Master Trust Ltd

Dear Shareholders,

I am very happy to present to you, your company's annual report and to share its performance for the FY 2019-20. I hope all of you and your families are keeping safe and well.

India's GDP growth in FY20 continued on a downward trajectory which had begun in Q1FY19. The GDP growth for FY20 plummeted to 4.2%, as against the 6.1% in FY19. During FY20, before the breakout of COVID-19, the macro-economic environment had been challenging with lower GDP growth rates, liquidity crunch, and peaking unemployment rate. This was reflected in sluggish demand and weakening consumer sentiment. The outbreak has presented fresh challenges for the Indian economy. However, the Government has initiated various measures to boost the economy including direct benefit transfer, increased allocations to key sectors like infrastructure, agriculture, MSMEs etc. The reduction in corporate tax rate is a big boost to the industry; it makes India much more competitive globally and should accelerate investments in the economy. Reserve Bank of India has cut repo rates to support the aggregate demand and private investment as well as ease liquidity given the COVID-19 situation. Government's measures to boost the Indian economy and the growing appeal by our Indian PM regarding the self-reliant India or Aatamnirbhar Bharat signal the Government's strong commitment to arrest and reverse the slowdown.

Most global equity markets that were hitting fresh highs in January 2020 touched their 52-week lows in March. Indian equity market indices rose to record highs in January 2020 backed by supportive monetary policies, diminished trade tensions and nascent signs of stabilization of global economy. However, the rally hit a major roadblock on the news of coronavirus outbreak across the globe. The BSE Sensex plunged nearly 23.8 per cent during in the financial year 2020, while the Nifty50 on the National Stock Exchange crashed by 26.03 per cent during the same period. It was a dismal year for midcap and small cap stocks, BSE Midcap and Small cap indices saw a fall of 31.72% and 36.06% respectively in FY20. The Average daily turnover (ADTO) increased to Rs. 14.35 Trillion from Rs. 9.93 Trillion during the same period, registering a growth of 43.9%.

Now coming to your Company's performance for FY2019-20, your Company's top line (consolidated) increased by 1.04 % to Rs 1358.62 million as compared to Rs 1344.58 million in the previous year. The net worth (consolidated) of the Company has increased by 3.66% to Rs 2142.29 Million as compared to Rs 2066.72 million in the previous year. Net Profit after Tax (consolidated) before adjustment for Minority Interest decreased to Rs 123.10 million as compared to Rs 167.41 million in the previous year.

mastertrust celebrated yet another milestone this year as it completed 35 glorious years in the industry. The organization has witnessed a steep growth in business during its successful tenure, wherein it has grown its top line 10 per cent YoY as compared to last five years. During the lockdown period, the firm has clocked in an average daily turnover of Rs 27500 Crores and has seen an increase of 5 per cent in average daily traders on trading platforms. Since the commencement, mastertrust as a conglomerate and a family has consistently grown and accomplished various milestones along the way. The leadership has fortified the business with numerous initiatives and innovations, and have been immensely committed to create an impeccable customer experience with its customer centric approach.

This year, mastertrust has focused on enhancing it's product basket by introducing a completely paperless, eKYC, Trading and Demat account opening facility for all the stakeholders. With the launch of eKYC, the company aims to fasten the KYC process and make it a hassle-free experience. We also came out with our refreshed mastermobile trading app with advanced native technology and AI. We have also re-launched our fully modernized and state of the art website www.mastertrust.co.in. The company has also been initiating a lot of brand building exercises and making sure that customers feel completely in sync with our new product offerings.

As we continue to progress with time, we ensure that every element of mastertrust abides by company's core values. On behalf of the board, I would like to take this opportunity to thank all the directors, customers, bankers, authorized persons and our shareholders for their continued support and confidence that they have always shared for the company. I would also like to thank my entire team of staff members without their hard work and efforts we would not have seen this company reach the levels that it has achieved in the past 35 years and especially in these testing Covid- 19 times, when the company has had to move to work from home set ups and there has been a huge learning curve for all teams and people involved. I want to specifically show my gratitude to my teams who have been able to rise to this challenge and are making our company more technologically savvy and in with the most modern-day platforms and I hope to garner all your support for the next level of growth that we want the company to achieve. We as an organization hope to bring out more advanced product offerings which will further enhance mastertrust's strength of being one stop to help our customers with all their financial needs.