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R R Financial Consultants Ltd Management Discussions

19.89
(2.00%)
Jul 12, 2024|03:31:00 PM

R R Financial Consultants Ltd Share Price Management Discussions

Overview

The company is leading financial service company and has earned a distinction in the field of Capital raising, Insurance & Broking Services and Research and Advisory Services. Exploring opportunities through its network across the country and its ability to organize with professionalism and dedication is the core of RR Business aspirations. The Primary objective of the Company is to maintain a rapid pace of growth through quality services in all aspects of product innovations and investment avenues.

Financial Performance

The Financial Statements of the Company have been prepared in compliance with the requirements of the Companies Act, 2013 and the Generally Accepted Accounting Principles (GAAP) in India. The management of the Company accepts the responsibility of the objectivity and integrity of these financial statements as well as, for various estimates and judgments used therein. The statement has been made on a prudent and reasonable basis, so that financial statements reflect in a true and fair manner, the form and substances of transactions and reasonably present the Companys state of affairs.

The significant financial highlights

In Rs. Hundred

Particular Consolidate
FY 22-23 FY 21-22
Total Revenue 18,37,931 14,56,920
Profit Before Tax 6 4,364
Profit After Tax 5 9,406 4

Key Financial Ratios

Significant financial ratio for Consolidated Financial Statement of RR Group:

Particular FY 2022-23 FY 2021-22 Variation in % Reason for variance
Debtors Turnover NIL NIL
Inventory Turnover N.A N.A
Interest Coverage Ratio N.A N.A
Current Ratio 2.314 2.310 0.167
Operating Profit/(Loss)
0.0717 0.082 -12.61
Margin*
Net Profit Margin* 0 0.032498715 .0325 0.09
Return on Net worth* 0.012 0.010 IGN=RIGHT>25.09 Due to increase in profitability

Opportunities

The Company has following verticals i.e. Stock Broking, Financial Product Distribution, Insurance Broking, Investment Banking and Lending Business. The main source of income being Brokerage, the Company expects to show stable growth in coming years. The Company is holding a NBFC License by RBI in its subsidiary “RR Fincap Private Limited”.

Risks and Concerns

The Companys main risk remains costs which are growing at a fast pace. The company has increased the variable salary structures and is consistently making conscious efforts to mitigate this risk.

Outlook

The Company has broad based revenue stream to cover all the major segments of Financial & Insurance business and foresees a stable to good growth in the coming years.

Risk Management Systems

The Company aims to operate within an effective risk management framework to actively manage all the material risks faced by the organization and make it resilient to shocks in a rapidly changing environment. It aims to establish consistent approach in management of risks and strives to reach the efficient frontier of risk and return for the organization and its shareholders.

Human Resources

The nature of our business requires a skilled and trained human capital, which is one of the key assets of our organization. Our human resource policy is based on the philosophy of ‘owner mindset. We believe that the key to our continued growth lies in unleashing the entrepreneurial energy of our employees. We encourage all employees to behave more as owners of their departments rather than employees.

Our people are highly motivated and work towards increasing RRs brand and market share across our various product lines. We have developed some extensive in-house training modules. We lay an emphasis on ‘on-the-job training where an experienced and senior person mentors a junior executive. Further, prospective employees need to undergo pre-joining domain training and tests. This basically tests the understanding and aptitude of the employee for the job and reduces attrition and improves employee satisfaction.

Internal control systems

The Companys internal control system is designed to ensure operational efficiency, protection and conservation of resources, accuracy and promptness in financial reporting and compliance with laws and regulations. The internal control system is supported by an internal audit process for reviewing the design, adequacy and efficacy of the Companys internal controls, including its systems and processes and compliance with regulations and procedures. Internal Audit Reports are discussed with the Management and are reviewed by the Audit Committee of the Board, which also reviews the adequacy and effectiveness of the internal controls in the Company. The Companys internal control system is commensurate with its size and the nature of its operations.

Cautionary statement

Statements in the Managements Discussion and Analysis report describing the Companys objections, estimates and expectations may be “forward looking statements” within the meaning of applicable laws and regulations and futuristic in nature. Actual performance may differ materially from those either expressed or implied. Such statements represent intentions of the management and the efforts put in to realize certain goals. The success in realizing these depends on various factors both internal and external. Investors, therefore, are requested to make their own independent judgment before taking any investment decisions.

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