DJS Stock & Shares Ltd Management Discussions

Overall Outlook

The overall outlook for share broking in 2025 is cautiously optimistic, with many analysts expecting market resilience and potential for gradual upward movement, though volatility and potential corrections are anticipated. Key drivers include strong domestic fundamentals and policy support in India, but global factors like U.S. trade policy, Chinas economy, and geopolitical tensions will introduce significant risks. Investors are advised to focus on quality assets and consider diversifying into different asset classes to navigate potential market choppiness.

Positive Factors:

? Strong Indian Fundamentals:

Indias equity markets are expected to remain resilient, supported by robust domestic fundamentals and policy momentum, particularly in the second half of the year.

? Potential for Rate Cuts:

Moderating food inflation could lead to interest rate cuts in 2025, providing support for Indian equities and urban demand.

? Mid-Cap Strength:

The second half of 2025 could be a good period for mid-cap stocks, which may outperform larger caps.

The stock market is an ever-changing landscape. In 2025, Indian stock market sectors are expected to undergo dynamic shifts. This year, technical innovation, policy reforms, and changing consumer needs may shape these sectors. On the one hand, the Indian economy is constantly growing; on the other hand, certain sectors are in a constant boom, attracting the attention of investors and traders.

Digital infrastructure, green energy, healthcare, and financial services are among the sectors poised to perform exceptionally this year. Investors planning to invest in these fast-growing sectors must stay vigilant to stay ahead and capitalise on these emerging opportunities.

1. Defence and Aerospace

2. Pharmaceuticals and Health

3. Banking and Financial Services

4. Electric Vehicles and Ancillaries

5. Infrastructure and Capital Goods.

The Company is engaged mainly in the financial services and as such there are no other reportable segment as defined by Indian Accounting Standard 108 on "Operating Segments" issued by the Institute of Chartered Accountants of India.

In the three years following the Covid-19 pandemic, the Indian economic enjoyed a prolonged recovery, driven by a combination of government capital expenditure, tax growth and healthy exports.

In 2024, however, low money supply, declining credit growth and elevated household debt resulted in weak consumption, slow collection of general sales tax (GST), and subdued global demand which led to weak exports. Taken together, these factors weighed on corporate earnings.

But there were also signs of the Indian economy bottoming out in the third quarter of 2024. Credit growth, industrial production, steel production, auto sales and GST collections have picked up in recent months. Furthermore, the government expects capex spending to recover in 2025.

All of this points to an improvement in headline growth, estimating that GDP will grow by 6.4% in the financial year 2025. This implies 6.7% growth in the second half of financial year, compared to 6% in the first half.

The Indian stock market has experienced a significant correction, with the Sensex at 2,300 points in five days and investor wealth erosion of 318 lakh crore. Various stocks, such as those of Adani Green Energy and State Bank of India, have dropped to their lowest levels, highlighting significant percentage decreases and market dynamics. The Nifty 50 briefly slipped below 23,000 before recovering.

Reasons for FPI Selling:

? US Fed Interest Rate Impact: Despite a 0.25% rate cut to 4.5%, the Feds hawkish stance reduced expectations for further cuts, leading investors to prefer US assets over Indian markets.

? Strong US Dollar: A rising dollar value diminished Indias investment appeal, exacerbating currency depreciation and FPI outflows.

Geopolitical Tensions and Trade War Concerns:

Conflicts in oil-rich regions have led to fluctuations in crude oil prices, directly impacting India GDP Growth. Additionally, escalating global trade war fears have increased market uncertainties.

We have an adequate system of internal controls in place. We have documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance regarding maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorized use or losses, compliances with regulations. We have continued our efforts to align all our processes and controls with global best practices. Some significant features of the internal control of systems are: The Audit Committee of the Board of Directors, regularly reviews the audit plans, significant audit findings, adequacy of internal controls, compliance with accounting standards as well as reasons for changes in accounting policies and practices.

The Board takes responsibility for the overall process of risk management throughout the organization. Through an Enterprise Risk Management program, our business units and corporate functions address risks through an institutionalized approach aligned to our objectives. This is facilitated by internal audit. The Business risk is managed through cross functional involvement and communication across businesses. The results of the risk assessment are presented to the senior management. During FY25, we assessed the effectiveness of the Internal Control over Financial Reporting and has determined that our Internal Control over Financial Reporting as at March 31, 2025, is effective.

During the year, the Company has earned Total Income of Rs. 96,456.41hundreds in comparison to Rs. 22,604.86 hundreds during the previous financial year. On the other hand, the Total Expenses were Rs. 81,518.58 hundreds as compared to Rs. 25,226.26 hundreds during the previous year. The Company has earned Net Profit of Rs.11,805.07 hundreds during the year as compared to the Net Loss of Rs.2,633.28 hundreds incurred during the previous year.

The Company is trying hard to grab the market opportunities and make it into a profit-making Company.

Your Company as a matter of policy gives greater importance to safety, health and environment and also ensures compliance with applicable legislative requirements.

Our people are our best assets. Their caliber and commitment are our inherent strength. With the singular objective of always being the employer of choice in the Indian industry, we are encouraging our employees to discover and realize their true potential. Acquiring diverse experiences, accomplishing challenging tasks and continually learning and upskilling is enabling them to deliver their best.

By identifying, developing and nurturing quality talent at every stage of the employee lifecycle, we are empowering them to become future ready and build rewarding careers. Keeping employee well-being foremost, we have embraced the post-pandemic way of life and work. By institutionalizing hybrid mode of working, digitizing processes, refreshing our culture, we are collectively fostering new ways of working. Future ready trails of agility, digital mindset and customer centricity are being consciously imbibed, both in thought and action, at every level across the organization. Richer collaborations and stronger teamwork have accelerated our pursuit of excellence.

In accordance with the SEBI (Listing Obligations and disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes in Key sector-specific financial ratios.