radhagobind comm Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management of M/s Radhagobind commercial Limited presents the analysis of performance of the company for the financial year ended 31.03.2022 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments both in India and abroad

Business Environment

1. Global Economic Overview

Global prospects remain extremely unclear one year into pandemic. New virus mutations and therefore the accumulating human toll raises worries, while increasing vaccine coverage lifts sentiment. The outlook depends not simply on the outcome of the impact of virus and the effectiveness of vaccines, it additionally centres on how effectively economic policies are deployed under such uncertain times.

Global growth is projected at 6 percent in 2021, moderating to 4.4 percent in 2022. The projections for 2022 and 2023 are stronger than in October 2021 world economic outlook which pegged global growth at 5.2 percent for 2022. The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine- powered recovery in the second half of 2021, and continued adaption of economic activity to subdued mobility. High uncertainity surrounds the economic outlook and the path to recovery hinges on the effectiveness of the policies adopted and the speed of vaccination roll outs.

2. Indian Economic Overview

Indias real GDP growth for FY 2021-22 was 8.7%, which is amongst the highest in leading economies, as the Indian economy bounced back during the year exhibiting resilience during the pandemic. As the year progressed, most of the economic indicators such as GST collection, IIP, Exports and UPI transactions saw an uptick, indicating a steady recovery from the lows of the first quarter of FY 2021-22. This was also reflected in the credit growth for both Banks and NBFCs where the larger, well-funded ones witnessed a swifter recovery on the back of ebbing third wave of COVID-19 and easing of restrictions.

While Indias growth outlook for the year ahead remains bright, driven by private consumption and elevated public spending, but risks remain, the biggest of which is inflation. Higher inflation can curtail the discretionary consumption and un favourably affect the recovering domestic demand. The ongoing geopolitical crisis has caused supply chain disruptions which has led to higher commodity prices; if this gets prolonged, it can further fuel the inflation. The depreciating Rupee can become another issue as India is one of the biggest importers of crude oil leading to likely rise in trade deficit in FY 2022-23. As Rupee depreciates and import prices go up, taming inflation can become an uphill task for the central bank. A slower than expected global growth recovery may affect the demand for exports.

Indias retail inflation soared to an 18-month high of 7.5% in April 2022 driven by inflationary pressures, post which the RBI announced a 40 bps repo rate hike in May 2022 in an off-cycle monetary policy to combat the said rise in inflation. While RBIs stance remains accommodative in order to support growth, ensuring that inflation remains within the target going forward shall be key for a sustainable growth environment.

Nevertheless, the opportunities for growth remain intact driven by strong economic fundamentals, favourable economic policies (such as PLI scheme, Aatmanirbhar Bharat Abhiyan and Startup India initiative), digital push, demographic dividend and growing global preference for India as an investment destination. Further, as the Company enters into FY 2022-23, the thrust on capital expenditure in Union Budget 2022 is a welcome move and expected to push demand through multiplier effect on the economy. Given the proactive efforts by the regulator and the push from the government to support growth, the Company expects the inflationary environment to soften and a large vaccinated population is likely to contain the impact of subsequent COVID-19 waves, which will give way to robust growth going forward. This in turn shall spur credit demand across retail, SME and corporate segments, and reflect in the performance of the financial services sector as a whole.

credit demand across retail, SME and corporate segments, and reflect in the performance of the financial services sector as a whole.

Financial Performance -FY 2021-22

S. No.	Particulars	2021-2022	2020-2021
1	Revenue from Operations and Other Income	3,56,660	(12,42,439.34)
2.	Profit Before Interest and Depreciation	(10,34,567)	(19,23,290.64)
3	Finance Cost	Nil	5,178
4	Depreciation and Amortisation	600	623.32
5	Profit Before Tax	(10,35,167)	(19,29,091.96)
6	Provision for Tax	Nil	Nil
7	Short Provision for Income Tax	Nil	Nil
8	Deferred Tax Liability Written Back	Nil	Nil
r~9 1	Profit After tax	(10,35,167)	(19,29,091.96)
10	Profit on Disposal of Subsidiary	Nil	Nil
11	Other Comprehensive Income Items that will not be reclassified subsequently to profit or loss	Nil	Nil
12	Proposed Dividend on Equity Shares	Nil	Nil
13	Balance Brought forward from Balance Sheet	14,69.648.17	33,98,740.13
14	Balance carried forward to Balance Sheet	4.34.481	14,69,648.17

Other Functions - A Brief Overview

3. Risk management

The Company has built a robust risk management framework with strong risk fundamentals and continues to monitor the internal and external risks arising out of macro-economic factors, regulatory changes and geo-political scenario. The Board of Directors has set the tone at the top by laying down and approving the strategic plans and objectives for Risk Management and Risk Philosophy.

A comprehensive Enterprise Risk Management ("ERM") Framework has been adopted by the Company which uses defined Key Risk Indicators based on quantitative and qualitative factors. A two-dimensional quantitative data management tool - Heat Map - has been implemented, which enables the Management to have a comprehensive view of various identified risk areas based on their probability and impact.

Changes in internal and external operating environment, digitalization, technological advancements and agile way of working have increased the significance of Fraud, Information & Cyber Security and Operational Risks. The Company continues to focus on increasing operational resilience and mitigation of these risks.

4. Internal Audit

The Management has laid down set of standards, processes and structure which enables to implement internal financial controls across the organization with reference to financial statements and that such controls are adequate and are operating effectively. Internal Finance control framework has been established in line with the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") and Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the ‘Guidance Note).

During FY 2021 -22, testing was conducted basis process walkthrough and review of samples as per documented controls in the Risk & Control matrix. Testing is done for each of the controls with the help of an independent firm, on behalf of Management confirming the existence and operating effectiveness of controls over financial reporting. Review was performed on design, adequacy and operating effectiveness of the controls. During the year under review, no material or serious observation has been observed for inefficiency or inadequacy of such controls.

5. Human Resources

The groups people mission to nurture and empower employees who demonstrate both honesty and high performance in a fair and transparent environment.

1. Cautionary Statement

Statement made in this MD&A describing the groups objectives, projections, estimates, general market trends, expectations etc., may constitute ‘forward looking statements within the ambit of applicable laws and regulations. These ‘forward looking statements involve a number of risks, uncertainties and other factors that could cause actual results differ materially from those suggested by the ‘forward looking statement.

Place: Kolkata	BY ORDER OF THE BOARD
Date:- 30.05.2022
	Preeti Chaudhari
	Whole Time Director
	DIN-09400278