nikki global finance ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ECONOMIC OVERVIEW

The NBFC sector in India has continued to evolve and grow, driven by favorable economic conditions and increased financial inclusion. Despite intermittent challenges in the macroeconomic environment, we have witnessed a steady recovery in the Indian economy, leading to improved market sentiment and higher investor confidence. The regulatory landscape has also undergone significant reforms to strengthen governance and risk management in the NBFC sector.

FINANCIAL PERFORMANCE

The company achieved remarkable financial performance in 2022-2023, delivering huge profits as compared to the previous year losses. Key financial highlights include:

Total revenue increased by 85.93% as compared to the previous year, driven by robust growth in our lending and investment activities.

Net profit margin improved by 450% as compared to previous profits, reflecting enhanced operational efficiency and effective cost management.

OPPORTUNITIES AND STRENGTHS

We remain optimistic about the future prospects of Nikki Global Finance Limited and the NBFC industry in India. The economic recovery, government initiatives, and favorable demographics present numerous growth opportunities for our business. Key focus areas for 2023-24 include:

Expanding our product offerings to cater to emerging customer needs, including customized financing solutions and sustainable finance initiatives.

Strengthening our digital capabilities to enhance customer engagement, streamline processes, and drive operational efficiencies.

* Exploring strategic partnerships and collaborations to expand our market reach and leverage synergies in complementary sectors.

* Continuously enhancing our meow management framework to proactively identify and mitigate potential risks associated with the evolving regulatory environment.

BUSINESS OVERVIEW

During the year in purview the company performed exceptionally well as the economic conditions were favorable for the company and it has future plans to expand and diversify the business of the company taking into account the dynamic environment in which the business operates.

RISKS AND CONCERNS

The Capital market industry in which your Company is operating is subject to extensive regulation and compliance management. The company evaluates these risks specially the risks related to Financial Risks such as Credit Risk, funding risk, Legal risk and so on and is proactively working on the same to mitigate these risks and bring these to an acceptable level.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has satisfactory internal control system. The Company has an adequate system of internal controls to ensure accuracy of accounting records, compliance with all laws & regulations and compliance with all rules, procedures & guidelines prescribed by the management. An internal audit is carried out by company secretary of the company. An internal team of inspection also regularly visits office of the Company for ensuring regulatory compliance. Post audit reviews are also carried out to ensure follow up on the observations made by the internal as well as statutory auditors.

HUMAN CAPITAL

The company recognizes its responsibility towards the society specially the Human resources of the company. The company provides a positive and healthy environment for its employees growth and it believes in creating business leaders by employing best talent in the industry, providing opportunities, empowerment by delegations, training and taking care of their growth. The company is trying is best to follow the Triple bottom line.

DISCLOSURES

During the year, the Company has not entered into any transactions of material nature with its promoters, the directors or the management, relatives etc. that may have potential conflict with the interest of the Company at large.

All the transactions with related party(ies) are made in ordinary course of business and on arms length basis.

CAUTIONERY STATEMENT

The content and statements provided in this report includes the companys goals and forecasts, which may be considered forward-looking statements in accordance with applicable laws and regulations. The actual outcomes could differ significantly from those expressed or implied due to factors beyond the companys control, such as economic conditions, government policies, and other incidental factors. It is important to note that the company is not obligated to publicly update or revise any forward-looking statements based on subsequent developments, information, or events.