MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT I) STRUCTURE AND DEVELOPMENT: Your Company is an registered NBFC and is engaged in finance business since inception from 1986. The Company's thrust area is vehicle financing, particularly in old vehicle finance. The Company has developed expertise in financing and recovery of its loan and built up sound portfolio of old vehicles. The business activities of the Company are mainly concentrated in U.P. where it has to und enough scope. II) OPPORTUNITIES AND THREATS: With the growth In economy, particularly the service sector, there is ample scope for vehicle financing which is company's thrust area. Company has developed expertise during the period of 29 years in financing of used vehicles. Company looks (onward to avail such opportunities by expanding area net-work. However, as the vehicle financing is high risk area, particularly in the northern region where the company is operating, it is moving forward with caution. Moreover there is severe competition from the organized banking sector particularly, private sector banks. III) PRODUCT-WISE PERFORMANCE: The company is not a manufacturing company and is engaged only in vehicle financing. The performance of the company has been satisfactory looking to global down turn. IV) OUTLOOK: As has been explained above, future business scenario Is hopeful. V) RISKS AND CONCERNS: Risk is an inherent part of finance business. Your company, however, has taken steps in strengthening the risk management systems and practices. The company is continuously monitoring the business by deputing recovery managers. Company during the last several years has not lost any money in recovering its loans. VI) INTERNAL CONTROL SYSTEM : The company has adequate Internal Control System commensurate with the size and nature of its business with regard to finance, recovery and investment. VII) OPERATIONAL PERFORMANCE: Looking to the highly competitive and subdued economic conditions, your company has done well and has secured the business to the tune of Rs. 202.86 lacs. VIII) HUMAN RESOURCES: The company has a professional team to control its day to-day activities under the guidance of the Executive Director. |