Glance Finance Ltd Management Discussions

The Companys main object is Non-banking Finance activities consisting mainly of investments and giving loans. During the year the company has increased investments in public market. This activity offers high and stable risk adjusted returns with liquidity. The Company continues to explore further investment opportunities in this area. The company also continued to steadily grow its asset leasing business. 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.

BUSINESS SCENARIO

The company has allocated its total resources into business of Finance and Investment in Equity and equity related instruments, Asset Leasing Business and Revenue based finance.

During the year under review, the company has undertaken following business activities:

1. Investment in Private & Public Market

2. Assets leasing

3. Revenue Based Funding

Opportunities and Threats:

Your company has good opportunities to participate in booming capital market and invest in companies to tap potential growth. Your Company is also engaged in the business of Asset Leasing (Car, Vending Machine, etc.). There is huge untapped market for such businesses in India. Your company is also exploring new areas of financing under this model.

The major threat being faced by Company is higher cost of borrowing and slowdown in economic growth of the country.

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.

Financial Performance:

During the year under review, your Company has profit after tax of 194.08 lacs as against loss after tax of (29.39) lacs during the previous year.

Segment wise or product-wise performance:

The company is engaged in business of Finance and Investment in Capital Market and there was no production activity carried out during the financial year.

Outlook:

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

Internal Control systems and their Adequacy

M/s. M. R. Sharma & Co., Chartered Accountants, Mumbai is appointed as the Internal Auditors of the company for the Financial Year 2023-24.

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. The system also meticulously records all transaction details and ensures regulatory compliance. The reports are reviewed by the Audit Committee of the Board. Wherever deemed necessary, internal control system are strengthened and corrective actions initiated.

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.

Material development in Human Resources/ Industrial Relations front, including number of people employed:

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.

Disclosure to the Board:

Senior Management shall make the disclosure to the Board relating to all material financial and commercial transactions, and where they have personal interest, that may have potential conflict with the interest of the Company at large.

Also your Company is paying rent for the premises it is using for the office purpose to another group concern in which Director is interested. The dealings are at arms length and at prevailing market rates.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATIONS THEREFOR

Details of significant changes (25% or more as compared to the immediately previous Financial Year) in key financial ratios in 2023-24

Particulars	Variation (%) Increase/ (Decrease) over previous Financial Year
Debtors Turnover Ratio	Not applicable since the company is not having any sales
Inventory Turnover Ratio	Not applicable since the company is not engaged in any manufacturing or trading activities
Interest Coverage Ratio	The Interest Coverage Ratio for the year is 3.96 as compared to 0.68 in the immediate previous financial year.
	There is substantial increase in this ratio by 481.44% due to Increase in profit and there is reduction in borrowings during the year.
Current Ratio	The Current Ratio for the year was 2.84 as compared to 1.01 in the immediate previous financial year.
	There is substantial change in this ratio by 180.75% due to Increase in net cash flow for the year.
Debt Equity Ratio	The Debt Equity Ratio for the year was 0.19 as compared to 0.51 in the immediate previous financial year.
	There is substantial decrease in this ratio by 63.47% due to decrease in borrowing during the year.
Operating Profit Margin (%)	Not applicable since the company is not having any sales. The sale of traded goods in the revenue from operation is sale of share/script of listed securities.
Net Profit Margin (%)	The Net Profit Margin for the year was 8.58% as compared to -3.58% in the immediate previous financial year.
	There was substantial change in this ratio as compared to previous year due increase in capital gain and reduction in borrowing cost.

DETAILS OF CHANGES IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The Return on Net Worth for the year was 6.87% as compared to -1.35% in the immediate previous financial year.

There was substantial change in this ratio as compared to previous year due increase in capital gain income and reduction in borrowing cost.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis may be "forward looking statements" and have been issued as required by applicable Securities Laws and Regulations. There are several factors which would be beyond the control of Management and as such, may affect the actual results which could be different from that envisaged

By order of the Board of Directors,

For Glance Finance Limited

 

Narendra Karnavat	Narendra Arora
Director	Wholetime Director
(DIN: 00027130)	(DIN: 03586182)

 

Place: Mumbai.

Date: 22-07-2024