Motor & General Finance Ltd Management Discussions.

INDUSTRY STRUCTURE AND BUSINESS DEVELOPMENTS

The companys main business activity is leasing & development of real estate. During the year, in respect of project at Shalimar Place, Shalimar Bagh, New Delhi, the companys focus is to achieve the maximum return on the investment.

FINANCIAL

The companys Standalone Financial Results during the year is shown below:-

(Rs in Lacs)

Financial Results Year ended March 31, 2020 Year ended March 31, 2019
Gross Profit before depreciation, finance cost and provisioning (335.10) (149.49)
Less: Finance Cost 76.88 125.89
Less: Depreciation including impairment and property reserves 129.36 145.87
Profit /(Loss) before exceptional items and tax (541.34) (421.25)
Exceptional Items - -
Profit /(Loss) before, tax (541.34) (421.25)
Tax expense (3.43) (101.99)
Profit(/Loss) for the year (544.77) (319.26)
Other Comprehensive income(net of tax) 10.26 0.16
Total comprehensive income for the year (534.51) (319.10)

Opportunities & Threats, Risk & Concerns, Performance and Outlook Risk & Concerns

Risk Management Policy provides identification of risk and measures to mitigate the same. There is a Risk Management Committee which identify, evaluate and provide mitigation of operational strategic and external environment risk. The Committee is further responsible for reviewing and approving the risk disclosure statement in any public document. It is further reviewed by the Audit Committee from time to time. The procedures are also periodically reviewed to ensure that management control risk through means of properly defined frame work.

Internal Control System and their adequacy

The company during the year has reviewed its Internal Financial Control (IFC) systems and has continually contributed to establishment of more robust and effective IFC framework, prescribed under the ambit of Section 134(5) of the Companies Act, 2013.

The control criteria ensures the orderly and efficient conduct of the Companys business, including adherence to its policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

In commensurate with the size and complexities of the operations, the company has established and maintained Internal Financial Control based on the internal control over financial reporting criteria established by the company. Statutory & Internal Auditors constantly and consistently review the effectiveness of the internal control. The internal control systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information. The internal auditors review the adequacy, integrity and reliability of the internal control systems and suggest improvements in its effectiveness. Process improvements identified during the reviews are communicated to the management on a on going basis. Significant observations made by the internal auditors and the follow up actions thereon are reported to the Audit Committee. The Audit Committee monitors the implementation of the audit recommendations.

Human Sources

The company complete 90 years of its operations and through friendly work environment, the company has been able to tackle the issues and emerged successfully with sheer determination and passion of its dedicated employees who are the most valuable asset of the organization.

Disclaimer

Certain Statements in the Management Discussions and Analysis describing the companys reviews 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 such as industrial relations and economic developments, etc may further influence in companys operations or performance.

COMPLIANCE CERTIFICATE BY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER UNDER REGULATION 17(8) OF SEBI(LODR) REGULATIONS, 2015

A. We have reviewed Standalone and Consolidated Financial Statements and the cash flow statement for the year and that to the best of our knowledge and belief that:-

1. These statements do not contain any materially untrue statement or omit any material fact or contain statement that might be misleading.

2. These statements together present a true and fair view of the companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

B. There are to the best of their knowledge and belief, no transactions entered into by the listed entity during the year ended March 31,2020 which are fraudulent, illegal or in violation of the companys Code of Conduct.

C. We accepted responsibility for establishing and maintaining internal control for financial reporting and that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, in which we are aware and the steps we have taken or purpose to take to rectify these deficiencies.

D. We have indicated to the auditors and the Audit Committee

(1) significant changes in internal controls over financial reporting during the year.

(2) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and

(3) instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the entitys internal control systems over financial reporting.