MANAGEMENT DISCUSSION AND ANALYSIS REPORT
1. INDUSTRY
Company is engaged in the business of dealing and trading in the shares and investment
business.
2. OPPORTUNITY AND THREATS
As the share market is flourishing day by day due to increase in the investing
activities in the market, thus your company foresees great opportunity in the share
trading business and this would be beneficial for the growth of the company in the long
run.
There is always risk attached to the share market and in investment business due to
uncertainty regarding the pattern in which the market will move. But your company,having
the knowledge of this fact, always tries to control the risk associated with the type of
business it is indulged into.
3. OUTLOOK
The advent of new government in India and the major plans and policies which have been
brought by it, would, no doubt, create new investment opportunities in the market. In near
future your company sees tremendous growth in various sectors of the economy which will
strengthen the position of market, thus pushing the stock market upward and would pave
path to provide good returns for the funds invested.
4. RISK AND CONCERNS
The business in which your company deals is based on the market performance of the
securities. There is always risk associated with the volatility of the prices of shares
which depends upon the performance of the companies in the overall market, and this being
the most prior concern of your company, the company always endeavors to follow the market
trend and risk and benefits attached to it before investing the precious funds in share
market, so as to minimize the risk and maximize thereturns.
5. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Your company has proper and adequate internal control system which aims at conducting
the business in an orderly and efficient manner, safeguarding the assets and resources of
the company. It ensures the timely flow of financial and management information, effective
and efficient implementation of policies and plans, completeness of accounting records and
proper check on errors, frauds. The Board has framed a risk management plan for the
company and suitably incorporated procedures in it for assessing and minimizing the
prospective risks to which the company may be exposed The Audit committee also monitors
and evaluate the risk management plan placed in the company from time to time.
The company has appointed a firm of Internal Auditors. The internal auditors of the
company keep a follow up on the internal financial reporting and information dissemination
of the company between the departments. The Audit committee of the company interacts from
time to time with the internal auditors of the company regarding the adequacy of internal
financial control system placed in the company.
Further, the Company has adopted a Vigil Mechanism for directors and employees of the
company to report their genuine concern for any unethical conduct or malpractice,
violation of code of conduct observed by them in the company.
6. DISCUSSION OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE REVENUE
Total revenue of the company is Rs. 1,989,492.00 in financial year 2021-2022 as
compared to Rs. 2,074,987.46 in financial year 2020-2021.
The Loss Before Tax is Rs. 198,517.23 in financial year 2021-2022 as compared to Loss
Before Tax of Rs. 68,623.05 in previous year.
TOTAL EXPENSES
Total expenses of the company is Rs. 2,188,009.23 in financial year 2021-2022 as
compared to Rs. 2,143,610.51 in financial year 2020-2021.
DEPRECIATION
Depreciation for the current year is Rs. 2038.56 as compared to Rs. 2038.56 in previous
year.
TAX EXPENSES
The current tax is Nil. in current year as as well as in the previous year.
NET PROFIT
The Net loss for the current year is Rs. 198,425.23 as compared to Net loss of Rs.
68,513.05 in previous year.
7. MATERIAL DEVELOPMENTS ON HUMAN RESOURCE
The Company has formulated an evaluation criteria for the performance evaluation of its
Board of Directors, committees of board of the company, and for Independent Directors and
for each individual directors. The Board of Directors evaluate the performance of the
directors on individual basis and on whole from time to time to judge the capability of
its directors and to check if they need training.
The company has adopted a practice of conducting familiarization programme as and when
the company appoints an Independent Director in its board in order to familiarize him with
the company, its working culture, its operations, management team, code of conduct for
directors, the role and duties of independent directors.
Towards the end of the financial year, a discussion session was also arranged in the
Board Meeting for knowing the experience of the independent directors in the entire year,
achievement of compliance related and other targets of the company, making them aware of
new rules, regulations to be implemented by the company.
The relations between the employees and the management have remained cordial and
harmonious during the year under review. There are 5 employees in the Company as on 31st
of March, 2022.
8. CAUTIONARY STATEMENT
Statements in the ‘Management Discussion and Analysis describing the Companys
objective, projections, expectations may be forward looking statements within the meaning
of applicable securities laws and regulations. Actual results could differ materially from
those expressed or implied. These statements are subject to known and unknown risks,
uncertainties and other factors such as change in the government regulations, tax laws,
economic conditions and other incidental factors.
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