market creators ltd share price Management discussions

As per the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report is provided as under:

Overall Outlook

Market Creators Limited is engaged in Share Broking activities, Trading and Investment in equities. The Indian equity market has seen a paradigm shift with retail investors substantially increasing their participation in equity markets. Investors share in both cash and equity derivatives have grown over time. Share of retail investors expanded and also, their share in equity derivative turnover segment. This trend reflects that the retail investors are having a good portfolio mix. The retail investors are gradually building a portfolio for long term. As per RBI data, Indian families have shown a consistent increase in mutual fund investments in FY23 with a better understanding of financial instruments. The share of Domestic Mutual Funds (DMFs) which has risen to record levels and now owns 9.5%, 8.4% and 8.1% in the Nifty 50, Nifty 500 and NSE listed companies respectively. Average monthly systemic investment plans (SIP) flows have remained strong. Further, there has been substantial fund inflow through SIP in mutual funds.

Industry Structure and Development

Domestic investors in India have increasingly sought to diversify their basket of financial assets to include better yielding assets such as equity or mutual fund SIPs. However, even with successive interest rate hikes by the apex bank, it is unlikely that their preference will shift back to traditional forms of investment. Indian retail investors have developed a strong understanding of the benefits in building long-term portfolios and see equity investing as an important way to not only save money, but also create wealth over time. This trend has been made possible by the ease of investing through digital-first broking platforms and greater access to investment knowledge. It is expected that this trend will continue to favour equity investment, particularly given the negative inflation-adjusted returns provided by traditional savings instruments.

The Indian broking industry is very diverse with many intermediaries forming a part of the market infrastructure. Over the years, more efficient players have grown considerably in size, thus gaining healthy market share across parameters. With rising demat accounts and growing volumes, the broking industry generated good amount of revenue.

Indias regulatory environment has been continuously evolving and rightly so to protect the interest of the smallest retail investor in the country. By doing so, the regulator has made the investing environment far more secure today, which gives a major boost to retail investors‘ confidence.

Industry Performance

Indias diverse and comprehensive financial service industry is growing rapidly, owing to demand drivers like higher disposable incomes, customized financial solutions, etc. and supply drivers like new service providers in existing markets, new financial solutions, and products. The Indian financial service industry comprises several key sub-segments. These include, but are not limited to - mutual funds, insurance companies, stockbrokers, wealth managers, financial advisory companies, and commercial banks - ranging from small domestic players to large multinational companies. The services are provided to a diverse client base - including individuals, private businesses, and public organizations.

The Stock Broking Industry is a cyclical industry and performance of the industry is correlated to economy and broader equity market. After being beaten down for the past several months, stocks of brokerage firms have finally witnessed an upswing.

Segment-wise - Product-wise reporting

The Company is engaged mainly in trading activities and as such there are no other reportable segment as defined by Indian Accounting Standard 108 on "Operating Segments" issued by the Institute of Chartered Accountants of India.

Financial performance

During the year under review, the Company has earned a Total Revenue of Rs. 660.58 lakhs in comparison to Rs. 885.75 during the previous financial year. The total expenses have been reduced from Rs. 786.62 lakhs during the previous year to Rs. 646.39 lakhs during the current year. The Company is trying hard to grab the market opportunities and make it into a profitmaking Company.

Future Prospects

Looking at the improvement of overall economy and significant change in market sentiments, future prospects of the business looks positive. Last few months have seen a revival in the number of clients trading per day, with increase in daily call trading volumes and new account opening. With policy changes and reforms from new government it is expected that there will be a greater participation by all investors in coming years which will be beneficial for company in long run.

Opportunities

Indias Growth rate

VY Regulatory reforms would aid greater participation by all class of investors V Leveraging technology to enable best practices and processes VY Growing Financial Services

Threats

Execution Risk

VY Short term economic slowdown impacting investor sentiments and business activities Unclear global scenario may impact investors sentiment. VV Increased intensity of competition from local and global players Internal Control System and their adequacy

The Company has robust internal controls systems (including Internal Financial Controls) that facilitate efficiency, reliability and completeness of accounting records and timely preparation of reliable financial and management information. The internal control system ensures compliance with all applicable laws and regulations facilitates optimum utilization of resources and protect the Companys assets and investors interests.

The internal control systems have been designed to effectively and efficiently handle the dynamic and complex nature of business operations of the Company. The internal control systems and environment are commensurate to the scale and volumes of the business with adequate segregation of roles and responsibilities. The Company also has a strong internal audit framework as approved by the Audit

Committee which ensures detailed coverage of the processes and systems needed to safeguard its assets, prevention and detection of errors and frauds, ensure accuracy and completeness of accounting transactions thus enabling timely preparation of reliable financial information. The various committees of the board, including the Audit Committee, periodically review the observations and recommendations of the internal auditors to further improve the systems and processes.

Human Resources

People are our key pillars of strength. This belief was further strengthened as our people showed tremendous resilience and extraordinary commitment during the pandemic times to bring the Company back to its core performance.

Your Company lays great emphasis on proper management of human resource and recognizes human assets as a primary source for the accomplishment of its long term goals and objectives. Your company has qualified and experience staff, ready to take challenges in day to day activities. Their unfailing and on- time performance allows us to run the Company smoothly.

Cautionary Statement

Statement in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. The actual result might differ materiality from those expressed or implied depending in the economic conditions, government policies and other incidental factors, which are beyond the control of the Company.

For and on behalf of the Board For Market Creators Limited

Dr. ]. H. Shah Rashmikant Acharya	Date: 10th August, 2023
Chairman Director	Place: Vadodara
DIN: 00051917 DIN: 00051572