Motor & General Finance Ltd Management Discussions.

INDUSTRY STRUCTURE AND BUSINESS DEVELOPMENTS

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

FINANCIAL

The company’s Standalone Financial Results during the year is shown below:-

(Rs. in lacs)

Financial Results Year ended March 31, 2019 Year ended March 31, 2018
Gross Profit before depreciation, finance cost and provisioning (149.49) 340.71
Less: Finance Cost 125.89 389.34
Less: Depreciation including impairment and property reserves 145.87 117.35
Profit /(Loss) before exceptional items and tax (421.25) (165.99)
Exceptional Items - -
Profit /(Loss) before, tax (421.25) (165.99)
Tax expense (101.99) (93.30)
Profit(/Loss) for the year (319.26) (72.69)
Other Comprehensive income(net of tax) 0.16 3.87
Total comprehensive income for the year (319.10) (68.82)

Opportunities & Threats, Risk & Concerns, Performance and Outlook

Risk & Concerns

Your company has drawn Risk Management Policy which provides identification of Risk and measures to mitigate the same. The Risk assessment and mechanism to minimize the same is constantly 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 internal control systems of the company are effective and adequate for business processes with regards to efficiency of the operations, compliance with applicable laws and regulations, financial reporting and controls, among others, that are commensurate with the size and complexities of the operations. These are regularly tested for their effectiveness by the statutory as well as the internal auditors. 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. The internal audit team conducts extensive reviews covering financial operational and compliance controls and risk mitigation. 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

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 encourage initiatives by individuals and recognizes their performance.

Disclaimer

Certain Statements in the Management Discussions and Analysis describing the company’s 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 company’s 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 company’s 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 31,2019 which are fraudulent, illegal or in violation of the company’s 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 entity’s internal control systems over financial reporting.

for THE MOTOR & GENERAL FINANCE LTD for THE MOTOR & GENERAL FINANCE LTD
(RAJIV GUPTA) (M.K. MADAN)
CHAIRMAN & MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER(CEO) VICE PRESIDENT & CO.SECRETARY & CHIEF FINANCIAL OFFICER (CFO)
DIN:00022964 (ACS-2951)
Place: New Delhi
Date: August 13, 2019