IKAB Securities & Investment Ltd Management Discussions.

1. BUSINESS OVERVIEW & TRENDS

We are in times when global trade, which we usually take for granted as being relatively stable, is in a lot of flux. The shake-up in the NBFC sector after the default of IL&FS last year will also continue the slowdown in the sector in the short run, but promises a lot of strong growth in the long run. The mandate given to the BJP will also help them in implementing deeper reforms, which will again lend a lot of strength to the economy in the long run.

2. NATURE OF INDUSTRY

The NBFC space is going through a lot of upheaval right now, which is expected to continue for some more time before it finally settles. While it is time to be cautious, it is also time to lay the seeds for future growth.

3. BUSINESS PERFORMANCE

Our bottom line was affected by one NPA this year, without which our profitability would have been better. We hope that the worst is behind us and look forward to better times ahead.

4. RISK FACTORS

As discussed last year, our challenges from our borrowers affected our performance. While this is the nature of the business and will always remain a challenge, we remain confident that the worst is behind us. The volatility in the stock markets can also affect our returns since the value of our portfolios will get affected.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

We believe that our internal control systems are adequate for the scale of our operations.

6. LIMITATIONS OF FINANCIAL STATEMENTS

Every year of operations enriches the company, and despite the effect of NPAs causing a loss this year, we believe that our financials have only become stronger, even if it is not reflected in the bottom line this year.

7. FUTURE OUTLOOK

We continue to maintain and believe that the future of this country remains extremely bright, particularly under the dynamic leadership we see at the Centre. The changes that we will see over the next five years will have a profound impact on the running of our country and prepare it for great success over the next 50 years.

8. SEGMENT WISE PERFORMANCE

Your Company has only single segment i.e. Investment. Revenue and expenses have been identified on the basis of accounting standard and guidance note issued by Institute of Chartered Accountant of India.

9. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

We continue to maintain cordial relations with all our employees and have not had any problems with them.

10. CAUTIONARY STATEMENT

Financial markets implicitly mean great volatility, and while we expect to do well in the long run, it is important to note that in the short term we may see significant upheavals.

For and on behalf of the Board
sd/-
Indra Kumar Bagri
Place: Mumbai Chairman
Date: July 11, 2019 DIN: 00014384