MANAGEMENT DISCUSSION AND ANALYSIS
The Company is in the business of Trading in shares and Finance Activity. The keyissues of the Management Discussion and Analysis are given below.
(a) Industry structure and developments
Indian Finance market size is estimated at Rs. 100 Trillion. Approximately one third ofthis demand is met through Share Market and the balance is met through Financers andlenders. The Industry is mainly dependent on the Investors sentiments. It is nowprevailing good and getting healthy.
The fortunes of the Finance industry are, to a large extent, linked to the growth ofthe Industry and Investment sentiments of the people. The Industry is facing intensecompetition from the Foreign financial Institution.
The strength of a company is known from the profit it earns and sound advances.; Italso depends on the Government policies of taxation. Introduction of SecuritiesTransaction Tax and thereby exempting Long term Capital gain has given a big boost to themarket.
(c) Comment on Current year's performance
|Receipts ||The Receipt has been phenomenal for the first year of its operations. |
|Operating Expenses ||The operating Expenses are well under control. |
|Operating Profits ||The Operating Profits are up to industry mark. |
|Indirect Expenses ||The Indirect Expenses are under control. |
|Depreciation ||Reasonable amount bf Depreciation is provided. |
|Profit before tax ||Profit before tax is also an improving trend. |
|Taxation ||Taxation is Provided as per Income Tax Act. |
|Debtor/Sales ||Debtors are reasonable. |
|Creditors/ Purchase ||The Company has an established credit. |
(d) Opportunities and threats
The impact of boom in capital market and real estate market due to government supporthas provided a boost to the economy and it is set to grow at 7% to 8% supported by a smartgrowth in manufacturing and services sectors. This brings prosperity to a country and moreand more people go for investment in Share market. Outlook for the year 2011 is positive.While the overall demand outlook for the year 2010remains good, the Company expects thepressure on quality customers to continue due to competition.
(e) Segment wise performance
The business of the Company falls under a single segment i.e. Share broking andInvestment in shares for the purpose of Accounting Standard AS-17.
The continual growth in the Finance sector is expected to give the necessary support tothe Finance industry. The Company is making all efforts to accelerate growth of itsbusiness. It expects to improve its position in the market by focusing on technologicallyadvanced and more profitable products/market segments and working aggressively in theareas of productivity, efficiency and cost reductions.
(g) Risk and concerns
The menace of local Finances and play of angadia has further compounded the problems ofthe organised Finance Industry as they use inferior way of transferring funds. The Stockmarket is also a risky place to put one's fund. The pull back of FIIs will also have anadverse effect on the share market.
(h) Internal control system
Internal audit and other controls have been found to be adequate. These are reviewedperiodically by the Audit Committee and found the performance satisfactory.
(i) Developments in human resources and industrial relations
Information as per Section 217 (2A) of the Companies Act, 1956 read with the Companies(Particular of Employees) Rules, 1975 is riot required to be given as no employee fallsunder it. The Company continued to have cordial relations with all the employees.