Pioneer Investcorp Ltd Management Discussions.

This Report is pursuant to Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

INTRODUCTION

Your Company continued to strengthen its core business of Investment Banking and Financial Advisory Services by way of providing gamut of customized services to its clients in the form of raising capital, debt, formulating capital structure, debt restructuring, project finance, and other corporate financial advisory services and further trying to establish its foothold in the area of secondary capital market like open offer in Takeovers, Preferential issue, Right issue, Buy-back, Mergers and Amalgamation, and valuation assignment.

CORPORATE STRUCTURE

As reported last year, the structure of Companys Subsidiaries and nature of their activities remains unchanged during the year end under review, which is as follows:

1. Infinity.Com Financial Securities Ltd. Trading cum Clearing Member of NSE, BSE & Depository Participant - CDSL, Trading member in currency Derivatives of MSEI;

2. Pioneer Wealth Management Services Ltd.; (Registered Portfolio Manager with SEBI)

3. Pioneer Fund invest Pvt. Ltd. a Non Banking Finance Company (Not accepting Public Deposit);

4. Pioneer Commodity Intermediaries Pvt. Ltd.;

5. Pioneer Money Management Ltd.; and

6. Pioneer Investment Advisory Services Ltd.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The graph of Indias economic expansion was in line with the global trend. The first half during the year end under review saw Gross Domestic Product (GDP) growth at 7.5%. However, as per implied Central Statistical Organizations (CSOs) forecast for the full financial year, GDP growth momentum could fall below between 6.4% to 6.6% in the second half of year end under review. Increase in crude oil prices during the course of the financial year to USD 70 per barrel as compared to USD 56 during previous financial year and recent tightness in financial conditions of the Non-Banking Financial Company (NBFC) sector were few reasons behind deep in graph for domestic growth momentum.

OPPORTUNITIES AND THREATS

Opportunities

Re-election of the same Government at the Centre and continuation of policy focus on micro, macro, institutional and administrative, reforms is evolving towards a favourable environment for enhancing ease of doing business.

Government decision of increased spending on Infrastructure will boost the hunger of credit with the economy.

Threats

The Investment Cycle and Capital market conditions of the Country are related with the countrys economic system and performance; key threat therefore would be a slowdown in the economic activity.

Global Slow-down and tightening of trade relations between developed countries could impact the growth of developing countries like India.

OUTLOOK

Global Factors

The global economic indicators remain largely positive and while global growth is moderating, this offers a great opportunity for developing economies to boost human capital, increase opportunities for investments, and promote trade integration.

Indian Economy

The upcoming years for Indian economy sees silver liming due to Countrys strong domestic fundamentals that will protect it from a global environment fraught with uncertainty and volatility. The overall economic outlook is positive. India is in a state of consolidation with strong transitional undercurrents at various cross sections of the economy. It has peaked in the financial sector and the health of the sector & the economy are expected to only better post the progressive changes taking place.

SEGMENT WISE PERFORMANCE

The year end under review was moderately better in comparison to the Companys previous year both for Companys Merchant banking, Advisory fees and also for Income from Investments activities in Government Securities/SLR and non-SLR bonds. During the year end under review, there was marginal increase in income from Investment activities in G. Sec./SLR/Non SLR papers as compared to previous year.

At a consolidated level also, groups sees mixture of both incline and decline in income segments, i.e. incline in Income from Merchant Banking and Advisory fees, and decline in Income from Shares and Securities, Equity Brokerage and Related Income.

Companys Outlook for its business segments

The continuation of stable Government coupled with strong economic reforms by Government on policy front, and evolution of strong economy, expected to provide small players big growth momentum, and your company with its strong entrepreneur leadership, coupled with experienced professional human force will capitalize the best of improved markets and economic conditions.

Consolidated Financials ( Rs. In lakhs)
Particulars 2018-19 2017-18
Total Income 3768.72 3971.65
Profit / (Loss) After Tax 193.49 32.11

RISK AND CONCERN

At a macro level, the risk of global trade war and Brexit presents risks, many of which are hard to quantify at this stage, which need careful and prompt responses from policymakers.

At the Micro level, economic slowdown, high inflation due to high crude oil prices and lower credit intake may put pressure on Indian economy.

Further increase in competition amongst the financial market intermediaries is a concern and can thus impact the performance of the company.

INTERNAL CONTROL SYSTEMS

The objective of Companys Internal control policy is to add value and improve the Companys risk and control environment. The Policy helps the management through its assessments to monitor adequacy, effectiveness, and adherence to internal controls, processes and procedures instituted by the Management and the extant regulations.

DISSCUSION OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year end under review, both Financial as well as operational performance of the Company has shown improvement as compared to previous year performance resulting in marginal increase in income of operations and profit both at standalone and consolidated level.

MATERIAL DEVELOPMENT AND HUMAN RESOURCES

During the year under review, there was no major senior management change both at Company and Group level except change in CFO and the Companys management continued to take necessary steps to retain its human resources which resulted in lower attrition both at Company and Group level.