share india securities ltd share price Management discussions

ECONOMIC REVIEW

Indias economic activity has remained stable despite huge global uncertainties and is in a considerably stronger position than the majority of other economies. Strong private consumption in response to pent-up demand, a faster recovery in contact-intensive service industries, and the governments sustained emphasis on capital investment have all contributed to the expansion. Additionally, persistently rising inflationary pressures for an extended period of time may drag on the global economy, negatively impacting Indias economic growth. According to the NSOs (National Statistical Office) second advance projections, Indias GDP (Gross Domestic Product) is anticipated to increase by 7.2% in FY 2022-23, as compared to 9.1% in FY 2021-22, maintaining its position as one of the key economies with the fastest growth.

Indias GDP Growth (%)

Source: NSOs Second Advance Estimates dated 31^st May, 2023 RBI SPF report as on 6th April, 2023, P: Projected

Gross fixed capital formation (GFCF), a proxy for infrastructure investment stood at Rs. 54.3 lakh crore in FY 2022-23, as compared to Rs. 48.8 lakh crore in FY 2021-22, registering a growth of 11.4%, supported by strong government capex and also some scaling up by the private sector. Moreover, a robust and healthy financial sector is adequately prepared to support private investment.

India has recently unveiled a "dynamic and responsive" foreign trade policy aimed at increasing rupee trade, boosting outbound shipments to USD 2 trillion by 2030, and promoting e-commerce exports. Despite global instability, Indias foreign currency reserves were approximately USD 585 billion as of April 7, 2023. However, recent failure of major banks in the U.S. and European financial markets pose a threat to short-term investment flows to India and other emerging markets.

Infiation reached 7.4% in the second quarter of FY 2022-23, prompting the RBI to raise the repo rate from 4.4% in May 2022 to 6.50% in February 2023, over the course of five separate sessions. By 4QFY23, effective RBI intervention had brought inflation levels to 5.7%, which was within the target range of 4-6%. The RBIs MPC (Monetary Policy Committee) also resolved to maintain a focus on the withdrawal of accommodation in order to ensure that inflation progressively converges on target levels while supporting economic growth. The CPI inflation rate is estimated to be 5.1% for FY 2023-24, with Q1 at 4.6%, Q2 at 5.2%, Q3 at 5.4%, and Q4 at 5.2%.

The budget for FY 2023-24 concentrates on increasing digital penetration, improving connectivity among particularly vulnerable tribal groups, establishing Centers of Excellence (COE) for Artificial Intelligence (AI), and establishing laboratories for the development of 5G-based applications.

In FY 2022-23, the services industry is projected to have grown by 9.1%, up from 8.4% in FY 2021-22. With more than 100 unicorns valued at USD 332.7 billion, India has the third-largest unicorn base in the world. Robust growth in fixed investment, a revival in private consumption, strong credit growth in the banking system, an easing of global inflationary pressure led by falling international commodity prices, and strong government measures are expected to aid economic growth in India.

INDUSTRY OVERVIEW

The financial services industry in India is reflective of the nations economic development and potential. The financial services industry in India is poised for growth due to rising incomes, increased government focus, and accelerating digital adoption. Indias financial sector is expanding rapidly, both in terms of the strong development of existing financial services firms and the entry of new entities into the market. The sector includes commercial banks, insurance companies, non-banking financial companies, cooperative banks, pension funds, mutual funds, and other smaller financial institutions. The RBI has recently authorized the formation of new entities, such as payment banks, thereby expanding the types of entities functioning in the sector. However, commercial banks account for more than 64% of the total assets held by the financial system, making up the majority of the financial sector in India.

In the Union Budget for FY 2023-24, the seven priorities that will lead India through the "Amrit Kaal" were highlighted and referred to as "Saptrishis". One of the seven priority sectors that were highlighted in the budget was the financial sector.

Indias financial services industry has experienced tremendous growth in recent years. The private wealth management industry in India has enormous growth potential, and this trend is anticipated to continue into the foreseeable future. India is anticipated to have 6.11 lakh HNWIs by 2025 which would make India the fourth largest private wealth market globally by 2028.

Throughout FY 2022-23, Indian equities remained volatile amidst aggressive monetary policy by central banks around the globe, high inflation, and outflows of foreign funds. The Nifty concluded FY 2022-23 with a negative annual return of nearly 0.6%, while the Sensex rose by approximately 0.8% YoY compared to the previous year. In FY 2022-23, about 37 companies raised a total of Rs. 52,116 crore through initial public offerings (IPOs), which was nearly half of the

Rs. 1,11,560 crore raised in FY 2021-22. The prioritization of value-added services such as wealth management, research, advisory, AMC, and financial planning ensures optimal customer engagement and enhances the wealth creation journey of clients.

STOCK/EQUITY MARKET

India has the fastest-growing economy in the world; this makes Indian stock markets attractive and an opportunity center for both domestic and international investors. The Indian equity market has consistently outperformed other asset classes on a long-term basis. In recent years, the cost structure and operational efficiency of brokerages have improved due to increased technological adoption. In order to improve unit economics, brokerages are also concentrating on customer experience and payback periods.

Therefore, the acquisition of high-quality, revenue-generating customers and the delivery of services with added value will continue to be crucial for long-term earnings growth.

Cash volumes have decreased due to a fiat to declining market, while derivatives volumes have increased due to intraday traders shifting from the cash market to the F&O (futures and options) segment, where broker leverage has been restricted to a certain level by SEBI (Securities Exchange Board of India). Increased accessibility through technology, widespread financial literacy, and a government and regulatory environment focused on the consumer have all contributed to the expansion of retail participation. In NSEs CM (Cash Market) segment, the number of retail investors participating in secondary markets has increased substantially from 3 million in January 2020 to approximately 8 million in March 2023. The new investor addition during FY 2022-23 stood at 13.3 million, as compared to 19 million recorded in FY 2021-22. According to Goldman Sachs, investors have been sending money into Indias stock market, which is expected to surpass the United Kingdom and become the worlds fifth-largest stock market by 2024.

The impact of inflation and global spillovers on Indian exports are short-term obstacles to the countrys economic growth. It has put pressure on the Indian equity markets and may be the cause of sustained underperformance in FY 2022-23. The average daily turnover (ADT) of stock futures and stock options declined by 9.7% and 10.0%, respectively, during FY 2022-23. The ADT for single stock futures decreased from Rs. 84.8 billion in FY 2021-22 to Rs. 76.6 billion, while the ADT for stock options decreased from Rs. 41.9 billion to Rs. 37.5 billion. In FY 2022-23, equity capital market (ECM) activity declined due to aggressive monetary tightening by the US Federal Reserve and a sharp increase in market volatility. During FY 2022-23, the average daily turnover on the capital market stood at Rs. 534 billion as compared to Rs. 668 billion during FY 2021-22.

NSEs Capital Market ADT Trends (In Rs. billion)

Large inflows into secondary markets, a growth in new investor registrations, and an increase in retail investors percentage of overall cash market turnover suggest that direct retail involvement and ownership in Indian shares have expanded dramatically in recent years. In fact, over the past three years, retail investors have been net purchasers on the Indian equity markets. As a growing proportion of the youthful population seeks investment opportunities, the number of DEMAT accounts increases annually. In FY 2021-22, there were approximately 90 million new DEMAT accounts, which increased to 114 million in FY 2022-23, a 28% increase year-over-year.

Strong net inflows into equity mutual funds have strengthened the mutual fund industry. As investors adjust their allocation between short- and long-term funds in response to rising interest rates, outflows from debt funds persist. During FY 2022-23, the average assets under management (AAUM) for mutual funds increased by approximately 7% YoY, from Rs. 37.70 lakh crore to

Rs. 40.05 lakh crore. India is currently one of the most robust economies in the world due to its robust finance sector. It is anticipated that Indias fintech sector will continue to propel the expansion of various market segments.

COMPANY OVERVIEW

Share India Securities Limited (hereafter referred to as ‘Our Company or ‘SISL) has established presence by offering an array of financial services and emerged as a true financial giant by capitalizing on our Companys intrinsic strength. SISL Group, an Indian financial services firm, specializes in high-frequency and strategy-based trading on all Indian exchanges, including those for equities, commodities, and currencies. Using a variety of specific technology solutions, we are able to automate financial transactions across a wide range of asset classes.

In-house technology, execution capabilities, significant expertise, and efficient management of human resources are some of the pillars that will support our Companys plans for growth. We place a significant emphasis on aiding customers in accumulating wealth through a balanced risk-reward strategy utilizing appropriate technology, such as low latency platforms, customized front-end displays, an appropriate RMS (Risk management System), back testing, and a simulation engine. Our mission is to assist clients in attaining their financial goals by directing them to the most advantageous investment opportunities.

We have made investments in human resources, technology, and processes to enhance our overall capabilities. We are steadily strengthening our capabilities in the distribution of financial products with the assistance of cutting-edge technologies. Such product distribution is dominated by the brokerage segment, where we aim to leverage our trading expertise and equip retail investors with intelligent strategies. In addition, we are enhancing our research capabilities, allowing us to provide investors with quality advice and assist them in accumulating wealth.

PRODUCT/SERVICE OFFERING

BROKING & DEPOSITORY	MERCHANT BANKING	NBFC	INSURANCE BROKING	OVERSEAS TRADING	WEALTH MANAGEMENT
? Equity	? IPO	?SME Loans ? Personal	? General	? Deals in	? Provides
? Derivatives	? Valuation	Loans	Insurance	Overseas	wealth
? Currency	? Advisory	?Microfinance	? Life Insurance	Trading	management services
? Commodity	? M&A
? Algo Trading

COMPETITIVE ADVANTAGE

• In-Depth Know-How of Technology

The Company has a strong track record of 10 years of algo trading and development experience in the financial markets. Our Companys technology offering includes AI (Artificial Intelligence) and machine learning-driven full-stack back testing engines, low-latency trading technology systems with intelligent terminals, high-frequency trading (HFT) engines, and risk management tools. The acquisition of Algowire and uTrade bolsters the Companys technological infrastructure. uTrade Solutions will serve as Share Indias digitization technology partner. uTrade also offers a retail algo trading platform that provides algo trading capabilities to retail traders and investors in India who wish to invest via mobile phones. It also offers algo trading to Share Indias traders and clients, including institutions and HNIs (Ultra High Net-worth Individuals), in addition to a retail trading platform for our retail investors. We seek to standardize algorithmic trading, which has been our area of expertise for institutional and ultra-high-net-worth clients.

• Experience and Expertise: A total of thirty members of the Promoter Group with in-depth knowledge of the pertinent markets and infrastructure are continuously involved in the Companys operations. In addition, the Company has professional CA, CS, and MBA teams, managing different areas of business with utmost efficiency.

• Cost Advantage

Owing to the large scale of our operations, we are able to save on our operational costs and also to pass on the savings to our customers by providing competitive products and services. Additionally, it helps us earn the confidence of fund houses, institutions, and prop trading platforms, which ultimately leads to those entities favoring us as a partner.

• Large Capital Pool

Our consolidated net worth for FY 2022-23 was

Rs. 10,185 million, an increase of 122% from the previous fiscal year. Such huge pool of funds is managing our business activities efficiently and also reduce the credit risk to the minimum level.

GROWTH STRATEGY

1. Retail Penetration by leveraging Technology

Share India Securities Limited is a technology-driven, customer-centric financial services firm focused on building AI-based trading platforms that use machine learning and knowledge-driven research methodologies to analyze data and assist retail clients in generating better trading strategies.

? Leveraging uTrade

Our Company has been able to supply technology-driven strategies to institutional grade clients and HNIs while back testing with uTrade Solutions. Going forward, our Company intends to leverage our technological dominance and extensive trading expertise to empower retail investors with enhanced trading technology.

? Leveraging uTrade algos

Our Company has planned, strategized, and automated trading with the superfast Algo Trading Platform "uTrade Algos". "Algorithmic trading" or "algo trading" is the execution of transactions using computer algorithms. We have planned to make algos simpler and more accessible to all individuals.

2. Product Development Initiatives

Share India Securities Limited is continually introducing new technologically-based products to enhance the user experience and boost customer retention. Our Company has launched an algo platform that will give retail investors access to technology that is presently only available to large institutions. This platform will allow participants to strategically plan, visualize, and execute transactions. The goal is to provide retail investors with algo trading capabilities on mobile, to achieve discipline, better risk management, enhanced performance, and returns via automated trading, using an institutional-grade algo trading solution that has never before been available to retail investors.

3. Leveraging Scale of Operations

Due to the recent regulatory reforms, cost of operations is high and intensi_es competition in the business landscape; the brokerage industry is enduring a shift that presents multiple market participants with opportunities for inorganic growth. We have proven to be the most performance-driven and trusted partner given our size of operations. Our Company has about 8% market share in F&O, approximate 15% market share in currency derivatives, and 9% market share in commodity derivatives in terms of turnover.

4. Launch of SGX Nifty now known as GIFT Nifty: The Launch of Gift Nifty on July 03, 2023 and transfer of all derivative contracts worth USD 7.5 billion, formerly traded in Singapore to India is a ground-breaking move in the field of global trading in India. With our subsidiary already established in GIFT and serving as a market maker for both exchanges at GIFT, we are in a favorable position to leverage the launch of GIFT Nifty and reap its benefits. Our extensive infrastructure at GIFT, combined with the deployment of skilled professionals, will act as a catalyst for our growth.

5. Achieving both organic and inorganic growth

We have entered the trading segment in new geographies through a Singapore-based subsidiary company that is perfectly synchronized with the parent company. In addition, the brokerage industry is in a consolidation phase, and our Companys size and listing make it a partner of choice for both technology and traditional partners. We are poised to achieve higher growth both organically and inorganically and intend to do the same in the future as well.

6. Revenue Stream Diversification

? Share India Fincap – Personal loans

Share India Fincap plans to establish 20 new branches by FY 2023-24. Currently, there are 48 branches for FY 2022-23 which are located in tier 2 municipalities in the majority of four Indian states: Uttar Pradesh, Punjab, Haryana, Bihar. We will continue to increase number of branches and develop new secured, readily refinanceable loan products.

? Share India Global Pte. Ltd.

Share India Securities Limited has established an international subsidiary named as Share India Global Pte. Ltd. which is a Singapore-based company that employs a variety of international trading strategies. We believe that many of the internal trading strategies can be readily adapted to international markets.

? Share India Algoplus Pvt. Ltd.

Share India Algoplus Private Limited has acquired membership of all segments of NSE, BSE and MCX. This new membership is allowing us to perform better and in efficient way and improving the overall top line and bottom line. The Company is using the technology as a base for business activities and will continue to work in the same manner.

7. Merchant banking: We play a crucial role in facilitating the efficient functioning of financial markets by providing expertise and financial solutions to clients. We assist in capital market transactions, including initial public offerings (IPOs), rights issues, and private placements. We also provide advisory services on corporate restructuring, financial strategies, and risk management We had carried out 6 IPOs in last two months of FY 2022-23.

STRENGTHS AND OPPORTUNITIES

• Innovative Leadership and Management

Our Company is being managed by a competent management team that consists of a qualified CEO (Chief Executive Officer) and a group of young specialists with demonstrated execution skills. Since inception, a highly qualified and experienced management team looks over the entire operations of our Company. This dynamic group has been crucial in the development of innovative technologies and processes that have enhanced our consumer experiences and contributed to the overall success of our Company.

• Strong Tech Expertise

We provide a technologically-based platform that enables clients to make prompt decisions and elevate their financial standing. Users are able to capitalize on the resulting development prospects by investing in these crucial areas. While implementing RMS, we have adopted automated solutions and digitalized processes to assure continuous services and a high level of operational capability. The algo trading strategy platform is based on algorithmic and quantitative trading solutions. Ultra Low-latency high frequency trading solutions with 100+ in-built Algos for Arbitrage, Execution, and Market-Making, and potent Algo APIs, along with intelligent hedging and risk monitoring tools, would provide a competitive advantage to our Company.

• Robust Risk Management

We are extremely vigilant with regards to product offerings, as they may pose a risk to the clients investment. We have set aside resources in terms of people, processes, and technology to administer the risk management system optimally. Strong RMS practises are the foundation of our Company and one of the factors driving our growth. Our Company has a well-defined and regularly updated risk management structure and plans for changing market conditions and laws.

• Consolidation Offering Inorganic Opportunities

Due to regulatory modifications and compliance costs, the brokerage industry is undergoing a consolidation phase over the medium term. Due to our huge scale of operations and expertise over the span of more than 28 years, we have become a partner of choice for multiple parties.

• Low Debt Company: Our Company has relatively low debt levels which has allowed us to effectively utilize its net worth. This guarantees efficient use of the capital employed in the business and gives the Company a competitive advantage, allowing it to remain ahead of its competitors. Lower debt levels lead to lower finance costs for our Company and frees up funds that can be utilized for other purposes such as reinvestment in the business, expansion, research and development.

• Increasing Customer Base by expanding brokerage and distribution services

Our Company intends to further develop its business operations and customer base into retail broking and distribution in the near future. As a result of the base effect, the distribution industry in India is still in its infancy and will develop at an accelerated rate, providing us with plenty of opportunity for expansion.

FINANCIAL REVIEW

Our revenue from operations grew at an adequate CAGR of 59% between FY 2014-15 and FY 2022-23. During the year, the revenue from operations increased by 26%, from Rs. 8,616 million in FY 2021-22 to Rs. 10,882 million in FY 2022-23. This was primarily attributable to consistent investments in technology and R&D, a concentration on the retail investors and effective asset-liability management. Our Company has proven its ability to expand and acquire market share over the years.

The EBITDA grew at a CAGR of 68% between fiscal years 2014-15 and 2022-23. The EBITDA for FY 2022-23 was Rs. 5,041 million, up 60.9% from Rs. 3,133 million in FY 2021-22. The PAT CAGR between FY 2014-15 and FY 2022-23 was 78.5%. An exceptional gain of Rs. 14.7 million occurred during FY 2022-23, which represented the gain arising on the sale of our entire stake in Share India Commodity Brokers Private Limited. While in FY 2021-22, our Company had incurred an exceptional loss of Rs. 70 million. The PAT increased by 64% from FY 2021-22s

Rs. 2,018 million to FY 2022-23s Rs. 3,307 million. This was predominantly the result of economies of scale, change in product mix to higher margin and a natural improvement in market sentiment.

Significant Changes in Key Financial Ratios

	FY 2022-23	FY 2021-22	Reason for variations during FY 2022-23
Interest Coverage Ratio	8.55	9.65	The decline in the interest coverage ratio was due to increased finance costs, due to higher credit facilities obtained considering the scale of operation and growth prospects, during FY 2022-23.
Current Ratio	1.93	1.36	Our Company aims to sustain a ratio above 1.0, reflecting our commitment to maintaining a positive financial position. This improvement is primarily attributed to enhanced working capital management practices and reclassification of financial statements during the year under review.
Operating Profit Margin (%)	45.27%	35.26%	Ratio improved due to better management controls, more efficient use of resources, improved pricing, and more effective marketing
Net Profit Margin (%)	30.38%	23.43%	The ratio experienced an increase due to substantial business growth resulting from scale synergies, improved market sentiments leading to increased volumes, and diversification into multiple revenue streams.
Return on Net worth – RoNW (%)	44.79%	54.66%	Decline is mainly attributable to higher change in average equity due to additional equity raised during the year in comparison to growth in net profit.
Debt Equity Ratio (in times)	0.19	0.41	The Company has successfully maintained a low debt-equity ratio, which further declined during the year on account of additional capital raised through rights issue and higher growth in net profits.
Trade Receivable Turnover (in days)	Not applicable as the Company is mainly in the business of Share Broking and Derivative Trading
Inventory Turnover	Not applicable as the Company is mainly in the business of Share Broking and Derivative Trading

GOING FORWARD/MANAGEMENT OUTLOOK

In light of recent global events, it is anticipated that market volatility will remain elevated. In 2023-24, however, development would be driven by the economic recovery and the governments emphasis on capital expenditures and domestic manufacturing. By focusing on technology, consolidation, retail penetration through algos, overseas trading, and expanding our institutional business, SISL aims to position itself as one of the leading players in the financial services industry. We are committed to delivering innovative solutions, superior customer experiences, and sustainable growth in the dynamic and competitive market landscape.

Technology and consolidation have reshaped the dynamics of the global economy. We recognize the transformative power of technology in the financial industry and aim to leverage it to enhance our services. Investing in advanced trading platforms, digital solutions, and analytical tools will allow us to provide clients with a seamless and efficient trading experience.

Our Company also intends to construct new branches and franchises to expand our national presence. Additionally, emphasis is placed on international stock trading and commodity trading. We intend on using our two decades of experience with planned strategies to expand our geographic footprint in international markets as well. Recognizing the opportunities in global markets, we will actively explore overseas trading avenues. Also, by venturing into overseas trading, we can diversify our revenue streams, tap into new investment opportunities, and cater to the needs of clients with global investment interests.

Due to our superior capabilities, we are well-positioned to capitalize on opportunities and expand our presence in the financial services sector. We have a significant presence in the HNI and institutional segments, and have substantially increased our market share in terms of volume. We specialize in insurance brokerage with a focus on retail and high-net-worth clients. We have also aimed to expand our institutional business segment. By offering specialized solutions, personalized services, and deep market insights, we seek to establish strong relationships with institutional clients and become their trusted partner for their investment and trading needs.

Strong financials, a relentless concentration on return on capital, and visionary leadership enabled our Company to surpass our competitors. We are confident in our ability to weather any volatility as a result of our healthy core business, substantial market penetration, and new product releases across many areas of the domestic financial industry. Moreover, given the presence of numerous investors and speculators in the equity markets, a high level of volatility is generally advantageous for turnover, which can be further benefited from increased volumes.

Revenue growth in the industry is expected to be subdued due to macroeconomic scenarios and increasing competition with the entry of new tech platforms. However, our Company would further broaden its portfolio offerings by focusing more on other services/businesses. Our robust business foundation, ethics, and governance would further allow us to _ourish without being hindered by fraud and deception.

HUMAN RESOURCES

Our employees are the driving force behind the success of our Company. The efforts of our staff members have guided and enabled us to achieve excellence. Going forward, we aim to ensure that every employee works in an atmosphere that is secure, inspiring, and trustworthy.

Our Human Resources practises are structured to cultivate a workforce that is prepared for the challenges of the future while also providing employees with opportunities to grow professionally and personally. During the course of this fiscal year, the majority of our efforts were directed towards employee development. These efforts were also made in conjunction with a variety of other aspects, such as employee health and safety, training and skill development, and ensuring that we fulfill our fundamental responsibilities in the areas of human rights, labor, and the environment. We are committed to ensuring that internationally recognized human rights are protected, and we recognize the efforts of others who work towards this goal.

2,306 1,812

Number of Number of Total Employees Male Employees

494 1,085

Number of New Employees hired Female Employees

0 0

Number of Number of Sexual Employee Complaints Harassment Complaints

The key concept of our HR Policies is that all employees are entitled to equal opportunities and treatment. We are working to make our Company more fair and welcoming, as well as one that values a wide range of perspectives and life experiences. Because of the wealth of talent that we have available to us, we have been able to ensure a substantial in_ux of unique and creative ideas, which has had a significant effect on our Company. Following initiatives have been implemented for the welfare of the employees.

• Insurance for Medical Treatment

We have made preparations and secured insurance policies for each of our employees engaged in core operations in order to ensure that they will always have access to necessary medical care in the event of an emergency.

RISK MANAGEMENT AND MITIGATION

Risk	Impact	Mitigation
Socio-Economic	The financial sector is vulnerable to market and	We operate in financial sectors with a diversity of services and have cultivated enduring relationships with clients and stakeholders.
Risk	political system fluctuations. Any unfavorable economic activities or political uprisings could have an adverse impact on financial services companies.
		This safeguards us against the risks associated with the underperformance of any segment.
		In addition, we monitor altering macroeconomic conditions, such as government regulation, exchange rates, and political stability, to mitigate the risk to a substantial level.
Regulatory Risk	As a participant in the financial services industry, we are subject to a number of rules and regulations imposed by various regulatory bodies. Any non-compliance or misunderstanding may lead to inadequate observance. In addition, we must be prepared to adhere to any newly enacted or revised laws.	A team of experienced professionals ensures rigorous compliance with all applicable regulations and laws. If new or revised laws are enacted, the corporate function will be informed. This staff calibrates functions immediately.
		Organizational compliance with all new rules, circulars, and notifications is a top priority.
		Moreover, the internal audit team closely monitorscompliancewithallacknowledgedbest practises, policies, and regulatory requirements.
Business Risk	As a provider of financial services, our business is substantially influenced by domestic and international equity, debt, currency, and financial markets, as well as India and global economic conditions.	We employ risk management techniques for trading activities, such as instruments, strategies, position and trading limits for trading departments, business divisions, and/or individual traders, periodic stress testing, and cash management.
	Our Company is exposed to risk because of its key strategic initiatives and the potential that our competitors might replicate them.
		Business operations are conducted in accordance with well-defined policies, operational processes, and systems and are frequently subject to system audits. Periodically, we review and modify our procedures in order to comprehend our internal control system, client margin requirements, as well as our relationship & risk management.
Competition Risk	The industrys high growth potential makes it attractive to newcomers from both domestic and international markets. The expansion of technology firms to serve Indias expanding retail sector has contributed to the sectors overall innovation.	We have developed a comprehensive portfolio of cutting-edge and diversified products and services. We have invested massively in research and development in order to keep up with the ever-changing dynamics of the market. Our ability to withstand market competition is aided by the fact that we have a secure consumer base.
Operational Risk	Insufficient internal control of people, processes, and systems may result in operationalrisks.Moreover,externalconditions pose a threat to our Companys operations.	Our business operations are carried out in line with well-defined rules, operational procedures, and systems, and are subject to regular system audits. The maker/checker mechanism lends an additional level of robustness to the functionality.
		The monitoring of client-level risk situations is conducted in real-time, and appropriate risk mitigation measures are implemented as needed.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

There are adequate internal control systems in place to safeguard our Companys assets and guarantee high productivity at all levels. The systems are appropriate for the scale of our Company and the industry in which we operate. Utilizing well-defined processes, guidelines, and procedures, as well as suitable internal information systems, our Company has enhanced and maintained our internal controls. The proper flow of information promotes and aids us in efficient decision-making.

Audits are performed on a regular basis to ensure that the rules and processes in place are strictly followed. Our Companys sophisticated control systems safeguard sensitive data, streamline the auditing process, and permit the maintenance of adequate accounting control, operations monitoring, and asset conservation. In addition, internal controls assure compliance with all applicable laws and regulations.

The Audit Committee of the Board closely monitors corporate operations and the performance of the internal audit function. The committee regularly examines the findings of the internal audit team. Appropriate steps are taken in a timely manner to ensure our Companys longevity and future development potential. Internal controls aid in the prompt detection and correction of any operational irregularities within our Company. The controls always provide a precise summary of our business position and help in optimized decision-making for our Company.

CAUTIONARY STATEMENT

Forward-looking statements are made in this Management Discussion & Analysis report based on various assumptions and projections of future events over which Share India Securities Limited has no control. Share India Securities Limited makes no assurances as to their accuracy or that they will be realized. Actual outcomes may differ significantly from those stated or suggested. Demand, supply, global economic and geopolitical changes, government regulatory and tax framework, market liquidity, and other macroeconomic factors may have an impact on Share India Securities Limiteds activities.

By Order of Board of Directors For Share India Securities Limited

	Sd/-	Sd/-
	Parveen Gupta	Sachin Gupta
DATE: August 23, 2023	Chairman & Managing Director	CEO & Whole-Time Director
PLACE: Noida	DIN: 00013926	DIN: 00006070