Inani Securities Ltd Management Discussions

The Indian economy showed early signs of recovery, with GDP growth rising to 7.3% for the financial year ended March 31, 2015 (FY 15). Growth prospects are likely to improve in the current fiscal, driven by the governments development initiatives.

With the NDA government completing a year in office and factors such as falling inflation, lower commodity prices especially, crude oil prices, the Indian equity markets, represented by S&P BSE Sensex have risen around 25% over the last one year period ended March 31,2015. We believe that reduction in interest rates will continue and the business environment will show signs of improvement.

However, delay in passage of key policy decisions such as Goods and Services Tax (GST) and Land Acquisition Bill could hamper economic growth. Geopolitical issues, such as Chinese slowdown and US Fed rate hike, may also result in sluggish global economic growth.

The NDA Governments initiative to liquidate the PSU through OFS will boost the capital market and the small investors confidence will increase.

All these factors are likely to govern the Indian stock market in the near future.

Strategy

The Company will continue to focus on a diversified financial planning and client profitability. The Company will continue to leverage its research capabilities to expand its retail customer base, acquire fresh clients as well as activate dormant clients in the capital markets space. The company always tries to enhance customer satisfaction, with lower cost allocation and improve overall customer experience.

With the prevailing bullish capital market, small and marginal retail clients have become active in capital market. The capital market rally is spreading to mid cap and small cap companies. Therefore, we are enhancing our focus on retail clients. SEBI has been taking several steps for the security of the small investors resulting in boosting of investors confidence in the capital market.

Opportunities and Threats:

Opportunities

Growing financial services industry

Huge market opportunity for wealth managements services.

Regulatory reforms would aid greater participation by all class of investors.

Threats

Increased intensity of competition from players Unfavorable economic conditions Weakness in value of Rupee.

Company is having fully computerized environment in all its branches with interconnectivity through internet.

Regulatory and Monetary Policy of the SEBI and the Government of India largely affects the operational viability of the company.

a) Outlook:

The year under review i.e. the financial year 2014-15 has also been a challenging year. Looking ahead, we see favourable prospects for the Indian economy. Our strong emphasis is laid on clientele expansion with strategy of lining up a series of campaigns. Our leadership will continue to support rates of growth over the medium-term. India has weathered the global storm with a high degree of resilience and we expect the Indian economy to return to a robust growth path ahead of other economies that are experiencing recessionary conditions.

Your company is been able to meet the challenges posed by developments in the capital market due to the top management team comprises qualified and experienced professionals, with a successful track record. The company believes that its managements entrepreneurial sprits, strong leadership skills, insight into the market and customer needs provide it with a competitive strength, which will help to implement its business strategies.

We believe that the strategy that we have followed upgraded RMS policy and strong leadership and vast experience strengths of directors that we have built provide a strong foundation for our growth in the years to come. We look forward to the continued support and goodwill of all our clients and stakeholders in our Endeavour.

b) Riskand Concerns:

The company is primarily exposed to credit risk, interest risk, liquidity risk and operational risks. Internally, it has constituted a team to manage these risks. This team identifies and monitors all principal risks in accordance with defined policies and procedures.

Operational risks in the stock broking are managed through a comprehensive internal control framework. The control framework is designed based on categorization of all functions into front- office, comprising business groups, comprising credit, back office, comprising operations and corporate and support functions.

The major risks is the continued rise in price of crud oil in the international markets coupled with alarming high inflation rates in both domestic and other economies, which is a indirect threat to stock broking as the high cost of manufacturing and periodic rise in interest rates to counter balance inflationary pressure directly effect the earning capacity of the company.

c) Internal Control system and theiradequacy:

The Company has a proper and adequate system of internal control which is proportionate to its size and volume of business. The internal control system of the Company are designed to ensure that the financial and other records are reliable for preparing financial statements and other data for maintaining accountability of assets.

d) Discussion on Financial Performance with respect to Operational Performance: The

Financial Statements are prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act, 1956. All Income and Expenditure having a material bearing on the Financial Statements are recognised on accrual basis. The Management has taken utmost care for the integrity and the objectivity of these Financial Statements, as well as for various estimates and Judgments used therein.

e) Material developments in Human Resources/ Industrial Relations front, including number of people involved: The Company continues to maintain excellent relationship with the clients and the industry in which it is operating. Relationship with the staffs is quite cordial and also supportive for continuous human resource development. During the year under review there has not been any material change in human resource.

f) Cautionary Statement: Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand /supply, price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes.

	By order of the Board.
	Sd/-
Place : Hyderabad
Date : 31.07.2015	SHRIGOPALINANI
	Chairman
	REGISTERED OFFICE
	G-15, Raghava Ratna Towers,
	5-8-352/14 & 15,
	Chirag Ali Lane,
	Hyderabad - 500 001
	CIN:L67120AP1994PLC017583