magnanimous trade finance ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERALL REVIEW

Economic Overview:

The growth rate of GDP and manufacturing sector has increased during the year in comparison to other developing countries and the company also has upward trend of income in comparison to previous year. Further the favorable market conditions has yet to come keeping in view the European countries economic set back which may further enhance the companys profitability from real estate business,

Performance:

During the year under review, the company also has earning from real estate, long term Investment, leave & license & Interest from Loans and Advances and the company has sold some parts of constructed building. The year under review, proved to be better for the company as compared to previous years. The company is having Reserve & Surplus to the tune of Rs. 624,70 lacs and being a debt free company.

Internal control systems:

The internal control system is looked after by the executive director himself, who also look after the day to day affairs of the company to ensure compliance of guidelines and policies, adhere to the management instructions and policies to ensure improvements in the system. The internal audit reports are regularly reviewed by the management.

Financial management and financial performance

The company has plans for tight budgetary control on key operational performance indication with judicious deployment of funds without resorting to any kind of borrowing.

Environmental issues:

As the company is not carrying on any manufacturing activity, the matter relating to produce of harmful gases and the liquid effluents are not applicable

Statutory compliance

The company made payment of listing fees to the stock exchanges, the company is in the process of complying with all the pending compliances with all the regulatory authorities and move forward with its first step of reviving the operations of the company

Caution:

Statements which are based on and describe about managements expectations, estimates, projections, objectives, intentions and assumptions are forward looking statements. Words such as "expects," "anticipates," "plans," "believes, "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to projections of revenues, earnings, segment performance, cash flows. Forward-looking statements are made pursuant to the Companies Act, 1956, Securities Laws and all other applicable acts, statues, rules and regulations as amended from time to time. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what was forecasted in forward-looking statements, expressed or Implied.

The Company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this report.

RISK AND CONCERN:

Bullish trend in Equity Markets, Commodities and Real estate will effect volume and profitability of Government Securities business. Changes in rate of interest and the proposed regulations in real estate business may effect the profitability of the company and also the risk of inflation in economy may effect the profitability.