DB Intl.Stock Management Discussions


1.Operating results & financial performance:

DB (International) Stock Brokers Limited is a listed Company. The Company is engaged in single line of business i.e. Stock Broking and Depository Participant services. The Companys total revenue for the year under review is Rs 2790.98 lakh and Profit before tax amounts to Rs 824.80 lakh on standalone basis and the Companys total revenue for the year under review is Rs 2956.92 Lakhs and Profit before tax amounts to Rs 870.00 Lakhs on consolidated basis.

2.Industry trend and business analysis:

The trend in the stock market is flourishing again and the retail investors have started again participating in the secondary market. Your Company endeavored to mobilize high net worth investors for secondary market and accordingly Company was able to be in profits.

3.Opportunities and threats:

With the globalization and electronic age, Indian stock market has changed over the past decade. The developments of high-tech and transparent markets with an increasingly wide geographic footprint have increased the number of trading avenues offering diverse pools of liquidity.

The opportunities for the Company are people with high purchasing power, people looking for more investment opportunities, growing rural market, high earning urban youth, educating people about the benefits of investments to increase target audience, more penetration into the growing cities.

The threats are stringent economic measures by Government and RBI, entry of foreign finance firms in Indian market, increased competition to keep market share and margins under pressure, increased regulatory compliances affecting margins and functioning.

For fiscal 2024, we will continue to execute our strategy along the same dimensions. The retail market segments we serve are faced with challenges and opportunities arising from the fast changing world economy, war threats and their resulting impact on the economy. In our strategy, we will enable ourselves to advice and help our clients as they tackle these market conditions. Especially in the areas of digitization of processes, migration to cloud based technologies, workplace transformation, and business model transformation.

4.Future prospects and outlook:

The Companys present business operations are Stock Broking and Depository Participant services of CDSL which forms part of financial services and there is no other segment apart from the main one. The management is optimistic about the future outlook of the Company.

The industry witnessed testing times with global economic slowdown and weakening profitability and tightening of financial conditions, still the Company has demonstrated its ability to with stand the challenges posed by the current environment.

5.Risks and concerns:

Companys business largely depend on the SEBI norms/ policies, thus, Companys revenue growth depends upon SEBIs policy of implementing broking services. However, your Company has a well laid down Risk Management System (RMS). Risk management is part of our culture across the Company. Effectively managing risk is the responsibility of all employees. Managers are accountable for allocating required resources to successfully manage the risks they own. Ensuring that we have an efficient risk management system in place is key-to developing our business and achieving our objectives

6.Internal Control System and their adequacy:

The Company has proper and adequate system of Internal Controls to ensure that all its assets are safeguarded and protected against loss from unauthorized use or disposition of assets and that the transactions are properly recorded.

The Company ensures adherence to all Internal Controls policies and procedures as well as compliance with all regulatory guidelines. Besides, the Audit Committee reviews the Internal Controls at periodic intervals

7.Human resources:

The company has adequate human resources, which is in commensurate with the current volume of activity. Companys management had always contributed to the promotion of the employees by enhancing their skills and efficiency by arranging regular training to the new and existing employees.

8.Cautionary statement:

Statements in this Managements Discussion and Analysis report describing the companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in the Government regulations, tax regimes, economic developments and other factors such as litigation etc.

9.Details of Significant changes in key financial ratios:

S. No. Ratios

FY 2022-23

FY 2021-22

1 Debtors turnover (days)

NA

21.89

2 Inventory turnover (days)

NA

NA

3 Interest coverage ratio (times)

58.21

76.54

4 Current ratio (times)

1.91

1.48

5 Debt equity ratio (times)

NA

NA

6 Operating profit margin ratio (%)

NA

NA

7 Net profit margin ratio (%)

21.42

29.04

10.Details of any change in Return on Net Worth as compared to the immediately previous financial year.

Amount in Rs

As at 31st March, 2023

As at 31st March, 2022

Capital + Free Reserves

55,03,24,323

41,23,39,887

Less: non-allowable assets
(a) Fixed assets

2,73,56,107

2,90,38,484

(b) Pledged Securities

-

-

(c) Members card

-

-

(d) Non-allowable securities (unlisted securities)

1,25,00,000

1,25,00,000

(e) Bad deliveries

-

(f) Doubtful debts and advances*

31,97,847

27,80,685

(g) Prepaid expenses, losses

29,01,072

23,95,393

(h) Intangible assets

1,65,09,341

3,02,461

(i) 30% value of marketable securities

50,21,751

3,02,59,483

Net Worth

48,28,38,205

41,55,15,383

* Explanation - Includes debts/advances overdue for more than three months or given to associate 11. Disclosure of Accounting Treatment: Refer to Significant Accounting Policies

For DB (International) Stock Brokers Limited
Sd/- Sd/-
Shiv Narayan Daga Sachin Kumar Rathi
(Managing Director) (Director)
DIN: 00072264 DIN: 01013130
R/o: B-146, SurajmalVihar,Delhi-110092 R/o: Devi Singh Bhati Ke Makan Ke Piche 351 Maheshwari Mohalla, Jassusar Gate, K E Bahar, Bikaner-334004
Place: New Delhi
Date: 28th July, 2023