mefcom capital markets ltd Management discussions

INDUSTRY STRUCTURE & DEVELOPMENT

The relevant industry for the Company is financial service sector, which is considered as a touchstone of socio economic development of the country.FY 2022-23 witnessed a surge in indices with large caps doing well led by key constituents of the NIFTY. However, the broader markets especially thesmall and midcap segment performed very well during financial year 2022-23. However in FY 2022-23 there is V shape recoveryin midcap & small cap. India also emerged as one of the strongest economy and reforms by the present government. BSE Sensex has crossed 55000 andNSE Nifty was over 17000. India has emerged as one of the strongest economy in the world. It has become 5th largest economy in the word leaving behind France & UK. India alsoemerged as one of the strongest economies amongst the emerging markets. India has a diversified financial sector, which is undergoing rapid expansion.

SEGMENT –WISE PERFORMANCE

The Company has considered business segment as primary segment. The Segment have been identified taking into account the nature of activities, thedifiering risks and returns, the organization structure and internal reporting system. There are no reportable geographical segments. The segment wise information can be viewed in the notes to accounts statement annexed with the financial statement for the year ended March 31,2023.

OUTLOOK, OPPORTUNITIES AND THREATS

Your company being a Merchant banker seeks opportunities in Capital markets. The primary Markets business has seen less growth during this financialyear and fund raising from IPO market has been considerably less during financial year 2022-23. The business of the company is afiected by thesentiments prevailing in the stock markets.

India is expected to be major economy in years to come but it is facing major challenge of falling farm incomes and the lack of job opportunities forthousands of youth entering the labour force each month.

On the external front the on-going Trade war between US and China and the happenings of EU are factors which could exert pressure on markets. Thecountry is projected to become the fifth largest banking sector globally by 2020 (as per a joint report by KPMG-CII). The report also expects bank creditto grow at a compound annual growth rate (CAGR) of 17 per cent in the medium term leading to better credit penetration over the next few years forthe financial services segment.

The Company has a net Loss of Rs. (496.15) Lakhs as on 31st March, 2023 against a net profit of Rs. 274.92 Lacs (As per Ind AS) in the previousyear ended on 31st March, 2022.

The Company has various SME issues in pipeline to be listed on SME platform of NSE and BSE Limited in the coming financial year. Further, it is expectedthat the Capital market will do better in the future, hence it is expected that it will enlighten the growth prospects of the Company.

RISK & CONCERNS

The Industry has witnessed intense competition, falling commissions and entry of several big players. The Capital market industry in which your companyis operating is subject to extensive regulations. The Company evaluates the associated risks and works accordingly.

INTERNAL CONTROL SYSTEMS

The Company has built adequate systems on Internal Financial Controls towards achieving eficiency and efiectiveness in operations, optimum utilization of resources, and efiective monitoring thereof as well as compliance with all applicable laws The internal control mechanism comprises a well-defined organisation structure, documented policy guidelines, predetermined authority levels and processes commensurate with the level of responsibility and that same are adequate and operating efiectively. The Audit Committee reviews the reports of the Internal Auditors and monitors the efiectiveness and operational eficiency of these internal control systems. The Audit Committee gives valuable suggestions from time to time for improvement of the Companys business processes, systems and internal controls.

FINANCIAL PERFORMANCE

During the year under review, the company has booked loss as compared to previous year profit; the management is in the process of better utilizationof available resources and proper implementation of business strategies. The small and medium enterprises have now got a separate SME platform to listtheir shares so now even small companies can now go for IPO which will enhance the profitability and market share of your Company.

It is expected that the Company is having good future prospects and will give better results as the capital market is also expected an upward trend infuture.

HUMAN RESOURCES MANAGEMENT

The Companys belief in trust, transparency and teamwork improved employee eficiency at all levels. The Companys commitment to harmonious industrial relations resulted in enhancing efiectiveness of operations and enabled the achievement of international benchmarks in financial business. The companys 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 efiectively achieve the desired objectives. The Company has developed an environment of harmonious and cordial relations with its employees.

CAUTIONARY STATEMENT

Statements in foregoing paragraphs of this report describing the current industry structure, outlook, opportunities, etc., may be construedas "forward looking statements", based on certain assumptions of future events over which the Company exercises no control. Therefore, there canbe no guarantee as to their accuracy. These statements involve a number of risks, uncertainties and other factors that could cause actual results todifier materially from those that may be implied by these forward looking statements. Such risks and uncertainties include, but are not limited togrowth, competition, domestic & international economic conditions afiecting demand, supply & price conditions, changes in Government regulations,tax regimes and other statutes.

	For and on behalf of the Board of Directors of
	MEFCOM CAPITAL MARKETS LIMITED
	Vijay Mehta
Place : New Delhi	DIN:00057151
Date : 20.05.2023	Chairman/Managing Director