MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
The company is a public limited company carrying on business of providing financial
services to the public. Company has its registered office in Chennai, Tamilnadu. The
company is listed on BSE Limited. Financial statements of the company are prepared in
accordance with the Indian Generally Accepted Accounting Principles (GAAP). GAAP comprises
mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013
(the Act) read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued
by the Securities and Exchange Board of India (SEBI). Accounting policies have been
consistently applied, except where a newly-issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a change in the accounting
policy hitherto in use.
1. INDUSTRY STRUCTURE AND DEVELOPMENT:
Indo Asia Finance Limited is a Non Deposit Accepting Non Banking Finance Company. The
main functions of the company are to offer loans to its customers i.e. both retail
customers and corporate customers. The company is engaged in providing Vehicle loan, etc.
The organization is making efforts to increase the business of the company by expanding
its customer base in different areas.
2. OPPORTUNITIES AND THREATS:
The company is a finance company and the financing is a fast growing industry in the
present scenario. It also involves high level of risk and competition in the market and to
overcome such situations the Company is adopting different types of marketing strategies
to enhance its business activities. The coronavirus outbreak has forced companies to
re-evaluate how contact centers are leveraged, how employees deliver relevant customer
experiences, where they work, and how digital channels can be used to support business
continuity through the crisis and beyond. The pandemic has triggered major supply chain
disruptions due to containment attempts in China and other economies across a number of
industries; severe demand shocks across discretionary spend categories as well as domestic
lockdowns and increasing governments pending towards relief measures might lead to
financial crisis.
3. SEGMENT-WISE PERFORMANCE:
The Company operates only in one segment and the operational results are mentioned in
the Directors report.
4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has adequate internal control systems and procedures commensurate with its
size and nature of its business for the purchase of raw materials, plant and machinery,
components and other items and for sale of goods. The adequacy of the internal control
system is also periodically reviewed by the Audit Committee.
5. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The financial performance of the Company has been discussed at length in the Directors
report to the members.
6. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT:
The Company has required number of skilled / semi-skilled persons and places emphasis
on training for improving quality and productivity.
7. CAUTIONARY STATEMENT:
Statements made in this report regarding the Companys objectives, projections,
expectations and predictions may be forward looking statements under the applicable
securities law and regulations. Actual results could differ materially from those
expressed or implied. Some of the important factors that could make a difference to the
Companys operations include domestic demand- supply conditions, finished goods prices,
raw material costs and availability, interest rates, fuel prices, changes in government
regulations and tax structure, economic developments in the domestic market and other
incidental factors.
8. DETAILS OF SIGNIFICANT CHANGES:
|
2021-2022 |
2020-2021 |
| (i)Debtors Turnover |
NA |
NA |
| (ii) Inventory Turnover |
NA |
NA |
| (iii) Interest Coverage Ratio |
NA |
NA |
| (iv) Current Ratio |
6.38 |
4.57 |
| (v) Debt Equity Ratio |
0.15 |
0.04 |
| (vi) Operating Profit Margin (%) |
88.28 |
31.64 |
| (vii) Net Profit Margin (%) |
35.92 |
18.22 |
9. DETAILS OF CHANGE IN RETURN ON NET WORTH
The return on networth for the currentfinancial year 2021-22 is 24.13 as compared to
the previous financial year 2020-21 which is 83.63.
For and on behalf of the Board
| Place: Chennai |
(Padam J Challani) |
(Swapna Pawan Kochar) |
| Date: 18/08/2022 |
Managing Director |
Director |
|
(DIN-00052216) |
(DIN-02262562) |
CERTIFICATE ON CORPORATE GOVERNANCE
To
The Members,
Indo Asia Finance Limited
We have examined the compliance of conditions of Corporate Governance by Indo Asia
Finance Limited for the year ended on 31st March, 2022, as stipulated in
Para E of Schedule V of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 of the said Company with Stock Exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the
Companys Management. Our examination was limited to procedures and implementation thereof
adopted by the Company for ensuring the compliance of the conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations
given to us, and the representations made by the Directors and the Management, we certify
that the Company has complied with the conditions of Corporate Governance as stipulated in
the above mentioned Listing Regulations except with the following non compliances:
1. Company has not complied with the Regulation 17(1A) of the SEBI ( LODR) Regulations,
2015 as the Special resolution was not passed for the appointment of Non-executive
Director above the age of 75.
As per the information and explanation provided by the management, there was no
investor grievances remaining unattended/ pending as on 31st March 2022.
We further state that such compliance is neither an assurance as to the future
viability of the Company nor the efficiency or effectiveness with which the management has
conducted the affairs of the Company.
T. Durga Prasad F.C.S No. 6316; C.P No. 15458
| Place: Chennai |
Practising Company Secretary |
| Date: 18.08.2022 |
UDIN: F006316D000811197 |
ANNEXURE 7 TO DIRECTORS REPORT FOR THE YEAR ENDED 31.03.2022 MANAGING DIRECTOR AND CFO
CERTIFICATION
To
The Board of Directors,
INDO ASIA FINANCE LIMITED Chennai
(a) We have reviewed the balance sheet, profit and loss account and all its schedules
and notes on accounts, as well as the cash flow statement as at 31st March, 2022 and that
to the best of our knowledge and belief:
-These statements do not contain any materially untrue statement or omit any material
fact or contain statements that might be misleading;
- These statements together present a true and fair view of the Companys affairs and
are in compliance with existing accounting standards, applicable laws and regulations.
(b) We further certify that, to the best of their knowledge and belief, no transactions
entered into by the Company during the year which are fraudulent, illegal or violate the
Companys code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for
financial reporting. We have evaluated the effectiveness of internal control systems of
the Company pertaining to financial reporting and have disclosed to the Auditors and the
Audit Committee, deficiencies in the design or operation of such internal controls, if
any, of which we are aware. We have taken necessary steps or propose to take necessary
actions to rectify these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee that there is:
- No significant change in internal control over financial reporting during the year.
- No significant change in accounting policies during the year under review and
- No instance of any fraud in the Company in which the management has any role.
PLACE: CHENNAI DATE: 10/08/2022
Padam J Challani C Madh avan
Managing Director Chief Financial Officer
DIN:00052216
+91-9892691696
