classic leasing finance ltd Management discussions

(a> Industry structure ancl developments:

Financial Statements are in compliance with tire provisions of tire Companies Act, 2013 and tire Accounting Standards issued by ICAI. Readers are cautioned that this discussion may include "forward-looking statements" that are not historical in nature. Forward looking statements may include statements relating to future results, financial condition, business prospects, plans and objectives. Statements are based on current beliefs, assumptions, expectations, estimates and projections on the business segment in which your company operates. The statements do no: guarantee positive performance, exposed to known and unknown uncertainties, many of which are beyond tire control of your Company. Uncertainty could cause results to differ from forward looking statements, which should not be construed as representation of future performance.

Oar Business segment aims to provide specialized and holistic solutions to Indian customers helping them build and grow their businesses. We focus on products in the structured credit space backed by adequate collaterals and cash flows to build a secured and quality portfolio. Under the Lending Business, we provide credit solutions for situations like initial funding requirements, mezzanine financing, acquisition financing, short term and long term working capital requirements.

(b) Opportunities and Threats.

The lockdowns declared by various state governments to curb the spread of second wave of COVID 19 has badly affected our economy. However, it is expected that strong businesses will not only survive but gain market share. There is ample liquidity in the Banking system. It is expected that growth will accelerate in the second half of tire current year 2022-23.

Among lire three domestic factors that helped the recovery in share prices was the strong policy action from the government targeted at reviving private corporate profits, better- than-expected management of the pandemic resulting in less than the global average cases and fatality rates and strong corporate action through the pandemic by way of cost cutting initiatives. The Company is focusing in recovery in its share prices and Board hopes that the industry will be in recovery mode in the later part of the financial year ended 2022-23.

The third wave of COVID-19 pandemic is a big threat for most of the businesses in the financial year 2022 - 2C23. The market demand and supply chains have been very adversely affected due to the ongoing pandemic Covid -19. Some Economists have forecasted that the adverse effect of pandemic on economy may even last for two to three years. Apart from this, risks are emerging from the domestic and external side, namely 1) a faster-than expected rise in inflation, which could create pressure for preemptive tightening; 2) increase in credit stress domestically and wider credit spreads, leading to tighter financial conditions, stalling growth recovery; 3) slowdown in global growth; 4) risk aversion in global capital markets, faster-than anticipated tightening in global financial conditions; and 5) swings in global commodity prices.

(d) Internal control systems and their adequacy.

Internal control system adopted aimed at promoting operational efficiencies and emphasizing adherence to the policies adopted by the Board of Directors.

(e) Material developments in Human Resources and Industrial Relations front,

The Company continues to maintain a very cordial and healthy relationship with its workforce. We are striving towards attracting, retaining, training and working towards the welfare of our human resources.

There is no such significance change in the key financial ratio.