MANAGEMENT DISCUSSION & ANALYSIS REPORT INDUSTRY STRUCTURE&DEVELOPMENTS Economic activity in India continued to be moderate during the Financial Year 2013-14. Global economic conditions also remained weak with slowdown in growth in developed and emerging economies. While a supportive policy environment in developed economies brvented any crisis situation, uncertainty around revival in global growth remained a concern through the year. Your Company being in financial sector is continued to reel under brssure from the Banking Industry which has penetrated into almost all the segments of the financial services sector. In the highly competitive environment in which the NBFC'S are brsently working, they have no option but to streamline and optimize their operations to adapt to the emerging scenario. OUTLOOK ON OPPORTUNITIES The Reserve Bank of India (RBI) undertook a calibrated easing of monetary policy during the year. A series of policy measures were announced by the Government during the later part of fiscal 2013-14 due to which the Indian equity markets improved due to favorable global liquidity conditions and domestic events. The increase in values in the finance sector, the growth in industry, trade and commerce had lead to significant increase in overall credit off-take. Your Board of Director's intends to increase its thrust on good business in the current financial year. However, rising rate of interests would affect the business of the Company in future. Your directors expect that with stable government in center, estimates of better GDP growth rate, the Company's strong business model, innovative fund management techniques, continued confidence of investors and support of the lending institutions to the Company's fund mobilization activities on account of good track record of debt servicing, your Company should achieve better performance in the year 2014-15. OUTLOOK ON THREATS, RISKS ANDCONCERNS The NBFC sector, in which your company operates, has been facing competitive brssure from Banks and Financial Institutions, making it increasingly difficult to generate revenues. The shrinking of interest sbrads has put further brssure compelling them to look for new avenues for revenue generation and investment sector is also affected on international trend. Hence, both the sector needs to be very cautious and challenging business. The profit margins have increased due to better marketing efforts of our people at rural markets. We have been able to disburse maximum finance in rural market where company is able to achieve better rates. SWOT ANALYSIS Strengths • Knowledge-driven and relationship-based business model • A well-defined and scalable organisation structure based on product, territory and process knowledge • Experienced and stable management team • Strong relationships with public, private banks, institutions and investors. Weaknesses The Company's business and its growth are directly linked to the GDP growth ofthe country. Opportunities • Growth in the Commercial Vehicle market • Strong demand for passenger CVs • Strong demand for br-owned vehicles • Loansforworking capital requirements of CV users • Partnerships with private financiers will enable the Company to enhance its reach without significant investments in building infrastructure. Threats Regulatory changes in the NBFC and ancillary sectors. INTERNAL CONTROLSYSTEM In any industry, the processes and internal control systems play a critical role in the health ofthe Company. The Company's well defined organizational structure, documented policy guidelines, defined authority matrix and internal controls ensure efficiency of operations, compliance with internal policies and applicable laws and regulations as well as protection of resources. Moreover, the Company continuously upgrades these systems in line with the best available practices. The Company has established its internal control system commensurate with the requirement of its size. The Finance Department of the company is well staffed with experienced and qualified personnel who will play an important role in implementing and monitoring the internal control environment and compliance with statutory requirements. INFORMATION TECHNOLOGY The company has been using the best possible information technology as a management tool for internal control. The Company continues to invest reasonable into information technology for monitoring operation. HUMAN RESOURCE MANAGEMENT Human resources are a valuable asset for any organization. The company is constantly endeavoring to source and develop skilled manpower at all levels. This is in keeping with its policy of enhancing the individual's growth potential within the framework of corporate goals. Total number of employees as on 31stMarch,2014stoodat19. DATE: 24.05.2014 PLACE: JAIPUR FOR AND ON BEHALF OF THE BOARD PANNA LAL BAID (Managing Director) DIN:00009897 RAKESH KUMAR BAID (Whole-time Director) DIN:00009926 |