Madhusudan Securities Ltd Management Discussions

INDIAN FINANCIAL STRUCTURE AND DEVELOPMENTS

The national economy has demonstrated resilience, marked by a conducive environment for both investment and business expansion. The recent re-election of the incumbent government is expected to ensure policy continuity, fostering business stability and creating new avenues for job creation across both private and public sectors. This political stability, coupled with favourable economic indicators, presents a promising landscape for entrepreneurs and business establishments. The overall business environment in India has shown encouraging improvement, which is a positive indicator for sustainable growth.

The newly elected government is anticipated to introduce further reformatory policies aimed at fostering growth across various sectors. The domestic retail sector has shown accelerated growth, presenting a significant opportunity for the companys business expansion. However, the Indian stock market remains highly volatile, which presents a risk to the companys investment portfolio and valuation. The prevailing inflationary pressures and rising interest rates are expected to increase the cost of capital, potentially affecting demand for finance. The company is mitigating these risks through a robust due diligence process for all investment decisions, considering both the domestic and global economic and political landscape.

The company maintains a comprehensive and adequate system of internal controls and risk management, commensurate with the size and nature of its operations. These systems are designed to ensure the proper recording, processing, and safeguarding of financial and operational transactions. The controls are regularly assessed to ensure the accuracy and reliability of financial reporting and to ensure compliance with applicable laws and regulations. The companys internal audit function periodically reviews the efficacy of these controls and reports its findings to the Audit Committee of the Board of Directors, ensuring continuous improvement.

The company has been adequately complying with the necessary applicable statutory requirements of The Income Tax Act, 1961, Reserve Bank of India, Companies Act, 2013, SEBI guidelines, provisions of the Listing Agreements with the Bombay Stock Exchange, and other government authorities.

This Management Discussion and Analysis contains forward-looking statements that represent the companys beliefs and expectations about future events. These statements are based on the companys current knowledge and assumptions, which may not be accurate. Actual results could differ materially from those expressed or implied due to various factors, including changes in government policy, economic conditions, tax laws, interest rates, competition, and other risks. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this report.