malabar trading company ltd share price Management discussions

Industry Structure and Development

Your Company being Non-Banking Financial Company is engaged in the business providing finance and advancing short term and long term loans and credits to individuals, companies or association of individuals either on securities such as lands, buildings or part thereof, machinery, plants, chattels, vehicles, shares, debentures, government securities, stock certificates, life insurance policies and unit stock-in-trade or by purchasing, discounting or accepting bills of exchange, promissory notes or other negotiable instruments and to act as underwriters, firm financing acceptance houses, confirming houses, venture capital funds, merchant bankers, or investors.

Opportunities & Threats

The Company is expecting good opportunities in the upcoming financial year. However, threats are perceived from its existing and prospective competitors in the same field.

Segment Wise Operational Performance

The Companies growth considering the past few years performance has been good. The Company is striving hard for increasing profits from year to year. The total revenue from the operations for the year ended March 31, 2018 stood at Rs.10, 78,015 as against Profit of Rs. 14, 83,505 for the year ended March 31, 2017.

Outlook

Your Company, keeping pace with the overall market scenario, has grown significantly. Your Company envisages optimistic growth in the near-term as it appears that economy has bottomed out and interest rates are on a sustainable downtrend as inflation has been steadily low in recent times. These factors will boost demand from our customers.

Risks and Concerns

The major risk area being faced by the is interest rate volatility where Fluctuations in interest rates could adversely affect borrowing costs, interest income and net interest margins of companies in the financial sector. The company also has competition risk as the financial services space in India is highly competitive.

Internal Control Systems and Their Adequacy

The Company has in place adequate internal control systems covering all its operations. Proper accounting records highlight the economy and efficiency of operations, safeguarding of assets against unauthorized use or losses, and the reliability of financial and operational information.

Some of the significant features of internal control system are:

• Financial and Commercial functions have been structured to provide adequate support and control of the business.

• Risk Management policy has been adopted by the Company.

• The Company has an Internal Audit System conducted by the internal auditor of the Company. Standard operating procedures and guidelines are reviewed periodically to ensure adequate control.

Discussion on Financial Performance with Respect to Operational Performance

The Companys revenue from operations has decreased as compared to the previous financial year ended 31^st March, 2017 for which it was Rs. 14,83,505 to Rs. 10,78,015.

Human Resources

Your Company continuously endeavours to improve the work environment for its employees. Competitive compensation package, innovative and challenging environment to work, transportation facilities, etc., are some of the steps taken by the Company for the welfare of its employees.

Cautionary Statement

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as "forward looking statements" only. Actual results could differ from those expressed or implied. Companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.

For Subway Finance & Investment Co. Limited Sd/-

Ishan Rahul Shah

Managing Director

DIN: 06966381

Address: Block No 8,468 A

Hanuman Prasad, 1st Floor,

King Circle, Mumbai 400019

Date: 14^th August, 2018

Place: Mumbai