finalysis credit guarantee company ltd Management discussions

FINALYSIS CREDIT AND GUARANTEE COMPANY LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS Your Directors are pleased to present the management Discussion and Analysis report for the year ended 31st March 2012 The Management discussion and analysis have been included in consonance with the code of corporate governance as approved by the Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contains certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions of forward looking statements expressed in this report consequent to new information or developments events or otherwise. The Management of the company is presenting herewith the overview of the Industry, opportunities and threads initiatives by the company and overall strategy of the company and its outlook for the future. The outlook is based on managements own assessment and it may very due to future economic and other future developments in the country. ABOUT THE FINANCE INDUSTRY The activities of non-banking financial companies (NBFCs) in India have undergone qualitative changes over the years through functional specialization. The role of NBFCs as effective financial intermediaries has been well recognized as they have inherent ability to take quicker decisions, assume greater risks and customize their services and charges more according to the needs of the clients. The distinction between banks and non-banks has been gradually getting blurred since both the segments of the financial system engage themselves in many similar types of activities. At present, NBFCs in India have become prominent in a wide range of activities like hire-purchase finance, equipment lease finance, loans, investments, etc. By employing innovative marketing strategies and devising tailor-made products, NBFCs have also been able to build up a clientele base among the depositor, mop up public savings and command large resources as reflected in the growth of their deposits from public, shareholders, directors and other companies, and borrowings by issue of non-convertible debentures, etc. The company does trade in equity shares & stocks and commodities as one of the financial activities. Now the company is intend to go for Software Development business alongwith its existing finance business. It is true that the Software Development market is booming in India. Indias tech sector is growing at phenomenal rates. There has been tremendous finance growth due to foreign collaboration, foreign equity participation etc. The Mission of the company is given below: Mission To ensure that: * The financial companies function on healthy lines, * it should be non fund based activities to cater the esteemed customers * It should be become a leading service provider of business solutions that enabling growing companies to increase their revenue. * It should have proven expertise in providing end end-solutions to various kind of business process. * Service should be provided in cost effective manners and core focus is the creation of measurable value for the client ABOUT THE FINALYSIS CREDIT & GUARANTEE COMPANY LIMITED: BUSINESS OVERVIEW Our Company has started providing financial services now after 10 years. Our Company is primarily focusing on in providing inter corporate loans, trade financing, bills discounting, trading in shares & securities and arbitrage business in stock and commodity market. Recently our company has also penetrated in to software and information technology venture FINANCIAL PERFORMANCE During the fiscal 2012, the gross operational income of the company stood at Rs.29.94 Lacs as compared to previous fiscal of Rs.NIL. However this fiscal year the company has performed marginally profit in its business. Financial Highlights: * After having started its business in last 3 months of fiscal year, the company has made profit first time.. * Income from operation stood at Rs.29.94 Lacs for fiscal 2012 * Profit before Taxes of fiscal 2012 was Rs.3.53 Lacs. * Profit after Taxes of fiscal 2012 was Rs.2.28 Lacs. * Basic Earning per share for fiscal 2012 was Rs.0.04 per share. * Net Worth of company stood at Rs.4.06 Crores as on March 31,2012 OPPORTUNITIES AND THREATS * Ready contacts for business development: Our Company has strong relationships with the well established business houses In India cultivated through several years of client servicing. * Promoted and managed by qualified and experienced professionals: The board of our Company Comprises of qualified professional, experience in the industry. * Profit making Company: Our Company is an existing profit making and posing to grow by diversifying its activities in Software alongwith Finance. * Economic Downturn: If the economic downturn is prolonged it can reduce the financing need of people due to shrinking business opportunities. * Private Banks: Private Banks are also working on the similar business model thereby giving a very strong competitions INITIATIVES BY THE COMPANY The company has taken following initiatives * To become a leading service provider of business solutions that enabling growing companies to increase their revenue. * To prove expertise in providing end end-solutions to various kind of business process. * to provide in cost effective manners and core focus is the creation of measurable value for the clients * to develop contacts with collaborators or venture partners for their software development division OUTLOOK * The company is mainly engaged in Finance and Finance related activities, Now planning to diversify into software Development business * Further company is planning to set up its offices in abroad for its Finance activities as well as Software Development business * The structure of Management has been changed drastically and newly appointed Managing Director and Directors have vast contact in the bringing the multi- national companies for their software development * The board of Directors envisages no problem in bringing the business for the company RISK AND CONCERNS * Due to stiff competitions in the Finance /Software fields where the companys activities are centered on and margin also reduces. * Due to recent slowdown, Govt. Policies, recession, it is apprehended that there will be a big correction in all the field which company is dealing in REGULATORY: Company is complying various statutory provision such as Companies Act, Income tax, Service Tax, BSE Listing Agreement Provisions and other applicable laws and Regulations applicable to the company. INTERNAL CONTROL SYSTEM AND ADEQUACY: The Company has a strong Management audit framework, The Audit Committee of Promoters, Directors and Independent Directors. The Audit Committee meets every quarter to review compliances which are as under * Compliance of the company with applicable status, policies, procedures, listing requirements and management guidelines * All the transactions are being accurately recorded & verified. * Internal Check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems. HUMAN RESOURCES/INDUSTRY RELATIONS * The company provides excellent working environment so that the individual staff can reach his/her full potential * The company is poised to take on the challenges and march towards accomplishing its mission with success CAUTIONARY: Statement in the Management Discussion & Analysis, Describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual result may differ materially from those expressed in the statement or implied. Several factors could make significant difference to the companys operation. These include climatic conditions and economic conditions affecting demand & supply, Govt. regulations and Taxation, exchange rate fluctuation and other incidental factors, natural calamities etc. over which the company does not have any control. BY ORDER OF THE BOARD OF DIRECTORS Vinayak T Sarkhot Jigar D Shah DIRECTOR DIRECTOR Place: Mumbai Date : 4th September, 2012