Aryan Share & Stock Brokers Ltd Management Discussions

A. Global Economic Overview :

The global economy plays a pivotal role in the growth and development of nations, acting as a web of interconnected economic activities across countries. These activities can lead to both positive and negative impacts, influencing national economies through trade, investment, and financial flows.

Key Dynamics

Global economic conditions are shaped by factors such as growth dynamics, commodity price fluctuations, and monetary policy shifts. These elements affect inflation rates, trade balances, and capital movements. Recently, global interconnectedness has been further complicated by geopolitical tensions, supply chain disruptions, and climate-related challenges.

Economic Performance in FY 2024-25

Despite significant challenges, the global economy displayed resilience in FY 2024-25. According to the International Monetary Fund (IMF), global growth for 2025 was estimated at 3.3%, slightly below the 2000-2019 historical average of 3.7%. The Organisation for Economic Co-operation and Development (OECD) reported a median services price inflation rate of 3.6% across member countries. Additionally, the Shanghai Containerized Freight Index (SCFI) fell by around 40% from early January to late March 2025, indicating a potential decrease in global trade demand.

Risks and Policy Challenges

The medium-term global economic outlook is marked by downside risks, while the near-term scenario shows varying risks across regions. The United States may experience growth acceleration, while other countries face policy uncertainties. Disruptions in the disinflation process could hinder monetary policy easing, impacting fiscal sustainability and financial stability. Effective management of these risks necessitates balanced policy approaches to inflation control and economic activity, alongside structural reforms to boost long-term growth.

Outlook

The global economic forecast for 2025 and 2026 suggests modest growth with easing inflation. The IMF projects growth at 3.3% for both years, while the World Bank estimates a slightly lower rate of 2.7%. Headline inflation is expected to decrease to 4.2% in 2025 and further to 3.5% in 2026, aligning faster with targets in advanced economies compared to emerging markets. To address slow growth and fiscal challenges, policy measures should include enhancing workforce participation, addressing demographic shifts, and investing in infrastructure.

B. Indian Economic Overview

Resilience Amid Global Uncertainties

India has solidified its position as the worlds fastest-growing major economy over the past decade, demonstrating remarkable resilience despite global uncertainties in FY 2024-25. Real GDP growth stood at 6.5%, a decline from 9.2% in FY 2023-24. According to the Ministry of Statistics and Programme Implementation (MoSPI), the real GDP was estimated at 187.95 lakh crore, while nominal GDP rose by 9.9% to 331.03 lakh crore. The Gross Value Added (GVA) increased by 6.4% to 171.80 lakh crore.

Sectoral Performance

The sectoral performance showcased mixed but largely positive results. Agriculture recorded a growth of 3.8%, supported by favorable monsoon conditions, while the construction sector expanded by 8.6%, driven by infrastructure projects. Financial, real estate, and professional services reported a robust 7.3% growth, reflecting sustained market activity. The trade, hotels, transport, and communication sectors grew by 6.4%, indicating a rebound in consumer demand. Inflation and Monetary Policy

Retail inflation dropped significantly to 3.16% in April 2025, marking the lowest level since July 2019. This decline was attributed to reduced food and fuel prices, coupled with the Reserve Bank of Indias (RBI) strategic monetary policies. In response to the inflation trends, the RBI reduced the repo rate to 6.00%, adopting an accommodative stance to support both growth and economic stability.

Challenges and Strategic Responses

While Indias growth prospects remain strong, potential risks include global economic slowdowns, geopolitical tensions, and inflationary pressures due to unforeseen supply shocks. However, the RBIs accommodative monetary stance is likely to bolster consumption and investment, while government policies, such as increased capital expenditure and tax incentives, are expected to sustain growth momentum. Additionally, stabilized global commodity prices and a resilient services sector are anticipated to support continued economic activity.

Future Growth Prospects

Looking ahead, India is expected to maintain its position as the worlds fastest-growing major economy, with the IMF forecasting growth rates of 6.2% in 2025 and 6.3% in 2026, outpacing many of its global counterparts, while the Confederation of Indian Industry (CII) estimates a more optimistic 6.5%, supported by strong economic fundamentals and strategic policy measures. Further, the IMF projects global economic growth to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026, highlighting Indias exceptional out performance.

Conclusion: Navigating Global Headwinds

Indias economic outlook for 2025 and 2026 is among the brightest globally, as highlighted by the IMF. Despite uncertainties and revised downward growth forecasts for other large economies, India is positioned to retain its leadership in global economic growth. With ongoing reforms in infrastructure, innovation, and financial inclusion, the country is poised to navigate challenges effectively. The IMFs projections underscore Indias resilience, reinforcing its growing significance in the global economic landscape. As global challenges persist, India not only withstands economic turbulence but also actively contributes to shaping a dynamic and resilient global growth narrative.

C. Outlook

India withstood global headwinds in 2023 and is likely to remain the worlds fastest-growing major economy on the back of growing demand, moderate inflation, stable interest rates and robust foreign exchange reserves. The Indian economy is anticipated to surpass US$ 4 Trillion in 2024-25.

Union Budget FY 2025-26

The FY 2025-26 budget, aimed at "Sabka Vikas," balances fiscal prudence with inclusive growth: fisc deficit trimmed to 4.4 % while capex remains robust.

Key themes include middle-class tax reform, infrastructure ramp-up, agrarian support, and enabling MSMEs/startups amid broad economic reforms.

Capital Market Overview Navigating Volatility to Drive Growth

Indias capital markets are a cornerstone of its economic progress, effectively channeling domestic savings into vital investments that bolster the financial system and fuel long-term sustainable growth. This crucial role fosters enhanced productivity, real wage growth, employment opportunities, and overall macroeconomic stability.

Market Dynamics in FY 2024-25

Fiscal Year 2024-25 proved to be a dynamic period for Indian equities. While the market ultimately delivered positive returns, the journey was marked by significant volatility. Following record highs in September 2024, Indian equities experienced a sharp correction between October and February, influenced by elevated valuations, increased global risk aversion, and sustained foreign capital outflows.

Despite this turbulence, the fiscal year concluded on an optimistic note. The BSE Sensex registered a gain of 3,763.57 points (5.1%), and the NSE Nifty rose by

I, 192.45 points (5.3%), marking the second consecutive year of positive performance. A key factor in this resilience was the increasing participation of Domestic Institutional Investors (DIIs), which effectively counterbalanced the impact of Foreign Institutional Investor (FII) outflows.

Sectoral Performance

Sectoral performance during FY25 was varied. Financial services emerged as the top performer with a 19% gain, while the IT and banking sectors recorded mid-single-digit growth. In contrast, the consumer goods and auto sectors remained relatively stagnant, and sectors such as real estate, PSU banks, energy, and media experienced double-digit declines.

Investment Landscape

As highlighted in the Economic Survey 2024-25, the secondary markets demonstrated positive performance amidst the significant volatility experienced since the beginning of FY25. Furthermore, the survey emphasizes that Indian markets have been among the top performers globally over the longer term. This growth has been supported by a notable surge in individual and household participation in capital markets post-pandemic, both through direct trading and indirect investment via mutual funds. The survey attributes this increased engagement to healthy corporate earnings, stable macroeconomic fundamentals, growing trust in the mutual fund ecosystem, and the accessibility of online digital investment platforms.

The number of demat accounts has seen a substantial year-on-year increase of 33%, reaching 18.5 crore by the end of December 2024. Individual investors accounted for a significant 35.6% of the turnover in the equity cash segment between April and December 2024. By the end of December 2024, there were

II. 5 crore unique demat account holders and 5.6 crore unique mutual fund investors.

Looking ahead to FY 2025-26, a sense of cautious optimism prevails. The stability of the government, potential benefits from lower interest rates, and an anticipated recovery in corporate earnings contribute to a positive outlook. However, the survey cautions that ongoing global trade tensions could introduce market volatility. Investors are advised to prioritize long-term investment strategies while remaining prepared for potential market fluctuations.

Operating results & financial performance:

The Aryan Shares & Stock Brokers Limited is a listed Company. The Company is engaged in single line of business i.e. stock broking The Companys total income for the year under review is Rs. 121.27 Lacs and Profit after tax amounts to Rs. (31.42) Lacs on standalone basis

^ Opportunities and Threats:

Opportunities

1. Indias Growth Rate.

2. Focus on affluent customers.

3. Financial Inclusion.

4. Utilize technology to provide more efficient solutions.

5. Increased retail participation in capital markets.

Threats

1. Fiscal deficit and current account deficit.

2. Attracting and retaining talent and training them, for the right culture.

3. Inflation and economic slowdown.

4. Protectionist policies by developed economies.

^ Future prospects and outlook:

The Companys present business operations are stock broking which forms part of financial services and there is no other segment apart from the main one. The management is optimistic about the future outlook of the Company. The industry witnessed testing times with global economic slowdown and weakening profitability and tightening of financial conditions, still the Company has demonstrated its ability to withstand the challenges posed by the current environment.

> Risk and concern:

The Company like any other Company is exposed to specific risks that are particular to its business and the environment within which it operates. The company is exposed to the market risk, which inter alia includes economic/business cycle, interest rate volatility and credit risk. While the Indian economy has shown sustained growth over the years, the Company is confident of managing these risks by maintaining a conservative financial profile, and by following prudent business and risk management practices.

^ Internal control system and their adequacy:

The Company has proper and adequate system of internal controls to ensure that all its assets are safeguarded and protected against loss from unauthorized use or disposition of assets and that the transactions are properly recorded. The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines. Besides, the Audit Committee reviews the internal controls at periodic intervals.

^ Human Resource Development and Industrial Relations:

The company has adequate human resources, which is in commensurate with the current volume of activity. Companys management had always contributed to the promotion of the employees by enhancing their skills and efficiency by arranging regular training to the new and existing employees.

^ Cautionary statement:

Statements in this Managements Discussion and Analysis report describing the companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in the Government regulations, tax regimes, economic developments and other factors such as litigation etc.

COMPLIANCE CERTIFICATE

{Under Regulation 34(3) and Schedule V (E) of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015}

To, The Members

ARYAN SHARE AND STOCK BROKERS LTD

(L65993TN1995PLC031800)

We have examined the compliance conditions of corporate governance by Aryan Share & Stock Brokers Ltd, for the year ended March 31,2025, as stipulated in Regulation 34 (3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015.

The compliance conditions of corporate governance are the responsibility of the management. Our examination was limited to a review of procedures and implementation thereof, by the company for ensuring the compliance of the conditions of corporate governance. It is neither an audit nor an expression of opinion on the financial statements of the company.

In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and Management, we certify that the company has complied with conditions of corporate governance as stipulated in the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015.

We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

	For Ramesh and Ramachandran. Chartered Accountants
	FRN:002981S
Place: Chennai
Date: 28.05.2025	G Suresh
	(M.No: 208078)