Satya Miners & Transporters Ltd Management Discussions

BUSINESS ENVIRONMENT INDUSTRY OVERVIEW, RISKS AND CONCERNS

Satya Miners & Transporters Limited is registered as Non- Banking Financial Company (NBFC) with Reserve Bank of India and is mainly engaged in financing and investments as its principal business. It also Invest in equities through the secondary markets and in debt instruments of varying maturities through mutual funds. In addition, Satya also looks for investment opportunities where it can acquire a strategic stake into other business.

PERFORMANCE REVIEW

The management is pleased to report that companys business plan is progressing as per the managements satisfaction. Details shall be made at the appropriate time.

OPERATIONAL REVIEW

Considering the business environment your directors foresee the startup of business operation in the near future.

RISKS AND CONCERNS

The continued policies of Government controlling free exports and volatile economic environment have a bearing on the overall performance of the company.

REGULATORY

The Reserve Bank of India (RBI) has been continually strengthening the supervisory framework from NBFCs in order to ensure sound and healthy functioning and avoid excessive risk taking. In furtherance of these objectives, RBI issued new guidelines during past years:

1. Know your customer guidelines- Anti Money laundering Standards

2. Guidelines on classification, monitoring and reporting of frauds

3. Guidelines on Securitisation of Standards Assets

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has suitable and adequate system of Internal Controls commensurating its size and nature of operations primarily to ensure that -

- the assets are safeguarded against loss from unauthorized use or disposition;

- the transactions are authorized, recorded and reported correctly and

- Code of conduct, Policies and applicable statutes are duly complied with.

As a measure of Internal Control System, which has been evolved over the years, the Company has established a methodical system of Annual Budgeting and Management Information System (MIS). In addition, Administrative and HR activities of the Company are also brought within this purview.

The Company is conscious of importance of systems control and so continuously assesses the quality of integrated software package. Continuous reporting of these systems is made to the Board and Audit Committee for their review to upgrade, revise and to focus on determination of adequacy of the Control Systems. The composition and role of Audit Committee can be found in the Corporate Governance Report in the Annual Report.

ENVIRONMENT AND SAFETY

The Company is conscious of the importance of environmentally clean and safe operations. The Companys policy requires the conduct of all operations in such manner so as to ensure safety of all concerned, compliance of statutory and industrial requirements for environment protection and conservation of natural resources to the extent possible.

RISK MANAGEMENT

Risk is an integral part of the business process. To enhance the risk management process, the company has mapped the risks. Risk arises for achieving business objectives are identified and prioritized. Risk mitigation activity plans are established and executed as and when need arises. Periodical reviews are carried out to assess the risk levels.

HUMAN RESOURCES

Human resources development, in all its aspect like training in safety and social values is under constant focus of the management. Relations between management and the employees at all levels remained healthy and cordial throughout the year. The management and employees are dedicated to achieve the corporate objective and the targets set before the company.

CAUTIONARY NOTE

Certain statements in "Management Discussions and Analysis" section may be forward looking and are stated as required by law and regulations. Many factors, both external and internal, may affect the actual results which could be different from what the Directors envisage in terms of performance and outlook.