boston leasing finance ltd Management discussions

I. ECONOMY

Leasing is a powerful product to provide Small and Medium Enterprises (SMEs) with much needed term-financing to invest in productive and logistic equipment. It enables SMEs to leverage an initial cash deposit with the inherent value of the asset being purchased acting as collateral. It is particularly effective in emerging economies where SMEs provide strong growth and employment opportunities, but lack access to term financing due to a limited development of capital markets and banking sector.

Leasing is a form of access to finance, and is a contract between two parties where one party (the Lessor) provides an asset for use to another party (the lessee) for specific period of time in return for specified payments. Leasing is based on the proposition that income is earned through the use of assets rather than from their ownership, focusing on the lessees ability to generate cash flow from business operations to service the lease payment rather than on the balance sheet or on past credit history.

Over view of Companys Business during the year:

The total income of the Company for the financial year 2018-19 was at Rs. 4,610,647 compared to Rs. 5,041,361 during the previous year. The Company has incurred net profit of Rs. 161,636 during the year as against loss of Rs 277,225 for the previous year.

Adequacy of Internal Control System

Our Company has built adequate systems of internal controls towards achieving efficiency and effectiveness in operations, optimum utilization of resources, and effective monitoring thereof as well as compliance with all applicable laws The internal control mechanism comprises a well-defined organization structure, documented policy guidelines, predetermined authority levels and processes commensurate with the level of responsibility. The Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.

Human Resources

Our Company continues to lay great stress on its most valuable resource -people. Continuous training, both on the job and in an academic setting, is a critical input to ensure that employees at all levels are fully equipped to deliver a wide variety of products and services to the customer of the company.

DEPOSITS:

Your Company has not accepted any public deposits during the year under review.

Outlook:

The Company wants to expand its business in future. The main focus of the company in emerging areas would be investment in securities and providing advisory services in the different areas of Finance and Investment.

Risk and Concern:

Company has deeply invested in its risk organisation structure that includes dedicated credit risk units for each business vertical; business specific units, viz., underwriting, risk containment and fraud control; and horizontal risk analytics, business intelligence interest rate volatility, economic cycle, credit and market risks and operational risk management unit. This deep structure ensures granular risk management of our company.

Cautionary Statement

The Board of Directors have reviewed the Management Discussion and Analysis prepared by the Management. Statement in this report of the Companys objective, estimates, exceptions, and predictions are forward looking statements subject to the applicable laws and regulations. The statements may be subjected to certain risks and uncertainties. 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.