Polytex India Ltd Management Discussions.

1. Industry Overview:

The business of the Company is that of a Non-Banking Finance Company. Non Banking Financial Companies (NBFCs) have become an integral part Indias financial system. In recent times, NBFCs have emerged as lenders to both companies and individuals. When it comes to lending, NBFCs are generally regarded to be complementary to banks and are often able to offer better services and products to their customers. NBFCs play a crucial role in broadening access to financial services, enhancing competition and diversification of the financial sector. Banks and NBFCs compete for similar kinds of business. In spite of strong competition faced by the NBFCs, the inner strength of NBFCs viz. local knowledge, credit appraisal skill, well trained collection machinery, close monitoring of borrowers and personalized attention to each client, are catering to the needs of small and medium enterprises.

2. Outlook on Opportunities, Threats, Risks & Concerns:

With the long term India growth story intact, we continue to remain enthused about the growth prospects of financial services sector in India. However given the inherent linkage of most of our business with the economy and capital markets, our financial performance is subject to fluctuations depending on the pace of economic growth and activity in the capital market.

The last financial year has been year of new initiatives for company. The new financial year will see a lot of our initiatives taking shape and being deployed.


• Induction of widely experienced and specialized personnel on the Board.

• Good combination of technical as well as advisory personnel in the management.


• The largely unorganized structure of the market can affect the systematic functioning of the Company

• Likely opening up of the economy, which can be a double-edged sword.

Risk and Concerns:

The Company is exposed to specific risks that are particular to its businesses and the environment within which it operates, including capital market volatility, economic cycle and credit risk. The Company manages these risks by maintaining a conservative financial profile and by following prudent business and risk management policies.

3. Internal Control System and Adequacy:

Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. The control systems set on place are checked and further supplemented by MIS which provided for planned expenditure and information on disposal and acquisition of assets. Your company has an adequate system of internal control, designed to provide reasonable assurance that assets are safeguarded; transactions are executed in accordance with managements authorisation and properly recorded. Accounting records are adequate for preparation of financial statements and other financial information. Besides, the management has put in place system for review and monitoring of non-performing assets, if any of the company for effecting recoveries.

4. Financial:

The financial performance of the Company has been satisfactory in the year under review. The Financial performances of the Company are given as under:-

Performance Year ended 31st March, 2020 Year ended 31st March, 2019
Profit/ (Loss) before Depreciation, Interest and Taxation 678,668 13,15,821
Depreciation NIL NIL
Interest NIL NIL
Profit/(Loss) before Tax 6,78,668 13,15,821
Provision for Tax (including prior period adjustments) (112,974) (340,846)
Profit after Tax 565,694 974,975
Proposed Dividend Nil Nil
Interim Dividend Nil Nil
Dividend Tax Nil Nil
Transfer to General Reserve Nil Nil
Balance b/f from last year 478,102 974,975
Balance c/f to Balance Sheet 174,25,220 167,61,288

5. Human Resources:

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 encourages initiatives by individuals and recognizes their performance. The company has a competency based performance and potential appraisal systems for identifying and developing managerial talents and is reviewed on an ongoing basis. Emphasis is laid on providing adequate training to its employees, to meet the attitudinal and cultural values of the organization ethos to achieve customer satisfaction.

6. Disclaimer:

Certain Statements in the management Discussion and Analysis describing the companys views 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 are such as industrial relations and economic developments etc. may further influence the companys operations or performance.