Mefcom Capital Markets Ltd Management Discussions

INDUSTRY STRUCTURE & DEVELOPMENT

The relevant industry for the Company is financial service sector, which is considered as a touch stone of socio economic development of the country. FY 2024-25 witnessed a drop in indices with small & large caps led by key constituents of the NIFTY. However, the broader markets especially the small and mid-cap segment did not perform very well during financial year 2024-25. However in FY 2025-26 there is recovery in mid cap & small cap. India also emerged as one of the strongest economies in view of reforms by the present government. It has become 4th largest economy in the world leaving behind Japan & UK. India also emerged as one of the strongest economies amongst the emerging markets. India has a diversified financial sector, which is under going rapid expansion.

SEGMENT-WISE PERFORMANCE

The Company has one business segment as primary segment. The Segment has been identified taking into account the nature of activities, the differing risks and returns, the organization structure and internal reporting system. There are no reportable geographical segments.

The segment wise information can be viewed in the notes to accounts statement annexed with the financial statement for the year ended March 31, 2025.

OUTLOOK, OPPORTUNITIES AND THREATS

Your company being a Merchant banker seeks opportunities in Capital markets. The primary Markets business has seen a good growth during this financial year and fund raising from IPO market has been considerably high during financial year 2024-25.

India is expected to be major economy in years to come but it is facing major challenge of falling farm incomes and the lack of job opportunities for thousands of youth entering the labour force each month.

On the external front the on-going Trade war between US & China and rest of the world and also the happenings of EU are factors which could exert pressure on markets. The Company has a net Loss of Rs. 273.46 Lakhs as on 31st March, 2025 against a net profit of Rs. 672.38 Lakhs (As per Ind AS) in the previous year ended on 31st March, 2024.

The Company has various Main Board & SME issues in pipeline to be listed on NSE and BSE in the coming financial year. Further, it is expected that the Capital market will do better in the future, hence it is expected that it will enlighten the growth prospects of the Company.

RISK & CONCERNS

The Industry has witnessed intense competition and entry of several big players. The Capital market industry in which your company is operating is subject to extensive regulations. The Company evaluates the associated risks and works accordingly.

INTERNAL CONTROL SYSTEMS

The Company has built adequate systems on Internal Financial Controls towards achieving efficiency and effectiveness in operations, optimum utilization of resources, and effective monitoring thereof as well as compliance with all applicable laws The internal control mechanism comprises a well-defined organization structure, documented policy guidelines, predetermined authority levels and processes commensurate with the level of responsibility and that same are adequate and operating effectively. The Audit Committee reviews the reports of the Internal Auditors and monitors the effectiveness and operational efficiency of these internal control systems. The Audit Committee gives valuable suggestions from time to time for improvement of the Companys business processes, systems and internal controls.

FINANCIAL PERFORMANCE

During the year under review, the company has booked loss as compared to previous year profit; the management is in the process of better utilization of available resources and proper implementation of business strategies and remains optimistic about improving performance and turnover in the coming years. The small and medium enterprises have now got a separate SME platform to list their shares so now even small companies can now go for IPO which will enhance the profitability and market share of your Company.

However, the Company started the Merchant banking activities in the month of September 2024, Despite a favorable IPO market in FY 2024-25, we were unable to capitalize on this opportunity but we look forward to leveraging this initiative moving forward.

It is expected that the Company is having good future prospects and will give better results as the capital market is also expected an upward trend in future.

HUMAN RESOURCES MANAGEMENT

The Companys belief in trust, transparency and teamwork improved employee efficiency at all levels. The Companys commitment to harmonious industrial relations resulted in enhancing effectiveness of operations and enabled the achievement of international benchmarks in financial business. The companys ongoing objective is to create an inspirational work climate where talented employees engaged in creating sustained value for the stakeholders. Training and orientation programs are being arranged periodically, to update the employees in the work techniques. The overall human resources are positive and we would be able to effectively achieve the desired objectives. The Company has developed an environment of harmonious and cordial relations with its employees.

CAUTIONARY STATEMENT

Statements in foregoing paragraphs of this report describing the current industry structure, outlook, opportunities, etc., may be construed as "forward looking statements", based on certain assumptions of future events over which the Company exercises no control. Therefore, there can be no guarantee as to their accuracy. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be implied by these forward looking statements. Such risks and uncertainties include, but are not limited to growth, competition, domestic & international economic conditions affecting demand, supply & price conditions, changes in Government regulations, tax regimes and other statutes.

For and on behalf of the Board of Directors of

Place : New Delhi	MEFCOM CAPITAL MARKETS LIMITED
Date : 13.08.2025	Vijay Mehta
	DIN:00057151
	Chairman/Managing Director