Ganesh Holdings Ltd Management Discussions

Ganesh Holdings Limited was incorporated as a Limited Company under the provisions of the Companies Act, 1956 on September 20, 1982 issued by the Registrar of Companies, Mumbai, Maharashtra. The Company is registered under section 45-IA of The Reserve Bank of India Act, 1934 under certificate of registration dated May 25, 1998, having Registration no. 13.00777 to commence/carry on the business of non-banking financial institution without accepting deposits. Our Company is registered with RBI as a Base Layer Non-Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFC-ND-ICC). As a NBFC Investment Company (Non Deposit taking), Company is doing investments in shares, securities, mutual funds and giving loans. During the year company has earned income by selling mutual fund investment and made new investments in NCPs and MLDs of other companies. The company explore further investment opportunities in public market. The market for this activity offers high potential for growth in view of the growth expected in the Indian economy over the next few years.

Despite broader macroeconomic tailwinds, smaller mid-market NBFCs faced margin compression due to rising competition and tighter compliance costs, leading to a bifurcation between larger, well-capitalized firms and smaller players. The Company is finding a good market.

The Company is engaged in only one business i.e. Non-Banking Financial Services (granting of loans, making investments, etc) and hence product-wise performance is not provided.

There will be consistent cash flows from the Investment Assets. New opportunities are being explored by the management. Further, due to buoyant economic scenario of the country, your management expects better performance from the mutual fund investments.

The major risk and concerns for the Company is changes in government policy with related to capital markets and taxation. Also, there is general market risk due to volatile geo political situation.

The Company has satisfactory internal control system. Based on the report of Internal Audit function, corrective action are undertaken in the respective areas and thereby strengthen the controls. Internal Control and Audit is an important procedure and the Audit Committee of your Company reviews all the control measures on a periodic basis and recommends improvements, wherever appropriate. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets. Your Company has put in place an adequate Internal Control System to safeguard all assets and ensure operational excellence.
During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.

The Company was able to retain the talents despite of the hefty attrition rates in its peer companies. The Company continued to maintain cordial relations with its employees.