safal securities ltd share price Management discussions

I. CAPITAL MARKETS

Capital markets were buoyant during much of the year. Foreign institutional investors (FIIs) put money into Indian equities in substantial volume in 2019, and the forecast before COVID-19 was for the trend to continue in 2020 as well. With a brief lull, when there were significant outflows of almost US$ 4.5 billion in March, post the declaration of the pandemic, across both equity and debt, equity flows have turned positive in May and June with flows of almost US$4.5 billion to date.

In the midst of the pandemic, retail interest in direct market investments has gone up sharply with new Retail brokerage accounts growing 20%. The depository, CDSL, alone reported around 1.2 million new accounts in March and April, up from a combined 900,000 in the first two months of the year.

2. OVERVIEW OF OPERATIONS

Last few years company was not able to generate revenue from their business activity and incurred a loss from last few years. During the year the company has booked a loss of Rs.29467/-.

3. COVID-19

In India, on 24 March 2020, the Government ordered a nationwide lockdown for 21 days, limiting movement of the entire 1.3 billion population of India as a preventive measure against the COVID-19 pandemic. Thereafter, the lockdown has been extended up to 17 May, 2020. We have a large migrant population that local economies and sectors like construction and manufacturing depend on. A good number of these migrants chose to return home during the lockdown and as the lockdown s being eased, labor shortages are occurring.

4. INDIAN ECONOMY

Indias headline GDP projections for 2019- 20 were expected to rise by 5% (compared to 6.1% in the previous year), the lowest since 2008 ‘s Great Financial Crisis (GFC). Underlying this decrease in GDP growth over 2019-20 is a downturn in private consumption, a slowdown in total capital expenditure, and a reduction in volumes of trade as a result the decline of global growth and demand.

5. GDP GROWTH

CR1SIL has cut its forecasts for Indias economic growth rate to 1.8%, down from 3.5% for 2020-21 that it had previously expected. India and China are the only positive exceptions from declining economic activities in 2020-21 among the major economies.

6. INDUSTRIAL PRODUCTION

Industrial production (IIP) contracted by 0.7% for fiscal 2019-20 compared to a growth rate of 3.8% in 2018-19. Although growth across sectors was lower than a year ago, during the year the manufacturing sector reported contraction in production.

7. THE GLOBAL ECONOMY

The global economy slowed to an unprecedented 2.4% in 2019, the slowest rate since the global financial crisis, according to the World Bank. The Indian economy was not immune to this slowdown. Three of the four growth engines private consumption, private investment, and exports have slowed down significantly.

8. OPPORTUNITIES

Due to financial crises the company is not able to generate good return from last few years. Now the company is under corporate insolvency resolution process (CIRP). The management of the company expected that the Committee of Creditors will come out with good resolution plan and company in future expected growth with new opportunities.

9. RISKS

The company is under CIRP and due to some financial crises company may not be able to continue their business in current situation.

10. THREATS

The global economy remains fragile. The expectation of most analysts is for a quick V shaped recovery. Should the recovery be delayed or the world experience a second wave of infections we could encounter serious economic disruptions including an impact on capital flows.

11. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Your Companys Internal Control System and procedures were reviewed during the year and systems and procedures were corrected wherever found to be inadequate to the Companys size, the nature of its business and the business environment.

12. CAUTIONARY STATEMENT

Statements in this Management Discussion & Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic developments in the country and improvement in the state of capital markets, changes in the Government regulations, tax laws and other status and other incidental factors.

FOR SAFAL SECURITIES LIMITED
(company under Corporate Insolvency Resolution Process)
DATED: 3rd DECEMBER, 2020	RAJUBHAI DESAI
PLACE: AHMEDABAD	DIRECTOR