MANAGEMENT DISCUSSION AND ANALYSIS REPORT 1. Operating Results The Total Revenue earned by the Company during the year was Rs. 813.27 Lakhs as compared to Rs. 1469.06 Lakhs in the brvious year. Administrative expenses, Debrciation and amortization including provisions for sub-standard & doubtful assets and provision against standard assets and Loans & Advances were Rs. 308.45 Lakhs as compared to Rs. 343.84 Lakhs during the brvious year. Interest and financial charges were Nil during the current and brvious year. 2. Business Analysis during 2014-2015 The financial year 2014-2015, the Indian economy posted an improvement in its growth dynamics. Due to positive changes in sentiment associated with the political stability in May 2014, the commodity prices environment remained benign since July 2014. There is overall optimism and the fact that the Indian Economy is set to receive a major impetus owing to prudent policy reform and expected rate cuts by RBI and reduction of Current account deficit, the company is also expected to improve its performance. During the year under review, Revenue from Operations was Rs. 813.27 Lakhs (Rs. 1454.28 Lakhs in brvious year) and Net Profit after exceptional items was Rs. 499.54 Lakhs (Rs. 998.80 Lakhs in the brvious year). Securities Trading including Equity derivative trading Profit was Rs. 26.56 Lakhs (brvious year Loss of Rs. 11.48 Lakhs) Profit booked on Sale of Investments during the year was Rs. 107.54 Lakhs (brvious year's profit of Rs. 864.27) Provision for diminution in the value of investment written back was Rs. 347.37 Lakhs during the year under review (brvious year Rs. 436.85 Lakhs) 3. Future Prospects and Outlook Outlook for Indian Economy for the FY 2015-2016 appears to be optimistic. Indian Economy is poised to return to a higher growth path, thanks to lower fiscal and current account deficits, fall in inflation, benign commodity prices and structural reforms to boost investment. Monetary policy is likely to be supportive with the RBI having moved to flexible inflation targeting. All the sectors of the economy particularly manufacturing sector is likely to benefit most from lower interest rates. The share of investment in Gross Domestic Products (GDP) which has shrunk to 29% is expected to pick up with these measures initiated by the Government. International rating agencies may upgrade India's sovereign out look to positive from stable and foreign investors are looking to India as an important Investment destination. 4. Risks and concerns The Company is mainly exposed to market risk (including liquidity risk), interest risk and credit risk. However prudent business and risk management practices followed by a company over the years helps it to manage the normal industry risk factors, which inter-alia includes economic / business cycle, fluctuations in the stock prices in the market, besides the interest rate volatility, and credit risk. The Company is confident of managing these risks by observing a conservative financial profile in investment and trading of securities business. 5. Internal control systems and their adequacy The Company has an adequate and effective system of internal controls for its various business processes, with regard to operations, financial reporting, compliance with applicable laws and regulations, etc. Clearly defined roles and responsibility for all managerial positions gives strength to the internal control system of the organisation. Internal audits are done at regular intervals to ensure that responsibilities are executed effectively. Audit Committee of the Board of Directors on quarterly basis reviews the adequacy and effectiveness of internal control systems and suggests measures for improvement of the existing control system and strengthen the control in view of changing business needs and safe guarding the assets of the Company against significant misuse or Loss from time to time. 6. Financial performance a) Share Capital: The Company's issued and subscribed share capital consists of Equity Share Capital only. The Paid-up Share Capital of the company as at 31st March 2015 stood at Rs. 2433.54 lakhs (including Rs. 54.32 Lakhs towards the original amount paid up on equity share forfeited.) comprised of 2,37,92,218 Equity Shares of Rs. 10/- each. b) Reserves and Surplus: During the year under review, the balance is Rs.11082.92 Lakhs (brvious year Rs. 10583.38 lakhs) c) Fixed Assets stood at Rs. 32.13 Lakhs (Rs. 53.96 Lakhs in the brvious year.) d) Non Current Investments stood at Rs. 8820.00 Lakhs (brvious year Rs. 8970.82 Lakhs) e) Current Assets stood at Rs. 4751.68 Lakhs (brvious year Rs. 5046.40 Lakhs) 7. Human Resources Success of every business depends on proper human resource planning. The Company has adequate and experienced professionals having varied experience related to the Industry to carry out its business operations. Efforts are made to develop leadership capability in the team members which reflects in the decision making process. 8. Cautionary Statement Statements in this "Management' Discussion and Analysis Report" describing the Company's objectives, projections, estimates, expectations or brdictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those exbrssed or implied. Important factors that could make a difference to the Company's operations include interest rates and changes in the Government regulations, direct tax regimes, credit appraisal and monitoring system, Notifications and guidelines issued by Reserve Bank of India, economic developments and other factors such as litigation etc. |
