Mrugesh Trading Ltd Management Discussions

A. Overview of the Global Economy:

The global economy reflected a period of subdued growth for 2024-2025, increasing uncertainty, and persistent policy challenges. Major institutions, including the IMF, World Bank, and OECD, project global GDP growth to range between 2.3% and 3.3%, with a central tendency around 2.5-3.0%, down from earlier expectations due to rising trade tensions and geopolitical instability. Advanced economies are forecasted to grow modestly at 1.0-1.6%, while emerging markets may see stronger performance around 3.7-4.0%, led by India (6.3- 6.8%) and China (4.5%).

Trade disruptions, driven by escalating tariffs and deglobalization, have reduced global trade growth and investment flows. Inflation is moderating globally expected to be around 4.2% in 2025 and easing further to 3.5% by 2026 but remains uneven across regions.

Monetary policy has begun easing in some economies, though central banks remain cautious amid fragile conditions. Technological advances, especially in AI, offer potential productivity gains but also raise labor market and equity concerns.

Overall, while consumer demand and select regional growth offer resilience, risks such as prolonged trade wars, policy fragmentation, and financial volatility continue to weigh heavily on the global economy.

B. Overview of the Indian Economy:

The Indian economy displayed resilience in FY 2024 25, supported by steady GDP growth, improved consumption, and government-led infrastructure spending. Despite global headwinds, inflationary pressures were managed effectively, and the RBI maintained a balanced monetary policy approach. The financial services sector benefited from enhanced liquidity and increasing credit penetration, particularly in underbanked and semiurban regions.

C. Outlook:

The NBFC sector is expected to witness continued transformation driven by technology, regulatory reforms, and consolidation. The Company remains optimistic about growth prospects, with a focus on strengthening its underwriting standards, digital processes, and recovery mechanisms. In FY 2025-26, the Company aims to enhance its loan book cautiously, improve asset quality, and target a return to profitability.

D. Industry structure and development:

The Non-Banking Financial Company (NBFC) sector continues to play a critical role in Indias financial ecosystem by serving segments that are often underserved by traditional banks. During FY 2024 25, the sector witnessed a gradual recovery despite global economic headwinds, inflationary pressures, and fluctuating interest rates. The RBIs continued regulatory support and focus on liquidity management contributed to strengthening the sectors resilience.

Indias GDP growth moderated to 6.5 per cent in 2024-25, after registering a healthy average growth of 8.8 per cent over the preceding three years. This was driven by a moderation in urban demand as inflation and elevated interest rates weighed on discretionary spending, growth in fixed investments remained muted, and government spending was off to a slow economic empowerment. Guided by a well-defined market strategy, strong regulatory compliance, and performance driven goals, we continue to expand our impact in the financial sector, delivering solutions that are as inclusive as they are effective.

E. Opportunities and Threats:

1. Growing Financial Inclusion: Increasing Demand for credit and financial services in semi-urban and rural areas. Government schemes supporting financial inclusion can boost NBFC Growth.

2. Digital Transformation: Adoption of AI, blockchain, and automation can improve efficiency, reduce costs, and enhance customer experience.

3. Regulatory Support for NBFC Sector: Regulatory Initiatives Allowing more operational flexibility to well governed NBFCs. Potential for conversion into small finance banks or partnerships with them.

4. Increased Financial Inclusion: Serving underbanked populations via mobile banking and microfinance expands market reach.

Threats:

1. Technology Risk and Cybersecurity: Increasing reliance on digital platforms makes NBFCs vulnerable to cyberattacks, data breaches, and operational failures.

2. Market Volatility: Trading business is highly sensitive to market fluctuations. Economic or geopolitical shocks can impact portfolio performance and client trading volumes.

3. Reputation and Compliance Risk: Any compliance failure or fraud can severely damage brand value. NBFCs in trading face dual oversight from both RBI and SEBI, higher compliance burden.

4. Emerging Technologies: Advancements in alternative materials could render existing offerings obsolete.

F. Segment-wise or Product-wise performance:

The Company operates in One Primary Segment i.e. " Trading ".

G. Future Outlook:

The future outlook for the Company remains optimistic, supported by a favorable regulatory environment, growing demand for diversified financial services, and advancements in technology. As a Non-Banking Financial Company (NBFC) engaged in the trading business, the Company is strategically positioned to leverage opportunities in both lending and capital markets.

Strategic Expansion and Diversification Technology Driven Growth Focus on Risk Management and Compliance Market Volatility and Macroeconomic Conditions Capital Adequacy and Fund-Raising Plans Customer-Centric Approach

H. Risks and concerns:

Key risks include credit risk, arising from the potential default of borrowers, and Our Company has established a robust internal control framework These controls are designed to safeguard the companys assets, ensure prudent lending practices, and support efficient decision-making. They also help in maintaining high standards of transparency, accountability, and risk management.

I. Internal control systems and their adequacy:

The company has implemented proper system for safeguarding the operations/business of the company, through which the assets are verified and frauds, errors are reduced and accounts, information connected to it are maintained such, so as to timely completion of the statements.

The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. The company has internal audit and verification at regular intervals.

The requirement of having internal auditor compulsory by statue in case of listed and other classes of companies as prescribed shall further strengthen the internal control measures of company.

H. Discussion on financial performance with respect to operational performance:

The financial performance of the Company for the Financial Year 2024-25 is described in the Directors Report of the Company.

I. Material developments in Human Resources / Industrial Relations front including number of people employed:

The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

J. Caution Statement:

Statements made in the Management Discussion and Analysis describing the various parts may be “forward looking statement” within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Govt. Regulations and amendments in tax laws and other internal and external factors.

Registered Office:	By the Order of the Board of,
252, Swantraveer Savarkar Rashtriya Smarak,Veer	Mrugesh Trading Limited
Savarkarmarg, Next to Mayer Banglow, Shivaji Park, Mumbai
City, Mumbai, Maharashtra, India 400 028

 

Corporate Office:
Office No. 704 Shilp Zaveri, Nr. Shyamal Cross Road Satelite,
Jodhpur Char Rasta, Ahmedabad, Ahmadabad City, Gujarat,
India 380 015
	Sd/-	Sd/-
	Ajit Thakor	Arpit Piyushbhai Shah
Place: Ahmedabad	Director	Managing Director
Date: 6th September, 2025	DIN: 10218830	DIN: 08311352