ISF Ltd Management Discussions.

• FORWARD-LOOKINGSTATEMENTS

The business of the Company is that of a Non Banking Finance Company (NBFC).

The Current Economic conditions are very difficult for undertaking any business particularly financing of commercials vehicles because of the difficulties experienced in recovery of dues. It is hoped economy will turn a rounding 2018-19, then doing business would become easier.

• INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company has adequate internal control procedures commensurate with the size and nature of the business. The internal control system is supplemented by regular reviews by the management and well- documented policies and guidelines to ensure reliability of financial and all other records and to prepare financial statements and other data. Moreover, your Company continuously upgrades these systems in line with the best accounting practices. The Company has independent audit systems to monitor the entire operations and the Audit Committee of the Board reviews the findings and recommends for better audit procedures and systems as may be required. It is ensured that all assets are safeguarded and protected against any loss from unauthorized use or disposition and that transaction are authorized, recorded and reported correctly to keep constant check on the cost structures and to prevent revenue leakages.

• BUSINESS OVERVIEW

The Economic Conditions & non-availability of Funds continues to be a major constraint.

• MARKETING

The Company is setting up a good marketing team to enter to increased turnover.

SWOT

Our strength is our experience and team work, weakness is the non availability of funds either from the Banks or Market.

SWOT

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

Particulars 2018-2019 (Rs. in Lacs) 2017-2018 (Rs. in Lacs)
Gross Income 148.15 122.39
Profit Before Interest and Depreciation 25.30 37.73
Finance Charges 21.48 33.66
Gross Profit 3.82 4.07
Depreciation 0 0.38
Net Profit Before Tax 3.82 3.69
Provision for Tax 0.99 1.32
Net Profit After Tax 2.83 2.37
Balance of Profit brought forward 206.34 204.44
Balance available for appropriation 0 0
Proposed Dividend on Equity Shares 0 0
Tax on proposed Dividend 0 N.A
Transfer to General Reserve 0
Surplus carried to Balance Sheet 208.60 206.34

• INTERNAL CONTROL

The Company has adequate internal control procedures commensurate with the size and nature of the business. The internal control system is supplemented by extensive internal audits conducted by the Internal Auditor of the Company, regular reviews by the management and well-documented policies and guidelines to ensure reliability of financial and all other records and to prepare financial statements and other data.

• RISK AND CONCERNS

Growth of the Business of the Company is linked to the overall economic growth. Macro risk to the business can be adverse changes to the economy and policies of Reserve Bank of India and Policies of Government of India. Volatility in Non-performing assets can be other significant risk.

• OUTLOOK

The Company is seeking to improve its NBFC business. To strengthen its NBFC business, company is exploring the opportunities in consumer retail finance.

• HUMAN RESOURCES

Your company always regards human resources as its most valuable asset and continuously evolves policies and process to attract and retain its substantial pool of managerial resources through friendly work environment that encourages initiatives by individuals and recognizes their performance. The total number of people employed at the Company are

• SEGMENT INFORMATION

The primary business segment of the Company is NBFC activities which include disbursement of to Retail Customers and Small Companies and Firms and Investment activities.

Threats

• High cost of funds

• Slow industrial growth

• Stiff competition withNBFCs as well as with banking sector Non-performing assets

• Changes in Technology

• Entry ofNew players

• Government Policies

• DETAILS OF SIGNIFICANT CHANGES (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

Particulars 2018-19 2017-18
a) Debtors Turnover Inventory Turnover N.A. N.A.
b) Interest Coverage Ratio 1.18 1.11
c) Current Ratio 4.87 4.68
d) Debt Equity Ratio 0.33 0.34
e) Operating Profit Margin (%) 85.48 72.50
f) Net Profit Margin (%) 2.59 3.02

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof:

DISCLAIMER

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 are such as industrial relations and economic developments etc. may further influence the companys operations or performance.

Compliance with Code of Business Conduct and Ethics

As provided under Regulation 17(5) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015with the Stock Exchanges, the Board Members and the Senior Management Personnel have confirmed compliance with the Code of Conduct and Ethics for the year ended March 31,2019.

For ISF Limited
Sd/-
Date: 13.08.2019 (Mr. Amarjit Singh)
Place: New Delhi Managing Director DTN : 00062294