Golechha Global Finance Ltd Management Discussions

INDUSTRIAL STRUCTURE AND DEVELOPMENT

NBFCs (Non-Banking Financial Companies) 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. NBFCs do play a critical role in participating in the development of an economy by providing a fillip to transportation, employment generation, wealth creation, bank credit in rural segments and to support financially weaker sections of the society. Emergency services like financial assistance and guidance is also provided to the customers in the matters pertaining to insurance.

NBFCs are financial intermediaries engaged in the business of accepting deposits delivering credit and play an important role in channelizing the scarce financial resources to capital formation. They supplement the role of the banking sector in meeting the increasing financial needs of the corporate sector, delivering credit to the unorganized sector and to small local borrowers. However, they do not include services related to agriculture activity, industrial activity, sale, purchase or construction of immovable property. In India, despite being different from banks, NBFC are bound by the Indian banking industry rules and regulations.

NBFC focuses on business related to loans and advances, acquisition of shares, stock, bonds, debentures, securities issued by government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business.

The banking sector would always be the most important sector in the field of business because of its credibility in supporting manufacturing, infrastructural development and even being the backbone for the common mans money. But despite this, the role of NBFCs is critical and their presence in a country would only boost the economy in the right direction.

INDUSTRY OVERVIEW:

An on bank financial institution (NBFI) is a financial institution that does not have a full banking license and cannot accept deposits from the public. However, NBFIs do facilitate alternative financial services, such as investment (both collective and individual), risk pooling, financial consulting, brokering, money transmission, and check cashing. NBFIs are a source of consumer credit (along with licensed banks). Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops. These non-bank financial institutions provide services that are not necessarily suited to banks, serve as competition to banks, and specialize in sectors or groups.

Non-banking financial companies (NBFCs) are projected to grow at 13-15% during fiscal 2025, primarily driven by retail asset expansion, according to ICRA Ltd. The growth outlook has been moderated, and the ratings agency now estimates that NBFCs retail assets under management (AUM) are likely to expand by about 16-18% in fiscal 2025, compared to the previous estimate of 18-20%. Housing finance companies (HFCs) are expected to grow at 12-14%, while the NBFC infrastructure segment is likely to maintain a growth rate of 10-12%, as per ICRAs latest projections.

The growth of net interest margin (NIM) and other income is expected to moderate in fiscal 2025, primarily due to a rise in the cost of funds, according to ICRA Ltd. Operating expenses are also projected to increase, in line with broader banking sector trends, as issuers continue to expand operations and invest in digital infrastructure. A marginal uptick in credit costs is anticipated, driven by higher Stage 1 provisions and emerging stress in unsecured portfolios.

The sector is expected to pivot towards long-term funding, particularly from bank credit, as NBFCs and HFCs seek more stable and diversified capital sources. ICRA estimates that incremental funding requirements for NBFCs and HFCs will be approximately ?4.7-5 trillion in fiscal 2025, to support the projected 13-15% growth in assets under management (AUM).

Despite cost pressures, the sector is likely to witness healthy growth, supported by a steady expansion in bank credit, robust market issuances, and strong securitisation demand, which are expected to ensure adequate liquidity and funding access.

The unsecured loan segment continues to be the primary growth driver for NBFCs, propelled by digitisation, cross-selling, and a sharp rise in personal loans. The segment has recorded a compound annual growth rate (CAGR) of 33% over the past five years. The share of unsecured loans is projected to reach 26% by March 2026, up from 16% in March 2019. Within the personal loan category, NBFCs remain focused on small-ticket lending, catering to underserved borrower segments, according to ICRA.

Source:https://www.bqprime.com/economy-finance/heres-why-icra-upwardly-revised-nbfcs-2024-25-growth-outlook

OPPORTUNITY & THREATS:

India is an attractive investment destination and the Companies here are the part of Indias growth story and through this we have also get hold of immense opportunities to expand, strengthen and enhance our business. We have enough headroom available to enlarge our network and at the same time educate number of customers to tie-up with us.

However due to continuing recession throughout world markets, a slowdown in financial flows into the economy and lingering impact of global credit crunch are seen as the greatest risk faced by NBFCs. Further the volatility in the Indian equity markets and the huge liquidity crunch due to global financial meltdown would be a threat for the Companys business growth.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

Your company is not dealing in any kind of product as the companys principal business is lending business only and during the year under review, the interest income from loans granted was Rs. 19.0574 Lakhs as against Rs. 32. 03 Lakhs for the previous year. The operations of the Company have resulted in Profit after Tax of Rs. 57.2821 Lakhs as against Rs 147.7631 Lakhs in the previous year.

OUTLOOK:

The Companys present business operations are preponderantly that of Loans & Advances, future of which largely depends upon financial and capital markets. The income from the advances/lending business is steadily growing, contributing significant volume to the overall business of the Company. The Management is optimistic, expects to maintain its performance in FY 2024-25, growth momentum while balancing risk. As before, it will continue to invest in strengthening risk management practices; and in maintaining its investment in technology and human resources to consolidate its position as a leading NBFC in India.

RISK AND CONCERNS:

The Companys risk philosophy involves the developing and maintaining a healthy portfolio within its risk appetite and the regulatory framework. While the Company is exposed to various types of risk, the most important among them are credit risk, market risk (which includes liquidity risk and price risk) and operational risk. The measurement, monitoring and management of risk remains key focus areas for the Company which manages this risk by maintaining prudent and commercial business practices.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has in place proper and adequate internal control systems commensurate with the nature of its business, size and complexity of its operations. Internal control systems comprising of policies and procedures designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations, and that all assets and resources acquired are used economically.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Particulars	2024-2025	2023-2024
Total Income	2863.57	1748.59
Total Expenses	2924.95	1566.22
Profit Before Taxation	(61.38)	182.37
Profit after Tax	(57.28)	147.76
Earnings per Equity share - Basic & Diluted	(1.04)	2.69

During the year under review, the interest income from loans granted was Rs.19.0574 Lakhs as against Rs. 32.03 Lakhs for the previous year. The operations of the Company have resulted in Profit after Tax of Rs. 57.2821 Lakhs as against Rs. 147.7631 Lakhs in the previous year. During the period and under review Company has invested in the shares of other companies and the income from sale of shares during the current year is Rs.2840.9429 Lakhs against Rs. 1714.8743 Lakhs in the previous financial year.

KEY FINANCIAL RATIOS:

S.No.	Particulars	2024-2025	2023-2024	% change	Variation in percentage
1	Debtors Turnover	NA	NA
2	Inventory Turnover	5.23	3.22	62.32%	Higher sales and lower inventory compared to previous year resulted in positive variation.
3	Debt to Equity Ratio	NA	NA
4	Interest Coverage Ratio	NA	NA
5	Current Ratio	262.95	287.89	-8.66	Reduction in current assets resulted in variation
6	Operating Profit Margin	2.14%	10.43%	-120.50%	Operating losses incurred during the year as compared to previous year resulted in negative variation.
7	Net Profit Margin	-2.00%	8.46	-125.02%	Losses incurred during the year resulted in negative variation
8	Return on Net Worth	-7.58%	18.33%	-141.35%	Negative returns earned during current year as compared to Profit earneed in previous year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES:

Your Company considers its Human Resources as the key to achieve its objectives. Keeping this in view, your Company takes utmost care to attract and retain quality employees. The employees are sufficiently empowered and such work environment propels them to achieve higher levels of performance. The unflinching commitment of the employees is the driving force behind the Companys vision. Your Company appreciates the spirit of its dedicated employees. There is no material development in the human resources employed in the FY 2024-25 and there are no material developments in the human resources utilized in the Company.

	BY THE ORDER OF THE BOARD
	FOR GOLECHHA GLOBAL FINANCE LIMITED
	Sd/-
	GYAN SWAROOP GARG
Place: Kolkata	CHAIRMAN & MANAGING DIRECTOR
Date: 19.08.2025	DIN: 00602659