swagtam trading services ltd Management discussions

Your Directors presents, Companys Management Discussion and Analysis Report.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.

FORWARD LOOKING STATEMENT

Statement in this report, particularly those which relate to Management Discussion and Analysis, describing the companys future plans, objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results may vary materially from those either expressed or implied.

REAL ESTATE, CONSULTANCY & SERVICE SECTOR, ETC. INDUSTRY STRUCTURE & DEVELOPMENTS

The Indian real estate sector has come along way and is today one of the fastest growing markets in the world. It comprises of many sub-sectors housing, retail, hospitality, farms, residential, and commercial. While housing contributes 5-6% of Indias gross domestic product (GDP),the remaining sub-sectors are also increasing at a fast pace. The total realty market in the country is expected to touch US$ 180 billion by 2025.

Real estate in India is being recognized as an infrastructure service that is driving the economic growth engine of the country. Growing infrastructure requirement in diverse sectors such as tourism, education, healthcare, etc., are offering several investment opportunities for both domestic as well as foreign investors. The role of the Government of India has been instrumental in the development of the sector including FDI in Real Estate. With the government trying to introduce developer and buyer friendly policies and law enforcement against delay in delivery & breach of commitments, the outlook for real estate sector does look promising.

OPPORTUNITIES

Real estate contributes about 5% to Indias GDP. The market size of this sector is expected to increase at a compound annual growth rate(CAGR)of11.2%duringFY2020-30.

The Indian construction and real estate sector continues to be a favoured destination for global investors. Several large global investors, including a number of sovereign funds, have taken the first move by partnering with successful local investors and developers for investing in the Indian real estate market.

Residential asset class looks to have great potential for growth with housing requirements growing across cities.

Demand for space from sectors such as education and healthcare has opened up ample opportunities in the real estate sector. The country still needs to add 3 million hospital beds to meet the global average of 3 for every 1,000 people.

Government of India focus on affordable homes for all, the creation of 100 Smart Cities and infrastructure development across India, the real estate service sector industry has much to look forward.

THREATS

Covid & other pandemics, shortage of migrant labour, capital crunch in market High inflation rate may increase the cost and companys profit margins may suffer. High interest rate may also prove to be adverse.

Real estate industry is capital intensive sector which require high capital and in present scenario, it is challenge in front of management to arrange for the funds requirement.

Tough competition from the other existing players in the industry also poses a threat.

OUTLOOK

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has a proper and adequate system of internal controls & audit commensurate with its size to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and the transactions are authorized, recorded and reported correctly. Proper controls and checks are exercised by the company by following the procedures prescribed in the various manuals. Audit Committee of the Board will review Internal Control Systems of the company on periodical basis.

DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS

Your company recognizes the value of human resource, therefore, the human resource policies are being framed in such fashion that they not only aim to achieve the organizational goal but also recognize, appreciate and develop the individual interest of the employees. The Human Resource Development Policies of the company are being framed so that it is in the best interest of the organization as well as employees of the company.

BULLION, COMMODITIES, BUSINESS CONSULTANCY, AGENTS, SERVICE PROVIDERS, ETC.

INDUSTRY STRUCTURE AND DEVELOPMENT

India has substantial reserves of gold, diamond and other gemstones. The gems and jeweler sector has been playing a very important role in the Indian economy and contributes about 6-7% to the countrys Gross domestic product(GDP), apart from large scale employment generations and foreign exchange earnings(FEE). The government of India has declared the sector as a focus area for export promotion based on its potential for growth and value addition. Sensing its immense potential, the Government of India has declared the sector as a thrust area for export promotion.

Indian gems and jeweler sector contributed US$ 34,746.90 million to Indias FEE. The primary segments of the sector in India are gold jeweler and diamonds & gems. India is the worlds largest consumer of gold, accounting for over 20% of the global gold consumption. The country is also the worlds largest cutting and polishing centre for diamonds, with the cutting and polishing industry being well supported by government policies. India exports 95% of the worlds diamonds, as per statistics from the Gems and Jewellery Export Promotion Council (GJEPC). The industry is projected to generate upto US$ 35 billion of revenue from exports.

OPPORTUNITIES:

The country is slowly starting to move towards branded jewellery and consumers are progressively accommodating modern retail formats.

Gold jewellery exports from India increase on year to year basis. India has the high skilled low cost Labour.

The Indian cut diamonds and designed jewellery which are in demand in the international market.

THREATS:

Gold import is subject to high custom duty which fluctuates & can affect the business severely. Gold prices are also not stable that poses threat to the profit margin consequently.

Tough competition from the other players may compel Company to offer competitive price and ultimately affect our profit margin.

Money Market tightness and financial crunch.

Alternative to Diamonds such as American Zerconia and CVD Consumer avoiding Gold Jewellery as an investment option.

Consumer preference towards branded & imported Designer Jewellery & Watches. Working Women does not prefer wearing any type of jewellery.

OUTLOOK

Overall business situation appears to be positive. Company has to concentrate on Project Development; in order to gain some ground in mass market segment. Assuming the inuation is brought under control and input prices remain at reasonable level, the domestic market is expected to continue to deliver a modest top line growth. With the continued effort on Retail up gradation and contemporary experience, the footfall and Brand image at the Retail level would be improved.

RISK & CONCERN & BUSINESS ACTIVITIES

Aggressive competitions by new players, who wish to enter the category, pose a risk to the Company losing its market share. The Company will focus on contemporary designs, better value proposition in the product basket through continuous innovation and on cost management to mitigate the risks.

Business activities relating to real estates, commission, agents, brokers, management & business consulting, trading/ purchase & sale of jewellery & commodities & bullion, etc. are comparatively risk free, attractive, etc.

By Order of Board of Directors Swagtam Trading & Services Limited

	LALITA MITTAL
Date: 10.08.2023	WTD &CFO
Place: New Delhi	(DIN:06928783)