Everlon Financials Ltd Management Discussions

ANNEXURE-C

A. Industry Outlook:-

NBFCs will play a larger role in supporting the socio economic structure of the Indian economy. The opportunity for credit penetration still remains very high in India. The NBFCs can set a new benchmark by tying up with fintechs and introducing new business models with personalized offerings. NBFCs are the players in the lending space which categorically focus on those at the lower end of the pyramid and are the backbone of any developing economy. They cater to a variety of sectors including renewable energy, vehicles, home, and MSMEs etc.

B. Opportunities:-

The future of NBFCs in India looks promising. with expected growth driven by various factors like digital transformation, innovative products, and a robust regulatory framework. The sector is expected to grow at a CAGR of about 15 % every year.

C. Segment:-

The company is a non deposit-taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India . EFL is engaged in the business of funding Solar plants , investment activities, asset finance and providing of finance by giving loans or advances.

D. Risk and Concerns:-

NBFC and its efficient working is not as easy as it seems. Despite of the opportunities provided to the NBFCs, they face a lot of challenges. While starting the NBFC and even in its smooth working, NBFC has been facing a lot of problems such as Refinancing / NBFC Funding, non flexibility in classification of Loans NPA, absence of statuary tools for recovery of loans, lack of capacity of building, lack of education among people, rising interest rates and intense competition from banks etc.

E. Internal Control Systems:-

Internal checks and controls covering operations of the Company are in place and are constantly being improved upon. Adequate system will be implemented to safeguard companys assets through insurance on reinstatement basis and maintenance of proper records. The company has well defined procedures to execute financial transactions. Internal audit is being conducted by an independent firm of Chartered Accountants. The internal auditor monitors and evaluates the efficiency and adequacy of internal control systems in the organization, its compliance with operating systems, accounting procedures and policies of the Company. Based on the observations of the internal auditor, the process owners undertake the corrective actions and improvements in their respective areas. Significant audit observations and corrective actions thereupon are presented to the Audit Committee The management reviews the control systems and procedures periodically to upgrade them. Presently the Internal Control System are commensurate to the size and operations of the company.

F. Performance:-

During the year, the Revenue from operations sales were Rs 514.78 lakhs (net of GST) as compared to Rs 3497.96 lakhs of the previous year. In the previous year, the revenue included the sale of Polyester yarn manufactured by the Company. Since the factory and the production facilities were sold off during the F.Y.2021-22, the figures F.Y.2022-23 are not comparable to the figures of F.Y. 2021-2022.

G. Industrial and Human Relations:-

Harmonious industrial relations continue to prevail during the year. The Company believes that the manpower and business network consisting of human being is the primary and most valuable resources to the growth of organization. Your Company put all its efforts for sound and healthy human relation for development of trade and organization.

H Details of Key Financial Ratios and Significant Changes :

Cautionary Statement :-.

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.

For and on behalf of the Board of Directors