Your Directors have pleasure in presenting the management discussion and analysis
report for the year ended on March 31, 2023.
1. ABOUT GUJARAT INVESTA LTD
Gujarat Investa Limited ("GIL" or "Company"), registered with the
Reserve Bank of India ("RBI") as a Systemically Important Non-Deposit taking
Non-Banking Financial Company ("NBFC") mainly engaged in lending and offering a
wide array of services/products in the financial services sector.
2. INDUSTRY AND ECONOMIC SCENARIO
While the post pandemic global economy continues to be affected by geopolitical
tensions and inflationary pressures, India continues to remain a bright spot in the world
economy. As per IMF, it will alone contribute 15% of the global growth in 2023 driven by
its demographic dividend, pent-up demand growth, digital infrastructure and commitment to
fiscal consolidation. Overall, India is expected to close FY 2022-23 with a GDP growth of
7%, which is the fastest amongst all the major economies. It is projected to further grow
by 6.1% in FY 2023-24 - in contrast, the projected global growth rate for same period is
only 2.9%.
It is also admirable to note that the Indian Financial sector was not affected due
adverse effects of US and European banking sectors. This shows that Indian Financial
sector and financial system is attributable to adequate capitalization & liquidity,
healthy asset quality and proactive monitoring & timely interventions by the
regulator.
India has a diversified financial sector consisting of commercial banks, insurance
companies, non-banking financial companies, housing finance companies, cooperatives,
pension funds, mutual funds, and other smaller financial entities. The financial services
industry plays an important role in ensuring the efficiency of capital allocation and
driving high-return investments. In addition, the industry plays an important role in
enabling more people to have access to capital. Financial inclusion driven by RBI has
expanded the target market to semi urban and rural areas. NBFCs especially those catering
to the urban and rural poor namely NBFC-MFIs and Asset Finance Companies have a
complementary role in the financial inclusion agenda of the country. As per ICRA, the
NBFC-Retail AUM is projected to have grown at 16-18% in FY 2022-23 and expected to further
grow at a healthy 12-14% in FY 2023-24.
NBFCs have become important constituents of the financial sector and have been
recording higher credit growth than scheduled commercial banks (SCBs) over the past few
years. NBFCs are leveraging their superior understanding of regional dynamics and
customized products and services to expedite financial inclusion in India. Lower
transaction costs, quick decision making, customer orientation and prompt service
standards have typically differentiated NBFCs from banks. Considering the reach and
expanse of NBFCs, they are well-suited to bridge the financing gap in a large country like
India. Systemically Important NBFCs have demonstrated agility, innovation, and frugality
to provide formal financial services to millions of Indians.
The overall outlook for industry remains positive as India treads on its growth
trajectory leading to higher credit demand. The growth in credit is expected to be broad
based across products and segments with key risks being elevated interest rates and
inflation.
3. FINANCIAL PERFORMANCE
During the year under review, the Company has incurred Profit after tax of Rs. 4.03
Lakhs as compared to the profit after tax of Rs. 3.13 Lakh earned during the previous
financial year 2021-22. The Directors are hopeful that company will do better during the
current Financial Year. There is stiff competition amongst major NBFC companies as of
today, the company has managed to maintain its profitability, which is due to timely
adoption of prudent business strategies, measures taken to reduce cost of funds and cost
of operations, improved fund management and effective steps taken to maintain the level of
the company. The company has also strengthened its financial position.
4. CHANGE IN THE BUSINESS NATURE OF THE COMPANY
As you are aware, the basic nature of the company was registered as Non-Banking
Financial Company under the provisions of Reserve Bank of India Act and but now the
company has proposed to surrender the License of Non-Banking Financial Company as granted
by Reserve Bank of India. Now the Company has change the business nature and have proposes
to carry the business activity in textile, as the promoters of the Company have good
experience in the field of Textile. The Board at its meeting held on July 07, 2022, has
approved alteration of the MOA of the Company and also received the approval of the
members of the company during the Extra Ordinary meeting held on 04th August,
2022.
5. CHANGE IN THE NAME OF THE COMPANY.
The Board of Directors of the company has approved the change of the name of the
Company from "GUJARAT INVESTA LIMITED to ASHTASIDDHI INDUSTRIES LIMITED
as on 12th August 2022 and received approval of its members through Postal ballot as on
08th November, 2022. But due to technical difficulties the company has not received
approval of from Registrar of Companies Gujarat.
6. OPPORTUNITIES & THREATS:
The Government is committed to encourage the healthy growth of Capital Market for
development of the Economy. While the government seems committed to reforms to address the
challenges, political compromises and high populist spending in an election year will mean
that tough decisions are more likely to be deferred. However, steps by RBI to stabilize
the exchange rate by reducing liquidity support to the banking system will create a
challenging environment for investments
7. RISK & CONCERNS
The Company aims to operate within an effective risk management framework to actively
manage all the material risks faced by the organization and make it resilient to shocks in
a rapidly changing environment. It aims to establish consistent approach in management of
risks and strive to reach the efficient frontier of risk and return for the organization
and its shareholders. Broad categories of risk faced by the company are Credit Risk,
Market Risk, Operational Risk, Cyber Security and Reputation risk. The risk management
policies are well defined for various risk categories supplemented by periodic monitoring
through the sub committees of the Board.
8. INTERNAL CONTROL SYSTEMS & THEIR ADEQUEACY
The Company has designed its internal control system to ensure operational efficiency,
protection and conservations of resources, accuracy and promptness in financial reporting
and compliances with laws and regulations.Efficient maintenance of accounts is facilitated
by the executives and employees of the Company. Thereafter, the same is audited
periodically by the Internal Auditors. The scope of internal audit is well defined and is
very exhaustive to take care of all crucial functions and business of the Company. Based
on their report, steps are taken at regular intervals to further strengthen the existing
systems and procedures. Their significant observations are discussed in the Audit
Committee Meetings regularly. Besides, as mandated under Companies Act, 2013, the
Statutory Auditors have certified as part of their Audit Report, the effectiveness of
Internal Financial Control over financial reporting. The Directors have appointed M/s.
Kamal M. Shah & Co, Chartered Accountants as the Internal Auditors of the Company for
the Financial Year 2023-24.
9. HUMAN RESOURCE DEVELOPMENT
The Company firmly believes that Human Capital is its most important asset. A series of
engagement interventions across identified key themes were undertaken to increase employee
morale and the initiatives focused on key aspects such as physical and mental wellness,
celebrations, leadership engagement sessions, fitness and sports, and family engagement
activities. The Company believes that the human resources are vital in giving the Company
a Competitive edge in the current business environment. The Companys philosophy is to
provide congenial work environment, performance oriented work culture, knowledge
acquisition / dissemination, creativity and responsibility. While selecting the training
programme, the Company lays emphasis on development of skill and knowledge of its
executives in the new vistas of Finance and Information Technology, besides developing the
leadership and managerial skills for the future.
The Company continues to run an in-house training program held at regular intervals and
aimed at updating their knowledge about issues.
ACCOUNTING TREATMENTS
During the under review, all the accounting treatments are done as per the prescribed
sections and IND AS applicable to the company.
CAUTIONERY STATEMENT
Statements in the Management discussion and analysis describing the companys
objectives, projections, estimates and expectations may be "forward looking
statements" within the meaning of applicable laws and regulations. Actual results
could differ materially from those expressed or implied. Important factors that could make
a difference to the companys operations include economic conditions affecting
demand/supply and prices, conditions in the domestic and overseas markets in which the
company operates/ going to operate, changes in government regulations, tax laws and other
statutes and other incidental factors.
|
For and on behalf of the Board |
|
of Gujarat Investa Limited |
| Place: Ahmedabad |
SD/- |
| Dated: 09.08.2023 |
[Purushottam R. Agarwal] |
|
Chairman |
|
(DIN: 00396869) |
+91-9892691696
