Vardhan Capital & Finance Ltd Management Discussions

The key issues of the Management Discussion and Analysis are given below.

Industry Structure and Developments

With various initiatives by the Government of India, the Management is expecting a boost in the overall development of Industry.

Opportunities and Threats

Being a primarily investment company fluctuating markets and interest rate pose a threat to the business of the Company, however the same can be converted into opportunity proper planning and implementation.

Risk and Concerns

As per the Management of the Company, the major risk and concerned that might affect the overall Growth and Development of the Company is the inflation, interest rate, dynamic regulatory environment and fast changing Government policies.

Segment wise performance

There were no major operations in the Company during the year, no segmental results are given.

Outlook

The Management of the Company is optimistic towards the growth and future of the Company.

Risk Mitigation

Although the Company has been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion. The Board members were informed about risk assessment and minimization procedures after which the Board formally adopted steps for framing, implementing and monitoring the risk management plan for the Company through Audit Committee. The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk related issues.

Management Perception and Initiatives

The Management looks forward to better risk-reward scenarios in the future. We also expect to expand loan spectrum of the Company as the economy stabilizes more progressive borrowers are in look out for loans.

Internal control systems and their adequacy

Considering the size of the Company, the Management of Company is of the opinion that the internal control systems are adequate. However, the Management of the Company is always striving to improve and develop the Internal Control Systems.

Discussion on financial performance with respect to operational performance

During the year under review the Company earned Profits from its operations and the management is of the opinion that the Company will be able to sustain and be able to increase the same in future years.

Material developments in Human Resources / Industrial Relations front

The Company has in place a policy for Human Resource Management and the Board of Directors are assigned with the responsibility to maintain Industrial relationship.

Key Financial Ratios

Sr.no	Particulars	Numerator	Denominator	Ratio 2024	Ratio 2023	% Variance	Remark
1	Capital to risk - weighted assets ratio (CRAR)	Tier I Capital + Tier II Capital	Total Risk Weighted Assets	1.32	1.46	-9.54%	-
2	Tier I CRAR	Tier I Capital	Total Risk Weighted Assets	1.32	1 .46	-9.54%	-
3	Tier II CRAR	Tier II Capital	Total Risk Weighted Assets	N.A	N.A	-	-

Disclosure of Accounting Treatment

The company has followed all the relevant and applicable Accounting Standards while preparing the Financial Statements.

	By Order of the Board
	Sd/-	Sd/-
	Akash Vardhan	Rajesh Vardhan
Date : 24th June, 2024	Managing Director	Director
Place: Mumbai	DIN: 03043186	DIN: 00199986