Key Corp Ltd Management Discussions

f) STRUCTURE AND DEVELOPMENT;

Your Company is a registered NBFC and is engaged in finance business since inception from 1986. The Companys thrust area is vehicle financing, particularly in old vehicle finance and investment of Surplus Funds in Mutual Funds. The Company has developed expertise in financing and recovery of its loan and built-up sound portfolio of old vehicles. The business activities of the Company are mainly concentrated in the State of Uttar Pradesh where it has found enough scope.

II) OPPORTUNITIES AND THREATS:

With the growth in economy, particularly the service sector, there is ample scope for vehicle financing which is companys thrust area. Company has developed expertise during the period of 40 years in financing of used vehicles. Company looks forward to avail such opportunities by expanding area net-work.

However, as the vehicle financing is a high-risk area, particularly in the northern region where the company is operating, it is moving forward with caution. Moreover, there is severe competition from the organized banking sector particularly, private sector banks.

Further, the company foresees substantial potential in revenue generation from its activity of investing surplus funds in mutual funds, which is however subjected to market risks.

III) PRODUCT-WISE PERFORMANCE:

The company is not a manufacturing company and is engaged only in vehicle financing and investment in Mutual Funds. The performance of the company has been satisfactory in the current economic scenario.

IV) OUTLOOK:

As has been explained above, future business scenario is hopeful.

V) RISKS AND CONCERNS:

Risk is an inherent part of finance business. Your company, however, has taken steps in strengthening the risk management systems and practices. The company is continuously monitoring the business by deputing recovery managers

VI) INTERNAL CONTROL SYSTEM:

The company has adequate Internal Control System commensurate with the size and nature of its business with regard to finance, recovery and investment.

VII) OPERATIONAL PERFORMANCE;

Looking to the highly competitive economic conditions, your company has done well and has secured the business to the tune of Rs.130.90 Lakhs.

Significant Financial Ratios:

VIII) HUMAN RESOURCES:

The company has a professional team to control its day to day activities under the guidance of the Executive Director.