Focus Business Solution Ltd Management Discussions

Your Directors take pleasure in presenting the Management Discussion and Analysis Report for the year ended March 31, 2023.

STRUCTURE OF THE INDUSTRY, DEVELOPMENTS AND SWOT ANALYSIS:

OVERVIEW:

Our Company was originally incorporated at Gujarat as "Focus Business Solution Private Limited" on 10th November,

2006 under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Consequent, upon the conversion of our Company into public limited Company, the name of our Company was changed to "Focus Business Solution Limited" vide fresh Certificate of

Incorporation dated 24th March, 2020 issued by the Registrar of Companies, Ahmedabad, Gujarat. Mr. Mohamedamin Mohammad Nathani and Mr. Mohamedyaseen Muhammadbhai Nathani have laid the foundation of our Company and since then heading the Company. The company was listed of SME BSE exchange on 13^th July, 2021.

OUR SERVICES:

We are engaged in the business of debt collection services for Banks, NBFC and financial institutions. We enter the agreement with Indias leading banks, financial institutions and non-banking financial companies to act as authorised recovery/collection agents on behalf of them. We focus strategically timed action based on aging of delinquent account with emphasis of traditional methods such as tele-calling and field visits. We deploy our manpower to visit and collect overdue payments of loans / credit cards / credit facilities advanced to borrowers by our clients, who engage with us in service agreements. In occasional cases, we need to trace the new address and contact details of borrowers as delinquent borrowers may relocate their address.

WE WORK AS A DEBT COLLECTOR

We are working from our head office based at Surat and branches at Vapi, Bardoli, Navsari, Baroda, Bharuch, Anand, Ahmedabad, Rajkot, Palanpur and call centre from another branch at Surat.

Recently, we have expanded our business with our new branch office in Mumbai, Nagpur, Pune, Aurangabad and Indore is past two years.

We are working on month on month basis as per following data:

Monthly Cases	Approximately 2-2.5 lakhs received from different Banks and NBFCs covering products such as Personal Loan, Business Loan, Vehicle Loan, Loan against properties, two wheeler loan, equipment loan, SME loans, Gold loan
Monthly Pool size	More than 1500 Crores

We also do repossessions of vehicles or other hypothecated assets on the request of our clients, in case defaulting borrowers unable to repay of its loan overdues.

We have staff strength of around 1240 which included 55 staff on our payroll and 1185 staff hired on contractual basis and each of our staff is fully trained and all types of assignment like recovery, collection, field investigation and other allied services.

We are strictly bound by code of conduct issued by banks and financial institutions in accordance with RBI guidelines of Fair Practices code.

We have robust electronic retail collection administrative programme (RCAP) i.e. myrcap.in, which is an intelligent debt recovery solution and can deliver high Promise-to-Pay (PTP) rates effectively. Automating daily operational task of collection agents minimizes the time spent on unproductive task so that they can dedicate working time to critical issues. We believe that we have a scalable, modern and sophisticated technology infrastructure capable of servicing our clients from pickup to recovery and every offices are well equipped with modern amenities and facilities like computer, fax, IP Cameras, internet, dialler, smart CRM and mobile application.

We are using digital ways to strengthen our services like Mobile Application i.e. "fTouch" to track our manpower, allotment of task, punching defaulters response, commitments and queries, using dialler for tele-calling to payment reminders to defaulters of our clients. We are availing all these digital services from our vendor i.e. Nathani Software Pvt Ltd. RCAP (fTouch & RCAP is registered trademark as well as registered copyright of Nathani Software Pvt Ltd, group company and we have entered in to an agreement dated 1st April, 2019 with Nathani Software Pvt Ltd for availing the same.

THE GLOBAL ECONOMY:

The global economy faced several challenges in CY 2022, starting from the initiation of the Russia-Ukraine war, supply chain disruption, high inflation, and high key policy rates by the central banks. Global inflation remained a matter of concern in most of the economy, which reached a multi-year high of 8.7% in CY 2022. Monetary tightening by the central banks across the world helped bring the trajectory downwards. The unwinding economic events weighed down global economic growth prospects. World economic growth in CY 2022 is estimated to have declined from 6% in CY 2021 to 3.4%, as per IMF

Commodity prices eased the early gains of CY 2022 amidst supply chain issues and Chinas Zero Covid policy due to the demand slowdown. Metal prices, however, stabilised following Chinas reopening and measures to revive its economy and retracing inflation in advanced economy like USA and EU.

THE GLOBAL OUTLOOK:

Performance of the global economy was better than earlier projections, given the lower-than-expected severity of the Russia-Ukraine war and high energy prices. Manufacturing PMI, which fell below the 50-level mark is moving up in most economies. Chinas re-opening has further improved the expectation of increased economic activities, generating positivity for the global economy. Inflation levels in most of economies peaked, but expected to fall to 6.6% in CY 2023, improving global financial conditions and business sentiment.

INDIAN ECONOMY AT GLANCE:

The Indian economy performed exceptionally well compared with the rest of the world. India is set to retain its bright spot in CY 2023 with a potential to contribute 15% to the global GDP growth, according to IMF. In December 2022,

India also assumed G20 presidency with an ambition to unite the world under the theme ‘Vasudhaiva Kutumbakam" or "One Earth ? One Family ? One Future". This is an opportunity to showcase the nations global leadership amidst growing uncertainty and economic crisis.

The debt collection service industry size is very limited, very few Public companies are involved in providing the service of Debt Collection for Banks, Non-Banking Financial Companies and Fintech Companies. As per market Research, it is estimated that Banks, Non-Banking Financial Companies and Fintech Companies are spending approximately 25,000 Crores to Deb collection service sector for smooth recovery of their landings.

DEBT COLLECTION INDUSTRY 2023:

The world of debt collections has changed in recent years as a result of the COVID-19 outbreak.

The years 2020-2022 witnessed hiring freezes, interest rate hikes, and supply chain issues which heavily impacted inflation. With more financial stress and decreased disposable income, consumer debt continued to rise. The collection strategy for 2023 has now been changing times in order to streamline collections, maximize cash flow, and maintain a healthy relationship with customers.

For decades, the debt collection sector has used a phone-first technique, relying on the customers availability and willingness to respond to the debt collection action. Over time, this has resulted in a terrible customer experience that is frequently unpleasant, prompting the customer to feel frustrated, angry, and ashamed. Lenders attitudes have shifted as a result of digital collection techniques. It has successfully engaged customers by removing negative thoughts and emphasizing that the lenders are there to assist them. It has created a mutually beneficial relationship between the customer and the lender.

Like other industries, the debt collection services industry is also expected to witness the impact of the technology revolution. The rate of the collection will increase while operational costs are expected to decrease due to mass adoption of technology in debt collection services.

As per debt collection market research by Fact.MR, estimated growth are as follows:

Report Attributed	Details
Debt Collection Service Market Size (2022A)	US $ 29.4 Billion
Estimated Market Value (2023E)	US $ 30.2 Billion
Forecast Market Value (2033F )	US $ 39.4 Billion
Global Market Growth Rate	2.7% CAGR

Therefore, with the development of technical tools over the past few decades, debt collection trends have undergone a significant evolution.

SEGMENT-WISE OR PRODUCTS-WISE PERFORMANCE:

During the year 2022-23, following are the segment wise performance of the Company.

Revenue from trading business	Rs. 1836.47 Lakhs
Net Profit after Tax from trading business	Rs. 43.82 Lakhs

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has adequate internal control systems including suitable monitoring procedures commensurate with its size and the nature of the business. The Internal Auditors and Companys Internal Audit Department conduct regular audits to ensure adequacy of internal control system, adherence to management instruction and compliance with laws and regulations of the country as well as to suggest improvements. The statutory auditors while conducting the statutory audit, review and evaluate the internal controls and their observations are discussed with the Audit committee of the Board.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The country witnessed lockdown being implemented in the second forth night of March, 2020. Our Company has taken all safety precautions as per guidelines from the Government.

During the period 2022-23, the movement in the Total Income and net profit after tax are as follows:

Particular	FY 2022-23	FY 2021-22
Total Income	Rs. 1839.43 Lakhs	Rs. 1392.04 Lakhs
Net Profit after Tax	Rs. 43.82 lakhs	Rs. 18.79 lakhs

HUMAN RESOURCES

One of the key pillars of the Companys business is its people. The Company considers human resources as one of the vital and important factors for sustained growth, business success and creating value for Stakeholders. Company has maintained cordial and harmonious relations with all Employees.

The total numbers of Employees on pay roll were 55 as on 31st March, 2023.

CAUTIONARY STATEMENT

Certain statements made in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, predictions and expectations may be forward looking statements, within the meaning of applicable securities law and regulations and actual results may differ materially from those expressed or implied.

Significant factors that make differences to Companys operations include competition, change in Government policies and regulations, tax regimes and economic development within India. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events or otherwise.

For and on behalf of the Board

Focus Business Solution Limited

Mr. Mohamedyaseen Muhammadbhai Nathani

Managing Director & Chairman

DIN: 02759578

Date: 5^th July, 2023

Place: Surat