ratnabali capital markets pvt ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT INDUSTRY STRUCTURE AND DEVELOPMENT

Ratnabali Capital Markets Ltd. (RCML) is a corporate member of National Stock Exchange of India Ltd. (NSE), BSE Ltd. (BSE), MCX Stock Exchange Limited (MCX-SX) and United Stock Exchange of India Ltd.(USE), providing securities broking services in the Capital Markets Segment, Futures & Options Segment and Currency Derivatives Segment of respective exchange. The Company is also a Depository Participant of National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd.(CDSL) providing depository services. RCML is also a SEBI Registered Portfolio Manager.

The Indian capital markets have witnessed a transformation over the last decade. Investor base in the country has increased substantially. The Indian capital markets have also undergone substantial reforms in regulation and supervision. Market determined prices, screen based nation wide trading, dematerialization and electronic transfer of securities, rolling settlement and derivatives trading have greatly improved both regulatory framework and efficiency of trading and settlement. Significant changes have been introduced to strengthen the risk management systems such as margin requirements for exposure and mark to market have been introduced to ensure seamless trading in the market.

OPPORTUNITIES AND THREATS

The capital market operation involves inbuilt risk and uncertainty, which carries various opportunities and threats to the investors.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

Your Company is engaged in single segment as defined under Accounting Standard 1 7.

OUTLOOK

The outlook for the Company is bright in future depending on the performance of the securities market. Barring unforeseen circumstances, the Company expects to perform satisfactorily during the next year 2013-14.

RISK AND CONCERNS

The Companys operation involves inbuilt risk due to uncertain economic conditions and unforeseen events beyond the Companys control.

FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE

The financial year under review was moderate for the Company from the financial and operational performance point of view. Barring unforeseen events, the management expects to achieve good results in the coming years.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has adequate system of strong internal control for business processes, with regard to operations, financial reporting, compliance with applicable laws and regulations, etc. Regular internal audits and checks ensure that responsibilities are executed effectively. The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvement for strengthening the existing control system in view of changing business needs from time to time.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The Company looks upon its manpower as the most important tool in its growth and future progress and therefore attaches paramount importance to its employees. The Company seeks to inculcate in every employee a sense of belonging with the Company. The Company regularly takes necessary steps for the development of its human resource.

The above statements are to be viewed with caution and judicious understanding, as the Companys operations involve inbuilt risk due to uncertain economic conditions and unforeseen events beyond the Companys control.