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HOME   >  CORPORATE INFO >  MANAGEMENT DISCUSSION
Management Discussion      
NDA Securities Ltd.
BSE Code 511535
ISIN Demat INE026C01013
Book Value 21.49
NSE Code NA
Dividend Yield % 0.00
Market Cap 181.43
P/E 17.36
EPS 1.76
Face Value 10  
Year End: March 2015
 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDIAN CAPITAL MARKET

Over the past year, the Indian stock market was one of the best- performing in the world. The Indian stock market achieved a landmark by crossing Rs. 100 Lakh crore in market capitalisation in November, 2014. The bullish trend in Indian markets over the last one year was mainly driven by government- backed measures such as movement on new reforms, execution of past policy announcements, enhanced infrastructure funding, positive surprise on rate cycle.

Foreign Institutional Investors (FIIs) and market participants have gained confidence on the back of expectation that cooling inflationary brssures, a pro- growth government and an economy relatively sheltered from a potential economic retard, would continue to support bulls.

Organisation Overview

In order to meet the expectations of our growing and demanding customer base, it has been our constant endeavour to manage our growth in most efficient and effective manner. This involves creating strong organisation, empowering leaders out of internal resources and having vigorous back office support system.

BUSINESS PERFORMANCE HIGHLIGHTS

Broking Business

NDA Securities Ltd is the flagship company of NDA Group. It was established in the year 1992 by Mr.Narsingh Das Agarwal and Mr. Sanjay Agarwal with an object to provide Stock Broking services. We are a leading Stock Broking Company from Northern India.

We became member of National Stock Exchange as soon as it came into existence in the year 1994, and held Category-1 Merchant Banking license till 1998. We had the privilege to handle as many as 60 Public Issues as Managers/Advisors to Issue.

In the year 1994, we came out with a public issue, which was a success. We are among the first broking houses of Northern India to go public. Our share is brsently listed at Bombay Stock Exchange.

It is our continuous endeavour to provide the best- in- class products, services and experience to our esteemed customers.

Services

We are empaneled with a number of Ffinancial Institutions, Banks and Mutual Funds. We have large client base of corporate bodies and High Networth Individuals (HNIs). We also have a network of Branches to serve our retail investors.

We have state of the art networking and communications links with all our branches viz. VSAT, Leased Lines, ISDN, LAN, WAN and VPAN etc.

Clearing Services

1. Equity Capital Market: Trading & Investment at NSE & BSE

2. Future & Options Market: Trading at NSE in derivatives instruments such as:

• Index Future & Options

• Stock Future & Options

3. Commodity Markets: Trading & Investment at NCDEX and MCX

4. Currency Derivative Markets: Trading & Investment in dollar at NSE & MCX

5. Depository Participants: We are member of NSDL to provide the services of DP.

FFINANCIAL PRODUCTS DISTRIBUTION

NDA, offers distribution of IPO, Mutual Fund, Online trading based trading and Investment, Equity Research and Advisory Services and Depository Services through its network of branches across India. Our initiatives have been reasonably doing well.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS

We value the trust reposed in by Clients and are committed to uphold it at all costs. We firmly believe that Indian economy is poised to grow further on the back of initiatives and reforms initiated by the new government. We follow the integrity, honesty and transparency. These are underlying principles in all our dealings.

The care we give to our clients has been built over the years by giving them personalized attention.

Research

We are having a technological savvy research wing equipped with experience and professionally qualified team who use the latest technical tools to give right advice at the right time to its clients. It gives equal weightage to both fundamental and technical analysis as per clients' needs.

Skilled Manpower

We give utmost importance to training and skill updating. As a result, our employees are well versed with their respective area of operations related to equity, derivatives and commodity markets, as also with depository services and with mutual funds and IPO distribution. They are well trained to provide high quality services to the client. Similarly, we provide necessary training to our associates, enhance their technical skills and make them aware of the latest developments of the markets.

Risk Management

We have an effective, sophisticated, dedicated and real-time based risk management system. The program works continuously on real time basis and calculates Margins, Mark-to-Market profit/loss, Debit/Credit on every order/trade Client-wise, User-Id wise, Branch wise and Scrip-wise. It allows setting limits of every client or user according to his margin deposits/credit in his account. A dedicated team headed by the Surveillance Manger at HO has been assigned the job of risk management.

Concerns

The slowdown in economic growth experienced by the industry continued to be a cause for concern.

Internet Controls

We have an efficient, effective and workable Internal Control Procedures commensurate with the size of the Group and the nature of our businesses.

We have dedicated teams to handle institutional, corporate and HNI clients. All the departments are headed by well qualified professionals who continuously monitor and manage the activities to ensure efficient and high quality services to our clients.

HUMAN RESOURCES

Your Company believes that its greatest assets are its people. Company believes in best Human Resource practices for effective staffing, retention and staff development facilitating delivery excellence for our customers.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis describing the Company's objectives, expectations or brdictions may be forward looking within the meaning of applicable securities, laws and regulations. The actual result might differ materiality from those exbrssed or implied depending in the economic conditions, government policies and other incidental factors, which are beyond the control of the Company.

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RISK DISCLOSURES ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
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