Gowra Leasing & Finance Ltd Management Discussions

This Annual Report for 2022-23 provide a holistic assessment of your companys financial performance. It also outlines relevant information on the Companys strategy, governance, risks and prospects to offer better insights into its activities and progress, reporting principles and framework.

BACKGROUND

Gowra Leasing & Finance Limited (‘GLFL or ‘the Company) is a Non-Systematically Important Non-Deposit taking NBFC registered with the Reserve Bank of India (RBI) and in the Base Layer (BL) with reference to Scale Based Regulation (SBR) of RBI. Your company is essentially a loan company categorized by Reserve Bank of India with asset size of less than Rs. 100 Crores. The main business of the company is to extend loans, advances etc.

MACROECONOMIC OVERVIEW

Financial Year 2022-23 began on a mixed note. On the positive side, after two years, the impact of the Covid-19 pandemic on lives and livelihoods started receding, In FY 202-23, the Indian economy faced multiple challenges. However, despite these challenges, India emerged as the fastest growing major economy in the world.

OPPORTUNITIES AND THREATS

Non-banking companies continue to be an important segment of Indian financial system. Opportunities of lending business are sufficient, major risk being non-performing assets and long pending judgements from the courts.

FUTURE OUTLOOK

NBFCs have steadily expanded their share of total credit in the country. They have developed innovative and customized financial products and solutions that are delivered efficiently to fulfil customer aspirations. Even though the business opportunities are plenty for your company, your company is planning to extend the credits after thorough scrutiny and after visualizing the integrity of the borrowers.

RISK MANAGEMENT

Risk is an integral part of finance business. NBFCs are exposed to credit, liquidity and interest rate risks. Companys risk management framework is well embedded and continually reviewed by the Risk Management team. It enables the Board, to identify, evaluate and monitor principal risks and where possible, actively mitigate the risks that could affect the achievement of the Companys target. As a process, risks associated with the finance business are identified. The Board is satisfied that there are adequate systems and procedures in place to identify, assess, monitor and manage risks.

INTERNAL CONTROL

The Company has put in place an adequate internal control system to safeguard all its assets and ensure operational efficiency. The Companys well-defined organizational structure, documented policy guidelines, ensure efficiency of operations, compliance with internal policies and applicable laws and regulations as well as protection of resources. The Company has reputed audit firm as internal auditors to conduct internal audit. The reports are reviewed by the Audit Committee of the Board. Wherever necessary, internal control systems are strengthened, and corrective actions initiated.

PERFORMANCE HIGHLIGHTS

During the year your company earned a revenue of Rs. 222.39 Lakhs with a net profit before tax as Rs. 153.12 Lakhs.

DIVIDEND

In compliance with the RBI Norms for declaration of dividend by NBFCs, the Company hasnt declared dividend for the year ended 31st March, 2023.

HUMAN RESOURCES

The company is cognizant of the importance of human capital in a fast evolving and high growth industry. It also strives hard to retain its experienced team rich in domain expertise as it recognizes their importance in the growth of the Company.

MATERIALITY AND SCOPE

This report includes information which is material to all stakeholders of the company and provides an overview of its business and related activities. The report discloses matters that substantially impact or affect the Companys ability to create value.

CAUTIONARY STATEMENT

The Board of Directors have reviewed the Report. Statements in this report of the Companys objective, projections, estimates, exceptions, and predictions are forward looking statements subject to the applicable laws and regulations. The statements may be subjected to certain risks and uncertainties. Companys operations are affected by many external and internal factors which are beyond the control of the management.

		For and on behalf of the Board of Directors
	Sd/-	Sd/-
Place: Secunderabad	Gowra Lakshmi Prasad	Gowra Srinivas
Date: 08-08-2023	Director	Managing Director
	(DIN: 00268271)	(DIN: 00286986)