confidence finance trading ltd share price Management discussions

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31^st March, 2023.

The management discussion and analysis have been included in consonance with the code of corporate governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The Company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this report consequent to new information or developments, events or otherwise. The management of the Company is presenting herein the Industry Structure and Development, opportunities and threats, initiatives by the Company and overall strategy of the Company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.

INDUSTRY STRUCTURE AND DEVELOPMENT:India is one of the fastest-growing economies in the world. The financial sector in India witnessed steady growth due to these reforms over a period of the time hence your management expect good opportunities in near future. The economic reforms introduced by the government and a stable macro-economic environment would help India to achieve robust economic growth.

OPPORTUNITIES AND THEREATS:

Every organizations success depends on organizations ability to identify opportunities and leverage them while mitigating the risks that arise while conducting their business. The Company has put in place all the system to mitigate the risk. Your Company has an elaborate risk management procedure, for business risk, Operational risk and Compliance Risk. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The Company has set up a Risk Management policy to monitor the risks and their mitigating actions and the key risks are also discussed at the Audit Committee. Some of the opportunities for the business of your Company and key identified risks are presented below.

Opportunities:

1. Clients are more comfortable with uniform high quality and quick finance and security process across the enterprises

2. The various reforms in Capital Market brought transparency and created the customer trust in the Capital Market which will help the Company to boost its business.

3. Various updations in the technology and digitization given the access to customer at anytime and anywhere which reduced risk of investment.

Threats:

1. High Competition

2. Stringent Compliances

3. Increasing Cost of Finance and other Risk

SEGMENT-WISE PERFORMANCE:

The Company is operating on only one broad segment and hence separate segmental reporting is not applicable. The Company has no activity outside India.

INITAITIVES BY THE COMPANY

The Company has taken following initiatives;

1. Every effort is being made to locate new client base to boost its business by providing Finance quickly and easily.

2. The Company is endeavoring to adapt the various reforms and development on the financial sector.

OUTLOOK

The future outlook of the Company is already discussed in the Directors Report by your Board of Directors of the Company.

RISK AND CONCERNS:

The Company is exposed to general market risk and is initiating adequate step.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

1. Compliance of the Company with applicable statutes, policies procedures, listing requirements and management guidelines.

2. All transaction are being accurately recorded and verified.

3. Adherence to applicable accounting standards and polices.

HUMAN RESOURCES/INDUSTRY RELATIONS:

The Company provided excellent working environment so that the individual staff can reach his/her full potential. The Company is poised to take on the challenges and march towards accomplishing its mission with success. The Company maintained good Industrial/Business relation in market which enhanced the Creditworthiness of the Company.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS :

S. No. Key Ratio	2022-23	2021-22	Variance	Comments for Variation in ratio above 25%
1. Debtors Turnover Ratio	-	-		-
2. Inventory Turnover Ratio	-	-		-
3 Interest Coverage Ratio	NA	NA		-
4 Current Ratio	0.50%	1.02%	-0.52	-
5 Debt Equity Ratio	NA	NA		-
6 Operating Profit Margin (%)	0.50%	0.21%	0.29	-
7 Net Profit Margin (%)	0.50%	0.21%	0.29	-
8 Return on Net worth (%)(Any Change)	0.34%	0.08%	0.26	-

CAUTIONARY STATEMENT: Statement made in the management discussion and analysis report as regards the expectations or predictions are forward looking statements within the meaning of applicable laws and Regulations. Actual performance may deviate from the explicit or implicit expectations.