Global Infratech Management Discussions



Financial intermediaries like non-banking financial companies (NBFCs) have a definite and very important role in the financial sector, particularly in a developing economy like India. NBFCs play an important role in promoting inclusive growth in the country, by catering to the diverse financial needs of bank excluded customers. Further, NBFCs often take lead role in providing innovative financial services to Micro, Small, and Medium Enterprises (MSMEs) most suitable to their business requirements. The NBFC sector has continuously played a critical role in encouraging growth of the Indian economy and hence needs to be nurtured appropriately. This research paper mainly highlights the role of NBFCs in promoting economic growth of India. It also sets forth various strengths, opportunities, challenges and problems faced by this sector and the way forward.


i. Financial Sector:

Indias financial services sector has grown from strength to strength, built on prudential lending practices, robust regulatory environment and sound technology base, and has ably met the aspirations of the vast population and enabled economic activities. While commercial banking stays at the forefront of the financial system, the growing pie of financial services is divided across specialised players extending customised services to different customer segments. The competitive landscape of financial services sector has witnessed rapid growth in the last couple of decades. This movement is taking place on the back of market forces enabling inclusive growth, meeting sectorial thrust, leveraging policy initiatives and the ability to attract cost effective financial resources.



The success of NBFCs can be clearly attributed to their superior product lines, lower cost, broader and effective reach, robust risk management capabilities to check and control bad debts, and proper comprehension of their customer segments. Not only they have displayed success in their conventional citadel (passenger and commercial vehicle finance) but they have also managed to build significant assets under management (AUM) in the personal loan and housing finance sector which have been the bread and butter for retail banks. Moving ahead, the latent credit demand of an emerging India will permit NBFCs to bridge the gap, particularly where traditional banks have been cagey to serve.


• The Company operates in highly competitive environment that is subject to innovations, changes and varying levels of resources available to each player in each segment of business.

• Exposure to global practices has made the Indian customer more discerning and demanding. There has been a clear shift towards those entities that are able to offer products and services in the most innovative and cost efficient manner. The financial services sector will need to adopt a better customer-centric business focus. It will also have to create value for its shareholders as well as its customers, competing for the capital necessary to fund growth as well as for customer market share.


The Company currently operates Finance division. The Segment wise performance of the Company is as mentioned below;

Particulars 31st March, 2019 31st March, 2018
1 Segment Revenue
(a) Finance & Investment Activities 389.03 677.80
Total 389.03 677.80
Less: Inter Segment Revenue - -
Net sales/Income from Operations 389.03 677.80
2 Segment Results (Profit) (+)/ Loss (-) before tax and interest from Each Segment)
(a) Finance & Investment Activities -0.03 -156.91
Total -0.03 -156.91
(a) Interest - -
(b) Other un-allocable Expenditure net off - -
(c) Un-allocable Income - -
Total Profit Before Tax -0.03 -156.91


The Company has a robust Risk Management framework to identify, evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on the business objectives and enhance the Companys competitive advantage. The business risk framework defines the risk management approach across the enterprise at various levels including documentation and reporting. The framework has different risk models which help in identifying risks trend, exposure and potential impact analysis at a Company level as also separately for business segments. The Company has identified various risks and also has mitigation plans for each risk identified. The Risk Management Policy of the Company is available on our website

The Board has adopted the policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.


The Company has implemented a comprehensive system of internal controls and risk management systems for achieving operational efficiency, optimal utilization of resources, credible financial reporting and compliance with local laws. These controls are regularly reviewed by both internal and external agencies for its efficiency and effectiveness. Management information and reporting system for key operational activities form part of overall control mechanism.

The Company has retained the services of Independent firms of Professionals to function as internal auditors and provide reports and effectiveness of internal control measures are reviewed by top management and audit committee of the Board.

The Company believes that it has internal controls and risk management systems to assesses and monitor risks. The company has its management team which monitors and manages risks by monitoring trends that may have an effect on the economic environment and actively assesses on a routine basis the market value of the Companys loan book. The Company seeks to monitor and control its risk exposure through a variety of separate be but complementary financial and operational reporting systems. The Company believes it has effective procedures for evaluating and managing the market, operationally and other risks to which it is exposed.


During the year under review, the Company incurred a Profit before Interest, Depreciation & Tax of Rs. 7.05 Lacs as compared to Loss of previous year Rs. 147.23 Lacs. The net loss for the year under review has been Rs. 0.03 Lacs as compared to the previous year net loss Rs. 156.99 Lacs. The Company is into the Business of providing financial assistance, as a part of treasury operation to Corporate Houses and HNIs as well as investing its surplus funds in Equity Market and the Company is also into the business of Infra-project.


The Company firmly believes that human resources is an important instrument to provide proper communication of the Companys growth story to its stake holders and plays vital role in the overall prospects of the Company. So the Company takes possible steps for the welfare of its manpower. The employee relationship was cordial throughout the year. We as on 31st March, 2019 have 2 permanent employees on our rolls.

By Order of the Board of Directors


Sd/- Sd/-
(DIN: 07361524) DIN: 07521590
Managing Director DIRECTOR
Date: 07.09.2019
Place: Mumbai