Saumya Consultants Limited (registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company), is presently engaged in business of investment in securities & mutual funds, inter corporate loans, and such allied fund based activities.
Investment in Securities
Investment in Securities can be related to high returns and low expenses with the process of liberalization and deregulation in the country. The policies of the government have made this area as an attributive option for financial service companies.
Investment in mutual funds
Investment in mutual funds can be related to steady flow of income, high capital appreciation with high income & providing income or capital appreciation with tax benefits.
Saumya Consultants Limited proposes to integrate its financial services activities by entering into expanding its operations in Inter Corporate Loans. Commercial banks also offer this facility, but this is found to be inadequate and the finance Companies can be an alternate source.
Loans and Advances
Our Company does the business of financing and advancing short term and long term loans, credits, to individuals or associations of person by a whatever name called either on securities such as land, buildings or part thereof, machinery, plants, shares, debentures, government securities, stock certificates, life insurance policies, units, stock-in-trade or on guarantee on such terms as may seem expedient and to release or discharge any debt or obligation owing to the company.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Saumya Consultants Limited is a NBFC and is engaged mainly in the business of investing in Securities. The industry structure relevant to the Company’s operations is mainly concerned with the loans and advances.
The NBFCs sector is undergoing a significant transformation at present and has come to be recognized as an important element of the financial system. The recent issue in financial sector has highlighted the necessity, importance and significant role, the NBFCs play in development of nation’s infrastructure.
In the financial system of India, importance of NBFCs has been much discussed. RBI has been setting right its regulatory and supervising policies from time to time to keep pace with the changes in the environment.
NBFCs have been actively fuelling the growth of the economy – especially the infrastructure part of the economy and have been supplementing the Banking system effectively and thus enhancing competition and diversification in the financial sector.
The NBFCs have attracted substantial investments during the recent years both from the retail and from the wholesale side. The growth also has been significant during this year. The NBFCs have been catalysts in accelerating the growth in the semi urban and rural areas. The projections made by RBI and other financial forecasts give substantial growth opportunities for the industry in the coming years.
FUTURE BUSINESS PROSPECTUS
With the gradual liberalization of the capital market, the financial sector in the country is opening up and thus providing an increasing array of business opportunities in domestic as well as global context. The most remunerative field of investment is capital and money market as is apparent from the shifting of the household savings from fixed interest bearing securities to the primary and secondary market operations, as disclosed in the Bombay Stock Exchange directory. The economy of India is experiencing the vast rehabilitating measures adopted by the government after the deteriorated situation in 1990-91, Extensive reforms in form of liberalization and globalization has been inducted in Indian economy policy and as a result of which the companies in India have been able to exploit lots of potential in the industrial and financial channels of production and services.
OPPORTUNITIES & THREATS
Capital markets at present are going through turbulent times due to slow-down in domestic economy, slow-down in reforms, uncertain global economic environment, economic crisis faced by a few countries in Europe, fluctuations in currency rates, etc. Although the inflation has remained steady during the year but it is still under pressure due to hike in petrol prices, burden of diesel subsidies, high fiscal deficit, etc. However, we feel that the opportunities will soon arise in the markets upon the corrective policies by the government and better fiscal management which will strengthen the economy.
The NBFC industry holds immense potential and the Government of India’s increased focus towards Financial Inclusion has created various opportunities for existing NBFCs to leverage on their established customer base in rural areas. The recent steps by the Government of India to create Infrastructure for NBFC and to provide banking license for NBFCs is a positive signal. The above opportunities have made the Industry highly competitive with the emergence of new category of systematically important NBFCs. Along with existing local and Multinational players leading to tough competition within the industry.
CHALLENGES & FUTURE OUTLOOK
While NBFCs have witnessed substantial growth over the years, there are few areas of concern which need to be addressed. For instance, while NBFCs have enjoyed an edge over banks in semi-urban & rural markets where banking network is not yet strong, they have limited spread in urban markets. Nonetheless, in recent years, NBFCs have begun to create niches for themselves that are often neglected by banks. These primarily include providing finance to non-salaried individuals, traders, transporters, stock brokers, etc.
The growth of the Company depends directly upon the performance of the Securities Market, the Regulatory framework and other micro and macro economic factors in the economy viz-a-viz movements in the interest rates, fluctuation in the currency rates, etc. that have a direct bearing on the investment decisions of the Company.
INTERNAL CONTROL SYSTEMS
The Company has built adequate systems of internal controls towards achieving efficiency and effectiveness in operations, optimum utilization of resources, and effective monitoring thereof as well as compliance with all applicable laws. The internal control mechanism comprises of well-defined organization structure, documented policy guidelines, predetermined authority levels and processes commensurate with the level of responsibility.
HUMAN RESOURCES MANAGEMENT
The Company’s belief in trust, transparency and teamwork improved employee efficiency at all levels. The Company’s commitment to harmonious industrial relations resulted in enhancing effectiveness of operations and enabled the achievement of benchmarks in industry. The company’s ongoing objective is to create an inspirational work climate where talented employees engaged in creating sustained value for the stakeholders.
Training and orientation programs are being arranged periodically, to update the employees in the work techniques. The overall human resources are positive and we would be able to effectively achieve the desired objectives. The Company has developed an environment of harmonious and cordial relations with its employees.