goenka business finance ltd Management discussions


BACKGROUND:

Goenka Business & Finance Limited (GBFL) is a Non-Banking Finance Company (“NBFC”), holding a Certificate of Registration from the Reserve Bank of India (“RBI”). The GBFL is non deposit accepting NBFC engaged in financial services. The Company has its registered office in Kolkata and Corporate office at Ahmedabad.

The Management Discussion and Analysis Report (MDAR) provide an insight into the performance of the company in the previous years, in the current year and its future plans besides the risks, and uncertainties associated with the Companys business along with the management perception and vision to win over the anomalies of future business situations. The Management Discussion and Analysis Report (MDAR) contain managements interpretation of financial performance of the Company more over actual results are reflected in the financial statements which should be studied in consonance with the Managements Perspective.

OPERATING RESULTS OF THE COMPANY:

During the financial year 2022-23, the Company has earned a total income of Rs. 24,883.20 Lakhs against a total income of Rs. 1,42,034.60 Lakhs in the previous year. The Company has earned a Net Profit of Rs. 14.46 Lakhs against a Profit of Rs. Rs. 59.74 Lakhs in the previous year. The Directors are optimistic about future performance of the Company.

INDUSTRY STRUCTURE AND DEVELOPMENT:

The principal activities of the Company are: I. The Company carry on the business of financing.

II. The Company invest in buy, sell, transfer, hypothecate, deal in and dispose of any shares, stocks debentures (whether perpetual or redeemable debentures), debenture stock, securities, properties of any other Company including securities of any Government, Local Authority, bonds and certificates.

THREATS:

I. With the increase in business segment, the competition has increased from Domestic and other developed countries.

II. Threats for this Industry are very common and every person is aware of the threats and the risks involved with this Industry.

PROSPECT & OUTLOOK:

The Company presents the analysis of the Company for the year 2022-2023 & its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic & other developments, both in India and abroad.

RISK MANAGEMENT:

Risk management forms an integral part of our Companys Business. Being a lending institution, there are inherent financial and nonfinancial risks. We have a proper risk management framework to identify, assess, monitor and manage various types of internal and external risks. The company identifies and monitors risks periodically.

HUMAN RESOURCES/INDUSTRIAL RELATIONS:

The Company continues to lay emphasis on people, its most valuable resource. In an increasingly competitive market for human resources, it seriously focuses on attracting and retaining the right talent. It provides equal opportunity to employees to deliver results.

INTERNAL CONTROL SYSTEMS & ADEQUACY:

The company has disciplined approach to cost and follows prudential norms in every sphere of its activities. The company has established internal control systems for ensuring optimum use of resources and safeguarding the assets. A dedicated concurrent audit team functioning within the Company supported by an out sourced concurrent audit team confirms that the activities are in compliance with its policies and occurrences of deviations are reported to the Management. The Company has further strengthened its internal audit function by investing in domain specialists to increase effectiveness of controls. The audit committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.

PROHIBITION OF INSIDER TRADING:

The Company has implemented a policy of prohibiting Insider trading in conformity with applicable regulations of the Securities Exchange Board of India (SEBI). Necessary procedures have been laid down for prohibition of Insider Trading.

CAUTIONARY STATEMENT:

The statements made in this report describing the Companys objectives, projections, estimates and expectations, may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Although the expectations are based on reasonable assumptions, the actual results might differ.