classic global finance capital ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENT OPPORTUNITIES, THREATS, RISKS, CONCERNS AND OUTLOOK

The Indian economy that was on a path of recovery post the first wave of Covid-19 pandemic, was struck by two more waves of Covid during the fiscal year 2021-22. The localized lockdowns derailed the economic growth and dampened consumer sentiments. However, the successful rollout of Covid vaccination programme, pick-up in government expenditure and better preparedness compared with the first wave restricted the economic damage to some extent. Supply shocks caused by Russias invasion of Ukraine lead to surge in crude oil and other commodity prices has further triggered a round of downward revisions in the GDP growth projections as well as surged in inflation across the globe. India is not an exception, its retail price inflation surged to above 9 per cent in April 2022. This is the highest inflation India have witnessed in the last eight years. In a move to contain the raging inflation, the hike in interest rate is inevitable and which is expected to increase the cost of servicing loans for both consumers and producers and is likely to hurt the consumer and business sentiments going forward.

OVERVIEW

The Company is actively making innovative & unique products to stay ahead.

The Company continued to focus on increasing market penetration to ensure entire product range are available in deeper pockets of the Country.

OPPORTUNITIES, THREATS & RISKS

The Company is mainly exposed to market risk (including liquidity risk), interest risk and credit risk. However prudent business and risk management practices followed by the company over the years helps it to manage normal industry risk factors, which inter alia includes economic/ business cycle, fluctuations in the stock prices in the market, besides the interest rate volatility, and credit risk. The Company is confident of managing these risks by observing a conservative financial profile in investment are trading of securities business. The sheer unpredictable nature of the markets makes investments a risky proposition. An investment company has to live with the fear of falling markets and movement of the SENSEX. However, the Company hopes to improve its performance on the strength of its long experience and its strong emphasis on the fundamentals. Your management has got ample exposure of the capital markets, which provide us an opportunity to make safer and profitable investments with minimum risks.

INTERNAL CONTROL SYSTEMS

The Company has an Internal Control System which is commensurate with the size, scale and complexity of its operations. The Internal Auditors monitor the efficiency and efficacy of the internal control systems in the Company, compliance with operating systems/accounting procedures and policies of the Company. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board. The Company has adequate systems and procedures to provide assurance of recording transactions in all material respects. i. Material level assessment ii. Entity level assessment iii. Risk Control Matrix covering major processes and developing controls Internal audit and compliance.

The Audit Committee reviews the performance of the audit and compliance functions, the effectiveness of controls and compliance with regulatory guidelines and gives such directions to the Management as necessary / considered appropriate. The Company has framed a compliance policy to effectively monitor and supervise the compliance function in accordance with the statutory requirements.

? HUMAN RESOURCES

Human Resource is the most vital factor to achieve the goals of any organization. Being a progressive organization, Classic Global Finance and Capital Limited firmly believes in the strength of its most vital asset. The company recognizes the importance of human value and ensures that encouragement both moral and financial is extended to each individual for motivating them to perform to the maximum capacity, to contribute towards developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. The company Industrial relations are cordial and satisfactory during the year under review.

CAUTIONARY NOTE

Certain statements in this Report may be forward-looking and are stated as may be required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Your Company does not undertake to update these statements.

ACKNOWLEDGEMENT

Your directors take this opportunity to place on record their appreciation to all employees for their hard work, spirited efforts, dedication and loyalty to the Company which helped the Company for maintain its growth. Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of investors, vendors, dealers, business associates and employees in ensuring an excellent all around operational performance.

		By Order of the Board of Directors
	For Classic Global Finance and Capital Limited
	Sd/-	Sd/-
Place: Ludhiana	Chandan Tirkey	Virender Singh Rana
Date: 29.08.2022	Director	Director
	DIN 08120763	DIN 06782773