Alacrity Securities Ltd Management Discussions

INDUSTRY OVERVIEW:

Indian Capital markets play a pivotal role in the growth of an economy and development of the overall financial system.
India remained in a bright spot among the emerging market peers. The Indian capital market has grown exponentially in
terms of resource mobilization, number of listed stocks, market capitalization, trading volumes and investor base. With the
technological advancement and good governance policies gaining ground in India, the overall environment for conducting
business is becoming more conducive as well as investor friendly.

Alacrity Securities Ltd. is a Stock Broking and Financial Services firm, listed on the Bombay Stock Exchange. We are
market veterans and have been in and seen the broking business evolve over 25 years.

We are in the process of embarking on a major paradigm shift in our business outlook, and are now evolving into a full-
service financial services company. Hence have worked to get on board professional management to make sure that
Alacrity is well equipped to get on track to being one of the fastest growing firms in the Broking and Financial Services
Industry.

Our clients can trade or invest in equity and equity derivatives, currency futures & mutual funds through us.

As a company our focus is always to provide a hassle free and seamless experience to our clients while providing them the
best advice and guidance that we can.

Beyond investment avenues, Alacrity Securities is constantly committed to providing our clients with access to timely and relevant
research and data to ensure an informed and profitable investment strategy.

Brokerages are buckling up to face income distribution pressure as economic slowdown and the coronavirus pandemic drag equity
scheme inflows. The situation has eroded asset values, leading to market corrections.

Company is complying with various statutory provisions such as the Companies Act, Income-tax, Service tax, BSE and NSE
provisions and other applicable laws and regulations applicable to the Company.

Technology is an important tool in the creation of consistent business value. The Companys robust technology-based trading
platforms have resulted in increased speed and convenience, leading to a superior customer experience.

Recognizing that people are the most important asset of an organization, the Company offers a conducive work environment and
career opportunities to motivate its employees, encouraging them to deliver improved services to clients.

It is essential to correctly assess the risk in each segment so that the risk is mitigated before it becomes a possible threat. General
risk segments are statutory compliances, economy, financials, Government policies, market-related, operational, products and
technology etc. The management has a rapid review of likely risk areas with the objective to define a framework for identification,
evaluation and mitigating the risk in the decision making process and to encourage proactive management and not reactive
management.

. Indias Growth Rate * Volatile environment

- Focus on affluent customers - Attracting and retaining talent and training

- Financial Inclusion them, for the right culture

- Utilize technology to provide more efficient solutions . inflation and economic slowdown

- Increased retail participation in capital markets , Competition

Alacrity Securities Limited considers human resources a key
element. The company has a competency-based performance for
identifying and developing managerial talent.

We are highly dependent on our senior management, our directors
and other key personnel. Our future performance will depend upon
the continued services of these persons. The loss of any of the
members of our senior management team, our directors or other
key personnel, will adversely affect our financial operations and
financial condition. Emphasis is laid on providing adequate
training to its employee, to meet the attitudinal and cultural values
of the organization ethos to achieve the goals set.

The human resources of company are quite enough according to size, volume and transactions of business and
employee relations are continued to be cordial during the year.

^ INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has robust internal controls systems (including Internal Financial Controls) that facilitates efficiency, reliability and
completeness of accounting records and timely preparation of reliable financial and management information. The internal control
system ensures compliance with all applicable laws and regulations facilitates optimum utilization of resources and protect the
Companys assets and investors interests. The Companys well-defined organizational structure, documented policy guidelines,
defined authority matrix and internal controls ensure efficiency of operations, compliance with internal policies and applicable
laws and regulations as well as protection of resources. The Audit Committee of the Board regularly reviews significant audit
findings of the Internal Audit system covering operational, financial and other areas.

Risk Management is an ongoing process. Effective risk management is therefore critical to any organizational success.
Globalization with increasing integration of markets, newer and more complex products and transactions and an increasingly
stringent regulatory framework has exposed organizations to and integrated approach to risk management. Timely and effective
risk management is of prime importance to our continued success. The sustainability of the business is derived from the following:

- Identification of the diverse risks faced by the Company.

- The evolution of appropriate systems and processes to measure and monitor them.

- Risk Management through appropriate mitigation strategies within the policy framework.

- Reporting these risk mitigation results to the appropriate managerial levels.

Statements in the Management Discussion & Analysis, describing the Companys objectives, projections and estimates are forward
looking statement and progressive within the meaning of applicable laws & regulations. Actual result may vary from those
expressed or implied. Important developments that could affect the Companys operations are significant changes in political and
economic environment in India, tax laws, exchange rate fluctuation and related factors.