Blue Chip India Ltd Management Discussions.

Global Economic Overview :

After witnessing significant contraction owing to the COVID-19 pandemic in 2020, the global economy recovered to a certain extent in 2021. However, the momentum was suddenly halted in Q2 by a deadlier variant of the virus, the impact of which was fortunately short lived. The subsequent recovery was supported by vaccination drives being conducted by governments worldwide, despite repeated attacks of virus mutants in several countries of the world.

Towards the end of Q4 FY 2021-22, geopolitical tensions arising from a prolonged Russia-Ukraine conflict further increased downside risks to global growth by disrupting supply chains. Prices of crude, crude derivatives and other commodity prices have since surged significantly, thereby worsening the already high inflation dynamics of both advanced as well as emerging/developing economies.

Inflation has touched multi-decadal highs in the US and many other advanced countries, accelerating policy tightening measures by Central Banks. Economies are now focusing on stabilising the inflation trajectory, without hurting growth prospects

Indian Economy Overview :

The past two years have been difficult for the Indian economy on account of the COVID-19 pandemic. Repeated waves of infection, supply-chain disruptions and, more recently, inflation have created particularly challenging times. Faced with these challenges, the Government proactively implemented a range of safety measures to protect the vulnerable sections of the society. It places a strong thrust on increase in capital expenditure for infrastructure development to boost medium-term demand and expansion of the economy. Indias Gross Domestic Product (GDP) is estimated to have grown by 8.7% in FY 2021-22 and growth is expected at 8.2% in FY 2022-23. This implies that the overall economic activity has recovered past the pre-pandemic levels. Growth in the coming year will be driven by widespread vaccine coverage, gains from supply side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending.

The country is also well poised for a pick-up in private sector investment with the financial system in a good position to provide support to the revival of the economy. Expectations of normal monsoon, abatement of pandemic-related challenges, withdrawal of global liquidity by major central banks, moderate oil prices, and easing of supply chain disruptions will support growth momentum going forward. Despite the disruptions caused by the global pandemic, Indias balance of payments remained in surplus through out the last two years. Among major emerging market economies, Indian markets out performed its peers in April- December 2021. The year 2021-22 so far has been an exceptional year for the primary markets with a boom in fund raising through IPOs by many new-age companies, tech start-ups, and unicorns. Nearly 89,066 crore was raised via 75 IPO issues in April- November 2021, much higher than in any year in the previous decade.

Industry Structure and Development - Overview :

Investment business is the professional business of various securities (shares, bonds, etc.) and other assets (e.g., real estate), to meet specified investment goals for the benefit of investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g., mutual funds).

Opportunities And Threats Opportunities:

Investing in a securities market, also called investing in stocks and bonds, is one of the primary ways to buildwealth through capital appreciation - an increase in the securities value over time.

Investing is challenging, can be exciting and is a learning experience. Selecting stocks to invest in doesnt requirean advanced degree in finance, but it does require careful research and keeping up with current economic trends.

Its a great thrill to participate in a bull market - one in which stocks go up in price - and watch the value of yourinvestments climb week by week. Your Directors believe that there are tremendous long-term growth opportunitiesin emerging markets.


Finally, we need to consider threats to the company. Again, threats can be internal as well as external. In fact, the internal threats usually come first, which opens the door to external threats. Therefore, its important to do a good threat analysis. Any internal problem is a threat to the companys well-being and should be evaluated alongside the external threats.

Some possible threats are :

- Internal obstacles the company is facing.

- Cash flow problems.

- The relative position of the companys largest competitors.

- Technological advances in the industry (if the company isnt keeping pace).

Future Outlook :

Your Company intends to invest in businesses related to infrastructure, telecommunication, soft ware etc.and wide variety of products and services in the coming years since it sees good prospect in these areas.It would definitely try to establish itself and remain as a strong player in the finance industry. With the Capitalmarket expected to be in a better mode than the previous few years and with our efforts we can look forwardto a prosperous year for the company.

Internal Control Systems and their adequacy :

The Company has in place adequate internal control systems and procedures commensurate with the sizeand nature of its business. These procedures are designed to ensure :

-That all assets and resources are used efficiently and are adequately protected;

-That all internal policies and statutory guidelines are compiled within letter & spirit;

-The accuracy and timing of financial reports and management information.

Material Development in Human Resources/industrial relations front number of people employed :

The Company believes that people are the key ingredient to the success of an organization. Looking afterpeople makes good business sense because, if people are motivated, service excellence will follow. Therelations remain cordial throughout the year between employees and the management. The Companyrecognizes the importance and contribution of its Human resources for its growth and development and iscommitted to the development of its people.

Financial and Operational Performance :

Please refer Directors Report for performance review.

Cautionary Statement :

Statement in the Managements Discussion and Analysis describing the Companys projections estimates,expectations or predictions may be forward looking predictions within the meaning of applicable securitieslaws and regulations. These forward-looking statements are based on certain assumptions and expectationsof future events over which the Company exercises no control. The Company cannot guarantee that theseassumptions and expectations are accurate or will be realized. Actual results may differ materially fromsuch estimates, projections, etc. whether expressed or implied.