The Directors have pleasure in presenting the Management Discussion and
Analysis Report for the year ended on March 31, 2022.This Management Discussion and
Analysis Report contain forward looking statements which are based on certain assumptions,
risks, uncertainties and expectations of future events. The actual results, performance or
achievements can thus differ materially from those projected in any such statements
depending on various factors including the demand supply conditions, change in government
regulations, tax regimes, economic development within the country and abroad and such
other incidental factors over which, the Company does not have any direct control.
This Report is framed in compliance with the Securities and Exchange
Board of India (Listing Obligations and Disclosure).
Company Structure & Development
Your Company is a Non-Banking Financial Company engaged in the business
of Investment in Shares and other securities, Loans and advances etc. NBFCs have played an
important role in resource mobilization and credit intermediation, thereby helping
commercial sector to make up for low bank credit growth. The government took immediate
steps to bring curb the severity. As a result, the flow of resources from the banking
sector to NBFCs did improve to certain extent. However, financial markets remained
cautious on NBFCs and the squeeze in of inflow of resources to NBFCs has impacted the
lending capability of the sector. The gradual improvement in liquidity situation indicates
stabilization for the NBFC sector. Regardless soft he recent panic, NBFCs are here to stay
and will play a significant role in economic growth and financial inclusion.
The companys main activity is to invest in shares and securities as
well as loans and advances. By understanding whats most important to our customers. We
have been able to deliver the right financial assistance at the right point of time. We
are continuously adapting to the changing regulatory framework, strengthening our capital
reserves.
Internal Control Systems and their adequacy
The Company strives to continuously upgrade its Internal Control System
in line with the best available practices to commensurate with its size and the nature of
its operations. The Companys Internal Control Systems are thus adequate.
The Audit Committee in coordination with the Internal Audit team
regularly reviews the adequacy and effectiveness of internal control systems, in view of
the ever changing business environments. This has improved the management of the affairs
of the Company and strengthened transparency and accountability. Your company is a small
sized, listed under CSE and BSE, Non-Banking Financial Company (NBFC).
Opportunities & Threats
The intense competition in the NBFC Sector, high cost of funds, coupled
with regulatory restrictions - are some of the challenges for the NBFC sector. However,
the opportunity of being a well regulated participant in the financial system is likely to
outweigh the costs associated with greater regulations in the long run. Moreover,
opportunities arising from large untapped rural and urban markets and increasing
digitization are expected to benefit the NBFC sector.
Future Strategies
Your Company has the vision to be specialized in other 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 wishes to
diversify its lending activities in future and look forward to grab the opportunities of
the other Financial Sectors.
Risks and Concerns
The risk management plan of the Company is monitored and assessed by
the Internal Management of the Company from time to time. This is done through strict
adherence to the credit policy made by the Company and several other assessment processes.
NBFCs are subjected to credit risks, which, your Company manages
through stringent credit norms to verify the identity of an individual and also
determining their intent and ability to repay a loan. Further, NBFCs are also exposed to
Interest Rate Risk and liquidity risk which are managed through regular monitoring of
maturity profile. Besides, operational risks in the form of risks of incurring losses due
to manual errors, fraud or system failure, can be monitored through an effective internal
control system management and its periodic assessment.
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. The
employee relations have continued to be harmonious throughout the year.
Cautionary Statement
Statements in the Management Discussion and Analysis Report describing
the Companys objectives, projections, estimates, expectations or predictions may be
"forward looking statements" within the meaning of the applicable laws and
regulations. 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.
For and on behalf of the Company For
Visco T rade Associates Limited |
|
(Niranjan Kumar Choraria) |
(Vinay Kumar Goenka) |
Director |
Managing Director |
DIN:03626290 |
DIN:01687463 |
Place: Kolkata |
|
Date:25.05.2022 |
|
+91-9892691696
