Advik Capital Ltd Management Discussions.

COVID 19 OUTBREAK

There has been a major impact on the liquidity position and asset quality of the NBFC sector. Just before the outbreak, the RBI took various measures to contemplate the NBFCs especially after the default by a leading Infrastructure Finance Company. The industry was hoping to be at improved liquidity levels during FY 20.

Unfortunately, NBFCs have been bearing the brunt of the pandemic which would absolutely last longer than expected. The immediate lockdown imposed by the government has severely impacted the incomes of borrowers further affecting the revenue streams due to the drop in transactions and loan repayments.

The central bank took measures like providing a 3month moratorium for banks and NBFCs which the NBFCs have likely offered to their borrowers. According to a rating agency report, "the immediate implication for NBFCs is the lack of clarity on their debt servicing ability in the near term. "With collections coming to a standstill, the primary cash flows of the NBFCs have been completely disrupted."

Post the lifting of the nationwide lockdown, the NBFCs would clearly have cash flow and operational issues during the second half of FY 21 . The sector needs to be well versed with their contingency plan which can be implemented post the business restarts and the economy will definitely bounce back and would rise above the crisis.

FINANCIAL & BUSINESS REVIEW

ADVIK CAPITAL LIMITED is currently engaged in NBFC and Financial activities. The Company intends to continue focusing on NBFC activities including financing, Intercorporate Investments & Capital Market activities.

Due to limited resources, company is unable to achieve the growth in the last years but management of the Company is very hopeful to achieve standards of growth in the near future. The main revenue of the Company is earned from the Interest Income and Commission Income.

Management of the Company is very hopeful to bring higher operating efficiencies within the Company based on the understanding And strength of superior Knowledge of local market and efficient and Conservative approach.

FUTURE OUTLOOK

In the upcoming years Company will strive to be achieve high revenue by way of providing financial services businesses in India focused on delivering superior customer experience through class leading services and good returns to the Companys shareholders at the same time maintaining the high levels of integrity.

KEY PERFORMANCE DRIVERS AND CAPABILITIES

The Companys long term aspiration is to play a significant role in meeting the financial requirements of retail customers as well as corporate clients. To carry out the long term goal and achieve its financial activities Company has formed some strategies.

ADEQUACY OF INTERNAL CONTROL

The Company has a proper and adequate system of internal control in all spheres of its activities to ensure that all its assets are safeguarded and protected against loss from unauthorized use or disposition and that the transactions are authorized, recorded and reported diligently.

The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines.

RISKS & CONCERNS

Being a Financial company, it is exposed to specific risks that are particular to its business and the environment within which it operates, including interest rate volatility, economic cycle, credit risk and market risk. The most important among them are credit risk, market risk and operational risk. The measurement, monitoring management of risk remains key focus areas for the company.

HR & INFRASTRUCTURE DEVELOPMENT

The Company has a team of able and experienced industry professionals and employees. During the year, the company further strengthened its IT infrastructure and systems to support its operations.

RESPONSIBILITY FOR THE MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Board of Directors have reviewed the Management Discussion and Analysis prepared by the Management, and the Independent Auditors have noted its contents. Statement in this report of the Companys objective, projections, estimates, exceptions, and predictions are forward looking statements subject to the applicable laws and regulations. The statements may be subjected to certain risks and uncertainties. Companys operations are affected by many external and internal factors which are beyond the control of the management. Thus the actual situation may differ from those expressed or implied. The Company assumes no responsibility in respect of forward looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.