yamini investment company ltd Management discussions

GLOBAL EQUITY MARKETS DURING THE FINANCIAL YEAR 2021-22:

The year 2020 will be recalled in the years to come with memories of Shock & Awe. In the first month of the Financial Year, namely April 2020, the world received an unprecedented Shock with Covid19 becoming a global pandemic, the lockdown of all activities to "Flatten the Curve" and to protect the people from the spread of the virus brought about unprecedented fall in activities. Millions faced unsurmountable personal challenges and a large number lost loved ones. For all those of us who were saved from the wrath of the pandemic have been fortunate and have to thank the almighty for his/her support and strength.

The developed nations left with no other recourse have flooded the world with currency to support their markets and their citizens. The COVID pandemic has added $24 trillion to the global debt mountain over the last year a new study has shown, leaving it at a record $281 trillion and the worldwide debt-to-GDP ratio at over 355%. The Institute of International Finances (IIF) global debt monitor estimated government support programmes had accounted for half of the rise, while global firms, banks and households added $5.4 trillion, $ 3.9 trillion and $2.6 trillion respectively.

One of the biggest threats to the present strong global equity markets is rising inflation. When it comes to inflation, the alarm bells are ringing louder with the commodity markets shattering records and governments continuing to pile on stimuli. Expectations of price pressures are apparent in the commodity markets, with iron ore, copper, aluminium and other metals either soaring or nearing record levels. The rise in commodity prices suggests that there could be some policy change sooner than later. The U.S. Federal Reserve may have to hike rates to stave off inflation, thereafter central banks globally may have to do the same.

Indian Economy

CRISIL Ltd. research states that Indias GDP growth will rebound to 11% in fiscal 2022, after an 8% contraction this fiscal. In nominal terms, the size of the economy next fiscal may be 2% larger than what it was in fiscal 2020. Perhaps the biggest concern is that the turnaround has to be more broad-based to bring back at least 14 millionjobs estimated by the Centre for Monitoring of the Indian Economy to have been lost. As we all know the pandemic has hit the services sector harder than manufacturing. Within services, the sharpest decline was in trade, hotels, transport, and communication services, which account for roughly 16% of employment.

Small businesses, which make up more than a quarter of Indias GDP and over 40% of manufacturing output, are key to a broad-based recovery. They are the "missing middle". The pandemic caused revenues of smaller firms to plunge sharper than larger firms, the main reason for job losses.

The second wave of Covid remains a big risk given that demand and animal spirits rise with hope and normalcy in everyday life.

Opportunities, Threats & Risks:

The Company is mainly exposed to market risk (including liquidity risk), interest risk and credit risk. However prudent business and risk management practices followed by the company over the years helps its to manage normal industry risk factors, which inter alia includes economic/ business cycle, fluctuations in the stock prices in the market, besides the interest rate volatility, and credit risk.

The Company is confident of managing these risks by observing a conservative financial profile in investment are trading of securities business.

Performance:

During the year, the company has earned Gross profit before tax of Rs. 26,24,200/- mainly from sale of shares and securities and interest earned.

Discussion on financial performance with respect to operational performance:

Due to increasing competition an introduction of GST regime, there is a Decrease in company turnover by Rs. Details of significant changes:

Particular	2020-21	2021-22	Changes
Turnover	4,48,65,367	4,35,95,971	-1269396
Debtors Turnover	296.12	0.16	-295.96
Inventory Turnover	49.86	53.96	4.10
Interest Coverage Ratio	-	-	-
Current Ratio	0.04	0.03	-0.00
Debt Equity Ratio	-	-	-
Operating Profit Margin (%)	23.00	14.00	-9.00
Net Profit Margin (%)	6.02	5.61	-0.41

Internal Control Systems:

The Company has an Internal Control System which is commensurate with the size, scale and complexity of its operations. The Internal Auditors monitor the efficiency and efficacy of the internal control systems in the Company, compliance with operating systems/accounting procedures and policies of the Company. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board.

The Company has adequate systems and procedures to provide assurance of recording transactions in all material respects. During the year, Ms. Shekhar Dodrajka, Chief Financial Officer, reviewed the adequacy and operating effectiveness of the internal financial controls as per Section 134 (5) of the Companies Act, 2013 by covering the following broad areas:

i. Material level assessment

ii. Entity level assessment

iii. Risk Control Matrix covering major processes and developing controls internal audit and compliance.

The Company conducts its internal audit and compliance functions within the parameters of regulatory framework which is well commensurate with the size, scale and complexity of operations. The internal controls and compliance functions are installed, evolved, reviewed, and upgraded periodically.

The Company has appointed, Vikas N Jain and Associates, Chartered Accountants, to conduct internal audit covering all areas of operations including branches. The reports are placed before the Audit Committee of the Board.

The Audit Committee reviews the performance of the audit and compliance functions, the effectiveness of controls and compliance with regulatory guidelines and gives such directions to the Management as necessary / considered appropriate. The Company has framed a compliance policy to effectively monitor and supervise the compliance function in accordance with the statutory requirements.

Human Resources

People remain the most valuable asset of your Company. Your Company is professionally managed with senior management personnel having rich experience and long tenure with the Company. Your Company follows a policy of building strong teams of talented professionals. Your Company encourages, appreciates and facilitates long term careers. Your Company continues to build on its capabilities in getting the right talent to support different products and geographies and is taking effective steps to retain the talent. The Company continues to focus on training programs for Skill Development, compliance and improved customer experience.

Cautionary Note

Certain statements in this Report may be forward-looking and are stated as may be required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Your Company doesnt undertake to update these statements.

Disclosure of Accounting Treatment:

The Company has adopted Indian Accounting standards (Ind AS) with effect from 01st April, 2017 and accordingly, the results have been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 prescribed under Section 133 of the Companies Act, 2013.

Acknowledgement

Your directors take this opportunity to place on record their appreciation to all employees for their hard work, spirited efforts, dedication and loyalty to the Company which has helped the Company maintain its growth. The Directors also wish to place on record their appreciation for the support extended by the Reserve Bank of India, other regulatory and government bodies, Companys auditors, customers, bankers, promoters and shareholders.

	By Order of the Board
	For YAMINI INVESTMENTS COMPANY LIMITED
	Sd/-	Sd/-
	Girish Verma	Vandana Agarwal
Place : Mumbai	Director	Director
Date :10/08/2022	DIN:08524681	DIN:02347593