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Overall Outlook

DJS Stock and Shares Limited is engaged in Share Broking activities, Trading and Investment in equities and with the opening up of all major business markets after the second wave of pandemic, there are huge emerging opportunities. DJSs young and energetic team are always in readiness to grab such opportunities. DJSs management team foresee a bright future ahead.

The COVID-19 pandemic is a once in a lifetime occurrence that has brought with it unimaginable suffering to people and to almost all sections of the economy. When the pandemic struck and led to nationwide lockdowns to curtail the transmission of disease, it was natural to fear that the global economy would stay in extreme stress of the kind not seen since the Great Depression and would have a long-lasting economic impact. To counter the crippling impact of the lockdowns on economies, the worlds policymakers have resorted to fiscal and monetary measures never seen before in global economic history. It still remains to be seen if these relief measures sufficed, and whether actions taken by Governments across the globe adequately compensated for the disruptions created in the lives of people. Fortunately, science prevailed. Multiple vaccines were found with impressive efficacy levels in less than a year - which will probably rank as among one of the most incredible achievements in science. The announcement of successful development of vaccines seemed to lift spirits around the world. Fortunately for India, which is home to some of the largest vaccine makers in the world, the supply constraints were limited and temporary. Thereafter, we have seen a rebound - thanks to the resilience of our citizens and entrepreneurs of our economy.

In India, the second wave (called ‘Delta) proved far more lethal than the first that struck in 2020. After a shaky start in some places, the vaccine immunisation programme by the Indian Government and Governments across the world has been exemplary. It saved lives and livelihood.

The highly transmissible variant ‘Omicron in early January 2022 (the third wave) spread rapidly across the world. During this wave, Indias daily number of reported cases peaked to nearly 350,000 on 20 January 2022. Faced with the prospect of yet more lockdowns, there was fear that the world would face yet another year of slow economic growth. Fortunately, while highly transmissible, Omicron was not as lethal as Delta. So, while many got infected, fatality rate was fortunately low. The world did not see a re-run of massive drop in GDP as witnessed FY2021.Indias GDP grew 8.7% in Financial Year 2021-2022 after contracting 6.6% during the previous fiscal.

The Indian capital market also witnessed a phenomenal rebound in the current fiscal, factoring in quick resumption of economic activity and future growth prospects. Like its global peers, India too witnessed a strong rebound from the pandemic lows with the key indices reaching an all-time high by the fourth quarter on the back of continued and strong recovery in economic activities in the first half of FY 2021-22. Indias market capitalisation to GDP ratio now stands at approximately 112 Percent in March 2022 from approximately 105 Percent in March 2021. The rally in Indian equities was driven by record Foreign Portfolio Investors (FPI) flows during the year which more than offset the outflows by domestic institutions.

Industry Structure and Development

People were looking for new methods to diversify their portfolio and create new streams of income as the pandemic hit. To diversify their income streams, more and more individuals turned to the stock market.

Year-on-year, Indias stock market has outperformed most major economies. Even though there has been slight volatility in the market of late, it hasnt really impacted customer growth. Also, smartphones and low-cost data have propelled investing and trading into the digital realm. Opening a demat account has become a paperless and simple process thanks to the implementation of eKYC and Aadhaar eSign. Also, the excitement of upcoming IPOs has piqued the curiosity of first-time investors, resulting in a steady increase in equity participation.

Equity participation in India currently stands at 5-6% compared to US which is about 55%. Having said that, the Indian broking sector will continue to grow even if there is a slowdown. India is a country with a high saving rate, and thus there is immense investing potential. With growing financial awareness, financial literacy, internet and smartphone penetration, many people have started showing keen interest in the equity markets and are looking at diversifying their investment portfolios. Indias brokering industry is vast, dynamic and continuously on the outlook of new opportunities. With equity participation in India being around 5-6% there is still a lot of potential for the brokers to flourish in India.

Segment-wise/Product-wise Performance

The Company is engaged mainly in trading activities and as such there are no other reportable segment as defined by Indian Accounting Standard 108 on "Operating Segments" issued by the Institute of Chartered Accountants of India.


Broking Companies are set to clock record revenues in the current financial year, driven by higher retail participation and favorable systematic liquidity. The increase in the activity in equity markets since the beginning of the pandemic was driven by robust corporate earnings, favorable liquidity in both international and domestic markets, higher internet penetration, and retail participation.

According to the data analysis and interpretation: During the times of Covid 19(during financial year 2020) millions of new demat accounts were opened and lot of them were opened with online trading platforms. Some clients of traditional broking system also shifted towards the online discount broking system. But the clients who switched platforms soon came back to traditional system, reason being most of the clients felt the lack of good customer care services, advice from experienced stock brokers, additional services like portfolio management, estate planning, tax advice, etc., most of the clients do not have sufficient time nor the fundamental and technical analysis skills to select stocks for investment or trading. Thus, forcing clients to move back to the traditional broking system.

The industry giants and big players of the market neither shifted nor are going to shift towards online discount broking system because they require the expertise, experience and premium services provided by the traditional system which our Company is providing. Moreover, technical issues and glitches in online broking systems cause problems and delay in execution of big trades (large order quantities) which is definitely not preferred by the big players of the market.

As far as SEBIs new margin norms are concerned the stricter regulations are brought to minimise the risk of frauds. As earlier some brokers were illegally transferring clients investments to their own account and were pledging them without authorisation. As a result of the norms clients now have to pay either the upfront cash margin or pledge the shares to cover margin. It can be concluded that though online discount broking system has gained popularity in past few years, traditional broking system is here to stay as it has the trust and reliability of many clients and amidst the inherently volatile market and pressing times, expert guidance of full service brokers is a necessity. In the coming future both the traditional and online discount broking systems will be existing cohesively.

Risk Management

The Company operates in an industry that is influenced by various macro parameters i.e. both global and domestic. Economic environment may be adversely impacted due to rising crude prices, worsening fiscal position of the country, worsening pandemic situation that is currently prevalent globally, rising inflation leading to higher interest rate scenario, depreciating currency, slowdown in corporate earnings, rising NPA position etc. A slowdown in the economy, due to such adverse changes in operating environment could have a material impact on investor interest in capital markets. The Company is one of the prominent digital players in Indian capital market using advanced technology as its backbone for growth.

Continuous investments in upgrading its IT infrastructure coupled with scaling up its digital talent pool is imperative for sustenance of growth. The Company will have to be abreast with the rapidly changing technology to offer seamless and improved experience to its clients. If the Company is unable to keep pace with this, it runs the risk of technology obsolescence.

Since the Indian capital market is an evolving market, the industry is likely to witness regulatory updates frequently. These updates are expected to be with the intent to ensuring longevity of clients in the system and hence creating long-term sustainability for the industry. In the interim as the industry recalibrates to the changes, there may be near term impact on growth however long-term outlook would be strengthened. The broking industry is highly competitive, with many participants offering a variety of products and services with the aim to provide best in class customer experience. Similar products and services being offered by banks, financial institutions, full scale brokers, digital brokers, etc. makes the industry optically very competitive.

Players with matured journeys based on client experience will be the larger beneficiaries for future growth. In the initial period of FY 2021- 22 the world and India was adversely impacted by the pandemic which led to material risk off from the markets. Global recessionary expectation also drove crude prices to negative territory for a brief period, which also dented investor sentiment. In such situations, capital market participants become conservative and considerably reduce client exposure to such assets. A similar scenario, if replicates in future may also have corresponding impact on the business financials intermittently. The pace of response by both central and local administrations will play a key role in the speed of recovery for the industry.

Internal Control System

The internal control systems have been designed to effectively and efficiently handle the dynamic and complex nature of business operations of the Company. The internal control systems and environment are commensurate to the scale and volumes of the business with adequate segregation of roles and responsibilities. The executives of the Company keep themselves abreast with the detailed documentation of its policies and SOPs, which are regularly reviewed and updated by the management. The statutory auditors of the Company critically review the internal control environment to arrive at their opinion about the financial performance of the Company. The Company also has a strong internal audit framework as approved by the Audit Committee which ensures detailed coverage of the processes and systems needed to safeguard its assets, prevention and detection of errors and frauds, ensure accuracy and completeness of accounting transactions thus enabling timely preparation of reliable financial information. The various committees of the board, including the Audit Committee, periodically review the observations and recommendations of the internal auditors to further improve the systems and processes.

Financial Performance w.r.t. Operational Performance

It has been a very tough year globally with the pandemic and the various lockdowns. We pray that all our shareholders, their families, the companys board of directors and all the staff of DJS Stock and Shares Limited (hereinafter referred to as ‘DJS or ‘the Company) are safe and continue to stay healthy.

It has been a difficult year for the company too as we had to manage with minimal staff. I would like to take the opportunity here itself to thank our staff for being extra cooperative and attending office in these trying times. It was a major turnaround year for the markets. Given the pandemic it is hard to imagine how well the markets have performed globally. It has been a concerted effort globally by governments and central banks to support the economy and the markets in the best possible way. The current fiscal year has begun on a good positive note for both the markets and for our company. As we continue to strive to grow the Institutional business, we are seeing better momentum in our retail segment too. We expect markets to remain robust and thus are optimistic for the rest of the year.

DJS Stock and Shares Limited is engaged in Share Broking activities, Trading and Investment in equities and with the opening up of all major business markets after the second wave of pandemic, there are huge emerging opportunities. DJSs young and energetic team are always in readiness to grab such opportunities. DJSs management team foresee a bright future ahead.

During the year under review, the Company has earned Total Revenue of Rs. 14,516 hundred in comparison to Rs. 40,794 hundred during the previous financial year. The total expenses has been increased from Rs. 133,442 hundred to Rs.142,522 hundred due to which there is loss of Rs. 128,064 hundred in comparison with loss of Rs. 92,704 hundred during the previous year. There was a deferred tax of Rs. 58 hundred compared to Rs. 56 hundred for the previous financial year. The Company is trying hard to grab the market opportunities and make it into a profit making Company.

Safety, Health and Environment

Your Company as a matter of policy gives greater importance to safety, health and environment and also ensures compliance with applicable legislative requirements.

Human Resources

People are our key pillars of strength. This belief was further strengthened as our people showed tremendous resilience and extraordinary commitment during the pandemic times to bring the Company back to its core performance.

COVID-19 created an unprecedented health crisis, especially during the second wave. Our Company took multiple initiatives to ensure safety and well-being of employees and their families and extended financial and logistical support towards diagnosis and treatment. The Company is committed to create a vibrant and inclusive workplace for all its employees and actively takes steps to ensure these are well enshrined in our policies and practices.

We have adopted people practices that enable us to attract and retain talent in an increasingly competitive market; and to foster a work culture that is always committed to providing the best opportunities to employees to realise their potential. We are committed as an equal opportunity employer. Train people. Treat them well. Happiness and productivity will follow, this is our Companys philosophy.

Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector-specific financial ratios.

Particulars F.Y. 2021-22 F.Y. 2020-21
Current Ratio1 5.94 times 2.86 times
Net Profit Margin (%)2 (882.22)% (227.25)%
Return On Net-worth (%)3 (19.40)% (11.78)%

1rThe current ratio has improved as a result of more decline in current liabilities..

2The net profit margin ratio has gone down due to decrease in income from operation of the company.

3Return on Networth (%) gone down due to decrease in income from operation of the company.

Cautionary Statement

The report contains forward looking statements describing expectations, estimates, plans or words with similar meaning. Your Companys results may differ depending on various factors. Your Company cannot guarantee that the assumptions and estimates in the forward looking statements are accurate or will be realized.