PROFILES OF MEMBER CORPORATIONS

 

ORISSA STATE FINANCIAL CORPORATION (OSFC)

The Orissa State Financial Corporation was set up in 1956. It provides loan assistance for setting up of industries in the small and medium scale sectors and also medium scale. Besides, loan assistance is also provided for certain other activities like transport, hotel, nursing home, mining equipment construction equipment etc. Since its inception in 1956 till 2000-2001 (as on 31.08.2000), the Corporation has sanctioned Rs.1245.61 crores to 44374 no. of units and has disbursed Rs.1081.32 crores to 25932 units. 
 
 

Shri Surendra Nath Tripathi, IAS is presently the Managing Director of OSFC. His profile is given below :  
 
Name : Shri Surendra Nath Tripathi, IAS
Date of Birth : January 02, 1960
Post held : Sub Collector, Deogarh 

Sub Collector, Jharsuguda 

Additional District Magistrate, Sambalpur 

Project Officer, District Rural Development Agency, Cuttack 

Collector & District Magistrate, Sambalpur 

Director, Special Project, Panchayati Raj Department, Government of Orissa 

Consultant, UNICEF, Orissa 

Additional Secretary, Industries 

M.D., Orissa State Co-operative Bank/Oil Orissa/OSCARD 

M.D., Orissa State Financial Corporation/Orissa Small Industries Corporation/Oil Orissa.
 
Activities and performance of the Corporation are as follows :
The achievement of the Corporation in the fields of sanction, disbursement and recovery during different block periods from 1980-81 to 2000-2001 (up to August) is given below : 

Cyclone Assistance 

The Corporation has rendered financial assistance to the industrial units which have been affected by the cyclone/floods of October 1999 under Special Refinance facility for cyclone/flood affected units of Orissa. So far the Corporation has sanctioned Rs.25.17 crore to 339 units and have disbursed Rs.17.10 crore to 271 units. 

Creation of New cells 

Keeping in view the changed economic scenario, the Corporation has opened the following cells for the benefit of the entrepreneurs: 

i) Technology Bureau of International Industrial Partnership (TBIIP) : 

The focal point of Orissa for UNIDO-TBIIP Projects is functioning since January 1999 in the "Technology Cell" of OSFC at IPICOL House, Bhubaneswar. This focal point has developed 20 projects as on 05.08.2000 and is planning to organise an international business meet at Bhubaneswar during the current financial year. Inspection of industries for developing the project for international business partnership is also being conducted regularly. 

ii) Technology Bureau of Small Enterprises (TBSE) : 

This is a joint venture project of Asia Pacific Centre for Technology Transfer and the SIDBI. The objectives are technology upgradation to small scale industries, sourcing of technology and quality improvement, if necessary, with overseas collaboation. The Corporation has created a TBSE Cell in order to pass on the benefits to the industrial units in the State. 

Venture Capital 

With the changing scenario of industrial development consequent on the ever changing consumer tastes, the pace of technological innovations also takes place at an accelerated rate. To cope up with this, the entrepreneurs are required to take up high risk ventures.  

Venture capital is an equity or equity-featured capital seeking investment in new ideas, new components, new products, processes and services that offer the potential of high returns on investment. It may also include investments in turn-around situations. 

OSFC has taken steps to promote a subsidiary Public Limited company in the State of Orissa in order to hold funds in trust and invest the same as Venture Capital in the eligible industrial companies in the State. The trust fund is being placed with the Company by the Orissa State Government, OSFC, SIDBI, OSEDC, Banks etc. The Registrar of Companies, Orissa has now allotted the name "Industrial Investment Trust Company of Orissa Ltd." to this proposed company. 

Focus areas for the fund will be the upcoming industries such as software and information technology industries, high value addition mineral based units, fine chemicals, food processing or any other high growth oriented and profitable venture in the Small and Medium scale sector. 

Investment by the venture fund would vary from case to case. The size of the investment in individual unit will be in the range of Rs.10 lakh to Rs.100 lakh. 

Computerisation : 

The Corporation has undertaken massive upgradation of its computer systems with an investment of Rs.120.00 lakh. These include :- 

  • Computerisation of financial accounting, personnel information system, loan accounting system, pay-roll, subsidy and incentive, project appraisal, legal monitoring, follow-up, rehabilitation and seizure and management information system. All the applications will be on ORACLE V8.0 and at branch offices on personal ORACLE V8.0.
  • A network connecting ORACLE server at corporate Head Office and computers at Branch Offices through dial-up telephone line and CISCC AS 5100 Router so that all branch offices will be able to send their daily transactions to the Corporation data base. 
  • Office automation, word processing, spreadsheet at the Head Office at all branch offices through office `97 or Windows `95 and Lotus Notes 4.5 on Domino. The branch offices can send and obtain circulars, office notice/orders and can correspond with Head Office through Lotus Notes.
  • Within corporate Head Office mail and circulation of office order can be done through Local Area Network (UTPLAN) and Notes 4.5 through Domino Server.
Authorised and paid-up capital : 

The authorised share capital of the Corporation is Rs.100 crore. The paid-up share capital as on 31.08.2000 is Rs.87.57 crore. In addition to this, the Corporation has availed of loan in lieu of share capital from the State Government and the IDBI on matching basis, which stands at Rs.12.45 crore as on 31.08.2000. 

Profit and Loss Position :
The Profit and Loss position of the Corporation is given below : 
 
Year
Operational Profit/Loss
Accumulated provisioning as on 31st March of the Year
Accumulated loss as on 31st March of the Year
1995-96 (+) 0.17 119.41 186.43
1996-97 (+) 1.18 110.44 178.41
1997-98 (-) 13.60 173.16 254.73
1998-99 (-) 17.93 187.33 286.82
1999-2000 (-) 5.71 197.54 302.74
 
With a view to improve the financial position of the Corporation in the wake of the changing economic scenario the government was requested to :- 
  • Treat Rs. 17.50 crore given by Government as loan in lieu of share capital (without interest).
  • Forego guarantee commission of Rs.2.46 crore. And waive the future guarantee commission accrued and to accrue.
  • Forego the dividend till 2004 and Government to provide required subvention and allow it to be credited to Special Reserve Fund (SRF). 
  • Government of Orissa has also been requested to take up restructuring of the Corporation. Suggestions relating to restructuring of OSFC are as under :-
  • Fresh infusion of share capital of Rs. 37.50 crore over a period of 9 years from 1994-95 till 2003-2004.
  • Conversion of loan in lieu of share capital during 1996-97 Rs. 6.23 crore.
  • Foregoing Guarantee Commission of Rs.2.46 crore deferred by the Govt. and waiving the guarantee commission accrued and to be accrued till 2003-04.
  • Total amount of loan in lieu of share capital has been converted to share waiver of interest accrued on loan in lieu of share capital.