Summit Securities Ltd merged Management Discussions

SUMMIT SECURITIES LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY OVERVIEW AND FUTURE OUTLOOK: The Indian economy has demonstrated a noteworthy growth and the GDP is expected to grow further. The economic reforms are expected to deregulate the country and stimulate foreign investment thereby driving the advancement of capital markets. The improvements in equity market infrastructure, governance and financial integration has improved liquidity in the markets. OPPORTUNITIES AND THREATS The equity market of the country is sizable, fast growing and offers huge potential to tap. The economic performance of the country has further given a thrust to the growth of the capital market. However, Indian stock exchanges have experienced significant fluctuations and volatility in the prices of the listed securities recently. Investments being a risky proposition, the inherent risk of fall in the prices and the valuation of the investments on account of external factors is always present. RISKS AND CONCERNS The companys assets are prone to general risks associated with global and domestic economic conditions, change in Government regulations, tax regimes, other statutes, financial risks and capital market fluctuations in respect of investments held by the company. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The company maintains a system of strict internal control, including suitable monitoring procedures. Significant issues are brought to the attention of the Audit Committee of the Directors. The internal controls existing in the company are considered to be adequate vis-a-vis the business requirements. HUMAN RESOURCES / INDUSTRIAL RELATIONS As the company does not carry out any manufacturing activity, no workmen were employed during the year.