wallfort financial services ltd share price Management discussions


The Financial Year 2023 was a turbulent year for the global capital markets due to multiple stress factors weighing on the global economy. The excessive stimulus disbursed during the pandemic led to a severe inflationary pressure which was further exacerbated by the supply chain disruptions due to the war in Ukraine. To control the inflation, the global central bankers had to undertake multiple rate hikes which continue even today and is likely to go on for the near future. These successive shocks have caused a recessionary situation in many developed economies, particularly in Europe. It may be a while before we see inflation coming down to normal levels.

According to the World Economic Outlook announced by International Monetary Fund in April 2023, "the baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflations return to target is unlikely before 2025 in most cases".

India, during this period of high volatility, was not as impacted as some of its peers due to its non-alignment policy and stable asset quality of its financial system. In this, the Government of India deserves strong credit in managing these shocks successfully. In its latest meeting, the Reserve Bank of India (RBI) has maintained its GDP growth projection for the fiscal year 2023-24 at 6.5%, noting that the Indian economy and financial sector remain resilient amidst global challenges. In its June 2023 Monetary Policy Statement, RBI projected the CPI inflation is projected at 5.1 per cent for 2023-24, with Q1 at 4.6 per cent, Q2 at 5.2 percent, Q3 at 5.4 per cent and Q4 at 5.2 per cent(Chart 1); and real GDP growth for 2023-24 is projected at 6.5 per cent with Q1 at 8.0 percent, Q2 at 6.5 per cent, Q3 at 6.0 per cent, and Q4 at 5.7 per cent (Chart 2).

With respect to its stock markets, despite a flat performance in its index, India still outperformed most of its global peers during the FY 2023. The Nifty 50 & SENSEX ended this financial year on a flat note owing to a prevailing uncertainty in the global economy with respect to financial stresses, geopolitics and inflation. The BSE SENSEX increased by around 0.72 per cent in FY 2023 while the broader Nifty50 index of the National Stock Exchange (NSE) decreased by around 0.60 per cent. While the performance for FY 2023 has been sluggish, the markets are expected to make a decent recovery in FY 2024 backed by falling cost pressures and a robust economic activity led by strong demand in FMCG, Automobile, and Infrastructure sectors of the economy.


• Positive long-term economic outlook will lead to opportunity for financial services

• Increased digitalisation allowing AMCs to expand services and improve penetration

• Growing popularity of SIPs, with large-scale campaigns improving outreach.

• Regulatory reforms would aid greater participation by all class of investors

• Corporates looking at consolidation / acquisitions / restructuring opens out opportunities for the corporate advisory business.

We are very pleased to inform you that your company is now servicing 99 Institutional Clients and look forward to become one of the premier brokerage houses for Institutions/ Corporates /Banks and FIIs in years to come.With a positive outlook on DII and Mutual Funds Flows we look forward to generating more business and servicing even more institutional clients.


• Short term economic slowdown impacting investor sentiments and business activities

• Credit risk, interest rate risk, liquidity risk and operational risks are the major risks the company faces.

• High employee turnover and attraction of fresh talent continues to be a challenge.

• Regulatory reforms would aid greater participation by all class of investors

• Increased intensity of competition from local and global players


Strong Brand Name

We are enhancing our service capabilities, providing good quality research and efficient market information to our clients. With a strong Brand name Wallfort is a well-established brand among institutional investors in India and Broking Community. Wallfort believes that its brand is associated with high quality research and advice as well as corporate values like integrity and excellence. The company intends leverage its brand to grow its businesses, build relationships and attract and retain talented individuals.

Experienced Top Management

The top management team comprises qualified and experienced professionals, with a successful track record is in charge of the corporations goals, policies, and procedures.

Strong Risk Management

Strong Risk Management Risk exposure is monitored and controlled through a variety of separate but complementary financial, credit, operational, compliance and legal reporting systems. Risk management department analyses this data in conjunction with the companys risk management policies and takes appropriate action where necessary to minimize risk.


• Impact of markets on our revenues and investments, sustainability of the business across cycles, sharp movements in prevailing interest rates in the market.

• Risk that a client will fail to deliver as per the terms of a contract with us or another party at the time of settlement.

• Risk due to uncertainty of a counterpartys ability to meet its financial obligations to us.

• Inability to conduct business and service clients in the event of a contingency such as natural calamity, breakdown of infrastructure, etc.


The performance of stock markets depends on the perception of overall economic growth of the country and the Indian economy has overcome a lot since the last few years such as Banking Crisis, Economic Slowdown, Pandemic, Geopolitical Pressures and the current Rate Hike Cycle. All of this led the government to quicken its pace of reforms to place India in a structurally strong position and improve its growth outlook.

While FY 2023 was a muted year for the capital markets, the FY 2024 is likely to do much better in light of robust demand and falling cost pressures. There are signs of global markets adapting to the prevailing stress factors and finding newer and more innovative ways to once again progress towards stability and growth.

As for stock markets, the key indexes - SENSEX/NIFTY50 have started showing signs of recovery. However, its performance continuity will depend on how quickly the advanced economies are able to come back out of the current phase of slowdown.


Although the Company has long been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion.

In todays challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are changing regulations, competition, business risk, technology obsolescence, retention of talent, and expansion of facilities. Business risk, inter alia, further includes financial risk, political risk, fidelity risk, and legal risk. As a matter of policy, these risks are assessed and steps are taken to mitigate the same.


The Company has appointed M/s. Jigna Sheth & Associates., Chartered Accountants as the Internal Auditors as mandated under Section 138 of the Companies Act, 2013 who examine and ensure that internal checks and control procedures are adequate. They also ensure proper accounting, records authorization, control of operations and compliance with law.

An appropriate and adequate system of internal controls exist in your Company to ensure that all assets are safeguarded and protected against loss or from misuse or disposition, and that the transactions are authorized, recorded and reported suitably. Internal control systems ensure effectiveness of operations, accuracy and promptness of financial reporting and observance with laws & regulations. The internal control is supplemented on an ongoing basis by an extensive internal audit which is conducted each year by an independent audit firm.

The internal audit report along with management comments thereon are reviewed by the Audit Committee of the Board comprising of independent and non-executive Directors on a regular basis. Implementation of the suggestions is also monitored by the Audit Committee. The internal controls are designed to ensure that the financial and other records of the Company are reliable for preparing financial statements and other data, and for maintaining accountability of assets.


Amount in Thousands

Particulars For the year ended 31 March, 2023 For the year ended 31 March, 2022
Revenue from Operations 1,99,114.24 2,81,240.21
Other Income 1233.40 294.80
Total Income 2,00,346.65 2,81,535.01
Finance Cost 1,797.62 1,585.95
Employees Benefit Expense 33,269.92 32,474.38
Depreciation and Amortization Expense 2,929.83 3,000.05
Other Expense 1,01,723.41 79,298.38
Total Expense 1,39,720.78 1,16,358.76
Profit Before Tax 60,625.88 1,65,176.25
Current Tax 16,131.49 3,060.90
Defered Tax Charge/(Credit) -5,955.24 24,907.81
Short/(Excess) Provision for tax for earlier years - -
Total Tax Expense 10,176.25 27,968.71
Profit After Tax 50,449.63 1,37,207.54


The Companys revenue from operations stood at INR 19.91 crore compared to INR 28.12 crore in the previous year. Other income stood at INR 12.33 lacs compared to INR 2.94 lacs in the previous year.


Total expenditure for the year increased by 20.12% to INR 13.97 crore, as against INR 11.63 crore in the previous year. Employee benefit expenses for the year were INR 3.33 crore as against INR 3.24 crore in the previous year - an increase of 2.78%.

Depreciation for the year decreased to INR 29.30 lacs as against INR 30.00 lacs in the previous year - a decrease of 2.33%. Other expenses for the year were INR 10.17 crore as against INR 7.92 crore in the previous year - a increase of 28.25%.


The Profit for the year stood at INR 5.05 crore as against INR 13.72 crore in the previous year - an decrease of 63.19%.


It is your Companys belief that people are at the heart of corporate and constitute the primary source of sustainable competitive advantage. The trust of your Companys human resource development efforts, therefore, is to create a responsive and market driven organization. Your Company continues its focus on strengthening competitiveness in its business. Your directors look forward to the future with confidence. The Company has followed a conscious policy of providing training to management staff through in-house and external programs for upgrading personal and technical skills in relevant areas of functional disciplines.


There was no change of 25% or more in Key Financial Ratios as compared to previous financial year.


Return on Networth 2022-2023 2021-2022
4.22% 12.03%


By Order of the Board
For Wallfort Financial Services Limited
Ashok Bharadia
Date: 11/08/2023 Chairman & Managing Director
Place: Mumbai (DIN - 00407830)