Savani Financials Ltd 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.

With apt strategies and their operative execution during the year, the Company has earned interest and other income on its investments aggregating to Rs. 12.29 Lakhs. 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 material development in Human Resources / Industrial Relations front. Currently our company has employed 8 employees.

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 and market volatility 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 2024	31st March 2023
(a) Debtors Turnover	NIL	NIL
(b) Inventory Turnover	NIL	NIL
( c) Interest Coverage Ratio	(28.34)	NIL
(d) Current Ratio	2.20	13.84
(e) Debt Equity Ratio	GHT>21.73	NIL
(f) Operating Profit Margin (%)	-	Not Applicable
(g) Net Profit Margin (%)	-	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
(l) Debt-Service coverage ratio	0.88	NIL

10. Company Financial Performance and Analysis

Particulars	(Rupees in Lakhs)
	2023-24	2022-23
Revenue from Operations & Other Income	12.29	11.15
Profit/(Loss) before Depreciation, Finance Cost & Taxation	(192.67)	(7.36)
Less: Finance Cost	7.06	-
Less: Depreciation	0.36	-
Less: Income Tax	(0.07)	-
Profit / (Loss) after Tax	(200.02)	(7.36)
Balance brought forward from previous year	(528.36)	(521.00)
Available for appropriation	(729.39)	(528.36)
Appropriations
Transfer to General Reserve	-
Balance carried to Balance Sheet	(729.39)	(528.36)

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.