savani financials ltd share price Management discussions


1. INDIAN ECONOMY AND OUR BUSINESS OPERATIONS:

India has an extended financial sector undergoing rapid expansion comprising of entities such as commercial banks, co-operatives, mutual funds, non-banking finance companies etc.

Your Company is a medium size Non-Banking Financial Services Company engaged in the sole business segment of financials services. Many in the financial services industry will agree that the regulatory compliances have become more stringent today and relentlessly moved up in the list of priorities.

The regulatory changes for NBFCs by the Reserve Bank of India and the decline in interest rates will be an important trigger for the markets.

With apt strategies and their operative execution during the year, the Company has earned interest and other income on its investments aggregating to Rs. 11.10 lacs. The Company is looking for various opportunities and avenues to consolidate its business plan and making its best efforts to explore new opportunities and avenues.

2. OPPORTUNITIES

Favourable market conditions on the back of overall growth in the sector.

3. BUSINESS SEGMENTS

The Company is engaged only in business of financial services and accordingly there are no separate reportable segments.

4. OUTLOOK

The overall outlook of the business looks positive.

5. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

There has been no material development in Human Resources / Industrial Relations front, including number of people employed.

6. THREATS, RISKS AND CONCERNS

In financial services business, effective risk management has become very crucial. As an NBFC, your Company is exposed to various risks. Globalization, increased competition, market volatility and an increasingly stringent regulatory framework have exposed the companies to newer threats and risks. The Company has in place suitable mechanisms to effectively reduce such risks. All these risks are continuously analysed and reviewed by the management through an effective information system.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACIES

The Company has in place adequate internal control systems and procedures commensurate with its size and nature of business. The systems are designed to ensure that the financial and other records are reliable for preparing financial statements. The internal control systems are supplemented by periodical reviews. The review includes adherence to the management policies, safeguarding the assets of the Company and ensuring preparation of timely and accurate financial information.

8. Details of significant changes in key financial ratios

There has been no significant changes in key financial ratios

9. Analytical Ratios

Sr. No. Particulars

31st March 2023 31st March 2022
(a) Debtors Turnover Not Applicable Not Applicable
(b) Inventory Turnover Not Applicable Not Applicable
(c) Interest Coverage Ratio Not Applicable Not Applicable
(d) Current Ratio Not Applicable Not Applicable
(e) Debt Equity Ratio Not Applicable Not Applicable
(f) Operating Profit Margin (%) Not Applicable Not Applicable
(g) Net Profit Margin (%) Not Applicable Not Applicable

(h) Capital to risk-weighted assets ratio (CRAR)

Not Applicable Not Applicable
(i) Tier I CRAR Not Applicable Not Applicable
(j) Tier II CRAR Not Applicable Not Applicable
(k) Liquidity Coverage Ratio Not Applicable Not Applicable

10. COMPANY FINANCIAL PERFORMANCE AND ANALYSIS

(Rupees in Lacs)

Particulars

2022-23 2021-22
Revenue from Operations & Other Income 11.15 11.40

Profit before Depreciation, Finance Cost & Taxation

(7.36) 1.51
Less: Finance Cost - -
Less: Depreciation - -
Less: Income Tax - -
Profit after Tax (7.36) 1.51
Balance brought forward from previous year (521.00) (522.51)
Available for appropriation (528.36) (521.00)

Appropriations

Transfer to General Reserve - -
Balance carried to Balance Sheet (528.36) (521.00)

11. CAUTIONARY STATEMENTS

In this report on management discussion and analysis describing the Company positions and expectations may be "forward looking statements" within the meaning of applicable laws or regulation. These statements are based on certain assumptions and expectations of future events. Actual results could defer materially from those expressed or implied. The Company assumes no responsibility in respect of forward looking statements herein which may undergo changes in future on the basis of subsequent development, information or events.

For and on behalf of the Board of Directors

SAVANI FINANCIALS LIMITED

Deepa Tracy

Suresh Mhatre

Place: Mumbai,

Managing Director

Director

Date: September 01, 2023

DIN: 00516615

DIN:00002853