MANAGEMENT DISCUSSION AND ANALYSIS REPORT 1) Industry Scenario and developments Your company deals in financial activities. It provides finance on short term basis. However parties have defaulted in payment of interest during the year under review. Your company is making all its efforts to recover the same. 2) Opportunities and Threats Since the parties have defaulted in payment of interest on loan given to them in earlier years, the threat therefore remains in respect of bad and doubtful assets, as the above loans are unsecured. However your company is making all possible efforts to see that all the dues are recovered, which if possible will improve your company's position. 3) Segment-wise Performance Since your Company is operating in only one segment (i.e. Financial activity), hence the same is Not Applicable. 4) Outlook If your company is able to recover the interest on finance provided to various parties, the outlook of your company seems to be good. 5) Risk and Concerns The risk and concern of your company relates to loans provided to various parties since the same are unsecured. Hence the concern still remains on timely recovery of interest on such loan, which ultimately can have an effect on the performance of your company. 6) Internal Control system and their adequacy Your company has an adequate internal control system, which ensures that all its assets are safeguarded from unauthorized use and that all the transactions are authorized recorded and reported properly. The internal control system also ensures that all the relevant statutes, rules, regulation and guidelines are strictly complied with. Your company also has an Audit committee manned by members with experience from various fields who along with the auditors constantly review the adequacy of internal control systems, strength and weaknesses and report their findings and suggestions to the top management so that adequate measures could be taken in time. 7) Financial performance vis-a-vis Operational performance During the year under review, your company has incurred a loss of Rs. 1,14,360/- (P.Y. Rs. 1,15,090/-), before providing for Debrciation and taxation. This was mainly on account of non-recovery of interest on loan given in earlier years. 8) Human Resources Development Your company has always given importance to provide utmost satisfaction to its employees through better work environment and updating them of the current development in the market which would have a possible impact on the performance of your company on continuous basis, so that the major threat and challenges to your company can be met with ease. 9) Conclusion Your company though made consistent efforts & drive to reducing operating cost and to utilize the available resources properly, but still your company was unable to make any good profit during the year, which was mainly on account of non-receipt of interest in the current year. |