Sugal & Damani Share Brokers Ltd Management Discussions

After the general election in the year 2019 the government came with majority of its own and the GDP growth become normal. But in March 2020 the Covid -19 Pandamic broke out and resulted in decline in the GDP. Once the Covid-19 Pandamic subsided and the world comes out with vaccine the GDP will improve.

(a) Industry Structure and Developments

After Covid-19 Broke out in March the market fell sharply. The market trends will be determined by various domestic and international factors like global market movements, Tension with China and Pakistan at borders, RBIs policy and visible improvement in corporate earnings of domestic firms.

(b) opportunities and threats

The company will be migrating all its clients to M/s. Motilal Oswal Financial Services Limited which will effect the financial position of the company. Company will be surrendering its NSE, BSE and CDSL membership in the year.

The company once surrenders its membership its Capital will become free and will evaluate other business opportunities.

(c) Segment-Wise or Product-Wise Performance

During the financial year ended March 31, 2020 the Company operated only in one segment of business viz, Share Broking.

(d) outlook

The secondary markets are expected to remain buoyant and the bull-run is expected to continue, a pre-requisite for revival of the primary markets.

(e) Internal Control Systems and their adequacy

In the opinion of your Directors, Internal Control Systems in the Company are adequate.

(f) Financial Performance

The financial performance during the year under review is given above.

(g) Human Resources/industrial Relations

The number of people employed has become 19 and the employer-employee relations have been cordial throughout the year.

(h) Risks and concerns

The company will migrated its clients to M/s. Motilal Oswal Financial Services Limited, the migration of business has risk of its own and the company has to look into other business avenues to deploy its capital.