Ganesh Holdings Ltd Management Discussions

A, BUSINESS SCENARIO

Ganesh Hoki.in.gs Limited was incorporated as a Limited Company under the provisions of the Companies Act, 1956 on September 20, 1902 issued by the Registrar of Companies, Mumbai, Maharashtra. The Company was registered under section 45-l A of The Reserve Bank of India Act, 1934 and received the certificate of registration from Reserve Bank of India ("RBI"] dated May 25, 199S, having Registration no. 13.00777 to commence/ carry on the business of non-banking financial insll Union without accepting deposits. Our Company is registered with RB; as a Bmw Layer NomSyslsmicnily important Hoc-Deposit taking Non-Banking Finance Company (NBFC-NU- ICCJ. 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 interest income an loan, The company explore further investment opportunities in public market. The market for this activity uili-t? high potential for growth in view of the growth expected ^;n the Indian economy over the next few years.

During the year company has raised Rs.486 lacs by way of Rights issue of 4060 00 equity shares of Rs,1.0/- each at a premium of Rs.9G/- each to existing eligible shareholders and utilized the proceeds for the Investment activity.

0, Opportunities and Throats

The Company is rinding a good market

C. Segment-wise Performance

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.

D. Outlook

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

E. Risk and Concerns

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,

TfiP Company has saris factory 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 afi the control measures on a periodic basis and recommends improvements, wheruvef appropriate. The internal control is designed to ensure that the financial and other records srv 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 ad assets arid ensure operational excellence.

During the year under review, PO material Or serious observation has been received from the Inunwl Auditors of the Company for inefficiency or inadequacy of such controls.

G. Human Resources

Tiie 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.