Continental Securities Ltd Management Discussions

The Management Discussion and Analysis Report have been prepared in compliance with the requirements of Listing Agreements and contain expectations and projections about the strategy for growth. Certain statements in the Management Discussion and Analysis Report are forward looking statements which involve a number of risks and uncertainties that could differ from actual results performance or achievements which such forward looking statements on the basis of any subsequent developments, information or events for which the Company do not bear any responsibility.

Outlook

The outlook of the Company remains positive. Continental Securities Limited is cautiously optimistic about its prospects in the coming years. The Company aims at providing quality Services to the customers and to provide them with greater satisfaction. For last couple of years, the company has taken a number of initiatives to enable the company to compete better in this profound competitive regime.

Business Operations

Your Company is registered as a Non-Banking Finance Company ("NBFC") to carry out the finance activities in India. In order to build a high-quality loan book, your Company endeavors to adopt robust monitoring and recovery mechanism. Your Company is always committed towards improving efficiency in all its processes and service levels for its customers. Further, the company has acquired AMFI license for Mutual fund Distribution.

Revenue and net profits

1. The Company has recorded revenue of Rs. 274.86 Lakhs for the financial year ended 31st March 2025 which is 73.88% growth in revenue when compared to the previous years revenue of Rs. 158.07 Lakhs.

2. Net profit for the period stood at Rs.132.86 Lakhs against Rs. 76.38 Lakhs during the previous FY.

3. Earnings per share for the F.Y 2024-25 stood at Rs. 0.51 as against Rs.0.31 recorded during the previous financial year.

Industry Structure and Developments

NBFCs (Non-Banking Financial Companies) have been playing a complementary role to the other financial institutions including Banks, the funding needs of the economy. They have fill the gaps in the availability of financial services that occur in the un- banked segments of the society and under-served areas. NBFCs have been at the fore front of fulfillment to the financial needs and creating livelihood sources in rural and semi urban areas. Thus NBFCs have all the characteristics to enable the government and regulator to achieve the mission of financial inclusion in the given time.

NBFCs segment has continuously growth in the last few years and now being recognized as complimentary to the banking sector due to implementation of innovative market strategies customer oriented services, and simplified procedures.

Opportunities and threats

The company mainly focus to providing financial services to rural and semi-urban areas. The opportunities of the Company further depends on introduction of fresh funds. Being a NBFC company, company is facing inflationary pressure, Economic Cycle, Regulatory risk, etc. The competition in the NBFC division is intensifying on account of rising number of players. Also, rising stringent restrictions by the RBI on the NBFCs are restricting their borrowing abilities. However, as a matter of deliberate policy, the Reserve Bank has been discouraging NBFCs from engaging in public deposit mobilization activities.

Segment-wise or product-wise performance

The Company is operating in multi segments i.e. providing loans to the small retail borrowers. There is a slight growth in the business of the Company. The Company is making due efforts to introduce new finance to enlarge its business.

The company is actively engaged in the Gold Loan business segment.

In the financial year 2024-25, the company expanded its operations by entering the Mutual Fund distribution business and successfully obtained an AMFI Registration Number (ARN).

Internal control system

An external agency is auditing the Companys internal controls. This results in an unbiased and independent examination of the adequacy and effectiveness of the internal control systems in achieving the Companys goal of optimal operation. The activities are safeguarding and protecting the Companys assets from unauthorized use or disposition, keeping proper accounting records, and verifying the authenticity of all transactions.

The independent Audit Committee and the Board of Directors regularly review the Companys performance to ensure that it is by overall corporate policy and in line with predetermined objectives.

Human Resource Management

Strategic human resource (HR) management is the foundation of a strong business. At Continental Securities Limited, a young dynamic team of promising and talented employees, work relentlessly to pursue CSLs business plans. With high focus on the values of Innovation, Initiative Passion and Humility, the HR of the Company is aligned towards hiring, developing and retaining highly proficient talent and works to provide an inclusive environment that is welcoming to all diversities. The HR department continuously benchmarks best practices across the industry -in the areas of Talent Management, Learning & Development, Performance Management System and Employee Care.

Cautionary Statement

The Management Discussion and Analysis statements describing Continental Securities Limited objectives, projections, estimates, and expectations may be "forward-looking statements" within applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand-supply and price conditions in the domestic and overseas markets. It operates changes in the government regulations, tax laws, and other statutes & other incidental factors.