The Management Discussion & Analysis Report has been prepared in
compliance with the requirements of Regulations 34(2)(e) read with Schedule V of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
1. ECONOMIC OVERVIEW
India has a diversified financial sector undergoing rapid expansion,
comprising commercial banks, insurance companies, non-banking financial companies,
co-operatives, pension funds, mutual funds, etc. As per the financial stability report of
RBI, released in June, 2023, the global economy is facing heightened uncertainty amidst
banking system fragility in certain countries, persisting geopolitical tensions and
moderating but elevated inflation. Despite global headwinds, the Indian economy and the
domestic financial system remain resilient, supported by strong macroeconomic
fundamentals. Healthy balance sheets of banks and corporates are engendering a new credit
and investment cycle and brightening the prospects of the Indian economy.
The Indian economy, appears to have moved on after its encounter with
the three shocks of COVID-19, Russian-Ukraine conflict and policy rate hikes by the
Central Banks across economies led by Federal Reserve to curb inflation, staging a full
recovery in FY22 ahead of many nations and positioning itself to the fastest-growing major
economy in Financial Year 2023-24.Indias economic growth in FY23 has been principally led
by private consumption and capital formation
Growth of the Indian economy:
| Real GDP growth (%) |
FY 20 3.7 |
FY 21 (6.6) |
FY 22 8.7 |
FY 23 7.2 |
| Growth of the Indian economy quarter by quarter, FY22-23: |
|
|
|
|
| Real GDP growth (%) |
Q1FY23 13.1 |
Q2FY23 6.3 |
Q3FY23 4.4 |
Q4FY23 6.8 |
(Source: Budget FY24; Economy Projections, RBI projections)
In FY2023, the Indian economy faced multiple challenges. The
countrys retail inflation indicator, consumer price inflation (CPI) went above the
RBIs tolerance range of 6% in January 2022. It remained above this range for almost
ten months, right up to October 2022. Rising international crude prices coupled with
inimical domestic weather conditions kept food prices high, fuelling retail inflation. The
government cut excise and customs duties and restricted exports to cool off inflation.
Like other central banks, the RBI raised the monetary policy rates and reduced excess
systemic liquidity. Major areas of concern were elevated commodity prices, higher retail
inflation, depreciation of the Indian rupee and a rising current account deficit (CAD).
However, despite these challenges, India emerged as the fastest growing major economy in
the world. The second advance estimate of national income released by the Central
Statistics Office (CSO) on 28 February 2023 expects real GDP growth in FY2023 to be 7.0%.
Table 1 gives the data on real GDP and gross value added (GVA) and growth over the last
four financial years.
2. INDUSTRY STRUCTURE AND DEVELOPMENTS
Titan Securities Limited is a Non-Banking Financial Company registered
with the Reserve Bank of India. Titan Securities Limited takes investment decisions that
are profitable and safer. It has got rich experience in the capital market and financial
services sector. The non-banking financial companies has faced challenges over the past
few years. Despite the challenges, the future of NBFCs in India looks promising. CRISIL
recently reported that it is heartening to see that the RBI and policymakers recognise the
contribution of NBFCs in supporting real economic activity and meeting the credit demand,
especially reaching the unbanked. The recent RBI Scale based norms is another welcome step
for the industry that will elevate the status of NBFCs in line with several other public
sector NBFCs. Under these revised norms, we expect to attain more operational flexibility
to meet the increasing credit demand and aid Indias economic growth.
3. SEGMENT WISE OR PRODUCT WISE PERFORMANCE
The Company is primarily engaged in only one business segment of
Non-banking Financial Company activities.
4. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The Company has delivered a satisfactory financial performance.. The
Profit after tax is Rs. 45.33 (in Lakhs)as compared to Rs. 170.94 (in Lakhs) during the
previous year. The operational income was Rs. 341.38 (in Lakhs) as compared to Rs. 705.68
(in Lakhs)during the previous year.
5. OUTLOOK FOR FY24
In 2024, NBFCs will play a larger role in supporting the socioeconomic
construct of the Indian economy. The opportunity for credit penetration still remains very
high in India. The RBI has marginally raised its GDP growth projection for FY24 to 6.5%
from earlier estimate of 6.4 %. This means that the central bank now expects the Indian
economy to grow by 6.5% during the financial year 2023-2024, which is slightly higher than
its previous projection. The general expectation is that Indias GDP for FY2024 would
record a growth in excess of 6%. There are some potential headwinds. First, the world saw
yet another set of banking turmoils in the USA and Switzerland, and the global financial
sector remains jittery. Second, much depends on monsoons in FY2024.
The risk of monsoon falling below normal levels (after four consecutive
years of normal rainfall) remains a wildcard and could hit agricultural production and
impact food prices.
The outlook for FY24seemsoptimistic. The management is sure that the
learnings of 2022 will help the Company weather through the upcoming challenges. Your
Company is well placed to seize opportunities and manage risks while focusing on delivery
of steady performance and staying ahead in financial market with the ultimate objective of
enhancing shareholders value..
6. OPPORTUNITY, THREATS, RISKS AND STRENGTHS
Note:- * The above list is inclusive and not exhaustive.
7. RISK MANAGEMENT
Risk is an inherent part of any business but risk can be managed. The
Company has formulated comprehensive risk management policies and processes to identify,
evaluate, manage and mitigate the risks that are encountered during conduct of business
activities in an effective manner.
8. INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has an adequate system of internal financial control
implemented by the management for ensuring:
? Orderly and efficient conduct of business
? Adherence to the Companys policies and procedures
? Safeguarding of assets against loss from unauthorized use or disposal
? Prevention and detection of frauds and errors
? Accuracy and completeness of accounting records
? Timely preparation of reliable financial information
? And compliance with applicable laws and regulations
The Companys internal financial controls are founded on sound
internal audit practices. Policies, guidelines and procedures are in place to ensure that
all transactions are authorised, recorded and reported correctly as well as provide for
adequate checks and balances. Adherence to these processes is ensured through frequent
internal audits.
The internal financial control system is supplemented by an extensive
program of internal audit and reviews by the senior management. The Audit Committee of the
Board of the company reviews the performance of the audit and the adequacy of internal
financial control systems and compliance with regulatory guidelines. Significant
deviations are brought to the notice of the Audit Committee and corrective measures are
recommended for implementation.
Internal audit for the FY23 is conducted by PGM & Associates,
Chartered Accountants and their report were reviewed by the Audit Committee of the Board.
The necessary actions were undertaken based on the inputs from the internal auditor.
9. HUMAN RESOURCES AND EMPLOYEE RELATIONS
Titan Securities Limited offers a corporate culture that combines
challenging work with a professional, exciting, collaborative and friendly environment.
The Employee Wellbeing have always been a priority for the Company. Your Company
establishes an equal opportunities for people of different sexes, different ages,
different nationalities, religions, and creed. The Company continues to focus on the
development of its human resources to improve its performance.
As on 31st Mar 2023, the Company currently has 02 (two)
employees. The relations between management and employees continues to be cordial during
the year 2022-2023.
10. SIGNIFICANT KEY FINANCIAL RATIOS
| Ratios |
Standalone |
Consolidated |
|
FY 2022-23 |
FY 2021-22 |
FY 2022-23 |
FY 2021-22 |
| Debt-equity Ratio |
- |
0.08 |
- |
0.05 |
| Debtor Turnover Ratio |
- |
- |
- |
- |
| Inventory Turnover Ratio |
0.16 |
0.31 |
0.16 |
0.31 |
| Interest Coverage Ratio |
- |
- |
- |
- |
| Current Ratio |
303.52 |
7.71 |
303.52 |
7.71 |
| Operating Profit Margin (%) |
16.32 |
31.55 |
16.32 |
31.55 |
| Net Profit Margin (%) |
13.28 |
24.05 |
12.62 |
24.05 |
| Return on Net Worth |
1.28 |
5.02 |
0.58 |
2.67 |
11. RATIOS WHERE THERE HAS BEEN SIGNIFICANT CHANGE (i.e. CHANGE OF 25%
OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) FROM FY 2021-22 TO FY
2022-23:
a) Inventory Turnover Ratio:
On a standalone basis, the Inventory Turnover Ratio for the year ended
March 31, 2023 were 0.16 as against 0.31 for the year ended March 31, 2022.The inventory
turnover decreased due to less sale of shares compared to previous year.
b) Current Ratio:
On a standalone and consolidated basis, the Current Ratio as on March
31, 2023 stood at 303.52 as against 7.71 as on March 31, 2022. The current ratio has
increased due to repayment of short term borrowings. Ideal ratio is between 1.2 to 2
times.
c) Operating Profit Margin (%):
On a standalone and consolidated basis, the Operating Profit Margin
(%)as on March 31, 2023 stood at 16.32 as against 31.55 as on March 31, 2022. The decrease
is primarily on account of decreased operating income during the year.
d) Net Profit Margin (%):
On a standalone and consolidated basis, the Net Profit Margin (%)as on
March 31, 2023 stood at 13.28 as against 24.05 as on March 31, 2022. The decrease is
primarily on account of decreased sale of shares compared to previous year.
e) Return on Net Worth:
On a standalone and consolidated basis, the Return on Net Worth as on
March 31, 2023 stood at 1.28 and 0.58 as against 5.02 and 2.67 as on March 31, 2022. The
decrease in return on net worth indicates that the liabilities of the company are greater
than the assets.
|
For M/s. Titan Securities
Limited |
|
Manju Singla |
Naresh Kumar Singla |
|
(Managing Director) |
(Director) |
| Date: 01/09/2023 |
DIN: 00027790 |
DIN: 00027448 |
| Place: Delhi |
|
|
+91-9892691696
