The Company is Non-Banking Financial Company ("NBFC") which
mainly deals in capital market and financial services. The
Company is registered with Reserve Bank of India as a Non-Banking
Finance Company, not accepting public deposits under Section 45-IA of Reserve Bank of
India Act, 1934. The Equity Shares of the Company are listed on BSE Limited.
The Company was incorporated as Public Limited Company on April 13,
1994, in New Delhi and was taken over by Awaita Properties Private Limited in October 2008
in accordance with the Securities and Exchange Board of India (Substantial
Acquisitions of Shares and Takeovers) Regulations, 1997. The Registered
Office of the Company was shifted from New Delhi to
Mumbai in May 2010.
The Company has Associate Company namely, JPT Share Services Private
Limited, which has been admitted as a Deposit Based Trading Member of Cash Segment and
Equity Derivatives Segment of BSE Limited.
The financial statements are prepared under historical cost convention,
on accrual basis of accounting, and in accordance with the provisions of the Companies
Act, 2013 (the "Act") and comply with the Accounting Standards notified under
Section 133 ofthe Act. The management of JPT Securities Limited has used estimates and
judgments relating to the financial statement on a prudent and reasonable basis, in order
that the financial statement reflect in a true and fair manner, the state of affairs and
Loss for the year.
The following discussions on our financial condition and result of
operations should be read together with our audited consolidated financial statement and
the notes to these statements included in theAnnual Report.
1. INDUSTRY STRUCTURE AND DEVELOPMENTS
Strong economic growth in the first quarter of FY 2022-23 helped India
overcome the UK to become the fifth-largest economy after it recovered from repeated waves
of COVID-19 pandemic shock. Real GDP in the first quarter of 2022 23 is currently about 4%
higher than its corresponding 2019-20, indicating a strong start for Indias recovery
from the pandemic. Given the release of pent-up demand and the widespread vaccination
coverage, the contact-intensive services sector will probably be the main driver of
development in 2022–2023. Rising employment and substantially increasing private
consumption, supported by rising consumer sentiment, will support GDP growth in the coming
months.
Future capital spending of the government in the economy is expected to
be supported by factors such as tax buoyancy, the streamlined tax system with low rates, a
thorough assessment and rationalisation of the tariff structure, and the digitization of
tax filing. In the medium run, increased capital spending on infrastructure and
asset-building projects is set to increase growth multipliers, and with the revival in
monsoon and the Kharif sowing, agriculture is also picking up momentum. The contact-based
services sector has largely demonstrated promise to boost growth by unleashing the pent-up
demand over the period of April-September 2022. The sectors success is being
captured by a number of HFIs (High-Frequency Indicators) that are performing well,
indicating the beginnings of a comeback.
India has emerged as the fastest-growing major economy in the world and
is expected to be one of the top three economic powers in the world over the next 10-15
years, backed by its robust democracy and strong partnerships.
Indias nominal gross domestic product (GDP) at current prices is
estimated to be at Rs. 232.15 trillion (US$ 3.12 trillion) in FY22. With more than 100
unicorns valued at US$ 332.7 billion, India has the third-largest unicorn base in the
world. The government is also focusing on renewable sources to generate energy and is
planning to achieve 40% of its energy from non-fossil sources by 2030.
According to the McKinsey Global Institute, India needs to boost its
rate of employment growth and create 90 million non-farm jobs between 2023 and 2030 in
order to increase productivity and economic growth. The net employment rate needs to grow
by 1.5% per annum from 2023 to 2030 to achieve 8-8.5% GDP growth between 2023 and 2030.
Indias current account deficit (CAD), primarily driven by an increase in the trade
deficit, stood at 2.1% of GDP in the first quarter of FY 2022-23.
Exports fared remarkably well during the pandemic and aided recovery
when all other growth engines were losing steam in terms of their contribution to GDP.
Going forward, the contribution of merchandise exports may waver as several of
Indias trade partners witness an economic slowdown. According to Mr. Piyush Goyal,
Minister of Commerce and Industry,
Consumer Affairs, Food and Public Distribution and Textiles, Indian
exports are expected to reach US$ 1 trillion by 2030.
Recent Developments
India is primarily a domestic demand-driven economy, with consumption
and investments contributing to 70% of the economic activity. With an improvement in the
economic scenario and the Indian economy recovering from the Covid-19 pandemic shock,
several investments and developments have been made across various sectors of the economy.
According to World Bank, India must continue to prioritise lowering inequality while also
putting growth-oriented policies into place to boost the economy. In view of this, there
have been some developments that have taken place in the recent past. Some of them are
mentioned below.
i. As of September 21, 2022, Indias foreign exchange reserves
stood at US$ 524,520 million.
ii. The private equity-venture capital (PE-VC) sector investments stood
at US$ 2 billion in September 2022.
iii. Merchandise exports in September 2022 stood at US$ 32.62 billion.
iv. PMI Services remained comfortably in the expansionary zone at 56.7
during April-September 2022
v. In September 2022, the gross Goods and Services Tax (GST) revenue
collection stood at Rs. 147,686 crore (US$ 17.92 billion).
vi. Between April 2000-June 2022, cumulative FDI equity inflows to
India stood at US$ 604,996 million.
vii. In August 2022, the overall IIP (Index of Industrial Production)
stood at 131.3. The Indices of Industrial Production for the mining, manufacturing and
electricity sectors stood at 99.6, 131.0 and 191.3, respectively, in August 2022. viii.
According to data released by the Ministry of Statistics & Programme Implementation
(MoSPI), Indias Consumer Price
Index (CPI) based retail inflation reached 7.41% in September 2022. ix.
In FY 2022-23, (until October 28, 2022), Foreign Portfolio Investment (FPI) outflows stood
at Rs. 58,762 crore (US$
7.13 billion). x. The wheat procurement in Rabi 2021-22 and the
anticipated paddy purchase in Kharif 2021-22 would include 1208 lakh (120.8 million)
metric tonnes of wheat and paddy from 163 lakh (16.7 million) farmers, as well as a direct
payment of MSP value of Rs. 2.37 lakh crore (US$ 31.74 billion) to their accounts.
Government Initiatives
Over the years, the Indian government has introduced many initiatives
to strengthen the nations economy. The Indian government has been effective in
developing policies and programmes that are not only beneficial for citizens to improve
their financial stability but also for the overall growth of the economy. Over recent
decades, Indias rapid economic growth has led to a substantial increase in its
demand for exports. Besides this, a number of the governments flagship programmes,
including Make in India, Start-up India, Digital India, the Smart City Mission, and the
Atal Mission for Rejuvenation and Urban Transformation, are aimed at creating immense
opportunities in India. In this regard, some of the initiatives taken by the government to
improve the economic condition of the country are mentioned below:
i. Home & Cooperation Minister, Mr. Amit Shah, laid the foundation
stone and performed Bhoomi Pujan of Shri Tanot Mandir Complex Project under Border Tourism
Development Programme in Jaisalmer in September 2022.
ii. In August 2022, Mr. Narendra Singh Tomar, Minister of Agriculture
and Farmers Welfare inaugurated four new facilities at the Central Arid Zone Research
Institute (CAZRI), which has been rendering excellent services for more than 60 years
under the Indian Council of Agricultural Research (ICAR).
iii. In August 2022, a Special Food Processing Fund of Rs. 2,000 crore
(US$ 242.72 million) was set up with National Bank for Agriculture and Rural Development
(NABARD) to provide affordable credit for investments in setting up Mega Food Parks (MFP)
as well as processing units in the MFPs. iv. In July 2022, Deendayal Port Authority (DPA)
announced plans to develop two Mega Cargo Handling Terminals on a Build-Operate-Transfer
(BOT) basis under Public-Private Partnership (PPP) Mode at an estimated cost of Rs. 5,963
crore (US$ 747.64 million).
v. In July 2022, the Union Cabinet chaired by the Prime Minister Mr.
Narendra Modi, approved the signing of the
Memorandum of Understanding (MoU) between India & Maldives. This
MoU will provide a platform to tap the benefits of information technology for court
digitization and can be a potential growth area for the IT companies and start-ups in both
the countries.
vi. India and Namibia entered into a Memorandum of Understanding (MoU)
on wildlife conservation and sustainable biodiversity utilization on July 20, 2022, for
establishing the cheetah into the historical range in India.
vii. In July 2022, the Reserve Bank of India (RBI) approved
international trade settlements in Indian rupees (INR) in order to promote the growth of
global trade with emphasis on exports from India and to support the increasing interest of
the global trading community.
viii. In June 2022, Prime Minister Mr. Narendra Modi inaugurated and
laid the foundation stone of development projects worth Rs. 21,000 crore (US$ 2.63
billion) at Gujarat Gaurav Abhiyan at Vadodara.
ix. Mr. Rajnath Singh, Minister of Defence, launched 75 newly-developed
ArtificialIntelligence (AI) products/technologies during the first-ever ‘AI in
Defence (AIDef) symposium and exhibition organized by the Ministry of Defence in New
Delhi on 11 July 2022.
x. In June 2022: a. Prime Minister Mr. Narendra Modi, laid the
foundation stone of 1,406 projects worth more than Rs. 80,000 crore (US$ 10.01 billion) at
the groundbreaking ceremony of the UP Investors Summit in Lucknow. b. The Projects
encompass diverse sectors like Agriculture and Allied industries, IT and Electronics,
MSME, Manufacturing, Renewable Energy, Pharma, Tourism, Defence & Aerospace, Handloom
& Textiles.
xi. The Indian Institute of Spices Research (IISR) under the Indian
Council for Agricultural Research (ICAR) inked a Memorandum of Understanding (MoU) with
Lysterra LLC, a Russia-based company for the commercialization of biocapsule, an
encapsulation technology for bio-fertilization on 30 June, 2022. xii. As of April 2022,
India signed 13 Free Trade Agreements (FTAs) with its trading partners including major
trade agreements like the India-UAE Comprehensive Partnership Agreement (CEPA) and the
India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA).
xiii. The Union Budget of 2022-23 was presented on February 1, 2022, by
the Minister for Finance & Corporate Affairs, Ms. Nirmala Sitharaman. The budget had
four priorities PM GatiShakti, Inclusive Development, Productivity Enhancement and
Investment, and Financing of Investments. In the Union Budget 2022-23,effectivecapital
expenditure is expected to increase by 27% at Rs. 10.68 lakh crore (US$ 142.93 billion) to
boost the economy. This will be 4.1% of the total Gross Domestic Production (GDP).
xiv. Under PM GatiShakti Master Plan, the National Highway Network will
develop 25,000 km of new highways network, which will be worth Rs. 20,000 crore (US$ 2.67
billion). In 2022-23. Increased government expenditure is expected to attract private
investments, with a production-linked incentive scheme providing excellent opportunities.
Consistently proactive, graded, and measured policy support is anticipated to boost the
Indian economy.
xv. In February 2022, Minister for Finance and Corporate Affairs Ms.
Nirmala Sitharaman said that productivity linked incentive (PLI) schemes would be extended
to 14 sectors to achieve the mission of AtmaNirbhar Bharat and create 60 lakh jobs with an
additional production capacity of Rs. 30 lakh crore (US$ 401.49 billion) in the next five
years. xvi. In the Union Budget of 2022-23, the government announced funding for the
production linked incentive (PLI) scheme for domestic solar cells and module manufacturing
of Rs. 24,000 crore (US$ 3.21 billion).
xvii. In the Union Budget of 2022-23, the government announced a
production linked incentive (PLI) scheme for Bulk Drugs which was an investment of Rs.
2500 crore (US$ 334.60 million).
xviii. In the Union Budget of 2022, Minister for Finance &
Corporate Affairs Ms. Nirmala Sitharaman announced that a scheme for design-led
manufacturing in 5G would be launched as part of the PLI scheme. xix. In September 2021,
Union Cabinet approved major reforms in the telecom sector, which are expected to boost
employment, growth, competition, and consumer interests. Key reforms include
rationalization of adjusted gross revenue, rationalization of bank guarantees (BGs), and
encouragement of spectrum sharing.
xx. In the Union Budget of 2022-23, the government has allocated Rs.
44,720 crore (US$ 5.98 billion) to Bharat Sanchar Nigam Limited (BSNL) for capital
investments in the 4G spectrum.
xxi. Minister for Finance & Corporate Affairs Ms. Nirmala
Sitharaman allocated Rs. 650 crore (US$ 86.69 million) for the Deep Ocean mission that
seeks to explore vast marine living and non-living resources. Department of Space (DoS)
has got Rs. 13,700 crore (US$ 1.83 billion) in 2022-23 for several key space missions like
Gaganyaan, Chandrayaan-3, and Aditya L-1 (sun). xxii. In May 2021, the government approved
the production linked incentive (PLI) scheme for manufacturing advanced chemistry cell
(ACC) batteries at an estimated outlay of Rs. 18,100 crore (US$ 2.44 billion); this move
is expected to attract domestic and foreign investments worth Rs. 45,000 crore (US$ 6.07
billion). xxiii. Minister for Finance & Corporate Affairs Ms Nirmala Sitharaman
announced in the Union Budget of 2022-23 that the Reserve Bank of India (RBI) would issue
Digital Rupee using blockchain and other technologies.
xxiv. In the Union Budget of 2022-23, Railway got an investment of Rs.
2.38 lakh crore (US$ 31.88 billion) and over 400 new high-speed trains were announced. The
concept of "One Station, One Product" was also introduced.
xxv. To boost competitiveness, Budget 2022-23 has announced reforming
the 16-year-old Special Economic Zone (SEZ) act. xxvi. Numerous foreign companies are
setting up their facilities in India on account of various Government initiatives like
Make in India and Digital India. Prime Minister of India Mr. Narendra Modi launched the
Make in India initiative with an aim to boost the countrys manufacturing sector and
increase the purchasing power of an average Indian consumer, which would further drive
demand and spur development, thus benefiting investors. The Government of
India, under its Make in India initiative, is trying to boost the
contribution made by the manufacturing sector with an aim to take it to 25% of the GDP
from the current 17%. Besides, the government has also come up with the Digital India
initiative, which focuses on three core components: the creation of digital
infrastructure, delivering services digitally, and increasing digital literacy.
xxvii. On January 29, 2022, the National Asset Reconstruction Company
Ltd (NARCL) will acquire bad loans worth up to Rs. 50,000 crore (US$ 6.69 billion) about
15 accounts by March 31, 2022. India Debt Resolution Co. Ltd (IDRCL) will control the
resolution process. This will clean up Indias financial system and help fuel
liquidity and boost the Indian economy.
xxviii. National Bank for Financing Infrastructure and Development
(NaBFID) is a bank that will provide non-recourse infrastructure financing and is expected
to support projects from the first quarter of FY2022-23; it is expected to raise Rs. 4
lakh crore (US$ 53.58 billion) in the next three years.
xxix. By November 1, 2021, India and the United Kingdom hope to begin
negotiations on a free trade agreement. The proposed FTA between these two countries is
likely to unlock business opportunities and generate jobs. Both sides have renewed their
commitment to boost trade in a manner that benefits all.
xxx. In August 2021, Prime Minister Mr. Narendra Modi announced an
initiative to start a national mission to reach the US$ 400 billion merchandise export
target by FY22.
xxxi. In August 2021, Prime Minister Mr. Narendra Modi launched a
digital payment solution, e-RUPI, a contactless and cashless instrument for digital
payments.
xxxii. In April 2021, Dr. Ahmed Abdul Rahman AlBanna, Ambassador of the
UAE to India and Founding Patron of IFIICC, stated that trilateral trade between India,
the UAE and Israel is expected to reach US$ 110 billion by 2030.
xxxiii. India is expected to attract investment of around US$ 100
billion in developing the oil and gas infrastructure during 2019-23.
xxxiv. The Government of India is expected to increase public health
spending to 2.5% of the GDP by 2025.
2. OPPORTUNITIES AND THREATS Opportunities
Low retail penetration of financial services / products in India
Extensive distribution reach and strong brand recognition
Opening of financial sector in India along with introduction of
innovative products
Opportunity to cross sell services
Increasing per-capita GDP
Changing demographic profile of the country in favour of the young
Threats
Inflationary pressures, slowdown in policy making and reduction in
household savings in financial products
Competition from local and multinational players
Execution risk
Regulatory changes
Attraction and retention of human capital
3. SEGMENT WISE PERFORMANCE
The Company operates in single segment.
4. FUTURE PROSPECTS & OUTLOOK
In the forthcoming year, the Company envisages to identify new avenues
of business activities and make use of opportunities available, besides strengthening its
present operations.
5. RISK AND CONCERNS
General risks associated with the financial services sector in the
normal course of business that we are in, apply to the
Company also.
6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has adequate internal controls commensurate with its size
and nature of operations. Besides, the Audit Committee reviews the internal controls in
co-ordination with the Auditors.
7. FINANCIAL PERFORMANCE a) Share Capital: As on March 31,
2023, the Companys issued and subscribed share capital consists of Equity Share
Capital only. The paid-up Share Capital of Company as at March 31, 2023, stood at Rs.
300.60 Lacs comprising of 30,06,000 Equity Shares of Rs. 10/- each (previous year Rs.
300.60 Lacs). b) Reserves and Surplus: During the year under review, the Reserves and
Surplus stood at Rs. 135.95 Lacs (previous year Rs. 147.39 Lacs). c) Financial Result:
During the year ended March 31, 2023, the Company has earned total income of Rs. 47.78
Lacs as compared to the income of Rs. 55.17 lacs during the previous financial year. The
Loss after tax as on March 31, 2023 amounted to Rs. 11.44 lacs as against loss of Rs. 2.80
lacs during the previous financial year.
8. HUMAN RESOURCE
Human resource management is an important function in the Company. The
Companys aim is to create a working environment that attracts, motivate and retains
the best people.
9. KEY FINANCIAL RATIOS ARE AS UNDER: -
| Sr. No. Particulars |
as on 31.03.2023 |
as on 31.03.2022 |
| 1 Current Ratio |
17.29 |
4.53 |
| 2 Debt-Equity Ratio |
NA |
NA |
| 3 Debt Service Coverage Ratio |
NA |
NA |
| 4 Return on Equity Ratio |
(0.03) |
(0.01) |
| 5 Inventory Turnover Ratio |
NA |
NA |
| 6 Trade Receivable turnover ratio |
NA |
NA |
| 7 Trade payables turnover Ratio |
NA |
NA |
| 8 Net Capital Turnover Ratio |
0.11 |
0.12 |
| 9 Net Profit Ratio |
(0.24) |
(0.05) |
| 10 Return on Capital employed |
(0.03) |
(0.01) |
| 11 Return on Investment |
(0.14) |
(0.03) |
10. RISK MANAGEMENT FRAMEWORK
The Company has in place mechanism to inform Board Members about the
risk assessment and minimization procedures and ensure that risk is controlled through the
means of a properly defined framework.
11. CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis Report describing
the Companys objectives, expectations or predictions may be forward looking within
the meaning of applicable securities, laws and regulations. Actual results may differ
materially from those expressed in the statement. The important factors that could
influence the Companys operations include change in government regulations, tax
laws, economic developments, litigations, etc.
+91-9892691696
