tti enterprise ltd Management discussions

In this Management Discussion and Analysis Report, your directors present a comprehensive overview of the companys performance, achievements and prospects for the financial year ended on 31%t March, 2023. This report aims to provide stakeholders with insights into the companys operations, key financial metrics, risk management, opportunities, threats and future outlook. OUTLOOK

The outlook for the Indian economy in the financial year 2023 is cautiously optimistic, with several key factors shaping its trajectory. After experiencing a rebound from the pandemic-induced downturn, the economy entered a phase of steady growth in the previous years, and this momentum is expected to continue. One of the primary drivers of Indias economic growth is likely to be the revival of domestic demand. As vaccination campaigns gained traction, consumer confidence improved, leading to increased spending on goods and services. The pent-up demand from the pandemic period further fueled this consumption surge. Additionally, the rural economy is expected to play a crucial role as agriculture, and allied sectors have shown resilience during challenging times. Moreover, the governments focus on infrastructure development is set to boost economic activities. Projects related to roads, railways, airports, and other key sectors are likely to attract investment and generate employment opportunities, providing an impetus to the economy. The governments commitment to reforms and ease of doing business is likely to attract both domestic and foreign investments, further driving economic growth. However, challenges persist that require careful attention. Inflationary pressures may continue to pose a threat, affecting consumer purchasing power and overall economic stability. The government and the central bank would need to strike a balance between controlling inflation and supporting economic expansion. Geopolitical uncertainties and global economic conditions could also impact Indias trade and investment landscape. Another crucial aspect is the emphasis on technology and innovation. Embracing digitalization and fostering a startup-friendly ecosystem can contribute significantly to economic growth and job creation. By leveraging its demographic dividend and a growing tech-savvy population, India can accelerate its transformation into a digital economy. Furthermore, sustainability and environmental concerns are increasingly gaining prominence. Initiatives promoting green technologies, renewable energy, and responsible manufacturing practices are likely to gain momentum, providing opportunities for sustainable growth and attracting investments in green sectors. Overall, while challenges persist, Indias economic outlook for the financial year 2023 remains positive. A combination of proactive policies, robust domestic demand, infrastructure investments, and technological advancements can pave the way for sustained and inclusive growth, making India one of the worlds fastest-growing major economies. FORWARD LOOKING STATEMENTS

Statements in the Management Discussion and Analysis of financial condition and results of operations of the company describing the companys objectives, expectations or predictions, market and industry trends, strategic initiatives, technological advancements which may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements involves risks, uncertainties, assumptions and expectations of future events. These statements are based on current expectations and projection about future events and financial performance which may not necessarily prove accurate. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. Actual results may differ materially from those expressed in the statement. INDUSTRY STRUCTURE AND DEVELOPMENTS

Non-Banking Financial Companies (NBFCs) play a crucial role in the financial system by providing a wide range of financial services and products to various sectors of the economy. The NBFC sector operates as an integral part of the financial services industry, complementing the traditional banking sector. NBFCs are financial institutions that are engaged in various activities such as lending, investment, asset financing, wealth management and insurance services among others. NBFCs are characterized by a diverse array of players, ranging from small specialized entities catering to niche markets to large, systemically important NBFCs with extensive geographical presence. NBFCs contribute significantly to credit flow in the economy. They provide credit to various sectors, including small and medium sizes enterprises (SMEs), which often face challenges in obtaining credit from banks due to stricter lending norms. NBFCs plays a crucial role in the development of rural and semi-urban areas by offering financial services in these regions, they promote economic growth, create job opportunities and improve the overall standard of living. The growth of NBFCs lead to the creation of job opportunities across various functions, including sales, operations, risk management and administration. NBFCs complement the banking system and provide additional sources of funds to various sectors. This enhances the overall stability of the financial system by reducing over-dependence on banks and creating a more resilient financial ecosystem. NBFCs play a vital role in promoting financial inclusion, enhancing credit flow, fostering innovation and contributing to the overall economic growth and stability of a nation. Their significance lies in their ability to serve diverse customer segments and fill the gaps left by traditional banking institutions.

BUSINESS PERFORMANCE AND SEGMENT REPORTING

The analysis in this section relates to the financial results for the year ended on 31st March, 2023.Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the Standalone financial statements. SUMMARY OF FINANCIAL PERFORMANCE

During the financial year 2022-23; the company achieved operating revenue amounting to \ 159.61lakhs, which is much lower than the financial year 2021-22 operating revenue amounting to \ 1381.86 lakhs. Net loss for the financial year 2022-23 is \ (25.66) lakhs which is -348.21% lower than the profit for financial year 2021-22 i.e., \ 5.73 lakhs.

? Revenue

Operating	159.61	1381.86	88.45 %	(decline)
Revenue
Other Income	151.17	57.63	162.34%
				(increase)
Total	310.79	1439.49

? Finance cost

Finance Cost	NIL	NIL	NA
% of Revenue	NIL	NIL	NA

o Employee benefit expenses

Employee Benefits	20.82	12.54	66.07%
Expense			(increase)
% of Revenue	1.60%	13.28%

o Depreciation & Amortization expenses

Depreciation &	2.42	NIL	NA
Amortization Expense
% of Revenue	1.52%	NIL	NA

? Administration & Other expense

Other	42.36	14.00	202.46%
Expense
% of	1.60%	13.82%
Revenue

VISION

Our vision is to become one of Indias most preferred financial service organizations. Through timely new and innovative products, we seek to be one of the most trusted financial service providers by everyone who is seeking finance. We seek to provide customers with personalized, fast and reliable assistance. We will provide easy finance with hassle-free documentation through a speedy and transparent process. The Government of India is strongly focusing on new policy to promote electric vehicles and we believe that we have a significant part to play by financing electric vehicles. SEGMENT WISE PERFORMANCE

The Company is into single segment reporting. ROAD AHEAD & FUTURE OUTLOOK

Looking ahead, the Company remains optimistic about its prospects. We will be exploring newer growth avenues like: ? Retail financing particularly, financing of electronics products manufactured by the group company & other established brands; v Vehicles finance, particularly financing of two-wheeler electric vehicles manufactured by the group Company; Working Capital requirements; VV Consumer finance; VV General Corporate purpose; Investment in its group Company specifically in the hospitality sector; herbal & ayurvedic products, financial products, frozen foods & aviation sector; VV Temporary lending of loans & advances; Investment in marketable securities/ mutual funds, etc. V Investment in real estate sector

INTERNAL CONTROL AND ADEQUACY OF INTERNAL CONTROL

The Company has a well-defined organizational structure, documented policy guidelines, and a defined authority matrix that ensures efficiency of operations, compliance with internal policies and applicable laws and regulations, as well as protection of resources. The Company believes that a strong internal control system and processes play a critical role in the day-to-day operations of the Company. To this end, the Company has put in place an effective internal control system to synchronize its business processes, operations, financial reporting, fraud control and compliance with extant regulatory guidelines and compliance parameters. Strict internal control and systems are devised as a depiction of the principles of the highest standards of governance. The Company ensures that a standard and effective internal control framework operates throughout the organization, providing assurance about safekeeping of the assets and execution of transactions as per the authorization in compliance with the internal control policies of the Company. The Audit Committee of the Board provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken. OPPORTUNITY

NBFCs (Non-Banking Financial Companies) have a plethora of opportunities in the financial sector. One of the key advantages of being an NBFC is the ability to cater to specific market segments and offer a diverse range of financial services without the regulatory constraints faced by traditional banks. Some prominent opportunities include venturing into niche financial services, such as micro finance for underserved communities or specialized lending for particular industries. Consumer finance presents a significant opportunity, driven by the rising middle class and increasing demand for personal loans, credit cards, and other consumer credit products. Additionally, theres immense potential in rural and agricultural finance, supporting rural development and reaching unbacked populations. Opportunities for NBFCs lie in niche financial services, consumer finance, rural and agricultural finance, digital transformation, and fintech partnerships. They can capitalize on the growing demand for housing finance and MSME lending, while also exploring trade finance and infrastructure financing. Embracing green finance and offering credit rating and analytics services can further diversify their portfolio. Leveraging digital technologies to enhance customer experience will be crucial in gaining a competitive edge. By staying innovative, NBFCs can tap into underserved markets and meet the evolving financial needs of businesses and individuals. THREATS

NBFCs face a variety of threats that can impact their financial stability, reputation, and overall operations. Some of the key threats faced by NBFCs include:

1. Competition from captive finance companies, small banks, FinTechs and new entrants.

2. Inadequate availability of bank finance and an upsurge in borrowing costs.

3. Regulatory and compliance related changes in the sector affecting NBFC.

4. Sudden change in funding challenges in the availability or cost of funding can impact the liquidity and operations.

5. Challenges in loan recovery, increased default rates and reduced demand for their financial products and services during the economic downturn.

6. A successful cyber-attack can compromise sensitive customer information, disrupt operations and lead to financial losses.

RISKS AND CONCERNS

As with any financial institution, the company faces certain risks that could impact its performance. Some of the risks are as follows:

1. Credit risk - the potential for borrowers to default on their obligations due to economic downturns or unexpected events.

2. Liquidity risk - Ensuring sufficient liquidity to meet obligations and withstand unforeseen liquidity demands.

3. Interest rate risks - Vulnerability to fluctuations in interest rates that may affect borrowing costs and interest income.

4. Regulatory risk Adapting to changes in regulatory policies and compliance requirements.

5. Information Technology risk - The risk arising as a result of IT infrastructural failure or data loss/threats causing operational setback and financial losses.

To mitigate these risks, the Company has framed the risk management policy and the risk management review framework provides complete oversight on various risk management practices and processes to mitigate the risks. REVIEW OF OPERATIONS OF THE COMPANY

The financial operations of the company for the financial year ended on 31% March, 2023 are as under: (% in lakhs)

Net Sales/ Income from	159.61	1381.86
Operations
Other Income	151.17	57.63
Total Income	310.79	1128.70
Total Expenses	317.34	1445.76
Profit/(Loss) before Tax	(6.50)	(6.22)
Tax Expense	19.16	-11.94
Net profit after Tax	(25.66)	5.73

HUMAN RESOURCES

Human Resources Development, in all its aspects like training in safety and social values is under constant focus of the management. Relations between the management & the employees at all levels remained healthy & cordial throughout the year. The Companys core philosophy is centered on promoting a safe, healthy, and happy workplace while fostering a conducive work environment among its employees. To foster a positive workplace environment, free from harassment of any nature, the Company has framed a policy for Prevention of Sexual Harassment at Workplace in accordance with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and reviews the same periodically. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

The details of significant changes in key financial ratios are as under:

Debtors Turnover	NIL	NIL
Inventory Turnover	N. A	N. A
Interest Coverage Ratio	N. A	N. A
Current Ratio	176.07:1	4016.92:1
Debt Equity Ratio	0.00:1	0.00:1
Return on	-0.02	0.25
Equity Ratio
Return on Capital	-0.10	10.45
Employed

COMPLIANCE

The Compliance department of the company ensures strict observance of all statutory and regulatory requirements for the company. The Compliance Department of the Company continues to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by different regulators, the Companys Board of Directors and the Companys Compliance Policy. By complying with the provisions of the SEBI Listing Regulations, the Company has an optimum combination of executive and non-executive directors with a woman independent director. The Different Committees of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

CAUTIONARY STATEMENT

Investors and stakeholders are cautioned that the statements in this management discussion and analysis report are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties that could adversely impact future results include, but are not limited to market conditions, competitive landscape, regulatory changes, technological advancements, currency and interest rate, credit and liquidity risks, environmental and social risks, etc. The company undertakes no obligation to update or revise any forward-looking statements to reflect new information, future events, or changes in circumstances, except as required by law. This report should be read in conjunction with the financial statements included herein and the notes thereto.