upasana finance ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is a Non-Banking Financial Company registered with the Reserve Bank of India and is classified as Non-Deposit taking Non-Banking Financial Company (NBFC-ND). The Company is engaged in the business of lending short-term and long-term loans to wide array of customers.

The Indian economy continued to be one of the fastest-growing major economies growing at an estimated 7.2% in FY23 and has shown higher resilience to global shocks on the back of strong government capital spending and private demand.

The Indian financial services sector is a vital component of the countrys economy, comprising a diverse range of players such as commercial banks, insurance companies, non-banking financial companies, pension funds, mutual funds, and other smaller financial entities. The sector has been evolving over the years, coupled with changes and reforms by the Government and regulatory bodies to strengthen the industry, enhancing its growth prospects.

Despite the uncertain global environment since early 2020, the Indian financial sector has remained stable and resilient. Furthermore, the Non-Banking Financial (NBFC) sector has played a crucial role in bridging the credit gap and supporting the growth of various sectors.

OPPORTUNITIES AND THREATS

India has emerged as one of the fastest growing economies in the globe and has generated a lot of interest among foreign investors both financial and strategic. Global players see India as the future economic powerhouse and they are making huge investments in different business within the country. There are large untapped markets in rural & urban areas wr.t. Personal and Business finance which can be capitalized by the Company. Uncertain global political environment, tightening regulation of NBFC may negatively impact the business.

SEGMENT WISE / PRODUCT WISE PERFORMANCE

The Company is engaged in lending activities during the year under review. Hence the requirement of segment-wise reporting does not arise.

BUSINESS OUTLOOK

The Company is currently carrying on the business of short term and long term financing to both corporate and non-corporate entities. Further, the Company continues to concentrate upon recovery of overdue receivables. Even while pursuing the legal route, the company attempts negotiations with customers for early recovery of debts. The Management of the Company is looking for a steady growth of the Company and aims at maximizing the shareholders wealth by way of earning maximum profits at low costs.

RISKS AND CONCERNS

Managing risk is fundamental to financial services industry and it is key to ensure sustained profitability and stability .The Company continuously evaluates its lending activities to ensure that the same meets the objective of ensuring maximization of value to all its stakeholders in a prudent manner. The nature of business exposes the Company to credit, liquidity, market and interest rate risk and is also influenced by global events. Hence there is an amount of uncertainty in the near term outlook of the business operations.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate system of internal controls to ensure accuracy of accounting records, compliance with all laws & regulations and compliance with all rules, procedures & guidelines prescribed by the applicable statues. The Control is also ensured by the Internal Audit process.

FINANCIAL PERFORMANCE AND OPERATIONAL REVIEW

The Financial performance and operational review is provided under the head "Financial Highlights" in Directors Report.

HUMAN RESOURCES

During the year under review, there has been no material development on the Human Resource / Industrial Relations front. The Companys focus is on recruitment of good talent and retention of the talent pool.

KEY FINANCIAL RATIOS

Key Financial Ratios	FY 2022-23	FY 2021-22	Reason for significant change
Debtors Turnover Ratio	--	--	NA
Interest Coverage Ratio	--	--	NA
Current Ratio	223.23	27.65	Increase in Loan Assets backed by Debt
Debt-Equity Ratio	1.53	--	Increase in borrowings
Operating Profit Margin (%)	57.01%	19.84%	Due to increase in revenue
Net Profit Margin (%)	43.28%	9.52%	Due to increase in revenue

By Order of the Board

For AASTAMANGALAM FINANCE LIMITED

	Sd/-	Sd/-
Chennai	Bhavika M Jain	Rekha M Jain
01.09.2023	Director	Director
	DIN:07704015	DIN: 07704034