Tribute Trading And Finance Limited

TTFL being a Non-Banking Finance Company (NBFC) is engaged in the business of finance and investment. NBFC, today are facing severe competition from banks i.e. nationalized and established banks, corporate banks and cooperative banks. This is in contrast to the Banks working where NBFC’s business model is characterized by very close customer interaction and relationship, a deep understanding of customer needs. NBFCs have contributed significantly towards the steady increase in the credit penetration levels. Overall, credit penetration levels in India still remains low as compared to the developed countries despite the rapid credit growth in recent past. Thus financial intermediaries like NBFCs are presented with big opportunities not only to meet the rapidly growing credit needs of mainstream borrowers but also to address the huge untapped demand of borrowers dependent largely on informal channels. This is where our efforts in providing the fund- based activities to our customers will play a meaningful long-term role.

INDUSTRIAL STRUCTURE AND DEVELOPMENT

Non-Banking Finance Companies (NBFCs) have become an integral part of the country’s financial system because of their complementary as well as competitive role. In recent times, NBFCs have emerged as lenders to both companies and individuals. When it comes to lending, NBFCs are generally regarded to be complementary to banks and are often able to offer better services and products to their customers.

Resulting consolidation and restructuring in the financial sector, only few NBFC Companies have uphold their position in this globalised market. However, competition continues to be intense, as the Indian and foreign banks have entered the retail lending business in a big way, thereby exerting pressure on revenue. Now NBFCs can sustain in this competitive environment only through optimization of funding costs, identification of potential business areas, widening geographical reach, and use of technology, cost efficiencies, strict credit monitoring and raising the level of customer service.

OPPORTUNITY & THREATS

India is an attractive investment destination and the Companies here are the part of India’s growth story and through this we have also get hold of immense opportunities to expand, strengthen and enhance our business. We have enough headroom available to enlarge our network and at the same time educate number of customers to tie-up with us.

However due to continuing recession throughout world markets, a slowdown in financial flows into the economy and lingering impact of global credit crunch are seen as the greatest risk faced by NBFCs. Further the volatility in the Indian equity markets and the huge liquidity crunch due to global financial melt down would be a threat for the Company’s business growth.

RISK AND CONCERNS

The Company’s risk philosophy involves the developing and maintaining a healthy portfolio within its risk appetite and the regulatory framework. While the Company is exposed to various types of risk, the most important among them are credit risk, market risk (which includes liquidity risk and price risk) and operational risk. The measurement, monitoring and management of risk remains key focus areas for the Company which manages this risk by maintaining prudent and commercial business practices.

INTERNAL CONTROL SYSTEM

The Company has always believed that transparency, system and controls are important factors in the success and growth of any organization. Internal Control measures and systems are established to ensure the correctness of the transactions, safeguarding the assets etc. The Company has adequate internal control system commensurate with its size and nature of business and suitable internal control procedures, optimum resource utilization and compliance with the various statutes is ensured. The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines. The Audit Committee reviews the adequacy of internal control system on regular basis and follow up actions are then immediately implemented.

OUTLOOK

A significant portion of the Company’s income arises from investment and trading operation, which are largely dependent on the conditions of the stock market. The Stock market activity depends largely upon the economic growth momentum and a combination of several factors like low inflation, growing domestic savings, surging portfolio investments into India etc. The unusual developments in the global economy indicate heightened uncertainties and new challenges for the emerging market economies like India. However, several policy measures introduced by the government to reduce the growing rate of inflation, consistently increasing savings and investment rate, and achieve expected moderate GDP growth rate compared to other competing emerging markets and healthy corporate earning which has the potential to attract strong foreign capital flows in the Indian capital market. The management is of the view that the Company will be able to reasonably perform in this economic environment by continuing its efforts to reach new client segment with its best service capability.

HUMAN RESOURCES

The company firmly believes that intellectual capital and human resource is the backbone of the Company’s success. The Company always treats human resources as its most valuable asset and continuously evolves policies and process to attract and retain its substantial pool of managerial resource through friendly work environment. TTFL has always aimed to create a work place where every person can achieve his optimum potential. In view of this, the Company encourages its people to balance their professional and personal responsibilities leading to a more productive tenure of its employees.

OPERATIONS AND FINANCIAL PERFORMANCE

TTFL has a proper and adequate system to ensure that the transactions are sanctioned, recorded and reported correctly. The internal control is supplemented by an extensive programme of internal reporting, review by management, documented policies, guidelines and procedures.

CAUTIONARY STATEMENT

Statements made in this Management Discussion and Analysis contain certain forward looking statements based on various assumptions on the Company’s present and future business strategies and the environment in which it operates. The actual results may differ substantially or materially from those expressed or implied due to risk and uncertainties.

For and on behalf of the Board of Directors

(Manoj Sethia)

Director