Gandhinagar Leasing & Finance Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

This Management discussion covers the financial results and other developments during April, 2011 to March, 2012 in respect of the Company. Some statements discussion describing the projection may be forward looking actual results may be forward looking actually may different materially on account of various external factors such as government regulations, tax regimes, changes in demand and supply constrains and other identical factors.

Overview

The Company’s business of Leasing and Finance largely depends on the congenial economic growth environment and earnings of the persons. During the year under review, the Company enjoyed good market reputation. The Company expects higher growth during the upcoming financial year. The Gandhinagar Leasing and Finance Limited was promoted by Late Major Vinodchandra P Joshi (Retd), a technocrat having very rich experience in the Finance and other Industries. The Company is engaged in rendering Leasing, Hire Purchase and other financial activities.

Industry structure

The year under review remained unstable with heavy economic uncertainties. However, the growing industrialization in the state of Gujarat helped the finance industry to grow efficiently and rapidly. The overall year showed positive trend for financing Companies. However increased interest rates of finance have negatively impacted the finance and leasing industry.

Prospects

The Finance and Leasing industry is largely dependent on the growth of the other industries as well as favorable interest rates and policies of the RBI. The year 2011-2012 showed a rapid growth in other industries. However the increasing interest rate have adversely affected the finance and leasing industry. In spite of adverse market condition your company is able to earn a considerable interest income during the year 2011-2012.

Opportunities, Threats, Risks and concerns

The Company has reasonable business acumen in the industry and has strategic plans for economies its activities. The Company is set to achieve the higher productivity to meet with the demand. However, the Government is vigilant on the global competition. Further, the Company believes satisfaction of the customers and maintaining long term relationship with them, which will ultimately provide better opportunity to grow.

Internal Control Systems

The Company has adequate internal control systems in respect of efficiency of operation, financial reporting, compliance with laws etc. exercises for safeguarding assets and protection against unauthorized use are undertaken. The Management review internal control system from time to time.

Review of Financial Performance

The Financial performance during the year ended 31St March, 2012 was unsatisfactory as compared to previous year. The Company expects better performance in the years to come.

Human Resources

Our senior management team consists of experienced individuals with diverse skills in manufacturing, engineering, international business and finance. We believe that our employees are the key to the success of our business. We focus on hiring and retaining employees and workers who have prior experience in the finance industry. The relations between the employees and the Management have remained cordial.