Pursuant to Schedule V to the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, a Management Discussion and
Analysis Report covering business performance and outlook is provided below:
INDUSTRY STRUCTURE AND DEVELOPMENTS
Indias capital markets have performed well, allowing for unprecedented risk capital
mobilization by Indian enterprises.
Despite brief geopolitical disturbances in the global economy, Indias future appears
to be robust in capital markets, thanks to a concerted drive by the government and
business sector. By FY 2028, India is predicted to be the worlds fourth-largest private
wealth market.
The governments fiscal and monetary stimulus, as well as the RBIs measures, have
substantially aided in the economys speedy recovery.
NBFCs aid economic development in the following ways:
Mobilization of Resources - It converts savings into investments Capital Formation -
Aids to increase capital stock of a company Provision of Long-term Credit and specialized
Credit Aid in Employment Generation Help in development of Financial Markets Helps in
Attracting Foreign Grants
Helps in Breaking Vicious Circle of Poverty by serving as governments instrument
Non-bank financial companies expect the government to continue pumping in liquidity as
it will boost the sectors employment, and direct disposable income and consumption.
NBFC Role in Revolutionizing the Economy
Growth: Despite the slowdown in the economy and various setbacks faced in the last
few years, the sector is still growing and enhancing operations.
Profitability: NBFCs have been more profitable because of lower costs involved
for its operations and serve customers from different segments.
Upliftment in the Employment Sector: With the growth in operations of the small
industries and businesses, the policies of NBFCs are uplifting the job situation. More
opportunities for employment are arising with the influence of the NBFCs in the private as
well as government sectors. The business activities in the private sector provide more
employment opportunities and occupation practices. And NBFC plays a key role in their
growth and stability.
Mobilization of Asset: Due to their easier norms for investing, these companies
create a balance between intra-regional income and asset distribution. Turning the savings
into investments, these companies contribute to economic development. Proper organization
of capital helps in the development of the trade and industry, leading to economic
progress. They operate not intending to maximize their profit and are, therefore, engaged
in activities that generate zero or very low revenue.
NBFCs have been at the forefront of catering to the financial needs and creating
livelihood sources of the so-called un-bankable 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. Your Company is a Non-Banking Financial Company dealing in
shares & stock trading.
OUTLOOK ON OPPORTUNITIES
The Capital market looks very solid in long term. Reports of various agencies and
leading economists reflect that there is an early sign of revival of economic growth with
strong positive sentiments. Growth in GDP numbers and other economic parameters being
positive overall economic scenario looks favorable for coming years.
Rising aspiration of stakeholders enabled by higher income is the largest opportunity
for the Company. Your Directors expect that with the strong business model of the Company,
innovative fund management techniques, continued confidence of investors, the Company
should achieve better performance in the year 2022-23. The Board of Directors are hopeful
to deliver good business in the current financial year.
Opportunities
1. Increased retail participation in capital markets.
2. Leverage technology to enable best practices and processes.
OUTLOOK ON THREATS, RISKS AND CONCERNS
The Company is dealing in shares & stock trading which is unforeseen in terms of
the performance of the Industries, economic scenario, GDP Growth of the Company,
Government policies, political situation and global trends etc. Moreover, after the
introduction of online trading in commodities, the attention of high net worth investors
has also diverted into commodities futures. The overall economic environment will impact
all our business but we expect that we will be able to overcome it easily. The performance
of the Company largely depends on the Capital Markets.
The Company is committed to best benchmarking in good corporate governance, which
promotes the long-term interests of all stakeholders which help in building public trust
in the Company.
The Company believes that managing risks helps in maximizing returns.
Threats
1. Unfavorable economic conditions.
2. Intense competition from local and global players
PRODUCT WISE PERFORMANCE
As per the results of the Company as on March 31, 2023, the Company is working in only
one segment, viz. shares and securities, interest income, and futures and options and
other finances.
Particulars |
2022-23 |
2021-22 |
| Revenue from shares and securities |
41,64,590/- |
2,30,24,497/- |
| Dividend Income |
91,687.50/- |
2,65,066/- |
| Revenue from Interest Income |
72,27,567/- |
66,41,841/- |
| Revenue from F&O |
4,844/- |
9,49,109/- |
| Revenue from other finances |
34,81,156/- |
2,03,387/- |
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has a well-established internal financial control and risk management
framework, with appropriate policies and procedures, to ensure the highest standards of
integrity and transparency in its operations and a strong corporate governance structure,
while maintaining excellence in services to all its stakeholders. Appropriate controls are
in place to ensure:
(a) The orderly and efficient conduct of business, including adherence to policies (b)
Safeguarding of assets and ensure operational excellence (c) Prevention and detection of
frauds/errors (d) Accuracy and completeness of the accounting records and (e) Timely
preparation of reliable financial information.
The Company has instituted the three lines of defense model, viz. (i) management and
internal control measures, (ii) financial controls, risk management practices, security
measures and compliance oversight, and (iii) a robust internal checks and balances
providing the third level of defense.
The Companys internal controls and risk management practices are validated
periodically with suitable review mechanisms in place. The Internal Control over Financial
Reporting is the bedrock for the risk and control framework for the Company. The Companies
Act 2013 requires the Board of Directors and statutory auditors of the Company to comment
on sufficiency and effectiveness of internal controls.
The Company has appointed M/s. Shiv Shankar Khandelwal & Co., Chartered Accountants
(Firm Registration No. 006852C) as an internal auditors to conduct internal audit and to
ensure that all transactions are correctly authorized and reported. The reports are
reviewed by the Audit Committee of the Board to internal controls.
Further the audit committee has concluded that, as of March 31, 2023, the companys
internal controls were adequate and operating effectively.
Furthermore, the Company has constituted the Risk Management Committee w.e.f. February
10, 2023 pursuant to RBI Circular No. RBI/2021-22/112 DOR.CRE.REC.NO.60/03.10.001/2021-22
dated October 22, 2021 and it will overview the risk bearing capacity of the Company and
will review and assess risk strategies.
INFORMATION TECHNOLOGY
Our Company has taken further steps in its technology roadmap toward future readiness
and digitalization. The Company has been using the best possible information technology as
a management tool for internal control. The Company continues to invest reasonable into
information technology for monitoring operation.
FINANCIAL PERFORMANCE OVERVIEW
Snapshot of the Companys financial performance for the last three years is as
follows:-
Year |
Total Revenue |
Revenue growth % |
Profit after Tax (PAT) |
PAT change % |
EPS |
EPS change % |
|
(in Rs.) |
|
(in Rs.) |
|
(in Rs.) |
|
| 2022-2023 |
1,49,69,845/- |
-51.84 |
36,66,483/- |
-46.53 |
0.36 |
-46.27 |
| 2021-2022 |
3,10,83,900/- |
133.26 |
68,56,660/- |
4736.84 |
0.67 |
6600 |
| 2020-2021 |
1,33,26,060/- |
-540.85 |
1,41,759/- |
-36.04 |
0.01 |
-50 |
HUMAN RESOURCE MANAGEMENT
Human resources are a valuable asset for any organization. We ensure a workplace that
is fair, equitable, enabling and responsive to the needs and aspirations of our employees
so that they can realize their full potential and contribute their best to the
organization. The Company is committed to create an environment of constant learning and
development, drive an effective and transparent performance culture and build a culture of
appreciation & transparent communication. We constantly strive to upgrade the skills
of employees and give them the edge to compete in the dynamic market and become future
ready. The Company is giving emphasis to upgrade the skills of its human resources. This
is in keeping with its policy of enhancing the individuals growth potential within the
framework of corporate goals. Our employee-friendly and inclusive policies, health and
fitness benefits ensure safe and secured environment for employees at workplace. Total
number of employees as on March 31, 2023 stood at 5.
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS
There were significant changes in the key financial ratios as compared to the
immediately previous financial year, details of the same are as follows:
|
F.Y. 2022-23 |
F.Y. 2021-22 |
Change in % |
Reason (if more than 25% change) |
| (i) Debtors Turnover |
0 |
0 |
- |
- |
(ii) Inventory Turnover |
0.60 |
1.06 |
(43.31) |
As company is doing trading of shares & securities, there is very
low business activity during the year. |
(iii) Interest Coverage Ratio |
1.38 |
4.33 |
(68.08) |
The Companys main business is dealing in Shares, Securities, Futures
and Options. So profit is very fluctuating. |
(iv) Current Ratio |
74.35 |
1.97 |
3673.46 |
Company is not having consistent business operations and has mainly
dealing in shares, securities etc. Hence, not comparable. |
| (v) Debt Equity Ratio |
0.16 |
0.18 |
-5.99 |
- |
(vi) Operating Profit Margin (%) |
(17.08) |
28.96 |
(158.98) |
The Companys main business is dealing in Shares,
Securities, Futures and Options. So profit is very fluctuating. |
(vii) Net Profit Margin (%) |
31.91 |
22.20 |
43.73 |
The Companys main business is dealing in Shares,
Securities, Futures and Options. So profit is very fluctuating. |
DETAILS OF ANY CHANGE IN RETURN ON NET WORTH
The following changes occurred in the return and net worth of the Company as compared
to the immediately previous financial year:
Particulars |
FY 2022-23 |
FY 2021-22 |
Net Worth |
|
|
| Share Capital |
10,20,35,000 |
10,20,35,000 |
| Special Reserve |
2,84,870 |
2,84,870 |
| Statutory Reserve |
45,09,726 |
37,76,430 |
| Capital Redemption Reserve |
37,86,750 |
37,86,750 |
| Securities Premium |
1,76,73,525 |
1,76,73,525 |
| Surplus in P&L |
(56,64,451) |
(86,76,375) |
Total Net worth |
12,26,25,420 |
11,88,80,200 |
PAT |
36,66,483 |
68,56,660 |
Return on Net Worth |
2.99% |
5.76% |
CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis describing the Companys
objectives, projections, estimates and expectations may be ‘forward-looking
statements within the meaning of applicable laws and regulations. This report contains
statements extracted from reports of Government Authorities / Bodies, Industry
Associations etc. available on the public domain which may involve risks and uncertainties
including, but not limited to, economic conditions, government policies, dependence on
certain businesses and other factors. Actual results, performance or achievements could
differ materially from those expressed or implied in such forward-looking statements.
This report should be read in conjunction with the financial statements included herein
and the notes thereto. The Company does not undertake to update these statements.
Date: August 22, 2023 |
For and on behalf of the Board of Directors |
Place: Jaipur |
For BFL Asset Finvest Limited |
|
Sd/- |
Sd/- |
Registered Office: 1 Tara Nagar, |
Mahendra Kumar Baid |
Aditya Baid |
Ajmer Road, Jaipur 302006 |
Managing Director |
Director |
(Rajasthan) |
DIN: 00009828 |
DIN: 0310058 |
+91-9892691696
