Particulars |
F.Y. 2022-23 |
F.Y. 2021-22 |
Revenue from Operations |
1.78 |
3.39 |
Other Income |
0.01 |
2.72 |
Total Income |
1.79 |
6.10 |
Operating Expenditure before Finance Cost, Depreciation and
Amortization |
2.77 |
4.97 |
Earnings before Finance Cost, Depreciation and Amortization |
2.77 |
4.97 |
Less: Finance Cost |
0 |
0 |
Depreciation and Amortization Expenses |
0 |
0 |
Profit/(Loss) before Tax |
(0.98) |
(28.64) |
Less: Tax Expense |
0 |
(7.64) |
Profit/(Loss) after Tax (PAT) |
(0.98) |
(20.99) |
REVIEW OF PERFORMANCE
During the year under review, the Company has earned Rs. 1.79 Lakhs from Revenue from
Operations during the financial year 2022-23 compared to Rs. 6.10 Lakhs for the Financial
Year 2021-22. The Company has Loss after tax of Rs. 0.98 Lakhs during the financial year
2022-23 as compared to loss Rs. 20.99 Lakhs in the financial year 2021-22.
GLOBAL ECONOMIC REVIEW:
Countries around the world are facing multiple overlapping challenges, which are
hindering—even reversing—progress toward their development goals. Many countries
are still grappling with the health, economic, and social impacts of the COVID-19
pandemic; and vaccination rates remain low in the poorest countries. Already high
inflation has been exacerbated by the Russian invasion of Ukraine, making food, energy,
and other necessities more expensive, with much of the burden falling on the poorest and
most vulnerable people. Many countries also face daunting debt vulnerabilities, straining
their resources to combat economic and social challenges. Climate change continues to pose
long-term risks, as natural disasters and extreme weather affect everything from
agriculture to infrastructure. And growing fragility and conflict around the world are
deepening food insecurity, forcing millions of people to flee their homes, and compounding
the downturn in growth prospects from two years of the pandemic.
(Source: World Bank)
INDIAN ECONOMIC REVIEW:
Strong economic growth in the first quarter of FY 2022-23 helped India overcome the UK
to become the fifth- largest economy after it recovered from repeated waves of COVID-19
pandemic shock. Real GDP in the first quarter of 2022-23 is currently about 4% higher than
its corresponding 2019-20, indicating a strong start for Indias recovery from the
pandemic. Given the release of pent-up demand and the widespread vaccination coverage, the
contact-intensive services sector will probably be the main driver of development in
2022-2023. Rising employment and substantially increasing private consumption, supported
by rising consumer sentiment, will support GDP growth in the coming months.
Future capital spending of the government in the economy is expected to be supported by
factors such as tax buoyancy, the streamlined tax system with low rates, a thorough
assessment and rationalisation of the tariff structure, and the digitization of tax
filing. In the medium run, increased capital spending on infrastructure and asset-building
projects is set to increase growth multipliers, and with the revival in monsoon and the
Kharif sowing, agriculture is also picking up momentum. The contact-based services sector
has largely demonstrated promise to boost growth by unleashing the pent-up demand over the
period of April-September 2022. The sectors success is being captured by a number of HFIs
(High-Frequency Indicators) that are performing well, indicating the beginnings of a
comeback.
India has emerged as the fastest-growing major economy in the world and is expected to
be one of the top three economic powers in the world over the next 10-15 years, backed by
its robust democracy and strong partnerships.
(Source: World Bank)
Indian economic reforms and recovery:
In the second quarter of FY 2022-23, the growth momentum of the first quarter was
sustained, and high- frequency indicators (HFIs) performed well in July and August of
2022. Indias comparatively strong position in the external sector reflects the countrys
generally positive outlook for economic growth and rising employment rates. India ranked
fifth in foreign direct investment inflows among the developed and developing nations
listed for the first quarter of 2022.
Indias economic story during the first half of the current financial year highlighted
the unwavering support the government gave to its capital expenditure, which, in FY
2022-23 (until August 2022), stood 46.8% higher than the same period last year. The ratio
of revenue expenditure to capital outlay decreased from 6.4 in the previous year to 4.5 in
the current year, signaling a clear change in favour of higher-quality spending. Stronger
revenue generation as a result of improved tax compliance, increased profitability of the
company, and increasing economic activity also contributed to rising capital spending
levels.
Despite the continued global slowdown, Indias exports climbed at the second highest
rate. With a reduction in port congestion, supply networks are being restored. The CPI-C
and WPI inflation reduction from April 2022 already reflects the impact. In August 2022,
CPI-C inflation was 7.0%, down from 7.8% in April 2022. Similarly, WPI inflation has
decreased from 15.4% in April 2022 to 12.4% in August 2022. With a proactive set of
administrative actions by the government, flexible monetary policy, and a softening of
global commodity prices and supply-chain bottlenecks, inflationary pressures in India look
to be on the decline overall.
(Source: World Bank)
OUTLOOK:
Indian economy underwent wide-ranging structural and governance reforms that
strengthened the economys fundamentals by enhancing its overall efficiency during
2014-2022. With an underlying emphasis on improving the ease of living and doing business,
the reforms after 2014 were based on the broad principles of creating public goods,
adopting trust-based governance, co-partnering with the private sector for development,
and improving agricultural productivity. The period of 2014-2022 also witnessed balance
sheet stress caused by the credit boom in the previous years and one-off global shocks,
that adversely impacted the key macroeconomic variables such as credit growth, capital
formation, and hence economic growth during this period. This situation is analogous to
the period 1998-2002 when transformative reforms undertaken by the government had lagged
growth returns due to temporary shocks in the economy. Once these shocks faded, the
structural reforms paid growth dividends from 2003. Similarly, the Indian economy is well
placed to grow faster in the coming decade once the global shocks of the pandemic and the
spike in commodity prices in 2022 fade away. With improved and healthier balance sheets of
the banking, non-banking and corporate sectors, a fresh credit cycle has already begun,
evident from the double-digit growth in bank credit over the past months. Indian economy
has also started benefiting from the efficiency gains resulting from greater
formalisation, higher financial inclusion, and economic opportunities created by digital
technology-based economic reforms. Indias growth outlook seems better than in the
pre-pandemic years and the Indian economy is prepared to grow at its potential in the
medium term.
ROAD AHEAD:
Indias financial services industry has experienced huge growth in the past few years.
This momentum is expected to continue. Indias private wealth management Industry shows
huge potential. India is expected to have 6.11 lakh HNWIs by 2025. This will indeed lead
India to be the fourth-largest private wealth market globally by 2028. Indias insurance
market is also expected to reach US$ 250 billion by 2025. This will further offer India an
opportunity of US$ 78 billion in additional life insurance premiums from 2020-30.
India is today one of the most vibrant global economies on the back of robust banking
and insurance sectors. The relaxation of foreign investment rules has received a positive
response from the insurance sector, with many companies announcing plans to increase their
stakes in joint ventures with Indian companies. Over the coming quarters, there could be a
series of joint venture deals between global insurance giants and local players.
RISKS AND CONCERNS:
A well-defined risk management mechanism covering the risk mapping and trend analysis,
risk exposure, potential impact and risk mitigation process is in place. The objective of
the mechanism is to minimize the impact of risks identified and taking advance actions to
mitigate it. The mechanism works on the principles of probability of occurrence and
impact, if triggered. A detailed exercise is being carried out to identify, evaluate,
monitor and manage both business and non-business risks.
SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:
The Companys operation predominantly comprise of only one segment. In view of the
same, separate segmental information is not required to be disclosed as per the
requirement of Indian Accounting Standard 108 Operating Segment.
OPPURTUNITIES AND THREATS
1) Growing demand: Rising income is driving the demand for financial services across
income brackets.
2) Innovation: India benefits from a large cross-utilization of channels to expand
reach of financial services.
3) Policy support: The government has approved 100% FDI for insurance intermediaries
and increased FDI limit in the insurance sector to 74% from 49% under the Union Budget
2021-22.
4) Growing Penetration: Credit, insurance and investment penetration is rising in rural
areas.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an efficient system of internal controls for achieving the following
business objectives of the Company: Efficiency of operations
> Protection of resources
> Accuracy and promptness of financial reporting
> Compliance with various laws and regulations
> Compliance with the laid down policies and procedures HUMAN RERSOURCE
Equipping the Company with an engaged and productive workforce is essential to our
success. We look for commitment, skills and innovative approach in people. In assessing
capability, we consider technical skills and knowledge that have been acquired through
experience and practice, along with mental processing ability, social process skills and
their application. We continue to invest in developing a pipeline of future talent and
nurture them. As part of this process, we provide development and training opportunities
to our workforce, which motivates and encourages them to grow in their work. The Company
has been maintaining cordial and healthy Industrial Relations, which has helped to a great
extent in achieving the upper growth.
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