Lakshmi Finance & Industrial Corporation Ltd Management Discussions.

REVIEW OF ECONOMY:

Calendar Year 2020 marked as unprecedented collapse in the global economy as the outbreak of novel Coronavirus (COVID-19) pandemic towards the end of Calendar Year 2019 infected severe humanitarian costs on the World. To tackle the health emergency, all major economies announced nationwide lockdowns, border shut down and social distancing norms, bringing economic life to a standstill. This resulted in a global economic growth to contract by 3.3% as against 2.8% growth witness in Calendar Year 2019, marking one of the worst financial crises. Global prospects continue to remain uncertain one year in the pandemic. Substantial fiscal and monetary stimulus packages released by the Governments and Central Banks across the globe are playing a pivotal role in this recovery. Successful vaccination program is expected to further boost to investor sentiments. Backed by the improving macro-economic indicators, the IMF estimates the global economy to grow at 6.0% in Calendar Year 2021.

INDIAN ECONOMY:

In line with the global economy, India witnessed major economic disruptions in F.Y 2020-21, as the outbreak of COVID-19 impacted human health and safety of the Countrys inhabitants. This prompted the Government of undertake one of the worlds tightest lockdowns, bringing manufacturing and trade activities to screeching halt. Mobility restrictions and social distancing led to unparalleled supply chain disruptions and consumer demand fallout. This forced the Indian GDP to contract by 8.0% in FY 2020-21 as against growth of 4.0% in FY 2019-20, Despite the challenges posed by the pandemic in FY 2020-21, the outlook for FY 2021-22 seems promising.

The overall performance of the Company is quite encouraging because of favourable Stock Market conditions and portfolio investments valuation during the Financial Year 2020-21. The Company will continue to focus its efforts to closely monitor portfolio Investment activity to generate optimum returns by way of capital appreciation and periodic dividend returns.

INVESTMENTS:

Total Investments as on March 31,2021 is Rs.3,351.31 lakhs excluding Rs.650.50 lakhs of Fixed Deposits and Rs.100 lakhs of Government Bonds as against Rs.2,411.81 lakhs of Investments and Rs.450 lakhs of Fixed Deposits as at March 31,2020.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The CEO and CFO certification provided in the certification section of the Annual Report discusses the adequacy of our Internal Control systems and procedures.

KEY FINANCIAL INDICATORS: LAST THREE YEARS:

(Rs. in lakhs)

F.Y 2020-21 F.Y.2019-20 F.Y.2018-19
Equity Capital and Reserves 4223.37 3371.75 4131.67
Investments 3351.31 2411.81 3670.34
Gross Profit/(Loss) (before tax) 1399.38 (920.66) (150)
Net Profit/(Loss) (after tax) 915.35 (658.63) 62.13
Dividend (%) 30% 20% 25%
Earnings per share 30.51 (21.95) 2.07
For and on behalf of the Board
Lakshmi Finance & Industrial Corporation Limited
Sd/-
K.HARISHCHANDRA PRASAD
Place: Hyderabad MANAGING DIRECTOR
Date : 29.06.2021 DIN:00012564