Gujarat State on the date the scheme is certified by the Central Government in terms of Section 70 of the said Act and such others "as may be determined by ihe Beard of the Maharashtra State Financial Corporation In the manner indicat- ed in Annexure 'C

10. The first Board of Directors of the Maharashtra State Financial Corpora- tion ("after the change of name) shall be constituted as if it were the first Board of Directors of the Corporation, constituted under Section 10, of the Slate Finan- cial Corporations Act, 1951.

The first Board so constituted shall consist of all the Directors who were hold- ing office immediately prior to such constitution and shall be deemed to be the Directors elected or nominated on the first Board of Directors of the proposed Maharashtra State Financial Corporation by the respective shareholders whom they represented prior to such reconstitution excepting those Directors nominated by the State Government including the Managing Director. The Directors on the first Board so constituted including the Directors'to be nominated by tho Govern- ment of Maharashtra excepting the Managing Director to be appointed by such Government sliall retire at the end of one year from the date of constitution of sucn Board.

11. The Head Office of the Maharashtra State Financial Corporation shall be located in Eombny and the existing branch at Nagpur of the said Corporation shall be deemed to be the branch of the Maharashtra State Financial Corporation

as from the date on which the Central Government certifies the scheme, in terms- of Section 70 oi the said Act The existing branch of the said Corporation at Rajkot shall be deemed to have been closed as from 1st June 1960.

12. Out of the staff which was employed by the said Corporation prior to 1st June 1960, that staff as was transferred thereafter on deputation to the Gujarat State Financial Corporation shall be deemed to be the staff of the Gujarat State Financial Corporation as from the date on which the Central Government certifies the scheme in terms of Section 70 of the said Act while the staff at the Head Office of the said Corporation and its branch at Nagpur as on the said date, shall continue- as the staff of the Maharashtra State Financial Corporation, The said staff with each Corporation shall enjoy the same emoluments and benefits which they enjoy- ed Immediately prior to the date on which the Central Government certifies the Scheme until their respective terms of service are subsequently revised by the respective Gujarat State Financial Corporation and the Maharashtra State Fin- ancial Corporation, The said staff shall be offered continuity of service in the respective Corporations. The Gujarat State Financial Corporation shall be liable to pay every member of the staff transferred to it, in the event of his retrench- ment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer.

13. All the existing Regulations of the said Corporation such as the Bombay State Financial Corporation General Regulations, Bombay State Financial Corpo- ration (Staff) Regulations, 1954, the Bombay State Financial Corporation Emp- loyees' Provident Fund Regulations, 1955, the Bombay State Financial Corpora- tion (Expenditure) Regulations and such other Regulations as have been made under the State Financial Corporations Act for the said Corporation shall continue to be the respective Regulations for the Maharashtra State Financial Corporation.

14. This" scheme shall come into effect as soon as it is certified by the Central Government in terms of the provisions of Section 70 of the Bombay Reorganisa- tion Act, 1960, In this behalf.

15. As from the date on which the Central Government certifies the Scheme in terms of Section 70 of the said Act all the respective assets and liabilities (In- clusive of Mortgages) which are transferred to the Gujarat State Financial Cor- poration and those which are continued with and remain vested in the Maharash- tra State Financial Corporation shall stand statutorily transferred to and be vested in the respective Corporations without the necessity of executing any Deeds of Transfer or assignments.

A certificate signed by the Managing Director or the Secretary of the proposed Maharashtra State Financial Corporation that any particular assets or liabilities either stand transferred to the Gujarat State Financial Corporation or have been retained by the Maharashtra State Financial Corporation and specifying such assets and liabilities shall be conclusive evidence of such transfer or retention.

16. The reconstitution and change in name of the said Corporation into Maha- rashtra State Financial Corporation shall not affect any rights or obligations of the said Corporation or render defective any legal proceedings taken by or against it. And except in the case of all matters and claims transferred to the Gujarat State Financial Corporation all contracts, agreements and other instru- ments of whatever nature subsisting or having effect before the date of certifica- tion of the Scheme by the Central Government and to which the said Corpora- tion is a" party or which are in favour of the said Corporation, as the case be. shall be enforced or acted upon as fully and effectually as if the Maharashtra State Financial Corporation had been a party thereto or as if they had been entered into or issued in favour of the Maharashtra State Financial Corporation. And further if on the date of such certification any suit, appeal or any other proceeding of whatever nature is pending by or against the Bombay State Financial Corporation except any matter or claim transferred to the Gujarat State Financial Corpora- tion then It shall not abate or be discontinued or be In any way prejudicially affected by the reason of this scheme, but the suit, appeal or other legal proceed- ings may be continued, prosecuted or enforced by or against the Maharashtra State Financial Corporation.

Mutatis Mutandis In respect of those matters and claims which stand transfer- red to the Gujarat State Financial Corporation Such suits appeals or other legal proceedings may be continued, prosecuted Or enforced by or against the said Gujarat State Financial Corporation.

ANNKXUBE "A" TO THE SCHEME or RECONSTITUTION

STATEMENT OF ASSETS AND LIABILITIES OF THE BOMBAY STATE FINANCIAL CORPORATION AS OF 30TH APRIL, I960.

REPORT or THE AUDITORS

To,

The Shareholders of the Bombay State Financial Corporation.

We the undersigned, Auditors of the Bombay State Financial Corporation, do hereby report to the Shareholders upon the Balance Sheet and Accounts of the Corporation as at 30th April 1960, specially prepared to give effect to the Scheme of Division of Assets and Liabilities of the Bombay State Financial Corporation in terms of the provisions of Section 70 of the Bombay Reorganisation Act, I960.

We have examined the annexed Balance Sheet with the Accounts and Vouchers relating thereto and report that we have called for explanations and information. Such information and explanations have been given and have been satisfactory. In our opinion, the Balance Sheet is a full and fair Balance Sheet containing all necessary particulars and properly drawn up in accordance with the Act and the Regulations of the Corporation so as to exhibit a true and correct view of the state of affairs of the Corporation according to the best of our Information and explana- tions given to us and as shown by the books of the Corporation. We have checked the Loan. Transactions with the Original Mortgage deed and with the copies of Mortgage Deed duly certified as true copies by the Corporation's Solicitors, in such cases where the Original Mortgage Deeds are stated to have been sent to the Regis- trar for registration, tEose original Mortgage Deeds will be duly examined when made available.

The agency agreement with the Government of Bombay still remains to be finalised.

Sd/- K. S. AIYAR & Co.,

Sd/- P. C. HANSOTIA & Co.,

Chartered Accountants.

Bombay, the 29th March, 1961.

BOMBAY STATE

Balmce Shut as

C A P I T AL & L I A B I L I T I ES

Rs.

Rs.

I. C A P I T AL :

A U T H O R I S ED :

4,00,000 shares of Rs. 100 each . . ..

4,00,00,000-00

I S S U ED :

2,00,000 shares of Rs. 100 each . . ..

2,00,00,000-00'

S U B S C R I B ED & P A I D - UP :

[Guaranteed by State Govt. under Sec. 6(1) of the State

Financial Corporations A c t, 1951]

2,00,000 shares of Rs. 100 each . . ..

2,00,00,000 'oo

L e s s: Allotment money in arrears . '.

A dd : Forfeited sharcB

2,00,00,000 -oa

2. R E S E R VE F U ND & O T H ER R E S E R V ES :

(i) R E S E R VE F U ND : (Under Section 35)

Balance as per last B/S . . . 2,325125-00

A dd : Transfer from profit during

this period

2,32,125-00

(ii) R E S E R VE F O R B AD & D 0 U B T F UL D E B TS :

Balance as per last B/S . . . 2,83,500-00 -

A dd : Provision made during the

L e ss : Debts written of during the

period

. ..

2,83,500-00

(in) I N V E S T M E NT R E S E R VE :

79,017-50

Balance as per last B/S

5,94,642-50

3. B O N DS & D E B E N T U R ES :

(Guaranteed by State Govt. under Sec. 7)

1,16,50,800-00

(i) 4 l% Bonds redeemable in 1967

L e as : Cancelled upto 31-3-1958 . . ..

3,00,000-00

1,13,50,800-00

(ii) Debentures . . . . . ..

••

1,13,50,800-00

4. F I X ED D E P O S IT : (Under Sec. 8)

•• 5. BORROWINGS :

6. GUARANTEES & UNDERWRITING AGREE-

MENTS :

•• (i) Guarantees under Sec. 25 (per contra) (ii) Underwriting agreements under Sec. 25 (per con-

tra)

23,31,285-42 7. SUBVENTION PAID BY STATE GOVT. ON ACCOUNT OF DIVIDEND : (Sec. 6 read with Sec, 35)

FINANCIAL CORPORATION

At 30th April, i960

Rs.

Rs.

PROPERTY & ASSETS

1. CASH & BANK BALANCES :

(a) C a sh on h a nd . . . . . ..

1,224 99

( b) B a l a n ce w i th B a n ks [ U n d er S e c. 33(2)]

(i) RESERVE BANK OF INDIA :

(ii) SCHEDULED BANKS :

(a) In Current Accounts (b) Call Deposits (c) T e rm Deposits . . . ..

3,64,421-12 5,50,000-00 97,46,000 00

T n6 61 6il6 'I T 2. I N V E S T M E N TS (Under Sec. 34)

(At cost) :

Securities (including Treasury Bills) of :

(a) Central Government **(b) State Government (Face value of .

Rs. 6 534 5 J 0 O O / -)

65,36,560-19

3. LOANS & ADVANCES :

1,43.90,724-89 Total loans outstanding (as per schedule annexed) .

3,75,000-00 4. DEBENTURES SUBSCRIBED:

5. GUARANTEES St. UNDERWRITING AGREE-

MENTS : (i) Guarantee under Sec. 25 (per contra) . (ii) Underwriting Agreements (Under Sec. 25)

6. DEBENTURES, SHARES ETC. ACQUIRED

UNDER UNDERWRITING AGREEMENTS: [Under Section 25(i)(d)]

7. P R E M I S E S, L A ND & B U I L D I N G S:

Cost upto the date of last B/S Additions during the period . . .. Less Sales Less : Depreciation . . . . ..

8. M O T OR CARS, CYCLES, F U R N I-

T U RE & F I X T U R E S: (At cost)

5 4 J O 5 5 - 48

Cost upto last B/C (At Cost) Additions during the period . .

54,055-48

Less: Sales/Adjustments „ Dapn. w /o upto last B/S . I2,I2O'48 „ Depn. W/o during the period 210-00

12,330-48

41,725-00

23,31,285-42 9. D I V I D E ND D E F I C IT A C C O U N T:

10. O T H ER A S S E T S: (At cost) :

[.2,500 'Oo

(i) Telephone (Cost as per last B/S) .

Less: Dcpn. W/o. upto last B/S . 500-00 Less: Dcpn. W/o. during the period lo-oo

510-00

1,990-00

**Out of the aforesaid investments of Bs. 65,3£580.l9, a sum of Rs. 12 lakha represented by Govt. Securities of the face value of Rs. 12 lakhs earning interest at 4i% p.a. have been earmarked towards the purchase of Bonds for cancellation as and when considered desirable.

BOMBAY STATE

Balance Sheit As

CAPITAL & LIABILITIES

Rs.

Rs.

8. OTHER LIABILITIES:

2,191-88

(0 Unclaimed Dividend

("0 Unclaimed Interest On Bonds . . ..

2,373-75

(m) Advances received for incidental expenses

24,934-54

(j'u) Liabilities for Expenses

7,205-20

(v) Interests Suspense

1,79.824-43

(fit) Interest payable on bonds . . ..

I.9IJ544-75

(vii) Staff Provident F u nd

(VidcRs. 47,674-46 per contra) . . . .

47,836-40

4>55J9IO.95

9. P R O V I S I ON F OR T A X A T I ON 1

Balance as per last B/S

3,82,370-58

Less: Advance tax paid under Sec. 18-A of the Income Tax Act. . . . 3)84,027.06

L ew : T ax deducted at source 1,24,582 • 50

5,08,609-56

See item N o. 11 on Assets Side

1,26,238-98

10. P R O F IT & L O SS A C C O U N T:

Balance aa per last B/S . . ..

2,72,114-57

A d d: Profit as per P. & L. A/c.

68,655-53

3 > 4OJ 7 7O I (J

TOTAL

3-50,73)408-97

NOTE: The previous year's figures are not stated as the period covered by the Accounts Is only for one month of April, 196fl".

As per KeporE of even date.

—

K. S. AIYAR & Co.,

P. C. HANSOTIA & Co., Bombay: 29th March, 1961. Chartered Accountants,

FINANCIAL CORPORATION

At 30th April, i960

Rs.

Rs.

PROPERTY & ASSETS

(ii) Library books:

1,11992

Cost as per last B'S Additions during the period

1,119-92

Less: Depn. W/o during the

period . . ..

1,119-92

247-92

Less: Depn. W/o upto last B/S Less: Depn. W/o during

251-92

the period . . 4 00

868-co

2,79,265 10

75,099 40

7,500 • 00

(lii) Interest Accrued on : Loans & Advances . Investments . . .. Debentures . . .. Deposits

44.8J3-43

4,06,717 93

(iv) Advances to Borrowers for

Expenses

10,987-50

(v) Discount on issue of Bonds

Lew: W/off

1,74,762 00

57,484-00

(vi) Deposit for Telegrams (viij Deposit for rent (vili) Staff Advance

1,17,278-00 200-00 705-00 1,263-33

(ix) Commission & Expenses

accrued on Loans (Agency)

22,544-16

00 Staff Provident Fund (Vide Rs. 47,836 '40 per contra) ,

f 41,674 -46

II. PROVISION FOR TAXATION:

6,10,228-38 1,26,238-98 (See item 9 Liability side)

13. PROFIT & LOSS ACCOUNT:

TOTAL

3.50^735408 97

PUHUSHOTTAM KANJI, Chairman. R. S. POCHKHANAWALA, D. V. POTDAR, M. R. MANDLHKAR 1 Managing Director. PRAVINCHANDRA V. GANDHI, K . C. MlTTRA |_ G. G. THAKKAR, R. M. DBSHMUKH, r Directors S. C. PATEL, P. H. BHUTTA, V. P. PANDIT J Accountant.

BOMBAY STATE-

Profit and Loss Account for the'

EXPENDITURE

Rs.

Rs.

To Interest on Deposits, Bonds & Debentures & Borrowings

43,565 50

SALARIES & ALLOWANCES :

1 , 6 O O ' OO

(a) Managing Director . (b) Others

11,962 49

13,56249

TRAVELLING & OTHER ALLOWANCES :

(a) Managing Director . . . . .. (b) Others

884-72

30-75 35397

650• o" Director's & Committee Members' Fees

Director's & Committee Members' Travelling & Other

Allowances

299-75-

CONTRIBUTION TO STAFF PROVIDENT FUND: '

(a) Managing Director (b) Others

100 00 402-07

502 07-

r

1,211-54- 609-01

23-3T

472 '95 1,500-00

224; 00 1,456-co

236-891 Rent, Taxes, Insuraitce, Lighting etc Postage, Telegrams, Stamps & Telephones . Printing & Stationery Publicity & Advertisement Repair & Renewals . Bank Charges & Commission Audit Charges Law Charges Depreciation Discount written off on Bonds & Debentures Brokerage on Bonds & Debentures Other Expenses P r o v i s i on f or B ad & D o u b t ul D e b ts . . ..

L o ss on s a le of I n v e s t m e n ts Reserve Fund

LOSS ON SALE OF OR DEALING WITH OTHER

ASSETS:

(i) L o ss on sale of a c q u i r ed assets

(il) L o ss on sale of o t h er assets

P r o v i s i on for T a x a t i on . . . ..

Balance of N et profit subject to t a x a t i o n, provision for d o u b t f ul d e b ts a nd allocations to Reserves c a r r i ed to Balance S h e et . . . ..

68,655-53i

Total Rs.

As per Report of even date.

K. S. AlYAR&Co.,

Bombav: 29th March,i96i.

P. C. HANSOTIA & Co., Chartered Accountants.

F I N A N C I AL C O R P O R A T I ON

period from 1-4-1960 to 30-4-1960

Income

By Interest:

(i) On Loans & Advances . . ..

(ii) On Debentures (in) On Investments & Deposits

Commission on Agency Business Rent Profit on Sale of Investments . . .. Profit from Sale or dealing with other assets:

(i) Profit from sale of acquired assets

(ii) Profit from sale of other assets .

Other income :

()) From Government for Agency Administration Expenses

(ii) Miscelaneous Income . . ..

Balance of loss carried to Balance Sheet .

Rs.

Rs.

70,928-93 1,875-00 55525°"4"

1,28,054'41 3,966 08

833'33

833 "33;

Total Rs.

1,32,853-82

Note.—The previous year's figures are not stated as the period covered by the Accounts is only for one month of April, i960.

BOMBAY STATE FINANCIAL CORPORATION

Schedule showing particulars in respect of Loans and Advances referred to in the Balance Sheet as at 30th. April, 1960.

I. Particulars of Loans & Advances:

Rs.

1119,12,200'ill

(a) D e b ts c o n s i d e r ed g o od in respect of w h i ch t he C o r p o r a t i on is fully secured ( o ut of this l o a ns a m o u n t i ng to R a. 1,41,52,290 • 43 a re also s e c u r ed bv Dersonal iruarantees^ . . . . .. LJ m-f ^1 Q *w ^ ^ r* WJ £r**-L LJ^X 'i 1 1 1* ^g U¹^^ *• •*"fcV V*** J •

• • " ••

2,00,000-00

(jx~i) Debts considered good in respect of which the Corporation is having second mortgage and guarantee of the Central Government.

(b) Debts previously fully secured but not secured to the extent of (b-i) Loans unsecured, doubtful since under dispute

2,38,434-46

1*43=90,724'89

50,000 • 00 (c) Debts due by concerns in which one or more Directors of the Cor- poration are interested as directors, partners, shareholders, prop- rietors or managing agents or In the case of private companies as members . . . . . . . . .. (d) Total amount of loans disbursed during the period to concern in which one or more directors of the Corporation are interested aB directors, partners, shareholders, proprietors, or managing agents or in the case of private companies as members

(e) (t) Total amount of instalments whether of principal or interest of

which default was made at any time during the period.

23^73-46 (") Total amount of instalments whether of principal or interest over-

due at the end of the period

4,53,353-43 (Hi) Total amount of instalments whether of principal or interest over- due by concerns in which the directors of the Corporation arc interested

.

(/) Debts guaranteed by the State and Central Government, Scheduled

3,96,500-00

Banks or State Co-operative Banks

2,38,434'46

' (g) Debts due from loanee concerns whose management has been taken over by the Corporation . . . . . . ..

(h) Debts considered Bad or Doubtful

2,38,434'4^

*4JOO,395-8I

assiflcatlon of Loans and Advance* According to the size of the Industrial Unltii

(j) Debts due from concerns with assets exceeding Rs. 20 lakhs (large-

16,30,000-00

scale industries)

8O,79J995'OO 44,42i295'43 3,38,434-46

TOTAL

IJ43J90,724-89

m. Classification of Loans & Advances According: to the Constitution of Industrial

Units:

Rs. . 11,93,821 -oo . 31,91,460-00

• • •"

2,10,000-00

P r o p r i c t o ry . . . .. P a r t n e r s h ip H i n du U n d i v i d ed F a m i ly Co-operatives . . . .. Private L i m i t ed C o m p a n i es • . P u b l ic L i m i t ed C o m p a ny

• 45,83,806 -oo ^43=90^24-89 (b) W (.4) (*) CO

Statement of Grants of Loans for the period 30th April, 1960 under the State Aid

to Small Scale and Cottage Industries Rules, 1935, Through the Bombay State

Financial Corporation.

Payments

Rs.

Receipts

Rs.

6,93,500 , 10,50,500-00

From State Government

•00 •00

Loans disbursed Balance ia Bank Currenr A/c • 3.57)°°°

•00

10,50,500

10,50,500-00

ANNEXURE 'B' TO THE SCHEME OF RECONSTITUTION

Statement showing the list of concerns to be transferred to the proposed

Maharashtra State Financial Corporation notwithstanding its location in

Gujarat.

Name of concern

Location

Bharat Electrical Mfg. Co. Pr. Ltd. Sihor (Gujerat).

ANNEXURE 'C TO THE SCHEME OF RECONSTITUTION

The scheme of conversion of 100,000 shares of the Bombay State Financial Corporation into Bonds and terms thereof.

The following shall be the terms on which 100,000 shares of the Bombay State Financial Corporation shall be converted into a new series of Bonds of the Maha- rashtra State Financial Corporation in terms of clause 9 of the Scheme of Reconstitution.

1 100 000 shares of Ra. 100/- each of the Bombay State Financial Cor- poration of the face value of Rs. 1 Crore shall stand converted at par into bonds of the Maharashtra State Financial Corporation of the equivalent face value of Rs. 1 crore.

2. The new series of Bonds shall be called the Maharashtra State Financial Corporation Bonds, 1971.

3. The said new issue of Bonds shall be repayable at par at the end of a period Of 10 years from the date Of issue.

4. The new bonds shall carry a rate of interest of 4i% per annum aubjedi to deduction of Inqome-tax.

5. The aaid Bonds shall be guaranteed by the Gpvernment of Maharashtra as to repayment of principal and payment qf interest at the aforesaid- rate of 4i% p.a.

6. The Bonds shall be issued in multiples of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10,000, Rs. 25,000, Rs. 50,000, and Rs. 1 lakh.

The following shall be the manner in which the one lakh shares of the existing Bombay State Financial Corporation are to be converted into Bonds of the Maharashtra State Financial Corporation.

(i) All the shares held by individuals or institutions residing in or having their registered offices in the Gujarat State as on the date of this scheme being certified by the Central Government in terms of Section 70 of the Bombay Re- organisation Act 1960 shall be converted into Bonds of equivalent face value.

(ii) In respect of the shares held by persons or institutions residing or having their registered offices outside Gujarat as on the aforesaid date, four out of every ten shares held or in the proportion as near thereto as possible, shall be converted into bonds provided however that the balance of shares lefc unconverted in the hands of such shareholders shall be five or multiples of five. However, those persons holding only 5 shares shall have the option of converting them into Bonds of equivalent face value.

(iii) Any adjustments necessary for completing the scheme of conversion shall be made out of the shareholding oi the Maharashtra Government.

ANNEXURE II

No. F. 6(12)-Corp/60 Government of India Ministry of Finance Department of Economic Affairs, New Delhi, the 28th June, 1962. 7th Asadha, 1884 (S). From

Shri M. K. Venkatachalam, Deputy Secretary to the Government of India,

To

The Managing Director, Bombay State Financial Corporation, United India Building, 1st Floor, Sir Pherozeshah Mehta Road, Fort, BOMBAY.

Subject:—Scheme of Reconstitution of the Bombay State Financial Corporation

Sir,

I am directed to refer to the scheme of the division of the assets and liabilities of the Bombay State Financial Corporation and for the reconstitution of the said Corporation to be named "Maharashtra State Financial Corporation" submitted to the Central Government for its sanction in pursuance of the provisions of Section 70 of the Bombay Reorganisation Act, 1960 and to state that under Sub- section (4) of the said section the Central Government hereby directs that the following modifications be carried out in the said scheme:—

1. The existing liability of the Bombay State Financial Corporation as on the 30th April, 1960 to repay the subvention granted to it (or to its predecessor institutions) from time to time by the State Government shall be divided between the Gujarat State Financial Corporation and the proposed Maharashtra State^ Financial Corporation in the ratio of the population of the two States respectively viz., 33.69:66.31. 2. A sum of Rs. 35,994.08 nP~. available in the Reserve for Bad and Doubtful Debts after writing off the bad and doubtful debts in respect of the Bharat _ Electrical Mfg. Co. (Private) Limited shall be allocated in the ratio of loans and advances taken over by the two Corporations provided however, that the recoveries, if any, on account of the loan to the Bharat Electrical Mfg. Co. Limited are also divided in the same ratio after deducting expenses.

3. The date of the division of the assets and liabilities of the Bombay State Financial Corporation between the two Corporations pursuant to the first part of the Scheme shall be the 30th April, 1960 and the date for reconstitution of the capital of the Bombay State Financial Cor- poration pursuant to the second part of the scheme shall be the 1st April, 1961 provided further that the subvention liability on the share capital of the Bombay State Financial Corporation from the 1st May, 1960 shall be borne by that Corporation.

After these modifications are approved at a general meeting of the Corporation, "the modified scheme will be certified by the Central Government in terms cf Section 70(4) of the Bombay Reorganisation Act, 1960.

Yours faithfully

(Sd.) M. K. VENKATACHALAM,

Dy. Secy, to the Government of India.

[No. F.6a2)-Corp/60.]

M. R. YARDI, Jt. Secy.

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