BCL Enterprises Management Discussions


NBFCs have been playing a complementary role to the other financial institutions including banks in meeting the funding needs of the economy. They help fill the gaps in the availability of financial services that otherwise occur in the unbanked & the underserved areas. The NBFC segment has witnessed considerable growth in the last few years and is now being recognized as complementary to the banking sector due to implementation of innovative marketing strategies, introduction of tailor-made products, customer-oriented services, and attractive rates of return on deposits and simplified procedures, etc. NBFCs have been at the forefront of catering to the financial needs and creating livelihood sources of the so-called unbendable masses in the rural and semi-urban areas. Through strong linkage at the grassroots level, they have created a medium of reach and communication and are very effectively serving this segment. Thus, NBFCs have all the key characteristics to enable the government and regulator to achieve the mission of financial inclusion in the given time.


The Non-Banking Financial Companies (NBFC) Sector is still struggling for its growth in India. The NBFC Sector is doing much better all over the world as compared to Asian Countries as the general perception about NBFC in the mind of public is still hazy.


The Company is engaged in the business of investment in securities and providing loans and advances. The Company is registered as Non-deposit taking Non-Banking Finance Company with the Reserve Bank of India. Since the asset size of the company is not more than Rs. 100 crores it is presently Non Systemically Important Non Deposit taking NBFC.


Over the years, your Company has achieved an appropriate balance between risk and returns by setting up an efficient risk mitigation system to meet various forms of financial and other risks. The primary risks that the company is exposed to credit risk, market risk and operational risk. Deriving from the long years of experience in NBFC sector your companys credit policy framework is designed to provide the right balance between business growth and portfolio quality.


Competition continues to be intense, as the Indian and foreign banks have entered the retail lending business in a big way, thereby exerting pressure on margins. The erstwhile providers of funds have now become competitors. NBFCs can sustain in this competitive environment only through optimization of funding costs, identification of potential business areas, widening geographical reach, and use of technology, cost efficiencies, strict credit monitoring and raising the level of customer service.


In todays complex business environment, almost every business decision requires executives and managers to balance risk and reward. Effective risk management is therefore critical to an organizations success. Globalization, with increasing integration of markets, newer and more complex products & transactions and an increasingly stringent regulatory framework has exposed organizations to newer risks. As a result, todays operating environment demands a rigorous and integrated approach to risk management. Timely and effective risk management is of prime importance to our continued success. Increased competition and market volatility has enhanced the importance of risk management. The sustainability of the business is derived from the following:

? Identification of the diverse risks faced by the company.

? The evolution of appropriate systems and processes to measure and monitor them. ? Risk management through appropriate mitigation strategies within the policy framework.

? Monitoring the progress of the implementation of such strategies and subjecting them to periodical audit and review. ? Reporting these risk mitigation results to the appropriate managerial levels.


There is no subsidiary of the company.


The Companys relations with the employees continued to be cordial.


The Financial performance of the Company for the financial year ended 31st March, 2023 is summarized below:- (Rs. In Lakhs, except EPS)


For the year Ended

31st March 2023 31st March 2022

Total Revenue (I)

1412.52 3879.60

Total Expenses (II)

1480.90 2743.39

Profit Before Exceptional, Tax & Extraordinary Item

(68.37) 1136.20

Tax Expenses:

0 257.83

Current Tax

0 0

Deferred Tax Liability(Net)

23.52 5.18

Income Tax Earlier Year

0 0

MAT Credit Entitlement

Profit After Tax

(91.90) 873.18

Earnings Per Share (EPS)

(0.08) 0.75


Your Company has an effective system of accounting and administrative controls supported by an internal audit system with proper and adequate system of internal check and controls to ensure safety and proper recording of all assets of the Company and their proper and authorized utilization.

As part of the effort to evaluate the effectiveness of the internal control systems, your Companys internal audit department reviews all the control measures on a periodic basis and recommends improvements, wherever appropriate. The internal audit department is manned by highly qualified and experienced personnel and reports directly to the Audit Committee of the Board. The Audit Committee regularly reviews the audit findings as well as the, an Information Security Assurance Service is also provided by independent external professionals. Based on their recommendations, the Company has implemented a number of control measures both in operational and accounting related areas, apart from security related measures.


This report describing the companies activities, projections about future estimates, assumptions with regard to global economic conditions, government policies, etc. may contain "forward looking statements" based on the information available with the company. Forward-looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the companys operations are affected by the many external and internal factors, which are beyond the control of the management. Hence 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. Company follows all Mandatory Accounting Standards.

By the order of the Board For BCL Enterprises Limited

Sd/- Sd/-

Mahendra Kumar Sharda Umesh Kumar Bajaj (Managing Director) (Director) DIN: 00053042 DIN: 02968410

Address: 510, Arunachal Building, 19, Address: 510, Arunachal Building, 19, Barakhamba Road, New Delhi-110001 Barakhamba Road, New Delhi-110001

Place: New Delhi Date: 04.09.2023