milgrey finance investments ltd share price Management discussions

Overview:

The statements made in this Management Discussion and Analysis Report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from such expectation whether express or implied. Several factors that could make significant impact on the companys operations include global and supply conditions, input availability and prices, changes in Government regulations, foreign policy, foreign currency, tax laws, and economic developments within the country.

Global Economy and India:

Global economy growth is estimated to have slowed to 3.4% in 2022 amidst monetary tightening by central banks globally to tame inflation caused by Russian invasion of Ukraine which disrupted supply chain and led to steep surge in commodity and fuel cost triggering energy crisis in Europe and hampered economic activity. Aggressive monetary tightening by US Federal Reserve weighed on investment and economic activity and led to decline in business confidence. Global trade remains largely subdued due to global supply chain disruptions and bottlenecks in international freight movement along with weakening external demand.

According to IMF, global growth is projected to decelerate to 2.9% in 2023 on the back of high and persistent inflation, diminishing policy support, and elevated financial and geopolitical uncertainties. The outlook for United States has deteriorated considerably amid high inflation, tight labour market conditions and aggressive monetary tightening by the Federal Reserve. Slowing global demand, rising interest rates, higher food and energy prices along with sharp appreciation of US dollar is likely to slow recovery process of developing economies. The pace of growth of Indian economy declined to 6.8% in FY23 amidst slowing global economy led by rising interest rates to bring down high inflation. Geopolitical conflict between Russia and Ukraine disrupted supply chain and resulted in high food and energy prices. According to IMF, the growth in the Indian economy is expected to slightly decline to 6.1% in FY24 led by fall in consumer demand and decline in business and consumer confidence on the back of rising interest rates. . However, the government must address challenges such as inflationary pressures and promote private investment and growth. Overall, Indias economic outlook remains positive, and the governments proactive measures are expected to support growth in the coming years.

Financial Review:

(Amount in Lakhs)

Particulars	FY 2022-23	FY 2021-22
Revenue from Operations and Other Income	0.006	9.062
Expenses	1.373	8.189
Profit (Loss) before Exceptional and Extra Ordinary Items and Tax	(1.367)	0.873
Less: Exceptional Items	0.00	0.00
Less: Extra Ordinary Items	0.00	0.00
Profit before Tax	(1.367)	0.873
Less: Current Tax	0.00	0.00
Less: Deferred Tax Liability	0.00	0.00
Profit after Taxation	(1.367)	0.873

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013. In the current financial year, the Company has reported a loss of Rs. 1.367 Lakhs as compared to a Profit of Rs. 0.873 Lakhs in the previous year.

Significant Changes in the Key Financial Ratios:

As there were no significant operations of the Company. There has been no significant change in the operational ratios of the company. It remains the same as compared to the last year. The details of all financial ratios are specifically depicted in the Financial Statements 2022-23.

Opportunities

• Positive long-term economic prospects will pave the way for financial services.

• Growing Financial Services industrys share of wallet for disposable income

Regulatory reforms would encourage increased participation from all categories of investors.

• Leveraging technology to enable best practices and processes.

• Corporates looking at consolidation / acquisitions / restructuring opens out opportunities for the corporate advisory business.

Threats

• Execution risk

• Short term economic slowdown impacting investor sentiments and business activities

• Slowdown in global liquidity flows

• Increased intensity of competition from local and global players

• Market trends making other assets relatively attractive as investment avenues

Risk Management:

The Company has adopted the same Risk Management Policy as per the provisions of the Companies Act, 201 3 (hereinafter referred to as the Act), which has been further reviewed by the Board as per SEBI Listing Regulations, 2015. It establishes various levels of accountability and overview within the Company, while vesting identified managers with responsibility for each significant risk. The Board takes responsibility for the overall process of risk management in the organization.

The Companys activities expose it to market risk, liquidity risk and credit risk. The Companys board of directors has overall responsibility for the establishment and oversight of the Company risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements. The Companys risk management is carried out by a central treasury department (of the Company) under policies approved by the board of directors. The board of directors provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity.

Human Resources:

Employees are the backbone of the Company and crucial for the organisations continued success. The Company strives to foster a conducive environment to attract and retain the best talent and ensure employee welfare with its robust HR policies and practices. To boost employee capabilities, the Company conducts numerous skill development and learning programmes. The Company draws on a wide range of information, qualifications, skills, professional experience, culture, geography, and industry understanding. The Company gives utmost importance to health and safety management and conducts mock trainings and drills on a regular basis to ensure preparedness. Your company enjoys the support of a committed and well satisfied human capital. Human resources are invaluable assets of the company and the Companys endeavor has always been to retain the best professional and technical talent.

Internal Control Systems:

The Company has established proper and effective internal control system to provide reasonable assurance for safeguarding the Companys assets, promoting operational efficiency and reliability and ensuing compliance with various legal and regulatory provisions. The internal control systems are designed to ensure that the financial and other records re reliable for preparing financial statements and for maintaining accountability of assets and other records in a systematized manner. The company has created an effective internal control system, by establishing the following:

• Policies and procedures including, organizational structure, job descriptions, authorization matrix;

• Segregation of duties and responsibilities;

• Authorization and approval process;

• Performance monitoring and control procedures;

• Safeguarding assets, completeness and accuracy;

• Manpower management;

• Independent internal audit function;

• Regulatory compliance and risk management;

The compliance to these controls and systems is periodically reviewed by the Internal Audit function and exceptions are reported. All material audit observations and follow up actions thereon are reported to the Audit Committee. The Committee holds regular discussions with the auditors to ensure adequacy, efficiency and effectiveness of the internal control systems and monitors implementation of audit recommendations form time to time.

Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations and predictions may be "forward-looking statements" within the meaning of applicable securities law and regulations. Actual results could differ materially from those expressed or implied, important factors that could make difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the Government regulations, tax regimes, economic developments within India and countries in which the Company conducts business and other incidental factors.

By and on behalf of the Board of Directors of Milgrey Finance and Investments Limited
Sd/-	Sd/-
Mahendra Bachhawat	Abhay Gupta
Managing Director	Director
DIN: 07547289	DIN:02294699
Place: Mumbai
Date: 31.08.2023