dalal street investments ltd Management discussions

Company Overview & Economy Analysis

The global economy and capital markets experienced a volatile FY 22-23. The global growth on the upside came as a surprise at the start of the year, supported by a rebound in services consumption and a lower-than-anticipated moderation in goods demand. However, broad- based inflationary pressures and sharp rise in energy prices following the outbreak of the Ukraine-Russia conflict impacted economic activity. To rein in inflation, the central banks of major economies aggressively raised policy rates and commenced quantitative tightening. Most governments also scaled back fiscal stimulus as economic activities normalised. Resilient demand, tight labour markets across major Advanced Economies (AEs), the Ukraine-Russia situation and the dynamic Zero COVID policy of China kept commodity prices and inflationary pressures elevated in the first half. However, as the year progressed, commodity prices corrected in view of a softening growth outlook, synchronised tight monetary policy response and scaling back of fiscal stimulus, thereby easing the inflation momentum. However, resilient demand conditions kept the inflation relatively elevated. Similarly, both equity and debt markets delivered negative returns in most major economies on account of the uncertainty about the inflation trajectory, falling global liquidity, slowing growth and the growing prospects of central banks keeping interest rates higher for longer.

Indias Gross Domestic Product (GDP) growth normalised in 9MFY23. The financial year gone by turned out to be quite different from expectations. In India, growth is likely to be moderate, weighed down by slowing global trade, lower fiscal impulse and demand normalization.

Your Company continues to mainly undertake business activities of providing advisory services and undertaking investment within the parameters of the regulations/statutes.

The Total Revenue for the financial year under review was Rs. 106.50 lakhs as against Rs. 36.00 lakhs for the previous financial year-mainly because of pandemic impact. The profit after tax was Rs. 7.10 lakhs for the financial year under review as against Rs. 2.40 lakhs reported for the previous financial year.

There were no material changes and commitments affecting the financial position of the Company, between the end of the financial year and the date of this Report.

Industry

The overall loan book of NBFCs is projected to grow by more than 13% by March 2024. The RBI has been appreciative of the efforts of NBFCs including their efforts towards covering individuals beyond the financial fold. NBFCs are expected to focus upon new business such as unsecured loans and the SME segment which promises a higher growth prospect as compared to the traditional products.

NBFCs are being instrumental to leverage technology for quicker paperless disbursals and wider coverage in terms of people. NBFCs are expected to focus on improving the asset quality and further improve their profitability.

We are aware that today every Indian is increasingly conscious of their choices and are much better informed than before. It is thus imperative that we ensure that as a Company, we remain sharp, agile, smart and responsive to the needs of the consumers.

Risk Management & Internal Control System

We have an adequate system of internal controls in place commensurate with the nature of our business and size of our operations.

Our business depends on consumer confidence in the overall economy, economic growth rates, and consumer attitudes. Further, volatility in financial market would result in poorer returns from long term investments.

We have adopted risk management practices commensurate with our business activities. Outlook

Your Company is taking continuous efforts to generate the growth drivers, considering the strategic priorities and keeping a track on information technology developments and compliances thereon.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis, describing our Companys objectives, outlook, opportunities, and expectations may constitute "Forward Looking Statements" within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied expectations or projections, among others. Several factors make a significant difference to our Companys operations including the government regulations, taxation and economic scenario affecting demand and supply, natural calamity and other such factors over which our Company does not have any direct control.