M S Securities Ltd Management Discussions.

24th Annual Report F.Y. 2016-2017

Background

MS Securities Limited ("the Company") is a public listed Company incorporated in the Year 1992. The equity shares of the Company are listed on BSE Ltd and CSE Ltd. since the Year 1995 under Security Code No.: 531039 at BSE and 023059 at CSE.

The Company is a Service Sector Company and it is presently not carrying on any manufacturing or trading activities. The principal business activities of the Company consist of investments in capital market instruments and mutual fund and corporate loan to promoter company.

The major sources of income of the Company are (a) Income received from capital gain and dividend profit from equity shares and mutual fund instruments, interest from corporate loans.

Financial Performance

The Net Worth of the Company as on 31.03.2017 is Rs. 253.93 lacs. The Total Revenue and Net Loss (after tax) of the Company during the year under review was Rs. 9.11 lacs and Rs. 3.51 lacs respectively as compared to Rs. 8.49 lacs and Rs. 2.26 lacs respectively in the previous year.

Risks and Concerns

The current and future financial performance of the Company is linked to and is directly related to the performance of companies of which equity shares and mutual fund schemes in which it holds its investments as well as dividend payouts by these listed and unlisted companies and performance of the promoter company whom corporate loan is given. The Company does not have any borrowings from any banks or financial institutions and neither has it accepted nor does it hold any public deposits.

Since corporate loan is given to the promoter company and is receiving interest on regular and timely basis, the Company presently does not have any risk exposure. However, at the same time, the Company is also totally dependent on performance of companies and mutual fund schemes in which it holds its investments and also on the performance of the company whom the corporate loan is given, poor performance of such investment and the company might adversely affect the operations of the Company. However considering the present status of capital market and future outlook as well as ongoing business of the promoter company, the Company does not anticipates any adverse impact on its operations in the near future.

Internal Control Systems and their Adequacy

The Audit Committee of the Board of Directors of the Company periodically evaluates the adequacy of the internal controls and processes, and ensures strict adherence to its laid down processes and procedures as well as to the prescribed regulatory and legal framework to manage and minimize the risk. The Committee further reviews the internal audit reports and effectiveness of the internal financial controls.

Human Resources

The Company recognises its employees as a critical asset of the organisation and lays due emphasis on all round development of its employees.

Cautionary Statement

Statements made herein describing the Companys objectives and expectations may be ‘forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in government regulations, tax laws, economic developments and other incidental factors.