Franklin Leasing & Finance Ltd Management Discussions

BACKGROUND:

Franklin Leasing and Finance Limited is a Non-Banking Finance Company ("NBFC") holding a Certificate of Registration from the Reserve Bank of India ("RBI"). The Company is non deposit accepting NBFC engaged in financial services. The Company has its registered office in Delhi.

The Management Discussion and Analysis Report (MDAR) provide an insight into the performance of the company in the previous years, in the current year and its future plans besides the risks, and uncertainties associated with the Companys business along with the management perception and vision to win over the anomalies of future business situations. The Management Discussion and Analysis

Report (MDAR) contain managements interpretation of financial performance of the Company more over actual results are reflected in the financial statements which should be studied in consonance with the Managements Perspective.

OPERATING RESULTS OF THE COMPANY:

During the financial year 2023-24, the Company has earned a total income of Rs. 1,123.97 Lakhs against a total income of Rs. 1177.47 Lakhs in the previous year. The Company has earned a Net Profit of Rs. 18.79 Lakhs against a Profit of Rs. 15.37 Lakhs in the previous year. The Directors are optimistic about future performance of the Company.

INDUSTRY STRUCTURE AND DEVELOPMENT:

We are a Non- Deposit taking Non- Systematically Important Non- Banking Finance Company (NBFC-ND-NSI) engaged primarily in the business of advancing loans and investing/trading in securities. The Company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in his report, consequent to new information, future events, or otherwise. Estimation and expectation made in the Report may differ from actual performance due to various Economic conditions, Government Policies and other related factors. We have been running on a modest operating scale till the mid of 2023-24. However the company from now onwards has commenced a process of improving our internal systems including but not limited to allocation strategies, Financial Discipline and better utilizations of our fund based portfolio.

THREATS:

Growth of the Companys asset book, quality of assets and ability to raise funds depend significantly on the economy. Unfavourable events in the Indian economy can affect consumer sentiment and in turn impact consumer decision to purchase financial products. Competition from a broad range of financial services providers, unstable political environment and changes in Government policy / regulatory framework could impact the Companys operations.

OUTLOOK:

The Company presents the analysis of the Company for the year 2023-2024 & its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic & other developments, both in India and abroad.

RISK MANAGEMENT:

Risk management forms an integral part of our Companys Business. Being a lending institution, there are inherent financial and non-financial risks. We have a proper risk management framework to identify, assess, monitor and manage various types of internal and external risks. The company identifies and monitors risks.

HUMAN RESOURCES/INDUSTRIAL RELATIONS:

The Company continues to lay emphasis on people, its most valuable resource. In an increasingly competitive market for human resources, it seriously focuses on attracting and retaining the right talent. It provides equal opportunity to employees to deliver results.

INTERNAL CONTROL SYSTEMS & ADEQUACY:

The Company has a proper and adequate internal control system to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly. The internal control is supplemented by an extensive program of internal audits, review by management and documented policies, guidelines and procedures. The internal control is designed to ensure that financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.

PROHIBITION OF INSIDER TRADING:

The Company has implemented a policy of prohibiting Insider trading in conformity with applicable regulations of the Securities Exchange Board of India (SEBI). Necessary procedures have been laid down for prohibition of Insider Trading.

CAUTIONARY STATEMENT:

The statements made in this report describing the Companys objectives, projections, estimates and expectations, may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Although the expectations are based on reasonable assumptions, the actual results might differ.