MANAGEMENT DISCUSSION & ANALYSIS REPORT The purpose of this discussion Is to provide an understanding of financial statements and a composite summary of performance of our business. Management Discussion and Analysis (MDAl is structured as follows: ¦ Overview ¦ Business Overview ¦ Financial Industry Overview ¦ Textile Outlook ¦ Financial and Operational Performance ¦ Internal Control Systems and adequacy ¦ Material Development in Human Resources ¦ Business Strengths ¦ Risks and Concerns * Cautionary Statements OVERVIEW: Our Company Rajputana Investment & Finance Limited was incorporated on September 22, 1941 under the Indian Companies Act, 1913 as a Public Limited Company and received Certificate for Commencement of Business on September 23,1941 in the State of West Bengal. TheCorporate Identification Number (CIN) of the Company is L65929WB1941PLC010731. The Authorized Capital of the Company is Rs. 31,000,000/- and Paid-up Capital is Rs. 11,000,000/-. BUSINESS OVERVIEW: Our Company deals with and invest the surplus funds of the Company or in its custody in such manner and in such securities as shall from time to time be thought necessary for the benefit of the Company. Indian Textile Industry has a overwhelming brsence in the economic life of the country. Therefore, in the Financial Year 2014-15 our Company has diversified and entered into the business of Trading in Textile & Clothing as it provides one of the basic necessities of life and also plays a pivotal role through its contribution to industrial output, employment generation and export earnings of the Country. FINANCIAL INDUSTRY OVERVIEW: The company Is into investing, acquiring and holding shares, stocks, debentures, debenture stocks, bonds, warrants, obligations/and/or other securities issued or guaranteed by any company constituted or carrying on business in India and/or by any Government, state, public body-or authority. The Company is also engaged in the business of financing, assisting, helping, supporting, promoting companies, firms, businesses, associations, concerns, corporations, partnership, individual or organization in the setting up, running, working, functioning, managing, conducting, operating of any commerce, industry, trade, business, profession etc. through loans and advances. TEXTILE OUTLOOK: The Indian textile industry is expected to grow very strongly. Domestic demand is expected to grow strongly with the revival of overall economy and profits of the Company. The raw materials cost in absolute terms has increased as compared to the brvious year. In addition, favourable government policies to boost investor confidence are increasing investment in organized retail. The government positive steps are expected to help this shift in textile retail materializes, the consumption of the textile products in the domestic markets should increase in the years to come. The overall consumption growth story of India, driven by favourable demographic trends and rising income level is expected to continue gain momentum. The company with the view of generating more revenues in future and to expand the business, has diversified and explored a new avenue through trading in textile & clothing items. INTERNAL CONTROLS SYSTEM & ADEQUACY Management has put in place effective Internal Control System to provide reasonable assurance for: ¦ Safeguarding Assets and their usage. ¦ Maintenance of Proper Accounting Records and * Adequacy and Reliability of the information used for carrying on Business Operations. Key Elements of the Internal Control Systems are as follows: (i) Existence of Authority Manuals and periodical updating of the same for all functions. (ii) Existence of clearly defined organizational structure and authority. (iii) Existence of corporate policies for Financial Reporting and Accounting. (iv) Existence of Management Information System updated from time to time as may be required. (v) Existence of Annual Budgets and Long Term Business Plans. (vi) Existence of Internal Audit System MATERIAL DEVELOPMENT IN HUMAN RESOURCES: The Company continues to lay emphasis on developing and facilitating optimum human performance. Performance management was the key word for the Company this year. BUSINESS STRENGTHS 1) Well Qualified and Experienced Promoters: Our management team is backed by promoters who have requisite experience In financial markets and lending industry. We believe that their strong technical experience and industry networks will help us in achieving our key business strategies. 2) Maintain and expand long term Relationship with Clients: In Finance Business the relationship with the clients is more important. The business model is based on client relationships that are established over period of time. The Company believes that a long term client relationship with large clients fetches better dividends. The company wants to expand its loan portfolio to target high net worth individuals with impeccable credit track record to whom the company may advance funds both secured/ unsecured based on the risk profile and as envisaged in the loan policy of the company. 3) To develop relations with new clients and strengthen the relations with the existing clients: The relations with the clients help the company to know the client in better way and his integrity can be known to the company. The promoters believe in personal connection with the clients for financing rather than relying more on papers. 4) Internal Control and Risk Management: The Company believes that it has internal controls and risk management systems to assess and monitor risks. The company has its management team which monitors and manages risks by monitoring trends that may have an effect on the economic environment and actively assesses on a routine basis the market value of the Company's loan book. The Company seeks to monitor and control its risk exposure through a variety of separate but complementary financial and operational reporting systems. The Company believes it has effective procedures for evaluating and managing the market, operational and other risks to which it is exposed. RISKS AND CONCERNS: This section contains forward - looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these statements. As the industrial and economic growth of the country is showing steady improvement. There is no perceived risk and concern in this area of business and there is an ample scope for growth in India itself. Forward looking statements are based on certain assumptions and expectations of the future events that are subject to risks and uncertainties. Actual future results and trend may differ materially from historical results, depending on variety of factors. Their risk and concerns faced by the Company are similar to those faced by any growing organization in today dynamic industrial and economic scenario. CAUTIONARY STATEMENT: Statements in the Management Discussion and Analysis and Directors Report describing the Company's strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those exbrssed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements. For and on behalf of the Board Sd/- Pankaj Kumar Kanodia (Managing Director] Din :07020952 Place: Kolkata Date: 11th August, 2015 |