MANAGEMENTDISCUSSION AND ANALYSIS This Report is in compliance with para IV of Clause 49 of the Listing Agreement with the stock Exchanges titled “ corporate Governance” which is required to be part of this Annual report to the Shareholders. BUSINESS OVERVIEW: The Indian Capital Market has been under a lot of strain, bogged down by the twin problems of decreasing investor interest and increasing regulatory compliance . the fall in Market Capitalisation is merely a refletion of the increasing problems in the Indian Economy, but there is hope that once the Economy recovers, Capital Markets too will follow suit. The Primary Market (Initial Public Offer and further public offer was robust thanks SEBI’s new OPSS plantform. The low rates offered by companies offered investors the opportunity to make long term investments in high quality stocks at low prices. OPPORTUNITIES AND THREATS: The Industry has seen lot of consolidation of business by way of Mergers & Acquisitions and the same trend is continuing. As mentioned earlier, the Company is in the process of identifying new opportunities for growth. The rise in interest rates, persistently higher inflation, runaway currency and slump in the Capital Markets is a potential threat to the Company in terms of generation of Income and the Company expects this trend to continue till there is significant improvement in the underlying economic activity. OUTLOOK: The Company's performance shall be influenced to large extent by the brvailing market conditions, which are too positive at brsent. However, the Company continues to remain optimistic on the long-term growth story, India and opportunities that it will offer. RISKS AND CONCERNS: The Company has no risk or concerns other than faced by Industry as a whole on account of higher interest rates, higher inflation and slump in Global Capital Markets. INTERNAL CONTROL SYSTEMS AND ADEQUACY: The Company has established a well-defined internal control system to monitor the occupancy rate and operating cost, which are very critical factors from your Company's performance point of view. Any kind of adverse factors are immediately reported to Board for their analysis and necessary action. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: In view of the provisioning in the accounts, profitability of the company has been affected. The Company has taken necessary measures to control the operating cost and judiciously utilize its funds by making temporary investments whenever funds are available. HUMAN RESOURCES: Your Company recognizes the value of human resource, which plays a vital role in overall performance of the, company. Your Company continues with the policy of outsourcing for all routine jobs to reduce the fixed costs. CAUTIONARY STATEMENT: As stated in the beginning, this Report to the Shareholders is, in compliance with the Corporate Governance Standard incorporated in the Listing Agreement with the Stock Exchange and as such cannot be construed as holding out for any forecasts, projections, expectations, invitations, offers, etc. within the meaning of applicable securities, laws and regulations. This report basically seeks to furnish information as laid down within the different headings provided under the sub-head Management Discussions and Analysis to meet the Listing Agreement requirements. Identified as having been approved by the Board of Directors of Ikab Securities & Investment Ltd For Ikab Securities & Investment Ltd. Sd/- Anil Kumar Bagri Managing Director Munibai Dated: May 30 2014. |