GSL Securities Ltd Management Discussions

MANAGEMENT DISSCUSSION AND ANALYSIS:

The Companys main object is Non-banking Finance activities consisting mainly of investments. The market for this activity offers high potential for growth in view of the growth expected in the Indian economy over the next few years. There have been a number of causes behind growth of Indian economy in last couple of years. A number of market reforms have been instituted by Indian government and there has been significant amount of Foreign Direct Investment made in India. Much of this amount has been invested into several businesses including knowledge process outsourcing industries. Indias foreign exchange reserves have gone up in last few years. All of these could help propel the country into high growth.

BUSINESS SCENARIO

Though the Market is behaving positive currently, however looking at the overall scenario and in order to protect the shareholders money, management has decided not to take risk and park the money safely in Fixed deposit. Management is keeping close watch at the behavior of the market and exploring new avenues to increase the income of company and its shareholders.

Opportunities and Threats:

Business opportunities for Finance Companies are enormous as the new areas and segments are being explored. The major threat being faced by Finance Companies are regulatory changes in Interest Rate hikes by RBI, high Inflation, and volatility in stock Market.

Risk and Concerns:

Your companys performance to a large extent depends upon scenario of the capital markets, finance scenario, RBI policies, industry performance and the general economic outlook of the country. The volatility in the global equity and commodity market, rate of interest and GDP would affect the profitability of the Company.

Financial Performance:

The total income of Rs. 23.17 Lakhs (Previous year Rs. 23.06 Lakhs) derived by the Company for the financial year 2022-23. The Net Profit for the year before adjustment on account of comprehensive income under review amounted to Rs. (11.28) lakhs (Previous year Rs. (11.51) lakhs).

Segment wise or product-wise performance:

The company is engaged in the business of Investment in Capital Market and there was no production activity carried

out during the financial year.

Outlook:

The focus for the forthcoming financial year for the Company will be continued delivery in progressing mode and

grabbing the opportunities and trying to overcome challenges.

The outlook on the Indian economy looks promising this year and GDP growth expected on the back of high liquidity

flowing into the Indian markets. We expect good growth in the Indian Equities over the next 2-3 years.

Internal Control systems and their Adequacy

Internal Control and Audit is an important procedure and the Audit Committee of your Company reviews all the control measures on a periodic basis and recommends improvements, wherever appropriate. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.

Your Company has put in place an adequate Internal Control System to safeguard all assets and ensure operational excellence. The system also meticulously records all transaction details and ensures regulatory compliance. The reports are reviewed by the Audit Committee of the Board. Wherever deemed necessary, internal control system are strengthened and corrective actions initiated.

Material development in Human Resources/ Industrial Relations front, including number of people

employed:

The Company was able to retain the talents despite of the hefty attrition rates in its peer companies. The Company

continued to maintain cordial relations with its employees.

Disclosure to the Board:

The Senior Management shall make the disclosure to the Board relating to all material financial and commercial transactions, and where they have personal interest, that may have potential conflict with the interest of the Company at large.

Also your Company is paying rent for the premises it is using for the office purpose to another group concern in which

Director is interested. The dealings are at arms length and at prevailing market.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATIONS

THEREFOR

Details of key financial ratios 2022-23

Particulars	2022-23	2021-22	Variation (%) Increase (Decrease)
			over previous Financial Year
Debtors Turnover Ratio	Not applicable since the company is not having any trade receivables
Inventory Turnover Ratio	Not applicable since the company is not having any inventories
Interest Coverage Ratio	Not applicable since the company not paying any interest
Current Ratio	51.88	44.94	There is no substantial change in this ratio.
Debt Equity Ratio	Not applicable since the company not having any borrowings
Operating Profit Margin (%)	-52.19	-53.26	There is no substantial change in this ratio
Net Profit Margin (%)	-48.68	-49.91	There is no substantial change in this ratio.

DETAILS OF CHANGES IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL

YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The Return on Net Worth for the year was -2.08% as compared to -2.03% in the immediate previous financial year.

There is no significant changes in net worth of the company.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis may be "forward looking statements" and have been issued as required by applicable Securities Laws and Regulations. There are several factors which would be beyond the control of Management and as such, may affect the actual results which could be different from that envisaged

	On behalf of the Board of Directors
	Santkumar Bagrodia
	Chairman and Managing Director
Place: Mumbai	DIN: 00246168
Date: 14.08.2023