Bala Techno Global Ltd Management Discussions

BALA TECHNO GLOBAL LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS SCENARIO The business scenario of finance Companies has changed drastically in the last few years, due to consolidation and restructuring in the financial sector and liberalization and globalization of markets. The aggressive foray of Indian and Foreign banks and financial Institutions into retail financing has resulted into severe competition. This competition is likely to intensify further. The line of distinction between finance companies, Financial Institutions and Banks is almost non-existent. This competitive environment calls for efficient process capabilities, use of technology, cost efficiencies, strict credit monitoring and raising the level of customer service. This process of change in the financial services industry has also provided greater growth opportunities for proactive, strong and well managed finance companies. PERFORMANCE AND OUTLOOK The gross income for the year was Rs. 483.3 lacs against Rs. 8.87 lacs in previous year and the net income was Rs. 138.09 lacs for the year against net loss of Rs. 58.92 lacs in previous year. Your Directors are pleased to inform that Canara Bank the Debenture holders of 4,00,000 14% secured Redeemable ton-cumulative Debenture of Rs.100/- each have waived interest of Rs. 308.69 Lakhs the effect of which has been given during the financial year under review. The companys performance remained effected due to adverse business environment of Financial Services. Profits margins were under pressure resulting in low realization. Efforts are being made to reduce the losses by curtailment of costs.