Dhanlaxmi Cotex Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

INVESTMENT AND TRADING DIVISION (SECURITIES)

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31st March, 2019

The Management Discussion and Analysis have been included in consonance with the Code of Corporate Governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the Company s growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this report consequent to new information or developments, events or otherwise.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the company and its outlook for the future. This outlook is based on management s own assessment and it may vary due future economic and other future developments in the country.

The operational performance and future outlook of the business has been reviewed by the management based on current resources and future development of the Company.

1. Industry Structure & Development

The Indian Capital Markets continued their upsurge during past financial year. The continued confidence of the FIIs in Indian Capital Markets as a high potential emerging markets and strong belief making our capital markets as one of the favorite investment destinations, provide further growth opportunities to domestic and international players in the capital markets.

The Company has developed its Investment and Trading Division (Securities) into a strong, profit earning business of the company.

2. Opportunities & threats

With the Global Economic recovery expected to end over next few quarters, the general opinion is of improved market conditions. The domestic market is also expected to witness a reasonable growth with increased disposable income, especially among the middle class and also in the areas of hotels and hospitals. The strong fundamentals and depth of our finance and capital markets have enabled introduction of many new products and growth opportunities to the players. The Company expects this trend to continue and is fully geared up to reap the optimum benefits from emerging growth opportunities.

Your Company will continue to predominantly focus Investment and Trading of securities business to withstand the cyclical sluggish market trends.

3. Outlook

The Outlook of the Company for the year ahead is to diversify risk and stabilize its asset quality. The Company is proactively responding to the changing business environment and is confident of sustaining its market share by improving competitive position in the market. The overall business outlook for the company is promising with improvement in overall economic environment. Efforts towards higher operational efficiencies shall continue.

The company continues to examine the possibilities of expansion and will make the necessary investments when attractive opportunities arise.

4. Risks and concerns

The Company is now concentrating on investment and trading in Securities. Competition in the market continues to have an impact on the Company s operational performance and also exerts pressure on the margins.

5. Internal Control Systems and their adequacy

The Company s operating and business control procedures have been framed in order that they ensure efficient use of resources and comply with the procedures and regulatory requirements. The company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorized, recorded and reported correctly.

6. Human Resource Development

The Company believes that the human resources are vital resource in giving the company a competitive edge in the current business environment. The company s philosophy is to provide congenial work environment, performance oriented work culture, knowledge acquisition/ dissemination, creativity and responsibility. As in the past, the company enjoyed cordial relations with the employees at all levels.

7. Subsidiary Company:

As there are no subsidiaries of the Company, Investment made in Subsidiaries is NIL.

8. Segment-Wise Performance:

The Company operates in single reported segment with main business of Finance, Investment and Share Trading activity.

9. Key Financial Ratios:

In accordance with the amended SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof:

The Company has identified following ratios as key financial ratios:

Particular FY 2018-19 FY 2017-18 % Change
Debtors Turnover Ratio 0.02 0.01 50%
Inventory Turnover Ratio 3.01 0.44 14.62%
Interest Coverage Ratio 0 0 0
Current Ratio 1176.83 87.63 7.45%
Debt Equity Ratio 0 0 0
Operating Profit Margin (%) 7.07 3.36 47.52%
Net Profit Margin (%) 6.22 2.81 3.41%
Return on Net Worth RONW (%) 1.02 2.46 1.44%

FORM NO. AOC-1 Annexure - G

Salient feature of Financial Statement of Associate Companies

As at 31st March, 2019

Name of Associate Company MR Shares Broking Pvt Ltd
Reporting Currency Indian Rupees (Rs.)
Rate
Capital 3,00,00,000
Reserve 6,81,03,111
Total Assets 9,83,76,307
Total Liabilities 273196
Investments Other than Investment in Associate 4,11,23,555
Turnover 81,00,754
Profit before Taxation 33,80,289
Provision for Taxation 3,24,888
Profit After Taxation 30,55,401
Proposed Dividend 0
% of Shareholding 1.01

 

On behalf of the Board of Directors
Place: Mumbai Sd/- Sd/-
Dated: 09.08.2019 Ramautar Jhawar Mahesh Jhawar
Managing Director Director