Dhruva Cap.Serv. Management Discussions


INDUSTRY STRUCTURE & DEVELOPMENT :

No concessions are being given to NBFC Industry by govt. so that the industry can withstand competitions from banks and other lending institutions. Moreover due to unhealthy business environment for the last many years, the margins have squeezed and the cost of operations has increased consistently.

OPPORTUNITIES & THREATS :

Fluctuations in the interest rate in economy has created uncertainty in the business of finance. The biggest threat for Non Banking Finance Companies arise from the vast gap existing between demand and supply.

Another threat for Non Banking Finance Companies comes from increased competition from banking industry, which is in a position to lend at competitive rates due to availability of huge funds at a cheaper cost. The Company expect stable interest rates in the coming period and is confident of meeting the challenges by increasing volume of business at nominal margin.

RISKAND CONCERNS :

Like any other industry, the Companys business is also exposed to various business risks.

Continuous efforts are made to reduce the cost of funds, increase the volume of the business and to control the NPAs within a bearable limit to minimize the impact of declining spread.

INTERNALCONTROL SYSTEM :

The Company has proper and adequate internal control system in all the areas of its activities. The Companys Audit Committee reviewed the internal control system and looked in to the observations of the statutory auditor.

DISCUSSION ON FINANCIALPERFORMANCE :

The financial performance of the Company for the year has been discussed in the Directors Report and cash-flow statement is annexed with the Annual Accounts.

HUMAN RESOURCES / INDUSTRIAL RELATIONS :

The relation between the Company and its employees remained cordial through-out the year and the management expects the same to continue and receive full support and cooperation from its employees in future also.