K Z Leasing & Finance Ltd Management Discussions.

This report covers the operations and financial performance of the Company and part forms of the Directors Report.

AN INDUSTRY OVERVIEW:

The management is confident of improvement in the companys working in the near future with fast growth.

The scenario of the finance industry and economy in general is buoyant even after the industry is exposed to competition with policy of the government. The process of development, increasing thrust of the government on the finance industry, the future of industry appears quite bright.

OUTLOOK:

Financial year 2019-20 posed a serious challenge to the finance sector especially in Q4 in view of COVID-19 pandemic which engulfed the globe. Finance sector all over the globe is facing numerous issues exposed by global financial crisis, which have posed numerous challenges which we are trying to overcome. In consonance with idea of strengthening regulation and supervision , RBI has been constantly on the move to improve efficacy of its supervision and its regulatory functions. It is also focusing on both off site surveillance and on site surveillance.

BUSINESS HIGHLIGHTS:

Turnover:

K Z Leasing and Finance Limited have turnover of Rs. 1,11,63,058 in 2019-20 as against Rs. 86,85,166 in 2018-19 Employee Benefit Expenses:

Employees emoluments (other than managerial remuneration) is Rs. 30,93,265/- during the year as against Rs. 29,32,853/- during the previous year.

Administrative and Other Expenses:

Major components of administrative and other expenses includes printing and stationary, audit fees, advertisement expenses, postage and stamps, listing fees, insurance premium etc. Administrative and other expenses for the year amounted to Rs. 16,77,280/- as against Rs. 43,28,951/- during the previous year.

Depreciation:

Depreciation charge for the current year came to Rs. 57,023/- as against Rs. 42,101/- of the previous year.

Provision for Tax:

The Company has not made any provision towards current tax in the Current year. As there is no dividend payable this year, the company has not provided any amount for dividend distribution tax.

Profit/Loss after Tax:

The Company has made profit after tax for the current year is Rs. 24,17,890/- as against profit of Rs. 5,32,454/- during the previous y ear. The Directors are hopeful for the better and better performance in the future.

FINANCIAL CONDITION:

Non Current assets

(i) Financial investments :

Financial investments of the company is Rs. 7,44,25,822 as at 31st March, 2020 against Rs. 6,87,94,008 which was at 31st March, 2019

(ii) Loans and Advances :

Loans and advances of the company is Rs. 10,54,56,317 as at 31st March,2020 against Rs. 9,28,09,582 of previous year

(iii) Property Plant and Equipment:

Net block of the fixed assets at the end of the year is Rs. 4,38,920 as against Rs 4,95,943 in the previous year.

Current assets

The total Current Assets of the company as at 31st March, 2020 is Rs. 42,65,156 which was Rs 1,53,23,549 in the previous year.

Non Current Liabilities:

The Companys Non Current Liabilities includes Long Term borrowings of Rs. 10,74,232 as at 31st March, 2020 as against Long Term Borrowings of Rs. 11,99,952 as at 31st March, 2019.

Current Liabilities:

Companys Current Liabilities includes Trade payables and Other Current Liabilities which are amounting to Rs. 5,94,72,274 as at 31st March, 2020 against Rs. 4,35,96,374 as at 31st March, 2019

SWOT ANALYSIS OF THE COMPANY:

Strength:

• Management depth and ability to manage client / customer relationships

• Enhanced presence in the market through clientele basis

Opportunities and Threats:

The micro finance industry in subject to tough competition amongst various segments within and outside the country. The threat of competition is comparatively less in the area in which your company is operating. The increase in demand from business sector will provide opportunity to your company to increase more market share. Moreover, Indian Finance industry is witnessing changes in business dynamics.

A. RISKS AND CONCERNS :

The company is mainly focusing on manpower and the intelligence. Apart from the risk on account of interest rate and regulatory changes, business of the company are exposed to certain operating business risks, which is mitigated by regular monitoring and corrective actions. The company has taken necessary measures to safe guard its assets and interest etc.

B. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY :

The company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and to monitor internal business process, financial reporting and compliance with applicable laws.

The internal control system has been designed so as to ensure that the financial and other records are reliable and reflects a true and fair view of the state of the Companys business. A qualified and independent committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening them.

C. HUMAN RESOURCE MANAGEMENT :

The Company believes that human resource is the most important assets of the organization. It is not shown in the corporate balance sheet, but influences appreciably the growth, progress, profits and the shareholders values. During the year your company continued its efforts aimed at improving the HR policies and processes to enhance its performance. The vision and mission of the company is to create culture and value system and behavioral skills to insure achievement of its short and long term objectives.

Accounting Treatment

Audited Financial Statements for the year ended 31st March, 2020are in compliance with the Indian Accounting Standards (Ind-AS) prescribed under section 133 of the Companies Act, 2013.

Cautionary Statement:

Statement made in the Management Discussion and Analysis Report describing the companys objectives, projections, estimates, expectations may be "Forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the markets in which the company operates changes in the government regulations, tax laws & other statutes and other incidental factors.