Shikhar Consultants Ltd Management Discussions

Industry Structure and Development

The Non-Banking Financial Company (NBFC) sector plays a vital role in complementing the formal banking system by providing access to finance, especially in underserved markets. The investment segment within the NBFC space has witnessed significant growth over the past few years, driven by increased participation from institutional and retail investors, evolving regulatory frameworks, and a growing appetite for diversified investment products.

The Indian economy continues to exhibit resilience despite global uncertainties, supported by steady economic growth, favorable demographics, rising financial literacy, and government initiatives aimed at promoting capital market participation. The investment landscape is increasingly driven by technology-enabled platforms, risk-adjusted returns expectations, and regulatory developments that enhance transparency and investor protection.

Key Developments

Strengthening Risk Management: Enhanced risk assessment frameworks and stress-testing models to better navigate market uncertainties.

Technology Integration: Upgraded investment analytics tools to enable real-time monitoring and scenario planning for portfolio performance.

Compliance and Governance: Adopted best practices in regulatory reporting and transparency, reinforcing trust with investors and stakeholders.

Strategic Partnerships: Collaborated with leading research providers and financial institutions to enrich investment insights and broaden market reach.

Opportunities:

Increasing demand for structured investment solutions amid low-interest rate environments.

Growing participation from retail investors driven by digital platforms.

Expansion into ESG (Environmental, Social, and Governance) aligned investment products.

Supportive regulatory initiatives promoting greater market depth and investor protection.

Threats:

Market volatility and macroeconomic uncertainties impacting asset valuations.

Rising competition from fintech platforms offering alternative investment solutions.

Regulatory changes requiring enhanced reporting, governance, and capital buffers.

Managing credit and liquidity risks in a dynamic interest rate environment.

Segment wise Operational Performance

The company operates in a single business/ geographical segment. Hence, segment wise performance is not furnished.

Outlook

Your Company, keeping pace with the overall market scenario, has grown significantly. Your Company envisages optimistic growth in the near-term as it appears that economy has bottomed out and interest rates are on a sustainable downtrend as inflation has been steadily low in recent times. These factors will boost demand from our customers.

Risk and Concerns

The major risk area being faced by the is interest rate volatility where Fluctuations in interest rates could adversely affect borrowing costs, interest income and net interest margins of companies in the financial sector. The company also has competition risk as the financial services space in India is highly competitive.

Internal Control systems and their adequacy

The Company has in place adequate internal control systems covering all its operations. Proper accounting records highlight the economy and efficiency of operations, safeguarding of assets against unauthorized use or losses, and the reliability of financial and operational information

Some of the significant features of internal control system are:

Financial and Commercial functions have been structured to provide adequate support and control of the business.

Risk Management policy has been adopted by the Company.

The Company has an Internal Audit System conducted by the internal auditor of the Company. Standard operating procedures and guidelines are reviewed periodically to ensure adequate control.

Operational and financial performance

The Company already started to revive.

Material developments in Human Resources / Industrial Relations front, including number of people employed.

Your Company continuously endeavours to improve the work environment for its employees. Competitive compensation package, innovative and challenging environment to work, transportation facilities, etc., are some of the steps taken by the Company for the welfare of its employees.

Key Financial Ratios:

The key financial ratios for the financial year 2024-25 and comparison thereof with the financial year 2023-24 has been stated in the financial statement for the period ended March 31, 2025

Details of Change in Return on Networth

There is no change in Return on Networth of the Company in compared to previous financial year.

Cautionary Statement

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as "forward looking statements" only. Actual results could differ from those expressed or implied. Companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.