Cil Securities Ltd Management Discussions

Industry Structure & Developments

		Membership of Company with Stock Exchange(s)
		Clearing cum Trading Member:			Trading	Member
	Cash Market	Future & Options	Mutual Fund Service System	Securities Lending & Borrowing Mechanism	Currency Derivative Segment	Commodities Segment
NSE	/	/	/	/	/	-
BSE	/	/	-	/	-	-
MCX	-	-	-	-	-	/

The Company provide services in diversified Financial Services:

(i) Merchant Banker?Category I

(ii) Registrar & Share Transfer Agent-Category I

(iii) Depository Participant - CDSL

(iv) Depository Registrar- CDSL/ NSDL

(v) Providing Broking Services to Retail, high Networth Clients and Institutional Clients

The Company follows all the rules and regulations of the respective exchange(s); Depositories & SEBI. Opportunities and Threats

The Company being a player in the financial market, the performance of the Company largely depends on the National and Global Capital Markets. Your Company continues to work on cost effective solutions through the application of technology. We believe that implementation of technology can unlock growth for us in the future.

Opportunities

• Regulatory reforms would aid greater participation by all the class of investors.

• Leverage technology to enable best practices and processes.

• Increased retail participation in capital markets.

Threats

• Slowdown in global liquidity flows

• Intense competition from local and global players.

• Unfavorable economic conditions

Segment Wise or Product Wise Performance

The Company carries on Stock Broking which is its core activity, besides undertaking other Capital Market activities. The segment wise performance of the Company is as under:

(Rs. in Lakhs)

SEGMENT	GROSS INCOME
	31st March, 2024	31st March, 2023
Securities Dealings & Broking	958.85	877.95
Merchant Banking	4.80	3.50
Registrar & Share Transfer Agent	64.24	57.41
Demat & Depository	23.72	28.33
Consultancy Fee	1.78	5.17

The key financial ratios are as under:

Particulars	Financial year 2023-24	Financial Year 2022-23
Debtors Turnover Ratios	3.18	3.66
Inventory Turnover Ratio	1.82	1.59
Interest Coverage Ratio	-	-
Current Ratio	1.93	2.73
Debt Equity Ratio	-	-
Operating Profit Margin (%)	37.88	32.89
Net Profit Margin (%)	27.32	26.58
Return on Net Worth (%)	9.83	9.82

Outlook

Continuing with the new found buoyancy in the securities dealing businesses, your company is comfortably positioned to achieve a decent growth in the year ahead. With the markets too showing a fresh tendency to overlook the challenges from the Geopolitical equations, from time to time, we have already seen a very encouraging beginning to this new financial year. While the Global Markets continue to present a pretty picture on the overall Macro basis, the hard core local issues, from the evolving Political situation in an Election year actually has added a new dimension of positivity to our Financial Markets.

The Political events that are panning out locally are seen as a strong emergence of pro-Development policy making powers at the center & will percolate down the layers of Economic building blocks. As such, a continuation of an incumbent Party as the Governing body augurs well for the Reform processes to accelerate further.

Under these influential circumstances, the Financial Markets are most likely to emerge stronger & throw up humongous opportunities to the Financial Intermediary players like us. Hence, we are all geared up to tap these opportunities & envisage a robust outlook for the Financial Year 2024-25.

Challenges, Risk, Concern

The Company faces normal business challenges of market competition in its business and needs to continuously seek attractive growth opportunities. The Company adopts suitable business strategies to counter these challenges.

As a part of the overall risk management strategy, the Company consistently insures its assets and generally follows a conservative financial profile by following prudent business practices.

Internal Control System and their adequacy

The Company has a proper and adequate internal control system commensurate with its size and nature of business to meet the following objectives:

• Providing assurance regarding the effectiveness and efficiency of operations;

• Efficient use and safeguarding of resources;

• Compliance with policies, procedures and applicable laws and regulations;

• The systems are IT enabled which facilitate effective checks and tight monitoring of all parameters and control on continuous basis.

The Audit Committee actively reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening measures from time to time.

Risk assessment reports received from various departments are reviewed periodically and steps are initiated for elimination whenever needed.

Human Resource Development

The Company has a group of able and experienced employees. The Company believes that the quality of its employees is the key to its success in the long run. The Company continues to have cordial relations with its employees and provides personal development opportunities for all round exposure to them. As on 31^st March, 2024, Company had 35 employees.

	By Order of the Board of Directors of CIL SECURITIES LMITED
Registered office 214, Raghava Ratna Towers,	Krishna Kumar Maheshwari
Chirag Ali lane, Abids	Managing Director
Hyderabad-500 001	DIN: 00223241
Place: Hyderabad Date: 26th April, 2024