dynamic archistructures ltd share price Management discussions

1. INDUSTRIAL STRUCTURE AND DEVELOPMENTS

Indian economy is going through a period of rapid financial liberalization. Today, the intermediation is being conducted by a wide range of financial institutions through a plethora of customer friendly financial products. The segment consisting of NBFCs, such as equipment leasing/hire purchase finance, loan and investment companies, etc. have made great strides in recent years and are meeting the diverse financial needs of the economy. These NBFCs provides variety of services including fund-based and fee-based activities and cater to retail and non- retail markets and niche segments. They are being recognized as complementary to the banking sector due to their customer-oriented services, simplified procedures, attractive rates of return on deposits, flexibility and timeliness in meeting the credit needs of specified sectors.

Dynamic Archistructures Limited, headquartered in Kolkata, is one of West Bengals leading NonBanking Financial Company having diversified interests in the financial services sector. Dynamic Archistructures Limited today has emerged as a prominent & reliable player in a fiercely competitive market of financial services.

Over the years, Dynamic Archistructures Limited has built a strong presence in the market through its cumulative experience, strong distribution network as well as sound systems and processes. The Companys long-term aspiration is to play a significant role in meeting the financial requirements of retail customers as well as corporate clients.

2. OUTLOOK ON OPPORTUNITIES, THREATS, RISK AND CONCERNS

H Opportunities

Dynamic Archistructures Limited is currently engaged in NBFC activities & Financial Management and Advisory Services. The Company intends to continue focusing on NBFC activities including financing, Inter-corporate Investments & Capital Market activities.

At the same time the Company has plans to expand its business by offering a wide array of financial products and services.

In the upcoming years, Dynamic Archistructures Limited will strive to be one of the top financial services businesses in India focused on delivering superior customer experience through class leading services and competitive products while providing consistent and superior returns to the companys shareholders and at the same time maintaining the high levels of integrity.

h Threats, Risk and Concerns:

Being a Financial company, Dynamic Archistructures Limited is exposed to specific risks that are particular to its business and the environment within which it operates, including interest rate volatility, economic cycle, credit risk and market risk. The most important among them are credit risk, market risk and operational risk. The measurement, monitoring management of risk remains key focus areas for the company.

Dynamic Archistructures Limited has laid down stringent credit norms through the Lending Policy Framework approved by the Board. The Company maintains a conservative approach and manages the credit risk through prudent selection of clients, delegation of appropriate lending powers and by stipulating various prudential limits. In retail loan businesses like ours, overall portfolio diversification and reviews also facilitate mitigation and management.

3. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a proper and adequate system of internal control in all spheres of its activities to ensure that all its assets are safeguarded and protected against loss from unauthorized use or disposition and that the transactions are authorized, recorded and reported diligently. The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines.

4. FINANCIAL PERFORMANCE

The Companys total turnover for the financial year ended March 31, 2023 is Rs. 161.23 lakhs (Previous Year Rs. 309.65 Lakhs). The Company achieved a Net Profit before tax of Rs. 45.37 Lakhs as compared to Previous Years Rs. 215.12 Lakhs. The Company is optimistic about its proposed business ventures which are highly profitable.

5. DEVELOPMENT OF HUMAN RESOURCES

The Company has been proactive to build the requisite skill sets in the organization for its new project initiatives. The relevant industry experience of the team coupled with commitment towards adherence to the operating processes adopted by the company is a unique feature demonstrated by the company. Employees are encouraged to upgrade their skills and knowledge through various training programs.

6. OUTLOOK

Performance of capital markets in India will be largely driven by favorable macroeconomic conditions, lower interest rates, and good corporate earnings. The Company intends to continue focusing on NBFC activities including financing, Inter-corporate Investments & Capital Market activities. At the same time the Company has plans to expand its business by offering a wide array of financial products and services.

7. KEY FINANCIAL RATIOS

Ratios	2022-2023	2021-2022
Debtors Turnover	NA	NA
Inventory Turnover	NA	NA
Interest Coverage Ratio	NA	NA
Current Ratio	15.30	19.09
Operating Profit Margin	28.14%	69.47%
Net Profit Margin	20.21%	57.77%

The Company has no long-term debt as a standalone entity as on March 31, 2023.

During the year under review the Company has not changed its accounting policies.

The Cash and Bank balance for the Financial Year 2022-23 was Rs. 163.13 lakhs as compared to Financial Year 2021-22, which was Rs 173.94 lakhs. The liquidity situation of the Company is sufficient.

Total Income declined by 47.93% from Rs 309.65 lakhs in 2021-2022 to Rs. 161.23 lakhs in 2022-2023.

8. PRODUCT-WISE PERFORMANCE DETAILS OF THE COMPANY

The Company has only one type of product. It provides finance to Small Scale Industries and Small Businesses. During the year under review there was a decrease in the loans provided by the Company, accordingly, the income of the Company has decreased from Rs. 309.65 Lakhs (previous year) to Rs. 161.23 Lakhs (Current Year).

The Company carries business in single segment.

9. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

For the Financial Year 2022-23, Return on Net worth before tax was 1.72% and after tax was 1.24% as compared to Return on Net worth before tax 8.26% and after tax 6.87 % for Financial Year 2021-2022. The difference in the return on net worth as compared to previous year is due to decrease in loan given and net gain on fair value charges of investment.

Note:

This report contains forward-looking statements based on beliefs of the companys management. The words anticipate, believe, estimate, forecast, expect, intend, plan, should and project are used to identify forward-looking statements. Such statements reflect the companys current views with respect to the future events and are subject to risks and uncertainties. Many factors could cause the actual result to be materially different, including amongst others, changes in the general economic and business conditions, changes in the currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services, and changes in business strategy. Actual results may vary materially from those projected here. The company does not intend to assume any obligation to update these forward-looking statements.

For and on behalf of the Board of Directors, Dynamic Archistructures Limited

Danmal Porwal Managing Director DIN: 00581351

Date: September 02, 2023 Place: Kolkata