Golden Legand Leasing & Finance Ltd Management Discussions.

A. PAYMENT GATEWAYS

Economic Scenario: Global Payments ecosystem 2019

(According to Key players in payments value chain: Business Insider Intelligence)

As non-cash payment volume accelerates, the power dynamics of the payments industry are shifting further in favour of digital and Omni channel providers, attracting a wide swath of providers to the space and forcing firms to diversify, collaborate, or consolidate in order to capitalize on a growing revenue opportunity.

More and more, consumers want fast and simple payments. Rising e- and m-commerce, surges in mobile P2P, and increasing willingness among customers in developed countries to try new transaction channels, like mobile in-store payments, voice and chatbot payments, or connected device payments are all increasing transaction touch points for providers.

• Behind the scenes, payment processes and stakeholders remain similar. But providers are forced to make payments as frictionless as possible as online shopping surges: E-commerce is poised to exceed $1 trillion nearly a fifth of total US retail by 2023. ? The channels and front-end methods that consumers use to make payments are evolving. Mobile in-store payments are huge in developing markets, but approaching an inflection point in developed regions where adoption has been laggy. And the ubiquity of mobile P2P services like Venmo and Square Cash will propel digital P2P to $574 billion by 2023.

• The competitive payments industry landscape will shift as companies pursue joint ventures to grow abroad in response to geopolitical tensions, or consolidate to achieve rapid scale amid digitalization.

• Fees, bans, steering, or regulation could impact the way consumers pay, pushing them toward emerging methods that bypass card rails, and limit key revenue sources that providers use to fund rewards and marketing initiatives.

• Tokenization will continue to mainstream as a key way providers are preventing and responding to the omnipresent data breach threat.

Economic Scenario: India

(According to Big Commerce: The 19 Ecommerce Trend)

Payment Gateways are in speed, better convenience, greater value, and most importantly faster checkout. All this has been fueling the growth of digital payment systems greatly.

The global payments landscape is evolving at a dizzying rate. The last one year has seen a sharp rise with four major shifts in the global landscape growing penetration of smartphones and internet, non-banking institutions offering payment services, consumers demanding one-touch payments, etc.

Talking about India it has also mirrored developments happening in the global payments field, with a time lag. Today, it represents one of the largest marketing opportunities for digital payments.

Whereas in recent upcomings, Prime Minister of India Narendra Modi launched 3 Indian digital payment apps - BHIM, RuPay and SBI appication in Singapore, which aimed at internationalization of the countrys digital payment platforms.

Further adding to the above, PM Modi, due to ‘Make in India, we see a boost to manufacturing and this has given youngsters an opportunity to work in several sectors. Two years later, the Reserve Bank of India (RBI) in its annual report said all payment and settlement systems - NEFT, IMPS, UPI, NACH, card payments, Electronic Clearing Systems as well as Forex and market clearing systems have seen a 44.6 percent increase in volume in 2017-18 and an 11.9 percent increase in the value of funds transferred. In the annual report, RBI also said that during the financial year 2016-17, the volume of transactions through digital payment systems witnessed a 56 percent increase, with the value of funds increasing by 24.8 percent.

Transactions across the digital retail payment infrastructure, which includes card payments, UPI and others increased to 92.6 percent in 2017-18, up from 88.9 percent in the previous year. Debit card growth in the country is now back on track, having grown 13.6 percent as of August this financial year. As of August 2018, there were a total of 1.02 billion credit and debit cards in the country. (Source: Economic Times)

This growth is said to be driven by the following major trends that will also impact the future:

India becoming digital: India ranks second in the world with over 1 billion mobile subscriptions. Out of which 240 million use smart phones and this user-base is projected to rise to over 520 million by 2020. (According to Business Standard)

Also, with the growing 3G 4G penetration, number of internet users is predicted to double to 650 million by 2020

Megatrends driving demand:

• Economic and population growth?

• Mobility and Urbanization?

• Climate Change and Limited Resources

FACTORS ENHANCING PAYMENTS GATEWAYS IN INDIA FROM MERCHANTS PERSPECTIVE

• Efficiency

Cashless payment systems are offering unmatched efficiency to the buyers and even more to the merchants. Using payment gateways, merchants are able to address cash flow issues, receive payments for their sales made directly into their online merchant banking accounts easily. It allows for payments made through debit or credit cards, digital wallets, online banking services and mobile banking, which facilitates the merchant to process payment easily and without hassle.

• Reduced time and cost efforts

Worrying about preparing payments and managing payment issues can be immoderate and tedious. An online payment framework is equipped for taking care of payment procedures continuously. No machines are required nor any extra regulatory help needed for the system to work. This implies less cost of doing business, and more opportunity for you to concentrate on more imperative business matters.

• Unlimited features

Online payment services offer a lot of features for that make payments through the merchants digital payment system a cake walk. Like multi-currency payments for popular international currencies, such as USD, GBP, INR, AUD, etc., to accept payments from consumers all over the world. Integrated SM and email marketing are other amazing additions that make business owners life easier.

Also, with a link based payment, merchants can collect payments from buyers by sending a link which only requires the user to have a working Debit/Credit Card to make payments.

Security

Online payment gateway systems offer unparalleled safety. Payment system like Ease buzz has PCI-DSS compliant servers which makes your online transactions compliant with bank level security. They are capable of blocking fraud online transactions and save the business time which otherwise would go wasted in identifying and resolving such issues. Whats more? The payment gateway also stops losses occurred when dealing with duplicate currency notes which are used for payments.

Faster transactions

Online payment systems are intended to save effort and time of the consumer and merchant alike. For the merchants, theres quick on-boarding process with just the requirement of the KYC documents and their bank details, and they are good to go.

These systems are designed to offer unobstructed transaction by handling the complete authentication and authorization of payment process automatically.

These clear benefits to consumers and merchants have caused a decrease in the traditional ways of accepting payments and India is now witnessing an immense rise in cashless methods of payments.

To sum it up, cashless payments provided by payment gateway providers in India are clearly set to transform online transaction processing. These gateways can act as your secure portal to not just increase conversions, further your sales, but also protect your customers transactions and gradually grow your business.

AGRI - FINANCING ACTIVITIES:

Economic Scenario: Global

Agriculture finance empowers poor farmers to increase their wealth and food production to be able to feed 9 billion people by 2050. ?

• Our work in agriculture finance helps clients provide market-based safety nets, and fund long-term investments to support sustainable economic growth.

Demand for food will increase by 70% by 2050; at least $80 billion annual investments will be needed to meet this demand.

Agriculture finance and agricultural insurance are strategically important for eradicating extreme poverty and boosting shared prosperity. Globally, there are an estimated 500 million smallholder farming households representing 2.5 billion people relying, to varying degrees, on agricultural production for their livelihoods. The benefits of our work include the following: growing income of farmers and agricultural SMEs through commercialization and access to better technologies, increasing resilience through climate smart production, risk diversification and access to financial tools, and smoothing the transition of non-commercial farmers out of agriculture and facilitating the consolidation of farms, assets and production (financing structural change).

Estimates suggest that demand for food will increase by 70% by 2050 and at least $80 billion annual investments will be needed to meet this demand, most of which needs to come from the private sector. Financial sector institutions in developing countries lend a disproportionately lower share of their loan portfolios to agriculture compared to agriculture sectors share of GDP

Economic Scenario: India

India is an agrarian economy and agriculture continues to be the mainstay of the Indian Economy, whose contribution to the national GDP is about 25% and provides livelihood for nearly 65% of the population. It also contributes 21% of the total export and raw material to several Industries. This sector has tremendous potential for further expansion of employment opportunities and consequently mitigating the levels of rural poverty.

The Financing Company aims to enable access to finance for various players of the Indian agricultural value chain who require financing for activities such as input supply, production, distribution, wholesale, processing and marketing. Further also offers innovative and customized financing solutions to its partners in this space. It believes that an efficient financial solution will ensure that the benefits of financing trickle down to the last mile farmer.

RISK & OPPORTUNITIES

Golden Legand Leasing and Finance Limited are exposed to risk and opportunities in equal measures. The company has a robust Enterprise Risk Management (ERM) framework that allows the organization to take certain risk in order to be competitive and to mitigate other risk to drive sustainable results. By identifying and proactively addressing risk and opportunities, stakeholder value is protected at all times. We do address the risk related to strategy, operational, financial and legal.

Opportunities:

• To take advantage of the various initiatives taken by the Government.

• Export potential in traditionally overlooked markets.

• Growth in Digital Marketing

• Availability of Bank finance providing liquidity for import and capacity utilization.

INTERNAL CONTROLS

The Company has proper and adequate systems of internal control that provides assurance on the efficiency of operations and security of assets. An independent Internal Auditor is in place to check, audit and monitor the process as per the Internal Audit Plan approved by the Audit Committee of the Company.

Further Company is in the process of implementing Enterprise Resource Planning (ERP) at all its plants covering all its businesses, planning and accounting processes. This will help Company to increase the operational efficiency and cost effectiveness of overall operational controls.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES

In the year under review, the overall industrial relations have been cordial and conducive to work by means of capacity building and training programmes related to sustainable urban and industrial development and consumer protection The Company recognizes the value and contribution of its employees and earnestly endeavors to create a responsive organization with emphasis on performance with responsibility and accountability, in order to shield the employees from "too little" to "overload" just the right amount of the content. Continuous appraisal of the competencies of the personnel in line with job requirements is carried out to facilitate higher levels of output and productivity.

Key factors observed by the management:

• to encourage employees to develop their professional skills the

• to create executive leadership development programs

• to allow learning new skills necessary to take on management responsibilities

• to conduct awareness sessions about new policies and procedures

• to ensure compliance to local, state and federal regulations

DISCLAIMER

This discussion and analysis have been provided with a view to enable shareholders with a better understanding of the performance of the Company. In certain areas the discussion may cover strategic decision and management expectations from the same. Such forecasts should not be construed as a guarantee of performance and actual results may differ significantly depending upon the operating conditions and external environment.