Several new technology solution and service providers have emerged over the years, offering different models to potential clients to utilize their solution and service offerings. This development created several market opportunities for the industry and their associates.
The Company has generated revenue of Rs. 19,00,000/- (Rupees Nineteen Lakh only) for the FY 2021-2022 & Profit after Tax stood at Rs. 14,18,123/- (Rupees Fourteen Lakh Eighteen Thousand One Hundred and Twenty Three only). It is imperative that affairs of our Company are managed in a fair and transparent manner. This is vital to gain and retain the trust of our stakeholders. There is an expectation of better performance in the coming years as the Company is looking for more business in future.
RISKS AND CONCERNS:
There are certain issues which may hamper the growth of the industry, these issues require urgent attention and are as follows;
Government Regulations though well intended, are creating an environment of over regularization resulting in more time spent in Compliance reporting than business planning. There is always a possibility of unintentional non-compliance.
Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) from its financing activities including deposits with banks and investment in quoted and un-quoted equity instruments.
The Company is exposed to equity price risk from investments in equity securities measured at fair value through profit and loss. The Management monitors the proportion of equity securities in its investment portfolio based on market indices and based on company performance for un-equity instruments. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the Board of Directors. Further, major investments in un-quoted equity instruments are strategic in nature and hence invested for long-term purpose.
Interest rate Risk:
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to its short term borrowings in nature of working capital loans, which carry floating interest rates. Accordingly, the Company’s risk of changes in interest rates relates primarily to the Company’s debt obligations with floating interest rates.
Liquidity is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing the liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
Unforeseen /Unavoidable Risk:
There may be certain unforeseen /unavoidable Risk, which may hamper the business operations of the company.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The Company has appropriate systems for Internal Control. The systems are improved and modified continuously to meet with changes in business conditions, statutory and accounting requirements. The Company’s internal control systems and procedures commensurate with the size and nature of its operations. These systems are designed to ensure that all the assets of the Company are safeguarded and protected against any loss and that all the transactions are properly authorized recorded and reported. High accuracy in recording and providing reliable financial & operational support is ensured through stringent procedures.
The Audit Committee of Board of Directors reviews the internal audit report, efficiency and effectiveness of internal control systems and suggests the solution to improve and strengthen. The Internal control system during the year and no material weakness in design or operation was observed.
The Company is confident and aims to focus on operational excellence and to tide over the current difficult period and capitalize on the future opportunities, however, the same goes in line with global and Indian economy scenario. The Company is confident and aims to focus on operational excellence and to tide over the current difficult period and capitalize on the future opportunities, however, the same goes in line with global and Indian economy scenario.
The statements in this Management Discussion and Analysis Report could differ materially from those expressed or implied. Though the statement and views expressed in the above said report are on the basis of best judgment but the actual future results might differ from whatever is stated in the report. The Company takes no responsibility for any consequence of decisions made based on such statements and holds no obligation to update these in future. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates.
|By the order of the Board|
|For JSG Leasing Limited|
|Motibhai Rabari||Kalpesh Medhekar|
|Place: New Delhi||Whole-time Director||Executive Director|
|Date: 18th August 2022||DIN: 08573080||DIN: 09519789|