Emerald Leasing Management Discussions


We are a Non-Deposit taking Non-Banking Financial Company (NBFC-ND) registered with RBI to carry on the NBFI activities under Section 45IA of the Reserve Bank of India Act, 1934 bearing Registration no. B06.00615. We are engaged in a diverse range of products catering to the financial services sector directly through our own Company and also through our Subsidiary.

Our Companys business model is centered around lending activities (granting of loans & advances). As an NBFC, we operate in the business of providing loans to MSMEs and retail customers. We provide finance to our clients after satisfying ourselves about the credit worthiness and repayment capacity of our borrowers after evaluating the material risks associated with the business/ project/ proposal for which loan has been sought.

Emerald has entered into an agreement with Rainpay India Pvt Ltd ("Rain") which is a wholly owned subsidiary of the American company Rainpay Technolgies Inc. This partnership has enabled Emerald to diversity its portfolio by entering the salaried employees segment, providing loans linked to the salary of the customer. Said loans are low ticket size in nature and provide the company with high volumes on a monthly basis.

Emerald is mainly funding to known & credit worthy clients. Mostly these clients are such with whom we had long relationships. The effectiveness of this marketing strategy can be seen front the fact that we had very negligible bad debt from the recently sourced portfolio.

The company in line with its vision to expand its offerings and to serve retail customers at large has already started working on its own salary advance solution. This product entails tying up with employers to offer short term loan as salary advance. The amount lent is then collected through salary deduction.

This is a niche product in India. This product is in vogue in developed countries like US and Europe. The company feels that this can grow into a significant business in future. The company already has experience of this product due to its earlier partnership with Rainpay India Pvt Ltd.

This solution will be completely digital and will use the latest digital technologies to provide a seamless experience to both employers and employees. The company is building this solution through internal resources.


The financial performance of the Company for the financial year ended March 31, 2023 is given in the directors report.

SWOT Analysis

• Good portfolio quality • Not enough penetration in market.
• Low debt company • Current Scale of operation
• Experienced management team • Brand name not strong enough
• Highly Scalable business model
• Very few number of players in EWA products
• Reputation of being niche player in NBFC industries


• Buoyant business environment • Slow Industrial Growth
• Huge Growth Potential • Economic factors leading to recession
• Potential to provide other value added services • Volatility in markets likely to affect revenues and increase the cost of capital
• Increased disposable income of middle-class • Government Policies
• Humungous untapped market for EWA product • Shifts in consumer tastes, moving away from NBFC products
• Global uncertainties


Indian economy is going through a period of rapid financial liberalisation. Today, the intermediation is being conducted by a wide range of financial institutions through a plethora of customer friendly financial products.

Emerald finance Limited today has emerged as a strong & reliable player in a fiercely competitive market of financial services.

Emerald Finance Limited has built a strong presence in the market through its cumulative experience, strong network as well as sound systems and processes. The companys long-term aspiration is to play a significant role in meeting the financial requirements of retail customers as well as corporate clients.


Our company constantly upgrades its technology both in terms of hardware and software. This also helped installing a good management information system for the management to get timely information for decision making.


Our Company has built adequate systems of internal controls towards achieving efficiency and effectiveness in operations, optimum utilization of resources, and effective monitoring thereof as well as compliance with all applicable laws The internal control mechanism comprises a well-defined organization structure, documented policy guidelines, predetermined authority levels and processes commensurate with the level of responsibility.


Our Company continues to lay great stress on its most valuable resource -people. Continuous training, both on the job and in an academic setting, is a critical input to ensure that employees at all levels are fully equipped to deliver a wide variety of products and services to the customer of the company.

We are committed to maintaining a diverse, healthy and thriving workforce that imbibes our culture of empowerment, innovation, safety and well being. Our associates play a key role in decision making and providing impactful solutions in transformation of the organization.


The Board of Directors have reviewed the Management Discussion and Analysis prepared by the Management. Statement in this report of the Companys objective, projections, estimates, exceptions, and predictions are forward looking statements subject to the applicable laws and regulations. The statements may be subjected to certain risks and uncertainties.

The Company assumes no responsibility in respect of forward looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.


Ratios 2022-23 2021-22 2020-21 % Increase/ Decrease Reason for change
Debtors Turnover Ratio 20.97 16.27 4.85 28.89% Because of timely receipt of payment from debtors.
Interest Coverage Ratio 5.76 7.77 7.28 -25.87% Because of decrease in EBITA margin.
Current Ratio 5.85 5.20 0.76 12.50% Due to increase in current assets as compared to that of current liabilities
Debt Equity Ratio 0.12 0.13 0.16 -7.69% Because of fresh infusion of equity during the year
Operating Profit Margin 0.64 0.61 0.59 4.92% Due to Increase in Revenue during the year viz a viz expenses
Net Profit Margin 0.40 0.39 0.38 -2.56% Because of increase in revenue during the year as compared to increase in expenses.