meenakshi steel industries ltd Management discussions

NBFCs have become important constituents of the financial sector and have been recording higher credit growth than scheduled commercial banks. NBFCs are leveraging their superior understanding of regional dynamics and customized products and services to expedite financial inclusion in India. Lower transaction cost, quick decision making, customer orientation and prompt service standards have typically differentiated NBFCs from Bank.

Over the years, India has emerged as one of the fastest growing economies in the world and an attractive investment destination driven by economic reform and a large consumption base. We believe that NBFCs with superior capital adequacy, better margins, frugal cost management, prudent risk management will continue to deliver substantial growth in the foreseeable future.

Opportunities and Threats

Your company is committed to addressing the changes boosted by its strengthen in market position, agile execution capabilities, robust early waring system and extensive use of analytics for risk mitigation and resources allocation. It will ensure to take advantage of the tailwinds that may emerge during the course of year.

The Stringent RBI and other regulatory norms governing the functioning of NBFC and certain government restriction act as hindrance in smooth functioning of NBFC

Seqment-wise-Performance

Your Company operates only single segment which is non-banking financial services (Granting/taking of loans and making long term Investments).

Future Outlook

The Companys technology-based platform play a key role in facilitating business from self-service segments and provide a larger base for cross-selling financial products. Its strategy continues to be built on improving and fortifying research content. The Company shall make investments, process and technology and continues to focus on delivering steady performance. The Company shall take into consideration the changes in the capital market and be prepared to overcome the challenges and perform sustainably.

Risk and concerns

The very nature of the Companys business makes it subject to various kinds of risk. The Company encounter market risk, credit risk and operational risk in its daily business operations. The Capital market industry in which the company is operating is subject to extensive regulation. The Company evaluates the technology obsolescence and associated risk and make investment accordingly.

The Risk management is a key element of the Companys business strategy and is integrated seamlessly across all of its business operations. The objective of the risk management process is to optimize the risk-free return equation and ensure prudent financial management along with meticulous compliance with all extant laws, rules and regulations applicable to all the business activities.

INTERNAL CONTROL SYSTEM & THEIR ADEQUACY

The Company has an adequate system of internal control to ensure accuracy of accounting records, compliance with all laws and regulations and compliance with all rules, procedures and guidelines prescribed by the management. An extensive internal audit is carried out by independent firm of Chartered Accountants. The Board / Audit Committee reviews the overall risk management frame work and the adequacy of internal controls instituted by the management team. The Audit Committee reviews major instances on a quarterly basis and action are taken on the same. It also focuses of the implementation of the necessary system and controls to strengthen the system and prevent the recurrence. The internal process has been designed to ensure adequate checks and balances and regulatory compliance at every stage. The internal audit team carries out a risk-based audit of these processes to provide assurances on the adequacy and effectiveness of internal control for prevention, detection, reporting and remediation of frauds.

FINANCIAL & OPERATIONAL PERFORMANCE

During the year under review, the Companys Net Profit of Rs. 161.20 Lakh before tax (Previous year Net Profit of Rs. 570.86 Lakh before Tax) and net total comprehensive loss for the year after tax was at Rs. 282.24 Lakh (Previous year total comprehensive Profit of Rs. 27.40 Lakh)

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company recognizes the importance of Human Resource as a key asset instrumental in its growth. The Company has well developed management information system giving daily, monthly and periodical information to the different levels of management. Such reports are being analyzed and effective steps are taken to control the efficiency, utilization, productivity and quality in the Company.

For and on behalf of the Board of Directors of Meenakshi Steel Industries Limited

	Sd/-	Sd/-
	Shivangi Murarka	Sudha Jajodia
Place: Mumbai	Managing Director	Director
Date: 31st August, 2023	(DIN: 08370325)	(DIN: 00376571)