F Mec International Financial Services Ltd Management Discussions.


The Indian economy retained its tag of the fastest growing major economy in the world in 2018-19. A few factors that have helped India in maintaining its status quo as the fastest growing nation are:

Policy reforms: Reforms such as increased FDI limits, Goods and Services Tax (GST), etc led to creation of jobs and bringing more businesses into the organized sector. It also improved the ease of doing business, thus benefitting the economy in a major way.

Improvement in infrastructure: Recognized as a key driver for the economy of any nation, the infrastructure sector has enjoyed a lot of focus from the government. Measures such as construction of smart cities, industrial corridors, new railway lines, improving sea connectivity to stimulate trade and building roads to improve rural connectivity have all contributed to the nations economic growth.

Development Campaigns: The government has been campaigning actively for showcasing the nation as a sensible investment destination and improve trade cooperation. Government campaigns such as Make in India and Start-up India have been helping India to position itself as a manufacturing hub and promoting entrepreneurship.

Indian Financial Services Industry

India has a diversified financial sector undergoing rapid expansion with many new entities entering the market along with the existing financial services firms. The sector comprises commercial banks, insurance companies, NBFCs, Housing Finance Companies, Cooperatives, Pension Funds, Mutual Funds and other smaller financial entities. Another vital element of the nations financial sector is the rapidly growing insurance industry. The Reserve Bank of India (RBI) recently allowed new entities such as payment banks and small finance banks to commence operations, focusing on specific segments of transactional banking and small-ticket lending, respectively.


The NBFC sector is expected to remain at the forefront and drive new credit disbursals for Indias underserved retail and MSME space. In the last five years the lending book of NBFCs has grown nearly by 18% due to a deep understanding of target consumer segments, technological advancements, lean cost structures and differential business model to reach credit-starved customer segments.

The year 2018 was a year of crisis for some of the NBFCs. To occupy the space vacated by Public Sector Banks (PSBs), certain NBFCs went into a frenzy of credit expansions without considering the asset-liability scenario. This resulted in huge defaults on the part of such companies and intensified fears that the funding cost for NBFCs will zoom and result in a sharp deterioration of their margins.

However, the government took several quick measures not letting this crisis turn into a contagion and spilling over to other sectors. These measures included altering operating mechanism and making relevant changes in the risk management framework. Though the outlook for NBFCs for 2019 seems weak, a gradual improvement in the liquidity situation indicates that there could be a stabilisation in the coming days.


F MEC INTERNATIONAL FINANCIAL SERVICES LIMITED is currently engaged in NBFC activities & Financial Management and Advisory Services. The Company intends to continue its focus on NBFC activities and provide financing facilities in the form of advance, deposit or lend money either as secured or unsecured loans through the use of web-based technology or through other modes.

The main revenue of the Company is earned from the Interest Income and Commission Income. Despite operating in a challenging macro environment and with new Management in the Company comprising of young blood, FY 2018-19 was a satisfying year for the Company. The Total Revenue of the Company has taken a considerable hike by INR 73.70 Lakhs as compared to previous year. In commensuration of

the said increase, the Company has been successful in disbursing loans by reaching to wider number of persons resulting in an increase in Loan Books of the Company by INR 1307.76 Lakhs.

The Management of the Company is very hopeful to bring higher operating efficiencies within the Company based on the understanding and strength of superior Knowledge of local market and efficient and Conservative approach.


The Indian economy is expected to grow at 7.4% in 2019-20 on account of steady improvement in major sectors as government and private consumption remains robust and investment is steadily picking up. One of the main factors - domestic consumption, which drives 60% of the GDP growth is expected to grow up to USD 6 trillion by 2030, supported by a 1.4 billion population. In the longer term, however, Indias growth is expected to reflect the benefits of its structural reforms and its growing workforce. But to unlock Indias massive economic potential, the nation will need to accelerate and sustain its continuing upward trajectory on key human development indicators and aim for a more inclusive growth.

In the upcoming years the Company tends to focus on “Reinforcing growth to technology” by digitizing its internal processes and service offerings. The Company envisions to create digital platform for providing value added services to our customers and at the same time ensuring more transparency in loan disbursal 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. To carry out its long term goal and achieve its financial activities, the Company has formed some strategies.


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.


Being a Financial company, it 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.

The Company has a Board approved Risk Management framework. The framework comprises of implementation of Risk Management Policy to assist the Board in Overseeing and approving the Companys enterprise wide risk management framework and overseeing all the risks that the organization faces, identifying the element of risk which, in the opinion of the Board may threaten the existence of the company and safeguarding the company against those risks.


The Company has a team of able and experienced industry professionals and employees.


The Board of Directors have reviewed the Management Discussion and Analysis prepared by the Management, and the Independent Auditors have noted its contents. Statement in this report of the Companys objective, projections, estimates, exceptions, and predictions are forward looking statements subject to the applicable laws and regulations. The statements may be subjected to certain risks and uncertainties. Companys operations are affected by many external and internal factors which are beyond the control of the management. Thus the actual situation may differ from those expressed or implied. The Company assumes no responsibility in respect of forward looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.

Annexure- IV


Particulars 31/03/2019 31/03/2018
1. Loans And Advances
Advance for Shares 15,00,000 15,00,000
4A Financial Securities Limited 10,13,42,748 -
ACE Integrated Solutions Limited 10,58,142 -
Aman Drugs Pvt Ltd 11,08,000 10,54,094
Arun Bhatt 14,68,630 13,18,630
AS Buildpro Pvt. Ltd. 18,02,044 17,30,044
Avtar Instalments Pvt Ltd 2,56,45,223 -
Bhagyashree Industries 11,67,202 10,59,202
Invision Entertainment Pvt Ltd 5,93,695 5,39,695
IT Serve Global 16,87,147 16,46,647
Karo Coils Pvt. Ltd. 6,61,340 33,86,100
Meenakshi Bhatt 8,85,000 7,95,000
Pahwa Buildtech Private Limited 5,29,460 -
Paras Green 28,44,500 25,74,500
Rheathe Trust 10,12,356 -
Senorita Enterprises Pvt Ltd 23,65,291 21,89,626
Shree Shitla Portfolio Pvt Ltd 16,57,600 16,00,000
Shri Varda Pacific Securities Limited 27,81,593 -
Suresh Pal Singh 35,00,000 35,00,000
Sweta Singh 5,60,000 5,00,000
Total 15,41,69,971 2,33,93,538
2. Non Current Investments
YDS Securities Pvt. Ltd. 826530
Equity Shares @ Rs. 10 each 8,265,300 8,265,300