Libord Securities Ltd Management Discussions

Libord Securities Limited ("the Company") is a Limited Company domiciled and incorporated in India and its shares are publicly traded on the Bombay Stock Exchange (BSE), in India. The registered office of the Company is situated at 104, M.K. Bhavan, 300, Shahid Bhagat Singh Road, Fort, Mumbai- 400001. The Company is engaged in the business of Financial Services.

OPPORTUNITIES AND THREATS

Indias Banking Sector remains stable, with declining asset impairments, robust capital buffers, and strong operational performance.

Gross non-performing assets in the banking system have dropped to their lowest level in 12 years, now standing at 2.6% of gross loans and advances. As of September 2024, the capital-to-risk-weighted assets ratio for Scheduled Commercial Banks is 16.7%, which is significantly above regulatory requirements.

The Economic Survey for 2024-25 highlights that the global economic growth reached 3.3% in 2023, with the International Monetary Fund projecting a slightly slower growth rate of 3.2% for the next five years. While growth remained consistent across regions, a noticeable slowdown in global manufacturing, especially in Europe and parts of Asia, was observed, driven by ongoing supply chain disruptions and feeble external demand. On the positive side, the services sector showed strong performance, and although inflationary pressures eased, services inflation persisted. The Survey also underscores Indias impressive economic resilience, forecasting a 6.4% real GDP growth for FY 2024-25, maintaining steady progress.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company operates in single business segment and the Company is engaged in the business of Financial Services. As the Company is only in one line of business, product wise disclosure of performance is not required to be made.

OUTLOOK

The Company is fairly optimistic in its outlook for the year 2025-26. The economy is expected to achieve a steady rate of growth and the Company aims at maximising the shareholders wealth amidst more favourable business conditions emerging therein. A detailed analysis of the outlook is given in Clause number 3 of the Directors Report.

RISKS AND AREAS OF CONCERN

The Company provides financial, corporate and management consultancy, undertakes a wide spectrum of activities and therefore has a well-diversified portfolio of services provided. The Company has undertaken suitable measures for the development and implementation of a risk management policy including identification of elements of risk, if any, which in the opinion of the Board may threaten the existence of the Company. At present, the Company has not identified any element of risk which may threaten the existence of the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an Internal Control System, commensurate with the size and nature of its operations. During the year, controls were tested and no material weakness in design and operation were observed. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use, executing transactions with proper authorisation and ensuring compliance of corporate policies.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The details of the financial performance with respect to operational performance for the Financial Year 2024-25 are discussed in the Directors Report and notes to the Financial Statements forming part of this Annual Report.

HUMAN RESOURCE DEVELOPMENT

The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognises the performance and potential of its employees attracting and retaining the best manpower available by providing high degree of motivation. Your Company believes in trust, transparency & teamwork to improve employees productivity at all levels.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

The details of significant changes in the applicable key financial ratios are given in the Notes to the Financial Statements.

DISCLOSURE OF ACCOUNTING TREATMENT

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). The details of accounting treatment are given in Significant Accounting policies at Note no. 1 to 3 of the Financial Statements.