BNK Capital Markets Ltd Management Discussions.

Overview:

India has maintained a growth rate of around 7% (RBI estimates 7%). India is one of the fastest growing among major economies of the world. The NDA Government is moving forward with "Vikas" as its main agenda. The initial problems Demonetization & GST implementation gradually reducing with lot of simplification on GST implementation. The organized sector is performing better on the implementation of G S T. However the unorganized sector has been very badly hit by its implementation and shall take time to recover. Interest rates are more or less stable with an upward bias. We have seen a big and continued investments by the Mutual Funds in the Capital Markets.

Outlook:

Economy may have some hit because of global rise in crude prices and other national and international economic factors. The National elections have seen a strong and decisive mandate in favour of BJP lead NDA. Mr. Narendra Modi as Prime Minister for the second term shall focus on the expeditious agenda and continue to aggressively fight against terrorism. Defense and Infrastructure sector is likely to get big boost. RBI has projected a growth rate of 7.2% in the economy in the current year. Positive actions by the Govt, may result in good sentiments and the foreign investors will continue invest in Indian stocks. The "Nifty & Sensex" are at all time high levels. We expect the markets to move positively but shall remain volatile and consolidate in times to come.

Risk and concerns:

The key threats include, the change / slowdown in implementation of the policies of the Government, delay & short term fall out in implementation of major tax reform like GST, failure to contain actual inflation within a reasonable range, high NPAs of the banks, defaults & frauds, governing rules of SEBI and RBI etc. Geo political conditions may effect the global economy which may reflect in capital, currency, commodities and debt market substantially. Below average monsoon may also a negative factor for Economy. Decrease in domestic consumption is a cause of concern to growth.

Business Segment Analysis

During the period under review the Companys activities was to Capital Market, NBFC and related fields. The company has made investments and disinvestments, trading and dealing insecurities and Mutual Funds. The Company was also engaged in providing services of data collection like AADHAR services and other related services.

Financial Results

The financial performance of the Company, for the year ended 31 st March 2019 is summarized below:

Year Ended 31st March 2019 Year Ended 31st March 2018
(र. In Lacs) (र. In Lacs)
Gross Profit 1435.67 349.15
Net Profit After Tax 1357.95 288.61
Surplus carried to Balance Sheet 776.73 455.85

Comment on current years performance:

Revenue : Total Revenue of the Company has increased in comparison to previous year because of high dividend receipt during the year and lower operating expenses.

Operating Expenses : Operating & Administrative expense has decreased in comparison to previous year because of lower expenses towards services division.

Operating Profit: Profits have increased in comparison to last year due to higher dividend receipt.

Interest Expense : Interest Expenses has been increased as compared to last year. Depreciation : Depreciation has decreased during the year.

Net Profit : Net profits of the Company during the year have increased in comparison to previous year under review.

Human Resources

The Companys human resource strategy, which is in line with the group strategy, revolves around the development of the individual.

Internal Controls

The Company has a proper and adequate system of internal controls befitting its size to ensure that all its assets are safeguarded and protected against loss from unauthorized use and disposal and that all transactions are authorized and reported correctly.

The internal controls are supplemented by internal audits, reviewed by Management and Audit Committee of Board of Directors. The internal control ensures that appropriate financial records are available for preparing financial statements and other data for showing a true and fair picture of the state of affairs of the Company.

We Ajit Khandelwal, Managing Director and Rabindra Nath Mishra, Chief

Financial Officer responsible for the finance function hereby certify that:

a) We have reviewed the financial statements and cash flow statement for the year ended 31st March, 2019 and to the best of our knowledge and belief:

I) These Statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading.

II) These Statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

b) To the best of our knowledge and belief, no transactions entered into by the Company during the year ended 31st March, 2019 are fraudulent, illegal or violate the Companys code of conduct.

c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal control system of the Company pertaining to financial reporting. Deficiencies in the design or operation of such internal controls, if any, of which we are aware, have been disclosed to the auditors and the Audit Committee and steps have been taken to rectify these deficiencies.

d) I) There has not been any significant change in internal control over financial reporting during the year under reference.

II) There has not been any significant change in accounting policies during the year requiring disclosure in the notes to the financial statements.

III) We are not aware of any instance during the year of significant fraud with involvement therein of the management or any employee having a significant role in the Companys internal control system over financial reporting.

Ajit Khandelwal Rabindra Nath Mishra
Managing Director Chief Financial Officer
DIN No.: 00416445
Place; Kolkata
Date: 25th May, 2019