Nilkanth Engineering Ltd Management Discussions

Annexure 4

NILKANTH ENGINEERING LIMITED

Industry Structure and Development

The Indian economy has witnessed profound positive transformation and has showed resilience and strong growth across the sectors and continues to be and continues to be among the fastest growing economies in the world. The geopolitical tensions, supply chain, disruptions, high inflation and tighter monetary conditions were some of the challenges for the economy recovery

The Company is engaged in Lending and Investment financial activities which is become important constituents of the financial sector and have been recording high credit growth than scheduled commercial banks over the past few years. These Lower transaction cost, quick decision making, customer orientation and prompt provision of services have typically differentiated from Bank.

Opportunities and Threats

The Company is committed to address the changes boosted by its strength in market position, agile execution, capabilities, robust early warning system and extensive use of analytics of risk mitigation and resources allocation. It will ensure to take advantage of tailwinds that may emerge during the course of year

Segment-wise-Performance

Your Company operates only s ingle s egment consisting Lending and Investment financial activities on long term basis.

Future Outlook

The Company is engaged in the business of making of long-term investment and letting out of immovable property. The present scale of business are very limited and does not justify the deployment of financial resources. The Management looks for spreading over the financial resources which leads to more rolling of the funds and improved financial performance.

Risk and concerns

The very nature of the Companys business make it subject to various kind of risk. As, the Company deals in financial activities, it is exposed to credit, liquidity, market and interest rate risk. The Capital market activities in which most of our activities depends on is also influenced by global events and hence there is an amount of uncertainty in the near term outlook of the market

Internal Control Systems & their Adquacy

The Company had adequate internal control system commensurate with its size and nature of business. Your companys internal control procedures are adequate to ensure compliance with various policies, practices and statutes.

Financial, Performance and Operational Review

The Company has adopted IND AS for reporting financial results for the year under review. During the year under review, the Companys net loss of Rs. 27.08 Lakh before tax (Previous Year Net Loss of Rs. 50.27 Lakh) and The Total Income after comprehensive income / (loss) for the year after tax was at Rs. 340.95 Lakh (Previous year the total Comprehensive Loss of Rs. 4.32 Lakh after Tax Lakh)

Human Resources and Industrial Relations

The Company recognizes the importance of Human Resource as a k ey asset instrumental in its growth. The Company has well developed management information system giving daily, monthly and periodical information to the different levels of management. Such reports are being analyzed and effective steps are taken to control the efficiency, utilization, productivity and quality in the Company.