DB (International) Stock Brokers Ltd Management Discussions.

1. Operating results & financial performance:

The DB (International) Stock Brokers Limited is a listed Company. The Company is engaged in single line of business i.e. stock broking and provides depository participant services of

CDSL. The companys total income for the year under review is 975.72 Lacs and profit before tax amounts to 328.23 Lacs on standalone basis and the Companys total income for the year under review is 1,056.76 Lacs and Profit before tax amounts to 390.74 Lacs on consolidated basis.

2. Industry trend and business analysis:

The trend in the stock market remain volatile but the retail investors were reluctant to participate in secondary market because the market value of the shares have increased too much that they were avoiding purchase of well performed Companys shares keeping in mind that effect of the government policies are yet to be reflected on ground. 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 high purchasing power and people looking to more investment opportunities, growing rural market, 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 affect margins and functioning. For fiscal 2021, 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 COVID-19 pandemic and its resulting impact on the economy. In our strategy,we will enable us to advise 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, hence Company revenue growth depends on 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 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 control 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:

Ratios FY 2019-20 FY 2018-19
1 Debtors turnover (days) 2 4
2 Inventory turnover (days) - -
3 Interest coverage ratio (times) 283.22 (204.56)
4 Current ratio (times) 2.93 2.88
5 Debt equity ratio (times) - -
6 Operating profit margin ratio (%) 33.77 (189.88)
7 Net profit margin ratio (%) 21.45 (130.57)

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

Amount in
As at March 31, 2020 As at March 31, 2019
Capital + Free Reserves 409,201,684 388,041,124
Less: non-allowable assets
(a) Fixed assets 13,526,996 6,086,436
(b) Pledged Securities - -
(c) Members card - -
(d) Non-allowable securities 12,605,000 12,605,000
(unlisted securities)
(e) Bad deliveries - -
(f) Doubtful debts and advances* 1,407,720 10,543,874
(g) Prepaid expenses, losses 1,277,218 3,514,279
(h) Intangible assets 2,509,675 13,540,199
(i) 30% value of marketable securities 1,746,720 1,746,720
Net Worth 376,128,355 340,004,616

* 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: 31st July, 2020