Easun Capital Ma Management Discussions


Easun Capital Markets Limited is registered with the Reserve Bank of India as a NonSystematically Important Non-Deposit Accepting NBFC and offers and engaged in the business of Investment in shares and securities of listed and unlisted entities and providing of loan and advance to SME. The management has well-perceived and deliberated on various factors within the limits set by the Companys competitive position as discussed in this report.


India entered FY2023 amidst uncertain macroeconomic environment. Global growth slowed in 2022 to 3.2% more than 1 percentage point weaker than expected, mainly weighed down by Russias war of aggression in Ukraine .Global growth has stabilized towards the end of the year but the improvement is fragile. Despite continuing the global uncertainties Indian economy has fared better than previous years. The Indian economy expanded 4.4% year on year in the three months to December of 2022.

The International Monetary Fund (IMF) revised Indias growth forecast for FY2024 to 5.9% from its previous estimate of 6.1%, citing a slowdown in domestic consumption and challenging external conditions. Additionally, the IMF reduced Indias growth forecast for FY2025 by 50 basis points to 6.3%. Despite these downward revisions, India have potential to maintain its position as one of the fastest-growing major global economy. The Indian economy has demonstrated remarkable resilience in the face of the deteriorating global situation due to strong macroeconomic fundamentals. Steps to promote ease of doing business, skilled manpower, and presence of natural resources, liberal FDI policies, huge domestic market and prospects of healthy GDP growth have made India an attractive destination for foreign investors. Thus, going forward, India is expected to see relatively stronger growth.

Recent legal changes

Scale Based Regulation : SBR has prescribed to increase the New Owned Fund of all NBFCs from the existing Rs. 2.00 Crores to Rs. 10.00 Crores by march, 2027 in a 2 phase manner.

Recognition of Non-Performing Assets (NPAs): With reference to the Master Circular on Prudential norms on Income Recognition, Asset Classification, and Provisioning pertaining to Advances (IRACP norms) dated October 1, 2021, and the subsequent communication issued by the Reserve Bank of India Prudential norms on Income Recognition, Asset Classification, and Provisioning vide circular DOR.STR.REC.68/21.04.048/2021-22 dated November 12, 2021, it was clarified that loan accounts classified as NPAs may be upgraded as standard assets only if entire arrears of interest and principal are paid by the borrower. With regard to this, the RBI in its circular DOR.STR.REC.85/21.04.048/2021- 22 dated February 15, 2022, clarified that "NBFCs shall have time till September 30, 2022, to put in place the necessary systems to implement this provision. All other instructions of the Circular shall continue to be applicable as per the timelines specified therein." This further emphasizes the importance of credit repayment discipline for all the borrowers of the financial inclusion landscape.

Data Submission to Credit Information Companies (CICs): According to the letter

DOR.SIG. FIN.No./20.16.042/2022-23 dated June 7, 2022, the Reserve Bank of India had notified the modifications in the data format for furnishing of customer information to Credit Information Companies. The necessary changes in the UCRF (Uniform Credit Reporting Format) for the MFI segment were incorporated by the CICs and communicated to the CIs. Further, an additional notification with effect from October 1, 2022, specified that erroneous or non-submission of data in the modified fields will lead to the rejection of the records by the CICs.

Indian economic scenario

In India, retail inflation, as indicated by the Consumer Price Index, attained an eight- year peak in April 2022 and consistently exceeded the upper tolerance threshold of 6.0% set by the Reserve Bank of India (RBI) for a significant portion of the year. The Monetary Policy Committee (MPC) of the RBI took a unanimous decision during an off-cycle meeting in May 2022 to increase the repo rate by 40 basis points. Subsequently, additional rate hikes were implemented, culminating in the sixth continuous rate hike since May 2022. In aggregate, the repo rate was raised by 250 basis points during the fiscal year 2023, reaching a level of 6.5%. Meanwhile, the reverse repo rate remained unchanged at 3.35%. Consequently, retail inflation subsided to a 15-month low of 5.66% in March 2023. In April 2023, the MPC maintained the repo rate at 6.5% while affirming its commitment to a gradual withdrawal of accommodative measures.

Indias GDP experienced double-digit growth of 13.1% in Q1FY2023 partially due to the base effect. However, growth slowed down in Q2FY2023 and Q3FY2023, reaching 6.2% and 4.5% respectively, due to high inflation and weakening demand. In Q4FY2023, growth bounced back to 6.1%, pushing the overall growth rate to 7.2% for FY2023. India continues to be one of the fastest growing major economies globally in FY2023.

Non-Banking Finance Companies (NBFCs) are an integral part of the countrys financial system, catering to a large market of niche customers, and have emerged as one of the major purveyors of retail and SME credit in India. It is a heterogeneous group of institutions (other than commercial and co-operative banks) performing financial intermediation in a variety of ways, such as accepting deposits, making loans and advances, providing leasing/hire purchase services, among others. NBFCs serve an important role in developing countries, such as India, where access to bank finance continues to be a challenge for a large chunk of the population and businesses. Nonbanking financial institutions, including NBFCs in India, serve market segments to which commercial banks do not offer services because of higher risk and lower returns. Because of their inherent characteristics, nonbanking financial institutions are an indispensable part of an economys financial sector.

Your companys position

The Company is mainly into investing in and acquiring and holding shares, stocks, debentures, bonds, mutual funds and/or other securities issued or guaranteed by any company constituted or carrying on business in India and/or by any Government, state, public body or authority.

A trusted and customer-centric, one-stop financial services provider, the Company caters to the diverse needs of corporate customers, across various areas of business. Our Company is focused only on its main line of business of investment and financing.



Positive long-term economic outlook will lead to opportunity for financial services Growing Financial Services industrys share of wallet for disposable income Regulatory reforms would aid greater participation by all class of investors

Leveraging technology to enable best practices and processes

Corporates looking at consolidation / acquisitions / restructuring opens out opportunities for the corporate advisory business


Execution risk

Short term economic slowdown impacting investor sentiments and business activities Slowdown in global liquidity flows

Increased intensity of competition from local and global players

Market trends making other assets relatively attractive as investment avenues


Strong Client Base

The Company enjoys a very strong and loyal customer base which has shown unwavering loyalty time and again. The company has been able to leverage its base to grow its businesses, build relationships and attract and retain talented individuals.

Experienced top management

The promoters, are professionally qualified persons with gamut of experience each in the financial services industry. The top management team comprises qualified and experienced professionals, with a successful track record. The company believes that its managements entrepreneurial spirit, strong technical expertise, leadership skills, insight into the market and customer needs provide it with a competitive strength, which will help to implement its business strategies.

Strong risk management

Risk exposure is monitored and controlled through a robust financial, credit, operational, compliance and legal reporting systems. Risk management department analyses this data in conjunction with the companys risk management policies and takes appropriate action where necessary to minimize risk.

Financial prudence

The Companys operating margins continue to remain stable despite the fluctuations in market volumes and revenues due to our robust business model that can withstand the cyclical fluctuations in business volumes and simultaneously capture the opportunities provided by the structural growth of India.


The company is primarily engaged in the single business of Financing and Investment.


The Company is exposed to market risk and credit risk. The Companys senior management oversees the management of these risks and is supported by professionals who advises on financial risks and assist in preparing the appropriate financial risk governance framework for the Company. The Board Level Committees viz. Audit Committee and Risk Management Committee oversee risk management policies and procedures. It reviews credit and operational risks and investment strategy and other risks like interest rate risk and liquidity risk. It provides assurance to the Companys senior management that the Companys financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companys policies and risk objectives. It is the Companys policy that no trading in derivatives for speculative purposes can be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks which are summarized under Note No. 41(C) of the attached Financial Statements.


The Management continuously reviews the Internal Control Systems and procedures for the efficient conduct of the Companys business. The Company adheres to the prescribed guidelines with respect to the transactions, financial reporting and ensures that all its assets are safeguarded and protected against losses. Internal Control System are implemented in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting and the Standards on Auditing issued by ICAI to safeguard the Companys assets from loss or damage, to keep a constant check on the cost structure, to prevent revenue leakages, to provide adequate financial and accounting controls and implement accounting standards.

M/s Rakesh Ram & Associates, Chartered Accountants, have conducted the Internal Audit of the Company. The report thereof is placed before the Audit Committee for evaluation of internal financial controls and risk management systems.

The Compliance Officer of the Company is designated as the Chief Investor Relations Officer ("CIRO") to ensure that fairness and transparency is maintained while dealing with unpublished price sensitive information.

Your Board is of the opinion that the Internal Financial Controls, affecting the Financial Statements of your Company are adequate and are operating effectively.


On Indias 75th Independence Day, our Honourable Prime Minister Shri Narendra Modi introduced the concept of "Amrit Kaal" or "The Era of Elixir" to the nation. Amrit Kaal represents the Prime Ministers vision for a "New India" by 2047, which aims to fulfil the nations aspirations. The vision encompasses rapid and profitable economic growth, improved living conditions for all citizens, advancements in infrastructure and technology, and restoring global confidence in India.

Indias goal of attaining high-income status by 2047 requires inclusive growth that benefits the entire population. Reforms focused on growth need to be accompanied by the creation of quality jobs that keep up with the influx of new entrants into the labour market. Additionally, efforts will be made to address gaps in economic participation, including promoting greater female workforce participation. The NBFC sector will definitely enjoy the percolated effect of the prospect. Your Directors are optimistic that it shall also translate into a better performance vis-a-vis the year gone by for most of the leading financial services institutions including NBFCs.


Business landscape across the world is marked by fast evolving dynamics. These demand agile responses while keeping the long term focus intact. Your Company is led by highly experienced and successful business leaders with proven track record of delivering sustainable growth in demanding business environment. As of March 31, 2023, your Company has complied with requirement of KMP and Directors during the year and other statutes to the extent applicable with a robust team competing on the strength of our people, all of us are bonded together by core values of Pride, Integrity, Discipline and Ambition. We thrive in this climate of Right People for Right Culture. Your Company has consciously built an entrepreneurial and empowering culture of Results, Not Reasons. Our culture emphasises on having a workforce that is diverse, agile, eager to learn and driven to succeed. We have modelled ourselves as a learning organization - by focusing on Stretch - Learn and Grow with Theme Respect for all with parameters like Capacity Building performance management.


An analysis of key analytical ratios have been made in Note 43 of the attached Financial Statements including the % of variance of such ratios with respect to ratios of the previous financial year as at March 31, 2023. As outlined, there is not material variance in the Capital to Risk Weighted Assets Ratio (CRAR) and Tier I CRAR. However, there is a significant increase of 700% in the Current Tier II CRAR (FY 2022-23) with reference to the previous year Tier II CRAR (FY 2021-22) due to fresh Loans given by the Company.

We strive to achieve market leadership in scale and profitability, wherever we compete.

for and on behalf of the Board of Directors of
Sd/- Sd/-
Date: 06-09-2023 Aditya Sadani Apurva Salarpuria
Place: Kolkata Whole-Time Director Director
DIN: 09023418 DIN: 00058357