India Lease Development Ltd Management Discussions.


Industry Overview:

The business of the Company is that of a Non Banking Finance Company (NBFC). Non Banking Financial Companies (NBFCs) play a crucial role in broadening access to financial services, enhancing competition and diversification of the financial sector.

NBFCs have an advantage over banks as the business model is relationship-oriented, requires a good geographical spread and survives on thin margins. Banks and NBFCs compete for some similar kinds of business. Inspite of strong competition faced by the NBFCs, the inner strength of NBFCs viz local knowledge, credit appraisal, skill, well trained collection machinery, close monitoring of borrowers and personalized attention to each client are catering to the needs of small and medium enterprises in the rural and semi urban area.

Outlook on opportunities, threats, risks and concerns:

The company is consolidating its position and making its best efforts to realize the maximum from the customers by taking recourse of legal remedies where warranted.

Internal control System and adequacy

Your company has an adequate system of Internal control, designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordance with managements authorization and properly recorded. Accounting records are adequate for preparation of financial statements and other financial information. Besides, the management has put in place system for review and monitoring of non performing assets of the company for effecting recoveries.


The Financial performance of the Company are given as under:-

(Rs in lakhs)

Financial Results Year ended March 31, 2020 Year ended March 31, 2019
Gross Profit before Depreciation, Finance Cost and Provisioning 130.43 (15.10)
Less : Finance Cost - -
Less: Depreciation including Impairment and Property Reserves 0.11 0.21
Profit/(Loss) before Exceptional Items and Tax 130.54 (15.31)
Exceptional Items - -
Profit/(Loss) before Tax 130.54 (15.31)
Tax Expenses - 22.88
Profit/(Loss) for the year 130.54 (38.19)
Other Comprehensive Income (net of tax) (125.87) 37.95
Total Comprehensive Income for the year 4.67 (0.24)

Risk and Concern

In view of no fresh business exposure, the existing clients sometimes lead to default in repayment which has a cascading effect on other customers for which suitable measures to control this trend are taken.

Human Resources

Your company considers human resources a key element. The company has a competency based performance and potential appraisal systems for identifying and developing managerial talents and is reviewed on an on going basis. Emphasis is laid on providing adequate training to its employees, to meet the attitudinal and cultural values of the organization ethos to achieve customer satisfaction.


Certain Statements in the Management Discussion and Analysis describing the companys views about the industry, expectations, objectives, etc may be understood within the meaning of applicable laws and regulations. Factors like changes in Government regulations, tax laws and other factors as such industrial relations and economic developments etc. may further influence the companys operations or performance.