Bajrang Finance Ltd Management Discussions

a) Industry structure and developments

During the year under review business were affected adversely due to Covid-19 pandemic. NBFCs too witnessed decline in disbursements and margin contraction due to decline in demand and economic slowdown. Above all Covid -19 pandemic has badly affected the economy. There is ample liquidity in the Banking system, but credit growth is low. The Monsoons are expected to be normal in the current year and rural demand is by and large intact which is helping agri related businesses.

b) Opportunities and Threats

Your Company being an investment Company seeks opportunities in the capital market. The volatility in stock indices in the financial year under report represents both an opportunity and challenge for the Company. Capital market activities in which most of our activities depend on is also influenced by global events happening in the US, Europe & China and above all by Covid-19 pandemic and hence there is an amount of uncertainty in the near term outlook of the market. With the Government of India policy of Aatmanirbhar Bharat and focus of indigenous manufacturing and infrastructure, the capital market prospects would improve significantly.

c) Segment-wise Performance

The Company is engaged in investment activities and other financial services during the year under review, hence the requirement of segment-wise reporting is considered irrelevant.

d) Outlook

We continue to see a significant opportunity in the market and will use periods of interim weakness as investment opportunities for long term.

e) Risks and Concerns

The performance of the Company is dependent on the capital markets for its returns. Even though it is envisaged that Indian stock market will continue to do well, global concerns can result in sharp corrections.

f) Internal Control Systems and their adequacy:

The Company has adequate internal control systems in technical and financial fields.

g) Financial Performance:

The Financial Performance of the Company has been impacted during the year due to covid-19 pandemic.

h) Human Resources/ Industrial Relations:

The Company has maintained good relations with its employees.

i) Cautionary Statement:

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward looking statements" within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting global and domestic demand and supply, finished goods prices in the domestic and overseas markets in which the Company operates, raw-materials cost and availability, changes in Government regulations, tax regimes, economic developments within or outside India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revive any forward looking statements on the basis of any subsequent developments, information or events.

j) Details of significant changes in Key Financial Ratios:

There is no significant change in key financial ratios as compared to the ratios of previous financial year except following:

Sr. No.	Particulars	2020-21	2019-20	Remarks
1)	Current Ratio	33.72	98.13	The Current ratio has declined during the year compare to previous year due to increase in Tax provision and other liabilities during the year.
2)	Return on Net Worth	4.87 %	7.19 %	The Return on Net Worth has declined during the year as compared to previous year due to substantial capital gain during the previous year.