ANNEXURE-I
ECONOMY OVERVIEW GLOBAL ECONOMY
The global economy has been resilient in 2024, but some signs of weakness are appearing against a backdrop of slower growth, lingering inflation and an uncertain policy environment (OECD Interim Economic Outlook, March 2025). The Outlook projects global growth slowing to 3.1% in 2025 and 3.0% in 2026, with important differences across countries and regions. GDP growth in the United States is projected at 2.2% in 2025 before slowing to 1.6% in 2026. In the euro area, growth is projected to be 1.0% in 2025 and 1.2% in 2026. Chinas growth is projected to slow from 4.8% this year to 4.4% in 2026. Inflation is projected to be higher than previously expected, although still moderating as economic growth softens. Services price inflation is still elevated amidst tight labour markets and goods price inflation has begun picking up in some countries, although from low levels. Annual headline inflation in G20 economies is projected at 3.8% in 2025 and 3.2% in 2026.
INDIAN ECONOMY
India continues to be one of the fastest-growing major economies in the world. As per the Ministry of Finance and projections from the Reserve Bank of India (RBI), the Indian economy is expected to grow at 7.0% in FY 2024-25, maintaining momentum after an estimated growth of 7.6% in FY 202324. This consistent performance underscores Indias resilience amidst global uncertainties, including geopolitical tensions, inflationary pressures, and financial market volatility.
The robust performance is attributed to strong domestic consumption, increased infrastructure spending, higher capital expenditure, recovery in services, and improving private sector investments. Key sectors like manufacturing, digital technology, renewable energy, logistics, and fintech continue to act as growth drivers.
The Government of India Maintained its focus on fiscal consolidation, digital transformation, manufacturing competitiveness, and inclusive development through various reforms and targeted capital expenditure. Improved tax collections, continued foreign direct investment inflows, and resilience in key sectors contributed to stable economic performance despite global headwinds, including tightening monetary policies worldwide, energy price volatility, and geopolitical uncertainties.
The Interim Budget 2024-25 focused on continuity, stability, and inclusive growth, laying a foundation for a "Viksit Bharat" (Developed India) by 2047. Fiscal deficit target revised to 5.1% of GDP for FY 2024-25, with a commitment to bring it down to 4.5% by FY 2025-26. Continued emphasis on fiscal prudence and efficient resource allocation. Capital expenditure outlay increased to ?11.11 lakh crore, approx. 3.4% of GDP, to sustain growth momentum. Focus on connectivity: railways, highways, logistics, and urban infrastructure.
The banking sector remained stable with improved asset quality. Gross NPAs of scheduled commercial banks declined to 3.1% as of March 2025(lowest in over a decade). Credit growth stood
at 15.2% year-on-year, led by retail and MSME lending. NBFCs saw increased regulatory oversight, with RBI focusing on liquidity coverage, capital adequacy, and governance norms under the Scale- Based Regulation (SBR) framework.
OUTLOOK
GLOBAL
The global economy is projected to grow at a modest pace of around 2.9% in 2025, with continued divergence across regions. Although inflation is gradually easing, high interest rates, geopolitical instability, and subdued global trade continue to weigh on sentiment. Monetary policy remains tight in advanced economies, with central banks cautious about premature easing. Volatility in commodity prices, especially oil, due to conflicts in Ukraine and the Middle East, remains a risk. Meanwhile, advancements in digital technologies and the global shift toward clean energy are reshaping investment flows and economic priorities. Capital markets worldwide are expected to remain volatile, responding to inflation trends, rate decisions, and policy shifts. This uncertain environment calls for a cautious and agile approach from investors and financial entities.
INDIA
Indias economy continues to demonstrate remarkable resilience and momentum, with GDP growth estimated at 7.0% for FY 2024-25 and projected to grow at 6.8% to 7.0% in FY 2025-26, as per government and RBI forecasts. This sustained performance makes India the fastest-growing major economy in the world, significantly outpacing global growth projections of 2.9% for the same period. The strong growth trajectory is driven by robust domestic consumption, infrastructure-led capital formation, digitization, and favorable demographics.
The governments ?11 lakh crore capital expenditure push is opening investment avenues in sectors like infrastructure, logistics, renewable energy, and affordable housing. This presents opportunities for companies involved in investments to diversify beyond equities and explore real-sector linked instruments, private placements, REITs/InvITs, and structured debt products. Meanwhile, consumption-driven sectors like FMCG, healthcare, and financial services offer steady long-term growth potential.
Indias digital transformationled by UPI, ONDC, and Account Aggregatorhas improved access to credit and created new financial inclusion pathways. For NBFCs, this means increased efficiency and expanded reach, particularly in semi-urban and underbanked markets. While capital markets continue to attract strong retail and institutional flows, broadening the portfolio toward stable and regulated sectors can reduce volatility and enhance risk-adjusted returns.
Macroeconomic stability remains a key strength: inflation averaged 5.4%, forex reserves stood at USD 644 billion, and the fiscal deficit was contained at 5.6% of GDP. The repo rate remained at 6.50%, supporting balanced credit conditions. However, external riskssuch as global oil prices, regulatory changes, and geopolitical uncertaintieswarrant a cautious and diversified approach.
Capital markets in India have demonstrated resilience, buoyed by strong corporate earnings, robust domestic institutional participation, and rising retail investor confidence. While short-term corrections are likely due to global uncertainties, the long-term outlook remains positive for equities and mutual funds.
In summary, Indias economic outlook is not only strong but structurally promising. this creates opportunities to strategically expand into multi-asset, sector-diverse investments, reduce concentration in listed markets, and align its portfolio with Indias long-term growth drivers
INDUSTRY OVERVIEW AND OUTLOOK FOR OUR COMPANY
The Non-Banking Financial Company (NBFC) sector in India plays a vital role in driving financial inclusion, credit delivery, and capital market participation. As of FY 2024-25, the sector has witnessed robust expansion, managing over ?60 lakh crore in assets and contributing to more than 25% of Indias total credit flow. NBFCs bridge the gap left by traditional banks by serving retail, SME, and underserved segments through innovative and flexible financial models. Regulatory measures introduced by the Reserve Bank of India (RBI)such as the Scale-Based Regulatory (SBR) framework, enhanced capital norms, and risk management guidelinesare strengthening the financial health and transparency of the sector.
The rise of digitization, financial technology integration, and a growing appetite for diversified financial instruments has accelerated the transformation of the NBFC landscape. Furthermore, the increasing retail investor participation in equities, debt markets, REITs, and alternative investments has expanded the operational scope for NBFCs involved in financial intermediation, advisory, and asset management. Indias strong macroeconomic fundamentals, combined with policy-driven growth in infrastructure, manufacturing, and the digital economy, are expected to further drive credit demand and capital formationcreating long-term opportunities for NBFCs.
OPPORTUNITIES & THREATS
Opportunities
Increase in Income levels will aid greater penetration of financial products.
Positive regulatory reforms.
Increase in corporate growth & risk appetite.
Greater efficiency in debt market operations which will also help greater penetration.
Increased securitization.
Focus on selling newproduct/services.
Threats
Inflation could trigger increase in consumer price inflation, which would dampen growth.
Increased competition in both local & overseas markets.
Unfavorable economic development.
Market risk arising from changes in the value of financial instruments as a result of changes
in market variables like interest rate and exchange rates.
FINANCAL AND OPERATIONAL PERFORMANCE
Total income for the Financial Year 2024-25 is Rs.37.46 lacs as against Rs35.10 lacs in previous year. Profit before tax for the financial year 2024-25 decreased to Rs. (120.31) lacs as against Rs18.70 lacs for previous financial year and Profit after Tax is Rs. (120.31) lacs against Rs.15.17 lacs for previous financial Year.
RATIOS
Ratios | Current Reporting Period | Previous reporting period | % of Change | Reason |
Current Ratio | 4059.49% | 120.85% | 3259.09% | Due to increase in Current Assets |
Return on Equity Ratio | -55.75% | 5.10% | -1193.73% | Due to decrease in Profit & company has incurred losses for the year. |
Net capital turnover ratio | 17.36% | 11.80% | 47.11% | Due to Gross Receipts increased & Shareholders Equity decreased. |
Net profit ratio | -321.14% | 43.19% | -843.47% | Due to decrease in Profit & company has incurred losses for the year. |
Return on Capital employed | -55.75% | 6.29% | -986.93% | Due to decrease in Profit & company has incurred losses for the year. |
Return on investment | -55.75% | 5.10% | -1193.73% | Due to decrease in Profit & company has incurred losses for the year. |
HUMAN RESOURCE
The Company keeps developing its organizational structure consistently over time. Efforts are made to follow excellent Human Resource practices. Adequate efforts of the staff and management personnel are directed on imparting continuous training to improve the management practices.
The objective of your Company is to create a workplace where every person can achieve his or her full potential. The employees are encouraged to put in their best. Lot of hard work is put into ensure that new and innovative ideas are given due consideration to achieve the short- and longterm objectives of your company.
INTERNAL CONTROL SYSTEM AND ITS ADEQUACY
The Company believes that strong internal control system and processes play a critical role in the health of the Company. The Companys well-defined organizational structure, documented policy guidelines, defined authority matrix and internal controls ensure efficiency of operations,
compliance with internal policies and applicable laws and regulations as well as protection of resources. Moreover, the Company continuously upgrades these processes and systems in line with the best available practices. The internal control system is supplemented by extensive internal audits, regular reviews by the management and standard policies and guidelines which ensure reliability of financial and all other records. The Company has, in material respect, an adequate internal financial control over financial reporting and such controls are operating effectively.
CAUTIONARY STATEMENT
The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.
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+91 9892691696
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