Apoorva Leasing Finance & Investment Co Ltd Management Discussions

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

FUTURES PROSPECTS

The management of the Company cautioned the Readers that this management discussion and analysis report is only future prospects and not confirmation. The statement/future prospects involve risks and uncertainties. The actual results may be varying from future prospects. Financial Service Institutions have proven their mettle in many other specialized financial services such as factoring, lease finance, venture capital finance, and financing road transport and also in the business of securities-based lending such as Loan against Shares, Margin Funding, IPO Financing, Promoter Funding etc. They have also been providing a major boost to Micro, Small and Medium enterprises and other avenues where banks exercise cautious lending. All the above factors further emphasize the potential and opportunities in store for Financial Service Institutions and the regulations when designed to provide the right environment, provides impetus to the growth of the sector. The Company hence wishes to diversify its activities in the coming period and shall embark on this path and move forward once the existing investments, which are at an incubating stage begin to bear fruits at maximum level. The subsidiary shall continue to focus on their core business area.

COMPANY BUSINESS

The company is engaged in trading in shares, financial services and investment activities where the outlook of the business seems to be encouraging. Over and above, we have been diversified into different businesses ranging from third party product distributions (lowest balance sheet risk) to originating unsecured personal loans, corporate loans (highest balance sheet risk). We believe that we are well places to leverage on the growth opportunities in the economy.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Since the Company working well itself in the business, but still the management wants to diversified into the field of other business segment also. The Company is building up its network to play a significant role from time to time.

BUSINESS OVERVIEW

The Revenue from operations during the year 2024-25 is Rs 34.37 Lakhs as compared to Rs 118.53 Lakhs in the previous year. r

(Amount in Lakhs)

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control system, commensurate with the size of its operations. Adequate records and documents are maintained as required by laws. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective. The CEO certification provided in the CEO certification section of the annual report discusses the adequacy of our internal control systems and procedures. Internal Control measures and systems are established to ensure the correctness of the transactions and safe-guarding of the assets. The Management ensures adherence to all internal control policies and procedures as well as compliance with regulatory guidelines. The audit committee of the Board of Directors reviews the adequacy of internal controls. This improved the management of the affairs of the Company and strengthened transparency and accountability

SEGMENT REPORTING

The companys business activities fall within two business segment viz. Financing and Derivatives activities and income and expense couldnt be bifurcate of both activity. Hence, the disclosure requirement of Ind AS-108 operating segment is not required.

OUTLOOK

The company is having a deep impact on outsiders about the future aspects or growth. Company decides to continue to focus on core business and delivering superior financial performance and also will try to keep the relation with outsider as wider as possible. We will continue to focus on delivering superior financial performance, innovation and industry leadership in our chosen verticals. We expect our relationship with our clients to become more strategic for each other.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The industrial relation is very cordial and peaceful. The implementation of Corporate Governance in the Company showing various measures to provides more scope for development of human resource thereby allowing the employee better opportunities to achieve higher performance and efficiency in their respective assignments and employment

RISKS AND CONCERNS

In any business, risks and prospects are inseparable. As a responsible management, the Companys principal endeavour is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts.

CAUTIONARY STATEMENT

Statement in this Managements Discussion and Analysis detailing the Companys objectives, projections, estimates, expectations or predictions are forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations.

STRATEGY

Alike the other business enterprise, the Company is also following the same strategy for expansion of business by providing investment, financing etc. to the corporate. STRENGTHS & OPPORTUNITIES

The Company is an investment company and having sufficient amount of Reserves is the core strength of the company. The Company will continue to play a major role in commodity trading and other business activities on its own or through its subsidiaries.

LEADERSHIP AND CORPORATE GOVERNANCE

The Companys senior management comprises of some of the most talented and experienced leaders who have proved their excellence in various fields also. The diverse knowledge of members of the Company is real assets of the company, which makes it stand out of crowd. Every member of the Company is special and expert in his/her hard-core field such as management, finance, operation, manufacturing, corporate law, legal matters etc. The Company exceptionally believes in good corporate governance and follows all the rules, regulations, other applicable laws for the time being such as Corporate Law, Listing Agreement with Stock Exchange etc.

RISKS AND CONCERNS

The investment industry in general faces the risk of re-entry and new entry of players and existence of several unorganized regional players increasing the competition, which mainly affects the asset quality. This is further characterized by captive NBFCs floated by other business houses. The ever-existing systemic and delinquency risks and fluctuations in interest rates and risk weight make the companies more vulnerable. Deployment of funds in sensitive and volatile sectors increases the risk exposure while concentration risk increases dependency.