Nicco Uco Alliance Credit Ltd Management Discussions

Annexure - A

ANNEXURE TO DIRECTORS REPORT

MANAGEMENT DISCUSSION & ANALYSIS REPORT OVERVIEW AND INDUSTRY STRUCTURE & DEVELOPMENTS:

As reported in earlier year, during the year under review also the Company could not carry on any fund based business i.e. Leasing and Hire Purchase due to cancellation of Certificate of registration by Reserve Bank of India. However, efforts were made for recoveries of dues from N.P.A / written off parties.

OPPORTUNITIES, THREATS, RISKS, CONCERNS, PERFORMANCE AND OUTLOOK:

The entire efforts of the company continued to be directed towards managing its liabilities. Cancellation of the Certificate of Registration by Reserve Bank of India has resulted in discontinuation of fund based business which was the primary source of income of the company. Net owned fund of the company has been completely wiped out due to heavy loss incurred by the company in earlier years.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Your company has an effective system of accounting and administrative control supported by an internal audit system with proper and adequate system of internal check and control to ensure safety and proper recording of all assets of the company.

DISCUSSION OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Attention is drawn to the report of the Directors in general and issues discussed under the head "Operations". The Companys financial position is critical and a combined effort of secured creditors and Shareholders may improve the position in the long run.

HUMAN RESOURCES:

The relation with employees continues to be cordial and harmonious.