Shree Nidhi Trading Company Ltd Management Discussions.

This Management Discussion and Analysis Report is framed in compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations").

1. Industry Structure & Development

The year 2017-18 witnessed digitalization and an array of major reforms for the economy. The spillovers of the demonetization impact were clearly witnessed. Further, the transformational Goods and Services Tax (GST) was launched in July 2017, with the motive of the creation of a single national market, common tax base and common tax laws for the Centre and States and to eliminate the cascading effects of various taxes, thereby, aiming at facilitating the ease of doing business. Also, the Indian Bankruptcy Code (IBC) has provided a resolution framework that will help corporates clean up their balance sheets and reduce their debts. Moreover, the Government has also given significant importance to digitalization. In fact, the Budget 2018 has emphasized on the need to inculcate reforms, digitalization, employment and corruption free nation.

Indian businesses have successfully coped with numerous policy-led re-alignments, which will enable a secured future for the market. As global economic activity continues to strengthen, the Indian Economy is expected to grow further in the upcoming years.

The Non Banking Financial Companies (NBFCs) play a vital role in promoting inclusive growth since, it is an important alternative channel of finance for the commercial sector in Indias bank dominated financial sector.

Their role in promoting financial inclusion and catering to the needs of small businesses and specialised segments is an additional dimension of their relevance in the Indian context. Presently, the importance of NBFCs has increased, in lieu of the mounting bad-debt problems and asset quality concerns being faced by the public sector banks. Also, the government has a strong focus on promoting entrepreneurship so that India can emerge as a country of job creators instead of being one of job seekers and hence, the role of NBFCs has gained more importance because, they play an important role in nation building and financial inclusion by complementing the banking sector in reaching out credit to the unbanked segments of society, especially to the micro, small and medium enterprises (MSMEs), which form the cradle of entrepreneurship and innovation. In fact, while presenting the Budget 2018, the Finance Minister made a special mention on the role of Non-Bank Finance Companies (NBFCs) as a powerful medium in delivering finances and that, NBFCs can be very powerful vehicle for delivering loans under Micro Units Development and Refinance Agency Ltd. (MUDRA).

NBFCs still do not enjoy a level playing field. This needs to be addressed to help NBFCs realise their full potential and thereby perform their duties with greater efficiency. Regulation of NBFC sector over a last decade and a half has been incremental.

2. Business Structure & Development

The core financial activities of the Company comprises of providing business loan to corporate and individuals. However, the Company has diversified its financial business portfolio to stay competitive.

Your Company has been constantly focused on improving its revenue and maintaining a sustainable growth. The financial performance for the year ended 31st March, 2018 was satisfactory.

3. Opportunities, threats, risks and concerns

In todays challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are: Regulations, competition, Business risk, Technology obsolescence, Investments, retention of talent and expansion of facilities. Business risk, inter-alia, further includes financial risk, political risk, fidelity risk, legal risk. As a matter of policy, these risks are assessed and steps as appropriate are taken to mitigate the same. Non-Banking Finance Companies (NBFCs) continue to play a critical role in making financial Services accessible to a wider set of Indias population and are emerging as strong intermediaries in the retail finance space.

The biggest challenges before NBFCs are that they are facing stiff competition from banks and financial institutions, due to their ability to raise low cost funds which enables them to provide funds at much cheaper rate. More stringent capital adequacy norms have been stipulated by RBI for NBFCs which is making difficult for them to give cheaper finance. Ever-increasing competition from commercial counterparts whose capacity to absorb losses is higher, counter-party failures, recommendations being made to increase the purview of monitoring by regulatory authorities increase the threat of losing the essence of Non-banking Finance Companies which are specifically designed to reach out and finance certain target groups.

Company has constituted a Risk Management Committee to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. The committee has formulated a Risk Management policy to achieve their objective.

4. Future Outlook

The sound financial System is essential for countrys overall economic growth. The overall performance of the Company for the financial year under review was better than performance of the previous corresponding year. The focus for the forthcoming financial year for the Company will be continued delivery in progressing mode and inculcate a high performance. NBFCs have proven their mettle in many other specialized financial services such as factoring, lease finance, venture capital finance, financing road transport and also in the business of securities-based lending such as Loan against Shares, Margin Funding, IPO Financing, Promoter Funding etc.

The Company will strengthen its position in current business and will try to grab new opportunities beneficial for the Company as well as try to overcome all the hindrances and challenges blocking the performance of the Company. The Company is trying to explore new areas which can be developed and marketed to leverage its performance and growth.

5. Internal Control Systems

Companys Internal Control System has been designed to provide for:

1. Accurate recording of transactions with internal checks and prompt reporting;

2. Adherence to applicable Accounting Standards and Policies;

3. Compliance with applicable statutes, policies and procedures, guidelines and authorisations;

4. Effective use of resources and safeguarding of assets.

The summary of the Internal Audit observations and status of implementation are submitted to the Audit Committee every quarter for its review and concerns, if any, are reported to the Board. This has improved the management of the affairs of the Company and strengthened transparency and accountability.

6. Review of Operational and Financial Performance

The Company concluded yet another year of substantial growth in its core business. The Company is showing substantial growth in disbursement of loan and is making all due efforts in achieving its business objectives in the most efficient manner even in the dynamic market conditions.

In the Financial year under review, the Company has recorded a total income of Rs. 43,99,786/- as against Rs.53,64,982/- The Profit After Tax as per the audited financial result amounted to Rs.5,80,785/- as against Rs. 99,058/- in the previous year, due to decrease in expenses.

7. Human Resources

The Company always considers its human resources as a valuable asset and is committed towards their development for continuous growth. Focus on training to enhance the skill-sets of employees in line with the business and market requirements continued throughout the year and it confers rewards and recognition based on merit.

Human resources play a key role in helping the Company deal with the fast-changing competitive environment. So, the company endeavors to provide individual development and growth to the employees that motivate them to give high performance helping the Company to achieve its goals. 14 no. of employees were there on roll at the end of the financial year under review.

8. Cautionary Statement

Your Directors place on record their deep appreciation to employees at all levels for their hard work, dedication and commitment. The enthusiasm and unstinting efforts of the employees have enabled the Company to remain as industry leaders.

Certain statements made in the management discussion and analysis report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations whether expressed or implied. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic and political conditions in which the Company operates interest rate fluctuations, changes in Government / RBI regulations, Tax laws, other statutes and incidental factors.

The Directors also take this opportunity to thank all Investors, Clients, Vendors, Banks, Government and Regulatory Authorities and Stock Exchanges, for their continued support.



The Members of

Shree Nidhi Trading Co. Limited

We have examined the compliance of conditions of Corporate Governance by Shree Nidhi Trading Co. Limited for the year ended on March 31, 2018 as per the relevant provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations").

The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to review the procedures and implementations thereof adopted by the Company for ensuring compliance with the conditions of the Corporate Governance as stipulated above. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the Listing Regulations.

We further state that such compliance is neither an assurance as to future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

(F.R.N. NO. 327542E)
(Chartered Accountants)
(Satya Prakash Pachisia)
Place : 783, Anandapur, Kolkata-700 107 (Proprietor)
Date : The 10th day of August, 2018 (M.No 055040)