Dalal Street Investments Ltd Management Discussions.

Company Overview

The Company was incorporated under the provisions of Indian Companies Act. Earlier the Company was registered as a Non-Banking Finance Company (NBFC) with the Reserve Bank of India (RBI) having registration No. 13.00567 and the same was cancelled vide the order dated September 11, 2018 issued by the RBI. The Company continues to mainly undertake business activities of providing advisory services and undertaking investment and trading activities within the parameters of the regulations / statutes.

The Total Income for the financial year under review was Rs. 28.94 lakhs as against Rs. 143 lakhs for the previous financial year registering a decrease of Rs. 114.06 lakhs. The profit before tax was Rs. 5.62 lakhs and the profit after tax was Rs. 3.67 lakhs for the financial year under review as against (Rs. 19.20) lakhs and Rs. 215.55 lakhs respectively reported for the previous financial year.

There were no material changes and commitments affecting the financial position of the Company, between the end of the financial year and the date of this Report.

Open Offer Updates & Statutory Threshold Limits

Post successful completion of the Open Offer, the Company vide requisite approvals from the members had noted Mr. Murzash Manekshana as the new promoter of the Company. Post induction of new promoter, erstwhile promoter/promoter group is required to be reclassified as Public Shareholders and hence the said process had been completed by the Company.

Post which, as per the Statutory Requirement to maintain the threshold limit of the Promoter and Promoter Group i.e. maximum up to 75% in the Company. Mr. Murzash Manekshana has submitted to BSE a copy of Offer for Sale (OFS) up to 16,264 equity shares representing 5.16% of the paid-up equity share capital of the Company, by way of Offer For Sale through the Stock Exchange Mechanism ("OFS") on September 17 & 18 2019 respectively, in accordance with the "Comprehensive Guidelines on Offer for Sale (OFS) of Shares by Promoters through the Stock Exchange Mechanism" issued by the Securities and Exchange Board of India. The OFS was completed and with this the Promoter & Promoter Group all put together hold 75% equity share capital in the Company.

Industry

The Indian economy continues to be under pressure on various fronts ranging from lack of liquidity in the banking and NBFC sectors and growing international trade wars and uncertainty. The management of the Company sees a good opportunity in the secured structured lending space and is contemplating application for NBFC licence with the RBI to enable growing business in this space.

Risk Management

Our business depends on consumer confidence in the overall economy, economic growth rates, and consumer attitudes. Further, volatility in financial market would result in poorer returns from long term investments.

We have adopted risk management practises commensurate with our business activities.

Outlook

An increase in awareness in general, more particularly in smaller cities of our country ensures that the retail expansion will continue to be strong. Growing contribution from beyond top 10 cities will remain our focus area.