harmony capital services ltd share price Management discussions

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31st March, 2023 as stipulated under Regulation 34 (2) (e) read with Schedule VB of SEBI (LODR) Regulations 2015.

The Management Discussion and Analysis have been included in consonance with the Code of Corporate Governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this report consequent to new information or developments, events or otherwise.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.

The operational performance and future outlook of the business has been reviewed by the management based on current resources and future development of the Company.

GLOBAL ECONOMY OVERVIEW

Early in 2021, some regions lifted restrictions and a few economies regained their pre-COVID-19 strength as the global economy began to recover from the COVID-19 pandemic. Vaccination initiatives were swift and effective in the majority of established economies, but took longer in a few developing and emerging countries. The global economy expanded by 6.1% in 2021, on the strength of consumer spending, investments, and international trade. Since the end of February 2022, the prolonged conflict between the Russian government and Ukraine has caused a humanitarian crisis. The conclusion of 2021 was marked by growing inflation, supply chain problems, and the gradual withdrawal of government assistance. Due to geopolitical tensions, ongoing Russia-Ukraine war, pandemic-related restrictions, income gaps, lingering supply chain issues, rising inflation, and increasing debt levels, the rate of global economic recovery is anticipated to decelerate in 2022. Consequently, in 2022 as well as in 2023, world economy growth is expected to reduce to 3.6%. It is projected that India, China, and other Southeast Asian nations would continue to contribute to the growth of global economy. Numerous governments tightened their monetary policies as inflationary pressures mounted. Significantly increased risks to the global economy growth have made policy tradeoffs more difficult. In this difficult environment, national-level policies and multilateral efforts will play an important role.

INDIAN ECONOMY OVERVIEW

In 2021, India continued to contribute significantly to the global economic recovery. In FY 2020-21, despite welled signed fiscal and monetary policy support, the COVID-19 outbreak led Indias GDP to contract by 6.6%. India suppressed the third wave of COVID-19 while pursuing economic recovery with the aid of a quick vaccination Programme deployment and government backing. In FY 2021-22, the National Statistics Office (NSO) anticipates Indias GDP growth reached to 8.7%, ranking India among the economies with the fastest growth. On account of its robust democracy and strategic alliances, India is anticipated to become one of the top three economic powers in the near future. Despite the fact that geopolitical tension has delayed Indias economic progress, the nation has demonstrated incredible

resilience in the face of such obstacles. According to a survey conducted by the RBI, the rate of GDP growth is anticipated to moderate to 7.2% in FY 2022-23 and 6.5% in FY 2023-24.

SUBSIDIARY COMPANY.

As there are no subsidiaries of the Company, Investment made in Subsidiaries is NIL.

SEGMENT-WISE PERFORMANCE

The Company is engaged in investment activities and other financial services during the year under review, hence the requirement of segment-wise reporting is considered irrelevant.

OPPORTUNITIES AND THREATS

There are several large and profitable opportunities for Financial Companies and the sector plays an important role in the Indian financial system. The key is for the Financial Companies sector to grow in a prudential manner while focusing on financial innovation and in having in place, the adequate risk management systems and procedures before entering into risky areas. The regulator constantly endeavors to balance the multiple objectives of financial stability, consumer and depositor protection and regulatory arbitrage concerns.

The Company is amongst the few Financial Companies that offers a full range of Retail and Corporate products and services. A balance in the mix as a preferred partner for all financial needs of the customer. We believe our digital assets across social, mobile and web, providing reach, operating efficiency and improved customer experience will be an opportunity for us to capitalize on in the coming years.

It will be critical to retain talent at the right cost for effectively building a high performance organization with an engaged and young workforce. Adequate funding at the right cost and tenure will be critical to achieve business growth.

INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has put in place adequate internal financial controls with reference to the financial statements, some of which are outlined below.

Your Company has adopted accounting policies which are in line with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 that continue to apply under Section 133 and other applicable provisions, if any, of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant provisions of the Companies Act, 1956, to the extent applicable. These are in accordance with generally accepted accounting principles in India.

Your Company has a robust financial closure self-certification mechanism wherein the line managers certify adherence to various accounting policies, accounting hygiene and accuracy of provisions and other estimates.

Your Company in preparing its financial statements makes judgments and estimates based on sound policies and uses external agencies to verify/ validate them as and when appropriate.

The Management periodically reviews the financial performance of your Company against the approved plans across various parameters and takes necessary action, wherever necessary.

HUMAN RESOURCE

During the year under review there has been no material development on the Human Resource/Industrial Relations front during the year. The Company places significant importance to its human capital. The Companys focus is on recruitment of good talent and retention of the talent pool.

RISK & CONCERNS

Risks are integral aspects of business. Evaluation of risk and its management becomes more important in the global scenario especially when the company is trying to penetrate the global markets. The management of your company consistently analyzes the various risks associated with the business and adopts relevant risk management practices to minimize the adverse impact of these risks both external and internal developments are assessed regularly. Fund raising both in the form of debt syndication, IPO, Rights, FCCB, ECB and other forms is dependent upon government policies, performance of capital markets, and central banks decisions. Also in this era of liquidity crunch and volatile capital markets, there is fair amount of liquidity and financial risk from the clients.

FUTURE OUTLOOK

Your Company is being an investment Company seeks opportunities in the capital market. The volatility in stock indices represents both an opportunity and challenge for the Company. We continue to see significant in the market and will use periods of weakness as investment opportunities for long term. The effect of mark to market thereon have been taken into account for the year. The Company believes that it has taken into account the impact of known events arising out of COVID-19 pandemic in the preparation of financial results resulting out of fair valuation of these investments. However the impact assessment of COVID-19 is a continuing process given its nature and duration. The Company will continue to monitor for any material changes to future economic conditions.

CAUTIONARY STATEMENT

Statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "Forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand-supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the government regulations, tax laws and other statutes & other incidental factors.

		For and on behalf of the Board of Directors
		Harmony Capital Services Limited
		Sd/-
Place: Mumbai	Sd/- Ritika Sharma	Anish Sharma
Date: 18th August, 2023	Non-Executive Director	Managing Director & CFO
	DIN:10187632	DIN:03076604