Mount Everest Trading & Investment Ltd merged Management Discussions

MOUNTEVEREST TRADING AND INVESTMENT LIMITED ANNUAL REPORT 2006-2007 MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY STRUCTURE AND DEVELOPMENTS: The Company is yet to map out a firm trading business. Therefore, till such time the other operations commence, the Company is only deriving income from making investment in debt and capital markets through reputed mutual funds. OPPORTUNITIES AND THREATS: The improved performance of the capital markets along with robust and stable economic growth has also given a push to new opportunities. However, due to sheer unpredictable nature of the markets, it makes investments a risky proposition. Any investment company has to live with a fear of falling markets and movement of the indices. By designing a portfolio, the threat can be reduced that can also absorb the short-term rise and fall of the markets without affecting the value of the investments. In the Long term though, the risk of fall in the investment values is always looming large. It is only the prudent judgment coupled with intuitive approach of the management that can mitigate the risks of depreciating investments in the long run. The Company is exploring various options to enter into trading business as well as take on some new activities on a long term basis. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE: During the year, the Company earned a profit of Rs. 323.45 lacs from investment business. OUTLOOK: With the growth of Indian Capital market, there is ample scope for investment opportunities in Indian Financial sector. The Company follows the policy of balancing long-term investments with short term profitability. The investment business is being carried with own funds, dividend etc. and shall not be raising public deposits to carry on the investment business activities. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: Your Company has adequate internal control systems commensurate with the size and nature of the business and are well supplemented by reviews and M/S procedures to provide reasonable assurance that all assets are safeguarded, transactions are authorised, recorded and reported properly. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: Financial performance, which has been given in the Directors Report, needs to be viewed in the above backdrop. CAUTIONARY NOTE: Certain statements in the Management Discussion and Analysis section may be forward-looking and are stated as required by applicable laws and regulations. Many factors may effect the actual results, which could be different from what the Directors envisage in terms of the future performance and outlook.