standard capital markets ltd Management discussions

INDUSTRY STRUCTURE & DEVELOPMENT I

The business of the Company is that of a Non-Banking Finance Company (NBFC). NBFCs have innovated over time and found ways to address the debt reouirements of every segment of the society. I he sector has evolved from being fragmented and informally governed to being well regulated and in many instances adopted best practices in innovation, governance and risk management. NBFCs provides a vanety of services including fund -based and fee-based activities and cater to retail and non- retail markets and niche segments. NBFCs are generally regarded to be complementary to banks and are often able to offer better services and products to their customers Observing the importance of NBFCs in India, Reserve Bank of India has issued regulatory framework with the objective to harmonize it with Banks and Financial Institutions

NBFCs have always played an important role in promoting financial inclusion in India They have been complementing and supplementing the banking sector in reaching out credit and fill the gaps in availability of financial services to the un-banked segments and underserved area of the society.

The biggest contribution of NBFCs is their ability to cater to the needs of the Micro. Small & medium Enterprises (MSMEs) which form the cradle of Entrepreneurship and innovation in India. NBFCs innate ability to understand their customers needs and accordingly innovate to offer customized products make them the perfect conduit for credit delivery to MSMEs.

OPPORTUNITIES & THREATS

Non- Banking Finance Companies have always given tough competition to the public sector banks which traditionally held large share in the market but are now facing problem of their soaring Non- Performing Assets (NPAs). It is estimated that over 50% of micro, small and medium enterprises (MSMEs) does not have access to formal credit. With private banks deemed to be expensive and public banks struggling with bad loans, opportunities for NBFCs to grab the credit market are higher than ever because NBFCs have the ability to move fast and tap into specific customer segments and meet the non- corporate needs of the economy that is those of Small and Medium Enterprises and retail customers.

NBFCs continued to grow their shares in the financial services industry and have outperformed schedule commercial banks on growth in advances assets quality and profitability and this growth momentum of NBFCs should results in their shares in the financial services sector increasing in the near future

The Company closely monitors the threats which comprise of:

• High cost of funds

• Stiff competition with NBFCs as well as with banking sector

• Significant slowdown in the economy affecting the various segments of NBFC.

• Slow industrial growth

• High inflation

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company operates in only single segment; hence segment wise or product wise performance is not applicable. OUTLOOK AND FUTURE PROSPECT

The overall outlook of the industry has improved during the financial year 2022-23 and is an upcoming market to get better opportunities for the Company. Reserve Bank of India with an objective to bring NBFCs into the ambit of well-regulated finance industry have issued a number of circulars and regulatory clarity after the public discussion. These regulations are framed to address the regulatory gaps and arbitrage The industry has also responded positively towards these regulations in order to understand and address the associated risk better. Also regulated environment boosts the confidence of customer and increases credibility of the industry.

Revised regulatory framework and various schemes of Government concentrating on finance sector will bnng greater opportunities in the coming years.

The future outlook of the company remains positive as the Company is actively working on both the strategic front and the operations front to take advantage of the turning trends which improving operational performances, focus on quality, broaden the customer base etc

RISKS & CONCERNS

The Company is exposed to risks such as financial, operational, strategic compliances, reporting and political risks Being an NBFC, risks that are particular to its business and environment includes interest rate volatility, economic cycle, credit risk and market risk. The Company in order to identify and mitigate risks to minimize its impact on business, ensures that prudent risk management practices are followed during the decision making process.

Risk is managed by using a setof credit norms and policies as approved by the Board The Company does have comprehensive/ appropriate risk management control system in place which includes internal controls which are commensurate to the size and nature of the inherent risks of companys businesses These Risk Management system and processes enable the company in identifying and managing the risks appropriately.

Sustained efforts to strengthen the risk framework and portfolio quality have yielded consistently better outcomes for the Company

Human Resources

1. Learning and Development

2. Career and growth

3. Reward and Recognition

4. Business Transformation

5. Employee benefits and well-being INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The internal control system of the Company is effective and adequate for business processes commensurate with the size and nature of the operations, compliance requirements with the applicable laws and regulation, financial reporting etc.

The Internal Auditors periodically review and evaluates the adequacy of the control system and processes including in particular, internal financial controls as reouired under the Companies Act, 2013, ensure strict adherence to processes and procedures as well as to prescribed regulatory and legal framework and suggest improvements. The internal auditors have expressed their satisfaction about the adequacy of the control systems and the manner in which the Company is updating and strengthened its internal audit systems and procedures to meet the challenging requirements of the business.

Significant audit observations and follow-up action thereon are reported by the Internal Auditors to the Audit Committee The Audit Committee & Board of Directors reviews the internal audit reports and the adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Companys operations continue to be mainly focused in the area of NBFC activities- financing and Inter- Corporate Investments. I he relevant significant financial highlights of the Company are mentioned below

(in Rs. Lakhs)

Particulars	2022-23	2021-22
Revenue from operations	1128.77	36.65
Total Revenue	113261	51.20
Profit Before Tax	332.57	9.35
Profit after Tax	222.81	8.27

KEY FINANCIAL RATIOS

Particulars	2022-23	2021-22
Capital to risk -Weighted Assets ratio	61.82%	46 44%
Tier-I CRAR	61.36%	4014%
Tier II CRAR	046%	6.29%
Liquidity Coverage Ratio	4 27%	1550.25%
Operating Profit Margin	29.38%	18 27%
Net Profit Margin	19.67%	16.15%
Return on Net worth	290%	2.44%

HUMAN RESOURCES

The Company always regards human resources as its most valuable asset and ensures friendly work environment for its employees to excel. In an increasingly competitive market for talent, Oracle Credit limited continues to focus on attracting and retaining right talent. It is committed to provide right opportunities to employees to realise their potential

DISCLAIMER

Certain Statements in the Management Discussion and Analysis Report describing the Companys view about the industry, expectations, objectives, etc may be ‘forward looking statements within the meaning of applicable laws and regulations Actual results may differfrom those expressed or implied. Internal & External Factors like changes in government regulations, tax laws and otherfactors such as industrial relations and economic developments, etc may further influence the Company s operations which are beyond the control of the management. The Company is not under any obligation to publicly amend, modify or revise any forward- looking statement on the basis of any subsequent developments, information or events

	On behalf of Board of Directors of Standard Capital Markets Limited
Date: 31/08/2023
Place New Delhi	Anshita Sharma Ram Gopal Jindal
	Director Managing Director
	DIN: 09706011 DIN: 06583160