fruition venture ltd share price Management discussions


Management Discussion and Analysis Report (MDAR)

The Company is in the business of Trading in shares and Finance Activity. The key issues of the Management Discussion and Analysis are given below.

> Economic and industry overview

During the COVID-19 pandemic resulted in a global economic recession. Although direct effects due to the recession largely subsided by 2022, the recession resulted in an inflation surge and a global supply chain crisis.

The global financial instability in 2022 is a holdover from the COVID-19 pandemic, as investors attempted to determine the long-term effects of the pandemic on the global economy.

Global markets were also impacted by fears of economic recession. On June 13, 2022, the MSCI ACWI index, which tracks stock prices from both emerging and developed markets, officially slipped into a bear market, falling 21% from a mid-November peak.

> Analysis Stock Market behaved in India over 2022-23-

The Indian Rupee declined by 8.4% against the US dollar over the last fiscal, followed by Chinese yuan (8.3%), Korean won (7.9%) and Taiwan dollar (7.1%)

The Survey says, in real terms, the economy is expected to grow at 7 per cent for the year ending March 2023. This follows an S.7 per cent growth in the previous financial year.

Despite the three shocks of COVID-19, Russian-Ukraine conflict and the Centra! Banks across economies led by Federal Reserve responding with synchronized policy rate hikes to curb inflation, leading to appreciation of US Dollar and the widening of the Current Account.

Deficits (CAD) in net importing economies, agencies worldwide continue to project India as the fastest-growing major economy at 6.5-7.0 per cent in FY23.

> A volatile year for equity markets

In nominal terms, 2022-23 was a decent year for BSE Sensex as the index closed 422.9 points higher on March 31, 2023 from a year ago. In percentage terms, the Sensex moved higher by only 0.7% in 2022-23, the worst performance in the past three years. To be sure, the stock market saw a lot of volatility through the year. It had a poor performance in the first half of the fiscal 2022-23, gained momentum in the second half and suffered heavily after the release of Hindenburg report on Adani Group of Companies on February 1. BSE Sensex lost 745.9 points in the month of February. However, the market recovered in March to close higher than last years value. India is in the middle of the pack among ten major stock markets in the world.

>• Opportunities and Threats

The Company being a player in the financial market, the performance of the Company largely depends on the National and Global Capital Markets. The High volatility in the market along with higher inflation has intensified the competition. Your Company continues to achieve cost effectiveness through the application of technology. We have been fashioning our own responses to these challenges and we believe that we can turn them into opportunities, which can unlock growth for us in the future.

Opportunities

1. Growing Financial Services industrys share of wallet for disposable income.

2. Regulatory reforms would aid greater participation by all the class of investors.

3. Leverage technology to enable best practices and process.

Threats

1. Execution Risk

2. Slowdown in global liquidity flows

3. Intense competition from local and global players,

4. Unfavourable economic conditions

> OUTLOOK

The continual growth in the Finance sector is expected to give the necessary support to the Finance industry. The Company is making all efforts to accelerate growth of its business, It expects to improve its position in the market by focusing on technologically advanced and more profitable products/market segments and working aggressively in the areas of productivity, efficiency and cost reductions.

> INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has a proper adequate internal control system and code of conduct to ensure that all the assets are safe guarded and protected against the loss from unauthorized use or disposition and that transactions are authorized, recorded and reported correctly.

The internal control is supplemented by an extensive internal audit, periodical review by the management and documented policies, guidelines and procedures. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.

> SEGMENT-WISE PERFORMANCE

It has been explained in the notes to account of the financial statement.

> DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

It has been explained in the directors report.

> DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Information as per Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particular of Employees) Rules, 1975 is not required to be given as no employee falls under it. The Company continued to have cordial relations with all the employees.

For and on Behalf of the Board of Directors For Fruition Venture Limited

Sd /-
Nitin Aggarwal
Managing Director
DIN-01616151
Date: 25-08-2023
Place: Delhi
Registered Office Address:
1301, Padma Tower-1,
Rajendar Place,
New Delhi-11008
CIN:LL74899DL1994PLC058824

www.fruitionventure.com