A. ECONOMIC OUTLOOK for F.Y.-2022-23:
Macroeconomic Overview
Economy Back to Growth, Business as Usual
India started seeing economic revival in F.Y.- 22-23 is certainly a turnaround year.
This is due to higher inoculation of populations with vaccines. Environment is very
positive. Economy Back to Growth, Business As Usual According to IMFs World Economic
Outlook (Apr22), Full Year GDP Growth in India averaged 6.19 percent from 2006 until
2023, reaching an all-time high of 9.10 percent in 2022 and a record low of -5.80 percent
in 2021. According to IBEF, Strong economic growth in the first quarter of FY 2022-23
helped India overcome the UK to become the fifth-largest economy after it recovered from
repeated waves of COVID-19 pandemic shock, Real GDP in the first quarter of 2022 23 is
currently about 4% higher than its corresponding 2019-20, indicating a strong start for
Indias recovery from the pandemic.
Indias nominal gross domestic product (GDP) at current prices is estimated to be at
Rs. 232.15 trillion (US$ 3.12 trillion) in FY22. India has emerged as the fastest-growing
major economy in the world and is expected to be one of the top three economic powers in
the world over the next 10-15 years, backed by its robust democracy and strong
partnerships. The world economy is projected to grow by 3.6% each in 2022 and 2023 from a
growth of 6.1% in 2021 and normalize in the range of 3.3%-3.4% over the medium term. India
is the third largest economy as per World Bank and is projected to fare better than peers
with an impressive estimated growth of 8.2% in 2022 and 6.9% in 2023. As per various
leading research institutions, Indian economy has the potential to deliver the highest GDP
CAGR globally, driven by various structural policy measures taken by the Indian
government.
Global Economic Overview:
The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful
resolution. At the same time, economic damage from the conflict will contribute to a
significant slowdown in global growth in 2022 and add to inflation. Fuel and food prices
have increased rapidly, hitting vulnerable populations in low-income countries hardest.
Global economic prospects remain extremely uncertain one year into the pandemic. New virus
mutations and the accumulating human toll raise worries, while increasing vaccine coverage
lifts sentiment. The outlook depends on the impact of virus and the effectiveness of
vaccines; it additionally centers on how effectively economic policies are deployed under
such uncertain times. The International Monetary Fund (IMF) projects global economic
growth will fall to 2.9 percent in 2023 but rise to 3.1 percent in 2024. The 2023 forecast
is 0.2 percentage point higher than predicted in the October 2022 World Economic Outlook
but below the historical average of 3.8 percent. Rising interest rates and the war in
Ukraine continue to weigh on economic activity.
Chinas recent reopening has paved the way for a faster-than-expected recovery. Global
inflation is expected to fall to 6.6 percent in 2023 and 4.3 percent in 2024, still above
pre-pandemic levels. This is the weakest growth profile since 2001 except for the global
financial crisis and the acute phase of the COVID-19 pandemic. Global inflation is
forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5
percent in 2023 and to 4.1 percent by 2024. Structural reforms can further support the
fight against inflation by improving productivity and easing supply constraints, while
multilateral cooperation is necessary for fast-tracking the green energy transition and
preventing fragmentation.
B. COMPANY OVERVIEW:
The company is engaged in trading in shares, financial services and investment
activities where the outlook of the business seems to be encouraging over and above, we
have been diversified into different businesses ranging from third party product
distributions (lowest balance sheet risk) to originating unsecured personal loans,
corporate loans (highest balance sheet risk). We believe that we are well placed to
leverage on the growth opportunities in the economy.
C. FINANCIAL PERFORMANCE:
The Company has achieved a turnover of Rs. 49,40,600 during the year with Profit after
tax of Rs. 15,29,413.TheCompanys income from operations primarily includes income from
trading and distributions of financial products such as Interest income from
Inter-Corporate Loan and Long-Term Investments. The Company has incurred a Net Profit of
Rs.15, 29,413/- during the year. The Directors are optimistic about future performance of
the Company.
D. OPPORTUNITIES & THREATS:
Opportunities
Increase in Income levels will aid greater penetration of financial products.
Positive regulatory reforms.
Increase in corporate growth & risk appetite.
Greater efficiency in debt market operations which will also help greater
penetration.
Increased securitization.
Focus on selling new product/services.
Threats
Inflation could trigger increase in consumer price inflation, which would dampen
growth.
Increased competition in both local & overseas markets.
Unfavorable economic development.
Market risk arising from changes in the value of financial instruments as a result of
changes in market variables like interest rate and exchange rates.
E. RISK MANAGEMENTAND CONCERNS
The company operates in the Financial Services Sector, which is affected by variety
factors linked to economic development in India and globally which, in turn, also affected
global fund flows. Any economic event across the globe can have direct or indirect impact
on your company. To mitigate this, Company has diversified its revenue stream across
multiple verticals.
The companys risk management system is a comprehensive and integrated framework
comprising structured reporting and stringent controls. Through its approach it strives to
identify opportunities that enhance organizational values while managing or mitigating
risks that can adversely impact the companys future performance. Within the organization,
every decision taken is after weighing the pros and cons of such a decision-making taking
note of the risk attributable.
The company has established a guideline to inform board members about the risk
assessment and mitigation process. The Company manages, evaluates, and reports on the
major risks and uncertainties that may jeopardize its ability to meet its strategic goals.
The Companys Risk Management Policy focuses on identifying, assessing, and managing risks
related to the Companys assets and property, Employees, Foreign Currency Risks,
Operational Risks, and Non-compliance with statutory enactments, Competition Risks, and
Contractual Risks.
F. HUMAN RESOURCE
Your Company keeps developing its organizational structure consistently over time.
Efforts are made to follow excellent Human Resource practices. Adequate efforts of the
staff and management personnel are directed on imparting continuous training to improve
the management practices.
The human resource policy of your Company creates an environment that encourages
employees to achieve their maximum potential. The Company has developed a recruitment
strategy that ensures the right candidate with the relevant skills is recruited for the
role.
The objective of your Company is to create a workplace where every person can achieve
his or her full potential. The employees are encouraged to put in their best. Lot of hard
work is put in to ensure that new and innovative ideas are given due consideration to
achieve the short- and long-term objectives of your company.
G. MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATION FRONT, INCLUDING
NUMBER OF PEOPLE EMPLOYED:
The employees are satisfied and having good relationship with the Management. Your
Company values each employee, supports them, and strives to provide opportunities based on
their skill sets, resulting in mutually beneficial relationships between the company and
its employees. Your Company has developed a policy that increases employee job
satisfaction while simultaneously increasing production.
H. INTERNAL CONTROL SYSTEMS
Your Company has an internal control system that is suitable to the characteristic and
scale of its operations and that efficiently and efficiently addresses all aspects of the
business and functional departments.
The framework encompasses a compliance management team with established policies,
norms, and procedures, as well as applicable statutes, rules, and regulations, as well as
an inbuilt system of checks and balances, to ensure that appropriate and prompt corrective
actions are taken in the event of any discrepancies from the defined standards and
parameters.
Internal control systems are examined on a regular basis for effectiveness and
deliverability, so that any necessary precautions to reinforce them can be undertaken in
response to changing company requirements. Your Company conducts ongoing reviews of its
systems, procedures, and controls, comparing and aligning them with industry standards.
I. DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL
WITH THE COMPANYS CODE OF CONDUCT:
This is to confirm that the Company has adopted a Code of conduct for its employees
including the director.
I confirm that the Company has in respect of the financial Year ended 31st March, 2023,
received from the Senior Management team of the Company and the members of the Board, a
declaration of Compliance with the code of Conduct as applicable to them.
J. DISCLOSURE OF ACCOUNTING TREATMENT
The financial statements of the Company have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the
Accounting Standards notified under Section 133 of the Companies Act, 2013 ("the 2013
Act") and the relevant provisions of the 2013 Act, as applicable. The financial
statements have been prepared on going concern basis under the historical cost convention
on accrual basis.
The Company has opted to continue with the period of 1st day of April to 31stday of
March, each year as its financial year for the purpose of preparation of financial
statements under the provisions of Section 2(41) of the Companies Act, 2013.
K. CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Companys
objectives, expectations, predictions and assumptions may be "FORWARD LOOKING"
within the meaning of applicable Laws and Regulations. Actual results may differ
materially from those expressed herein, important factors that could influence the
Companys operations include domestic economic conditions affecting demand, supply, price
conditions, and change in Governments regulations, tax regimes, other statutes and other
factors such as industrial relation. Your Company is under no obligation to publicly
amend, update, or alter any forward-looking statements as a result of new information,
developments, or events.
CEO/CFO/MD CERTIFICATION
The Managing Director and Chief Financial Officer have certified, in terms of Part B of
Schedule II of the SEBI (LODR) Regulations, 2015 to the Board that the Financial
Statements present a true and fair view of the Companys affairs and are in compliance
with the existing accounting standards. The said certification of the Financial Statements
and the Cash Flow Statement for the financial year 2022-23 is enclosed below.
We, VIRENDRA JAIN, Managing Director and DHARMENDRA GUPTA, Chief
Financial officer of the ABHIJIT TRADING CO LTD, to the best of my knowledge and
belief hereby certify that:
(a) We have reviewed the financial statements and the cash flow statements for the
year ended 31.03.2023 and that the best of my knowledge and belief:
• These statements do not contain any materially untrue statement or omit any
material fact or contain statements that might be misleading.
• These statements together present a true and fair view of the Companys affairs
and are in compliance with existing Accounting Standards, applicable laws and regulations
(b) There are to the best of my knowledge and belief, no transactions have been
entered into by the company during the years that are fraudulent, illegal or violate the
companys Code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for
financial reporting and that we have evaluated the effectiveness of internal control
systems of the company pertaining to financial reporting and that the same did not reveal
any deficiencies;
(d) There was no significant changes in internal control over financial reporting
during the period.
(e) There was no significant changes in accounting policies during the year; and
(f) There was no instances of significant fraud of which we have become aware
having involvement therein of the management or an employee having a significant role in
Companys internal control system over financial reporting.
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By the order of Board of Directors |
|
|
For ABHIJIT TRADING CO LTD |
| Place: Mumbai |
(Dharmendra Gupta) |
(Virendra Jain) |
| Date: 24/08/2023 |
(Chief Financial Officer) |
(Managing Director) |
|
PAN: BOOPG4998G |
DIN: 00530078 |
+91-9892691696
