Golechha Global Finance Ltd Management Discussions.


Non-banking finance companies (NBFCs) form an integral part of the Indian financial system. They play an important role in nation building and financial inclusion by complementing the banking sector in reaching out credit to the unbanked segments of society, especially to the micro, small and medium enterprises (MSMEs), which form the cradle of entrepreneurship and innovation. NBFCs ground- level understanding of their customers profile and their credit needs gives them an edge, as does their ability to innovate and customize products as per their clients needs. This makes them the perfect conduit for delivering credit to MSMEs.

However, NBFCs operate under certain regulatory constraints, which put the mat a disadvantage visa-vis banks. While there has been a regulatory convergence between banks and NBFCs on the asset side, on the liability side, NBFCs still do not enjoy a level playing field. This needs to be addressed to help NBFCs realize their full potential and thereby perform their duties with greater efficiency.

Moreover, with the banking system clearly constrained in terms of expanding their lending activities, the role of NBFCs becomes even more important now, especially when the government has a strong focus on promoting entrepreneurship so that India can emerge as a country of job creators instead of being one of job seekers. Innovation and diversification are the important contributors to achieve the desired objectives.


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.


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.95.23 Lacs as against Rs. 92.38 Lacs for the previous year. The operations of the Company have resulted in Profit after Tax of Rs.38.09 Lacs as against Rs. 44.25 Lacs in the previous year. The operations of the Company have resulted in Profit after Tax of Rs 38.09 Lacs as against Rs. 44.25 Lacs in the previous year, which is on account of the employee benefit expenses and other expenses.


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 FY2019-20 and hopes to grow at a rate faster than the growth of bank credit. The approach would be to continue the 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.


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.


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.


(In Lakhs)

Particulars 2019-20 2018-19
Total Income 95.23 92.38
Total Expenses 45.65 31.98
Profit Before Taxation 49.57 60.40
Profit after Tax 38.09 16.15
Earnings per Equity share - Basic & Diluted 0.69 0.80


Particulars 2019-20 2018-19
1 Debtors Turnover NA NA
2 Inventory Turnover NA NA
3. Debt to Equity Ratio 0.016 0.0144
3 Interest Coverage Ratio NA NA
4 Current Ratio 63.63 70.65
5 Operating Profit Margin 52.06% 65.39%
6 Net Profit Margin 40.00% 47.91%
7 Return on Net Worth 40.00% 47.91%


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 2019-20 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
Gyan Swaroop Garg
Chairman & Managing Director
(DIN: 00602659)
Place : Kolkata
Date : 01.09.2020