This Management Discussion and Analysis Report contain forward-looking statements which
are based on certain assumptions, risks, uncertainties and expectations of future events
All statements that address expectations or projections about the future are
forward-looking statements The actual results performance or achievements can thus differ
materially from those projected in any such statements depending on vanous factors
including the demand supply conditions, change in government regulations, tax regimes,
economic development within the country and abroad and such other incidental factors over
which, the Company does not have any direct control.
This Report is framed in compliance with the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations. 201 5 (‘Listing
Regulations")
1, Industry Structure & Development
As India ("Country) gears to celebrate its 75" Anniversary of Independence
on 15 August 2022 it s also the time to appreciate the spirit of courage and fortitude
with which all citizens have braved the deadly Corona virus ("COVID-19" or
"COVID) over the past couple of years Several lives were also lost and economies
across the globe were impacted, However this phase has also taught the world the
importance of flexibility, adaptability and has changed social life on a global scale.
The Financial year 2021-22 was once again dominated by COVID-19 as new waves of the
virus swept across countries. However. Indias huge vaccination drive helped m curbing
Hospitalisation and also curbed the losses of all business sectors which would have
incurred had there been multiple lockdowns and mass hospitalisations Thus the vaccination
drive, was instrumental in weakening the impact of the corona virus waves on the country s
GDP in comparison to the previous year 2020- 2021.
As global economy is recovering, the upcoming years are expected to boost the growth
and development rate of the Country India s aspiring goals for the coming years are also
reflected in the Union Budget 2022-2023 which aims to further strengthen Indias
aspirations in Amnt Kaal as it moves towards its 100,fl year post independence,
with its focus on four priorities of (i) PM GatiChakti, (n) Inclusive Development, (iii)
Productivity Enhancement and Investment. Sunrise opportunities Energy Transition, and
Climate Action and (iv) Financing of investments
The last couple of years have been very challenging for the Non-Banking Financial
Companies (NBFCs) amidst the COVID pandemic NBFCs have showcased utmost resilience to the
COVID challenge which has directly and significantly affected them NBFCs are on the path
to recovery and are expected to play a very vital role in enabling India to achieve
inclusive and sustainable growth target as NBFCs are the vital connect between the
unbanked population and finance in general the customer segment of NBFC comprise of small
business ownersfupcoming entrepreneurs who lack ways and means to fulfil their aspirations
and goals Thus development of these unbanked segments is essential for sustainable
development of the entire economy. NBFCs will thus, be required to continue recalibrating
their strategies in order to deal with the changing business scenario post pandemic
The contribution of the NBFCs towards supporting real economic activity and their role
as a supplemental channel of credit intermediation alongside banks is well recognised Over
the years, the sector has undergone considerable evolution in terms of size, complexity
and interconnectedness within the financial sector. Many entities have grown and become
sysfemieally significant and hence keeping in view their changing risk profile, the
Reserve Bank of India (RBI) has issued Scale Based Regulation for Non-Banking Financial
Companies (NBFCs) - effective from 1st October 2022 These Regulations have classified
NBFCs into different layers based on size and complexity - with the aim of calibrating the
degree of regulatory prescriptions based on systemic importance of NBFCs
The Micro, Small and Medium Enterprises (MSMEs} segment, touted to be the backbone of
the countrys economy, was significantly affected by the pandemic The Union Budget for
2022-23 has announced several measures for the MSME sector that included increase in
budgetary allocation for MSMEs, extension of Emergency Credit Line Guarantee Scheme
(ECLGS), etc Besides, the guaranteed cover has also been extended In the coming years
MSMEs are expected to bounce back and to continue playing a vital role in shaping Indias
growth Your Company has registered itself as a MSME during the year and has been
cautiously evaluating the benefits associated with the MSME sector with reference to our
business structure
2. Business Structure & Development
The core financial activities ot the Company comprises of providing Business loan to
corpoiate and individuals However, the Company has diversified its financial business
portfolio to stay competitive
The Company has been constantly focused on improving its revenue and maintaining a
sustainable growth, The financial performance for the year ended 31* March, 2022 was
satisfactory
3. Opportunities and threats.
The competition in the NE3FC Sector is intense on account of large number of players
However, regulations relating to governing non-banking financial companies (NBFCs) aie
being increasingly harmonized with those of banks to forge the right balance for financial
stability while encouraging them to focus on specialized areas. Yet. adverse interest
rates can significantly hit the cost of borrowing for NBFCs
Being primarily a NBFC, our collections from customers has been deferred on account of
the COVID- 19 pandemic as the same has been adversely impacted due to restrictions on the
movement of people, as a result of which, our employees have not been able to make
on-field visits at the customers place Further various customers are facing financial
crunch due to the lockdown and this has also impacted our business In this connection, we
are providing moratorium support to our customers/borrowers on specific requests raised by
them after assessing the merit of their requests and their loan repayment track record and
in line with the RBI directives
4. Segment - wise or product wise performance
During the year under review, the Company earned Interest on loan approximately
amounting to Rs 10.88 lakhs as compared to Rs 12.18 lakhs in the previous year
5. Outlook
The sound financial System is essential for countrys overall economic growth The
overall performance of the Company for the financial year under review was better than
performance of the previous corresponding year The focus for the forthcoming financial
year for the Company will be continued delivery in progressing mode and inculcate a high
performance NBFCs have proven their mettle in many other specialized financial services
such as factoring, lease finance, venture capital finance financing road transport and
also in the business of securities-based lending such as Loan against Shares Margin
Funding. IPO Financing Promoter Funding etc The Company will strengthen its position in
current business and will try to grab new opportunities beneficial for the Company as well
as try to overcome all the hindrances and challenges blocking the performance ot the
Company The Company is trying to explore new areas which can be developed and marketed to
leverage its performance and growth
6. Risks and concerns
The risk management plan of the Company is monitored by the Risk Management Committee
in accordance with the Risk Management Policy of the Company
NBFCs success largely depends on correctly judging the creditworthiness of the customer
Your Company believes that, the success of NBFCs can be attributed to lower cost wider and
effective reach, strong risk management capabilities to check and control bad debts, and
better understanding of their customer segments
Further, NBFCs on the one hand, are also exposed to Interest Rate Risk (resulting from
changes in market interest rates may have adverse Impact on NBFCs earnings by changing
its Net Interest Income) and liquidity risk (which poses a threat to the ability to meet
short term financial demands) In this connection, Interest Risks and Liquidity Risks are
managed through regolar monitoring of maturity profile Besides, operational risks in the
form of risks of incurring losses due to manual errors, fraud or system failure, can be
monitored through an effective internal control system management and its periodic
assessment
7. Internal Control Systems and their Adequacy.
The Company strives to continuously upgrade Its Internal Control System in line with
the best available practices to commensurate with its size and the nature of its
operations
The Companys Internal Control Systems are thus adequate Furlhe1, checks and
controls have been exercised through remote access to systems by working from home during
the shutdown period
The Audit Committee in coordination with the Internal Audit team regularly reviews the
adequacy and effectiveness of internal control systems, in view of the ever changing
business environments
8. Review of Operational and Financial Performance.
The Company is showing substantial increase in disbursement of loan and is making all
due efforts in achieving its business objectives in the most efficient manner even in the
dynamic market conditions The total income of the Company during the Financial Year
2021-2022 was Rs 16 89 lakhs as compared to Rs 12 67 lakhs for the previous financial year
The total expenses increased to Rs 17.80 lakhs in the reporting year as compared to Rs
14.82 lakhs in the previous year
9. Material developments in Human Resources.
The Company always considers its human resources as a valuable asset and is committed
towards their development for continuous growth Focus on training to enhance the
skill-sets of employees in line with the business and market requirements continued
throughout the year and it confers rewards and recognition based on merit Human resources
play a key role in helping the Company deal with the fast-changing competitive environment
So, the company endeavours to provide individual development and growth to the employees
that motivate them to give high performance helping the Company to achieve its goals There
were 8 number of employees on roll at the end of the financial year under review
10. Cautionary Statement
This Management Discussion and Analysis Report contain forward-looking statements which
are based on certain assumptions, risks, uncertainties and expectations of future events
All statements that address expectations or projections about the future are
forward-looking statements The actual results, performance or achievements can thus differ
materially from those projected in any such statements depending on various factors
including the demand supply conditions change m government regulations, tax regimes,
economic development within the country and abroad and such Other incidental factors over
which the Company does not have any direct control
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