balgopal commercial ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

India entered FY2023 amidst uncertain macroeconomic environment. The threat posed by the Omicron coronavirus subtype quickly subsided but at the same time geopolitical conflicts arose between Russia and Ukraine. In addition to that, Chinas decision to continue lockdown in its cities due to the increasing number of Covid cases had a detrimental impact on the global supply chain. This led to significant increase in oil and food prices which in turn lead to rise in inflation across the global economies.

Indias GDP experienced double-digit growth of 13.1% in Q1FY2023 partially due to the base effect. However, growth slowed down in Q2FY2023 and Q3FY2023, reaching 6.2% and 4.5% respectively, due to high inflation and weakening demand. In Q4FY2023, growth bounced back to 6.1%, pushing the overall growth rate to 7.2% for FY2023. India continues to be one of the fastest growing major economies globally in FY2023.

OPPORTUNITIES

Regulatory reforms would aid greater participation by all class of investors Leveraging technology to enable best practices and processes

Corporates looking at consolidation / acquisitions / restructuring opens out new opportunities for investors

THREATS

Execution risk

Short term economic slowdown impacting investor sentiments and business activities Slowdown in global liquidity flows Increased intensity of competition from local and global players

RISKS AND CONCERNS

The financial market industry is mainly dependent on economic growth of country and financial market is also further affected by number of issues arising out of International policies of foreign government as well any change in international business environment. The industrial growth is very sensitive which is dependent on many factors which may be social, financial, economic or political and also natural climatic conditions in the country.

The Company has exposure to the following risks arising from financial instruments:

? Credit risk

? Liquidity risk

? Market risk

? Interest rate risk

? Legal & regulatory risk

? Economic and Political risks

OUTLOOK:

The Company operates in the financial sector and is mainly engaged in dealing in derivatives, futures and options. We have delivered sustainable performance in FY2023 despite of market headwinds. Our strategy is to further diversify our business model towards more sources of earnings. The Company has set itself the objective of achieving excellence in its business. As a part of its growth strategy, the Company believes in adopting the ‘best practices that are followed in the area of Corporate Governance. The Companys Philosophy on corporate governance oversees business strategies and ensures fiscal accountability, ethical corporate behavior and fairness to all stakeholders comprising regulators, employees, customers, vendors, investors and the society at large.

DETAILS OF SIGNIFICANT KEY FINANCIAL RATIOS:

Ratios	2022-23	2021-22
Debtors Turnover	14.11	24.01
Inventory Turnover	1.31	5.26
Interest Coverage Ratio	-	-
Current Ratio	5.39	0.62
Debt Equity Ratio	-	-
Return on Equity	0.01	0.02
Net Profit	0.02	0.04

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has suitable and adequate system of Internal Controls commensurate with its size and nature of operations primarily to ensure that

– The assets are safeguarded against loss from unauthorized use or disposition; - The transactions are authorized, recorded and reported correctly and - Code of conduct, Policies and applicable statutes are duly complied with.

The Company is conscious of importance of systems control and so continuously assesses the quality of integrated software package. Continuous reporting of these systems is made to the Board and Audit Committee for their review to upgrade, revise and to focus on determination of adequacy of the Control Systems.

ENVIRONMENT AND SAFETY

The Company is conscious of the importance of environmentally clean and safe operations. The Companys policy requires the conduct of all operations in such manner so as to ensure safety of all concerned, compliance of statutory requirements for environment protection and conservation of natural resources to the extent possible.

RISK MANAGEMENT

Risk is an integral part of the business process. To enhance the risk management process, the company has mapped the risks. Risk arising in achieving business objectives are identified and prioritized. Risk mitigation plans are established and executed as and when need arises. Periodical reviews are carried out to assess the risk levels.

HUMAN RESOURCES

Human resources development, in all its aspect like training in safety and social values is under constant focus of the management. Relations between management and the employees at all levels remained healthy and cordial throughout the year. The management and employees are dedicated to achieve the corporate objective and the targets set before the Company.

CAUTIONARY STATEMENT

Readers are cautioned that this discussion and analysis contains forward looking statements that involve risks and uncertainties. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results, performances or achievements, risks and opportunities could differ materially from those expressed or implied in these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements as these are relevant at a particular point of time & adequate restrain should be applied in their use for any decision making or formation of an opinion.

		For and on behalf of the Board
	M/s Balgopal Commercial Limited
	Sd/-	Sd/-
	Vijay Laltaprasad Yadav	Yash Saraogi
	Managing Director	Director
	DIN: 02904370	DIN: 00402101
Date: 28.08.2023
Place: Mumbai