Challani Capital Ltd Management Discussions

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 statementsof the company are prepared in accordance with the Indian Accounting Standards prescribed under section 133 of the Companies Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India and guide lines 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 hither to in use.

1. INDUSTRY STRUCTURE AND DEVELOPMENT:

Challani Capital 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 loan against property, commercial vehicles and gold, besides sales and purchase factoring, 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 non-banking finance company. The non-banking finance sector 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 corona virus 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.

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 its extension of non-banking financial services. 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 HUMANRESOURCES/INDUSTRIALRELATIONS 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, interest rates, changes in government regulations and tax structure, economic developments in the domestic market and other incidental factors.

8. DETAILS OF SIGNIFICANT CHANGES:

9. DETAILS OF CHANGE IN RETURN ON NET WORTH

The return on net worth for the current financial year 2023-24 is 34.91% as compared to the previous financial year 2022-23 which is 31.53%.