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Global Economic Overview

Global growth is projected to fall from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards. The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 8.7 percent in 2022 to 6.8 percent in 2023 and 5.2 percent in 2024. Underlying (core) inflation is projected to decline more gradually, and forecasts for inflation in 2024 have been revised upward. The recent resolution of the US debt ceiling standoff and, earlier this year, strong action by authorities to contain turbulence in US and Swiss banking, reduced the immediate risks of financial sector turmoil. This moderated adverse risks to the outlook. However, the balance of risks to global growth remains tilted to the downside. Inflation could remain high and even rise if further shocks occur, including those from an intensification of the war in Ukraine and extreme weather-related events, triggering more restrictive monetary policy. Financial sector turbulence could resume as markets adjust to further policy tightening by central banks. Chinas recovery could slow, in part as a result of unresolved real estate problems, with negative cross-border spill-overs. Sovereign debt distress could spread to a wider group of economies. On the upside, inflation could fall faster than expected, reducing the need for tight monetary policy, and domestic demand could again prove more resilient. In most economies, the priority remains achieving sustained disinflation while ensuring financial stability. Therefore, central banks should remain focused on restoring price stability and strengthening financial supervision and risk monitoring. Should market strains materialize, countries should provide liquidity promptly while mitigating the possibility of moral hazard. They should also build fiscal buffers, with the composition of fiscal adjustment ensuring targeted support for the most vulnerable. Improvements to the supply side of the economy would facilitate fiscal consolidation and a smoother decline of inflation toward target levels.

Global Growth Outlook Projection (In %)






World Output




Advanced Economies




United States




Euro Area
























United Kingdom








Other Advanced Economies




Emerging Market and Developing Economies




Emerging and Developing Asia












Emerging and Developing Europe








Latin America and the Caribbean












Middle East and Central Asia 5.4


Saudi Arabia 8.7


Sub-Saharan Africa 3.9


Nigeria 3.3


South Africa 1.9




Emerging Market and Middle-Income Economies 3.9


Low-Income Developing Economies 5.0



Source: International Monetary Fund, World Economic Outlook, July 2023 Update

Note: For India, data and forecasts are presented on a fiscal year basis, with FY 2022/2023 (starting in April 2022) shown in the 2022 column. Indias growth projections are 6.6 percent in 2023 and 5.8 percent in 2024 based on calendar year.

Forces Shaping the Outlook

The global recovery from the COVID-19 pandemic and Russias invasion of Ukraine is slowing amid widening divergences among economic sectors and regions. The World Health Organization (WHO) announced in May that it no longer considers COVID-19 to be a "global health emergency." Supply chains have largely recovered, and shipping costs and suppliers delivery times are back to pre-pandemic levels. But forces that hindered growth in 2022 persist. Inflation remains high and continues to erode household purchasing power. Policy tightening by central banks in response to inflation has raised the cost of borrowing, constraining economic activity. Immediate concerns about the health of the banking sector have subsided, but high interest rates are filtering through the financial system, and banks in advanced economies have significantly tightened lending standards, curtailing the supply of credit. The impact of higher interest rates extends to public finances, especially in poorer countries grappling with elevated debt costs, constraining room for priority investments. As a result, output losses compared with pre-pandemic forecasts remain large, especially for the worlds poorest nations. Despite these headwinds, global economic activity was resilient in the first quarter of 2023, with that resilience driven mainly by the services sector. The post-pandemic rotation of consumption back toward services is approaching completion in advanced economies (including in tourism dependent economies of southern Europe), and it accelerated in a number of emerging market and developing economies in the first quarter (Figure 1). However, as mobility returns to pre-pandemic levels, the scope for further acceleration appears more limited. At the same time, non-services sectors, including manufacturing, have shown weakness, and high-frequency indicators for the second quarter point to a broader slowdown in activity. Amid softening consumption of goods, heightened uncertainties regarding the future geo-economic landscape, weak productivity growth, and a more challenging financial environment, firms have scaled back investment in productive capacity. Gross fixed capital formation and industrial production have slowed sharply or contracted in major advanced economies, dragging international trade and manufacturing in emerging markets with them. International trade and indicators of demand and production in manufacturing all point to further weakness. Excess savings built up during the pandemic are declining in advanced economies, especially in the United States, implying a slimmer buffer to protect against shocks, including those to the cost of living and those from more restricted credit availability. The fight against inflation continues. Inflation is easing in most countries but remains high, with divergences across economies and inflation measures. Following the build-up of gas inventories in Europe and weaker-than-expected demand in China, energy and food prices have dropped substantially from their 2022 peaks, although food prices remain elevated. Together with the normalization of supply chains, these developments have contributed to a rapid decline in headline inflation in most countries. Core inflation, however, has on average declined more gradually and remains well above most central banks targets. Its persistence reflects, depending on the particular economy considered, pass-through of past shocks to headline inflation into core inflation, corporate profits remaining high, and tight labor markets with strong wage growth, especially in the context of weak productivity growth that lifts unit labor costs. However, to date, wage-price spirals wherein prices and wages accelerate together for a sustained period do not appear to have taken hold in the average advanced economy, and longer-term inflation expectations remain anchored. In response to the persistence of core inflation, major central banks have communicated that they will need to tighten monetary policy further. The Federal Reserve paused rate hikes at its June meeting but signaled further ones ahead, and the Reserve Bank of Australia, Bank of Canada, Bank of England, and European Central Bank have continued to raise rates. At the same time, in some other economies, particularly in East Asia, where mobility curbs during the pandemic restricted demand for services longer than elsewhere, core inflation has remained low. In China, where inflation is well below target, the central bank recently cut policy interest rates. The Bank of Japan has kept interest rates near zero under the quantitative and qualitative monetary easing with yield curve control policy. Acute stress in the banking sector has receded, but credit availability is tight. Thanks to the authorities swift reaction, the March 2023 banking scare remained contained and limited to problematic regional banks in the United States and Credit Suisse in Switzerland. Accordingly, since the April 2023 WEO, global financial conditions have eased (Box 1), a sign that financial markets may have become less concerned about risks to financial stability coming from the banking sector. But tight monetary policy continues to put some banks under pressure, both directly (through higher costs of funding) and indirectly (by increasing credit risk). Bank lending surveys in the United States and Europe suggest that banks restricted access to credit considerably in the first quarter of 2023, and they are expected to continue to do so in coming months. Corporate loans have been declining lately, as has commercial real estate lending.

Following a reopening boost, Chinas recovery is losing steam. Manufacturing activity and consumption of services in China rebounded at the beginning of the year when Chinese authorities abandoned their strict lockdown policies; net exports contributed strongly to sequential growth in February and March as supply chains normalized and firms swiftly put backlogs of orders into production. Nonetheless, continued weakness in the real estate sector is weighing on investment, foreign demand remains weak, and rising and elevated youth unemployment (at 20.8 percent in May 2023) indicates labor market weakness. High-frequency data through June confirm a softening in momentum into the second quarter of 2023.

Growth Slowing, with Shifting Composition

Global growth is projected to fall from 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024 on an annual average basis (Table 1). Compared with projections in the April 2023 WEO, growth has been upgraded by 0.2 percentage point for 2023, with no change for 2024. The forecast for 2023 24 remains well below the historical (2000 19) annual average of 3.8 percent. It is also below the historical average across broad income groups, in overall GDP as well as per capita GDP terms. Advanced economies continue to drive the decline in growth from 2022 to 2023, with weaker manufacturing, as well as idiosyncratic factors, offsetting stronger services activity. In emerging market and developing economies, the growth outlook is broadly stable for 2023 and 2024, although with notable shifts across regions. On a year-over-year basis, global growth bottomed out in the fourth quarter of 2022. However, in some major economies, it is not expected to bottom out before the second half of 2023. World trade growth is expected to decline from 5.2 percent in 2022 to 2.0 percent in 2023, before rising to 3.7 percent in 2024, well below the 2000 19 average of 4.9 percent. The decline in 2023 reflects not only the path of global demand, but also shifts in its composition toward domestic services, lagged effects of US dollar appreciation which slows trade owing to the widespread invoicing of products in US dollars and rising trade barriers. These forecasts are based on a number of assumptions, including those regarding fuel and nonfuel commodity prices and interest rates. Oil prices rose by 39 percent in 2022 and are projected to fall by about 21 percent in 2023, reflecting the slowdown in global economic activity. Assumptions regarding global interest rates have been revised upward, reflecting actual and signaled policy tightening by major central banks since April. The Federal Reserve and Bank of England are now expected to raise rates by more than assumed in the April 2023 WEO to a peak of about 5.6 percent in the case of the Federal Reserve before reducing them in 2024. The European Central Bank is assumed to raise its policy rate to a peak of 3? percent in 2023 and to ease gradually in 2024. Moreover, with near-term inflation expectations falling, real interest rates are likely to stay up even after nominal rates start to fall. Source: World Economic Outlook, July 2023

Indian Economic Overview

The Indian economy has shown remarkable resilience post-pandemic, achieving a full recovery in FY22 ahead of many other nations and poised to return to pre-pandemic growth levels in FY23. Addressing the challenge of inflation, the government and RBIs measures, coupled with easing global commodity prices, managed to bring retail inflation below the RBIs target in November 2022. However, concerns persist with the depreciating rupee and the possibility of further policy rate increases by the US Federal Reserve, contributing to a widening current account deficit. Despite these challenges, international agencies project India as the fastest-growing major economy in FY23 at 6.5-7.0 per cent. This optimism stems from the economys strong growth momentum and the shift of private consumption as the primary driver of growth, replacing the export stimuli amid global economic fluctuations.

The inflation CPI for rural areas is 4.72%, while for urban areas, it is slightly higher at 4.96%. This indicates that the rate of price increase in urban areas is slightly higher than in rural areas in June 2023. The data shows the GDP growth rates for two consecutive fiscal years, 2021-22 and 2022-23. In 2021-22, there was a strong economic rebound with exceptionally high growth rates in Q1 (21.6%) and Q2 (9.1%), followed by a gradual slowdown in Q3 (5.2%) and Q4 (4%). In 2022-23, the growth rates continued to moderate with Q1 (13.1%) starting strong but lower than the previous years Q1, and further declining in Q2 (6.2%) and Q3 (4.5%). Q4 showed a slight improvement with a growth rate of 6.1%. Overall, the economy experienced recovery and stabilization, but growth rates were not as high as the previous years exceptional levels. Source: MOSPI

Industry Outlook

Over the past decade, the retail landscape in India has experienced a remarkable evolution, marked by substantial growth and transformation. With projections indicating that the Indian retail market could achieve a staggering $2 trillion valuation by 2032, several socio-demographic and economic factors are driving this expansion. The impetus behind this growth includes the burgeoning phenomenon of urbanization, rising incomes, and the emergence of nuclear families. As a testament to this progression, India has secured its place as the worlds fourth-largest retail market, attributing its allure to a variety of factors. Notably, the countrys second-largest global population, coupled with the ascent of approximately 158 million middle-income households, underscores the potential of this market. Furthermore, the convergence of increasing urbanization, connectivity reaching rural consumers, and heightened discretionary spending all contribute to its magnetism. This growth story carries significant implications for Indias overall economic landscape. With the retail sector already contributing over 10% to the countrys GDP and employing more than 35 million people, its expansion is set to create an additional 25 million jobs by 2030. This growth surge has fueled an increased demand for organized retail spaces, resulting in a substantial capacity of roughly 120 million square feet across major Indian cities. Prominent urban centers like Delhi and Mumbai have emerged as hubs of this burgeoning retail capacity, boasting 23.7 million square feet and 16.7 million square feet of retail space, respectively. Key retail segments include Food & Grocery, Apparel & Footwear, and Consumer Electronics, constituting 63%, 9%, and 7% of the retail market, respectively. As the retail landscape evolves, Indias digital economy is projected to flourish, anticipated to reach a substantial $800 billion by 2030. This digital transformation is particularly evident in the e-commerce industry, where online shoppers are predicted to surge to approximately 500 million by 2030 from a base of around 150 million in 2020. Notably, the Unified Payments Interface (UPI) has emerged as a pivotal player in the digital payments arena, accounting for a significant proportion of all digital transactions, numbering around 62 billion in 2022. Moreover, the growth in income levels will fuel a transition in Indias economic structure, propelling it from a bottom-of-the-pyramid economy to one led by a robust middle class. Consumer spending is anticipated to soar to nearly $6 trillion by 2030, ushering in a new era of economic prosperity and consumption-driven growth.

Government Initiative

? In October 2021, the RBI announced plans for a new framework for retail digital payments in offline mode to accelerate digital payment adoption in the country. ? In July 2021, the Andhra Pradesh government announced retail parks policy 2021-26, anticipating targeted retail investment of Rs. 5,000 crore (US$ 674.89 million) in the next five years. ? Government may change Foreign Direct Investment (FDI) rules in food processing in a bid to permit E-commerce companies and foreign retailers to sell Made in India consumer products. ? Government of India has allowed 100% FDI in online retail of goods and services through the automatic route, thereby providing clarity on the existing businesses of E-commerce companies operating in India. ? The Minister of MSME announced inclusion of retail and wholesale trades as MSMEs. Retail and wholesale trade will now get the benefit of priority sector lending under the RBI guidelines. Source: Retail Industry Report May 2023, IBEF

Growth Drivers

1. Growing Income

By 2030 India will add 140 MN middle-income and 21 MN high-income households Leading to a huge emerging middle class.

2. Increased online spending

Online shoppers in India are expected to reach ~500 MN in 2030, more than 3x increase from 150 MN users in 2021.

3. Growth of rural consumption

Rural per capita consumption will grow 4.3 times by 2030, compared to 3.5 times in urban areas.

4. Young millennial households

By 2030, India will add nearly 90 MN new households headed by millennial, who were born into liberalized India.

Source: Retail & E-Commerce Sector, Invest India


SHASHAK TRADERS LIMITED is in well diversified business as powered by Memorandum of Association. The Company is in the business of providing financial consultancy to varied clientele and trading in goods and services as empowered by its main object clause of the Memorandum of Association.

Shashank Traders Limited ("STL) was incorporated on 29th May, 1985 under the Companies Act, 1956.

Certificate of incorporation was issued by Registrar of Companies, National Capital Territory of Delhi and Haryana. Further the Company obtained the Commencement of Business Certificate from the Registrar of Companies, Delhi & Haryana on June 11, 1985.

Shashank currently involve in Metal & Minerals, Manufacture, Import & Export, Consulting, Trading, Textile Industry, Dealer & Supplier of Agriculture, Commodities & Merchandise, etc.

Financial Performance & Analysis

The Financial statements of the company have been prepared in accordance with Indian Accounting Standard (Ind AS) notified under the Companies (Indian Accounting Standards) Rules 2015 as amended from time to time by the Ministry of Corporate Affairs (MCA), the provisions of Companies Act, 2013, and guidelines issued by the Securities and Exchange Board of India (SEBI). Financial statements of the company are prepared under the historical cost convention except for the certain financial assets and liabilities measured at fair value as mentioned in applicable accounting policies.

(Rs. in Lakhs unless specified otherwise)


FY22-23 FY21-22 Variation%
Revenue From Operations 2.15 0.64 236%
Other Income 0.36 - -

Total Revenue

2.51 0.64 292%

Profit Before Interest, Exceptional items & tax

-25.06 -9.55 162%

EBIT Margin %



Profit Before Taxation

-25.1 -9.6 161%
Tax Expense - - -

Net Profit/(Loss For the year)

-25.1 -9.6 161%

Net Profit Margin %




FY23 FY22

Profitability Ratios (%)

EBITDA Margin - -
EBIT Margin - -
Net Profit Margin - -

Growth Ratios (%)

Total Revenue - -
EBIT 162.41% 496.31%
Net Profit 161.46% 474.23%

Liquidity Ratio(times)

Current Ratio 1.03x 1.12x
Return Ratios
Return on Equity - -
Return on Capital Employed - -
Return on Assets - -
Efficiency Ratio
Asset Turnover(times) - -
Receivable Turnover(times) 0.06x 0.02x
Receivable Days - -
Inventory Turnover(times) - -
Inventory Days - -
Payable Turnover(times) 0.12x 0.04x
Payable Days - -
Cash Conversion Cycle - -

Leverage Ratios

Debt Equity Ratio -
Debt to Assets Ratio
Interest Coverage Ratio - -

* Negative Ratios have not been calculated

Revenue Growth: The Company has experienced a substantial increase in its revenue from operations, growing by 236% from 0.64 Lakhs in FY21-22 to 2.15 Lakhs in FY22-23. This growth indicates a positive trend in generating sales.

Other Income: The Company has generated other income of 0.36 Lakhs in FY22-23, which was not present in the previous fiscal year. This could be due to additional sources of income or gains.

EBIT and Margin: Earnings Before Interest and Tax (EBIT) also deteriorated, with a loss of 25.06 Lakhs in FY22-23, compared to a loss of 9.55 Lakhs in FY21-22. The EBIT margin percentage worsened from -1492% in FY21-22 to -1167% in FY22-23, indicating operational challenges.

Net Profit/Loss: The Company reported a net loss of 25.1 Lakhs in FY22-23, which is a significant increase from the net loss of 9.6 Lakhs in FY21-22. This reinforces the financial difficulties the company faced during the year.

Growth Ratios: The EBITDA, operating profit and Net profit margins have shown negative growth of 161.46% in FY 2023 as company incurred higher losses during the year.

Liquidity Ratios:Current ratios of 1.03x FY23 and 1.12x FY22 indicate that the companys liquidity deteriorated slightly in FY23, with both ratios above 1, implying the ability to meet short-term obligations effectively.


The Company has not undertaken any major operational activities during the year.


During the period under review, due to some financial constraints and gloomy global economy scenario your Company could not start its operations throughout the year.


The Companys success largely depends upon the quality and competence of its management team and key personnel. Attracting and retaining talented professionals is therefore a key element of the companys strategy. The resignation or loss of key management personnel may have an adverse impact on the

Companys business, its future financial performance and the result of its operations.

Moreover, any slowdown in the economic growth in India could cause the business of the Company to suffer. Recently, the growth of industrial production has been variable. Any slowdown in Indian economy could adversely affect the Companys business.



2021-22 2022-23 % Change Detailed Explanation in case change is more than 25%

Net Worth

274.47 249.36 (9.15%) -

RoNW %


Current Ratio

1.12x 1.03x (8.44%) -

Debtors Turnover Ratio*

0.02x 0.06x 273.26% Debtor Turnover ratio increased due to increase in the sales for the year ending 2023

Inventory Turnover Ratio*


Interest Coverage Ratio***


Debt-Equity Ratio**


Operating Profit Margin



Net Profit Margin (%)***


* Ratio have not been calculated as the company has not conducted any business activity and there is no sales income. ** Not calculated due to negative net worth. *** Ratio have not been calculated as the Profits are negative.


The Company has adequate internal audit and control systems. Internal auditors comprising of professional firm of Chartered Accountants has been entrusted with the job to regular conduct the internal audit and report to the management the lapses, if any. Both internal auditors and statutory auditors independently evaluate the adequacy of internal control system. Based on the audit observations and suggestions, follow up, remedial measures are being taken including review thereof. The Audit Committee of Directors in its periodical meetings, review the adequacy of internal control systems and procedures and suggests areas of improvements. In view of the changes in Companies Act, the Company has taken additional measures from the financial year 2014-15 to strengthen its internal control systems. Some of the additional measures in this regard are strengthening background verification process of new joiners, whistle blower policy and strengthening the process of risk assessment. The organization is well structured and the policy guidelines are well documented with pre-defined authority. The Company has also implemented suitable controls to ensure that all resources are utilized optimally, financial transactions are reported with accuracy and there is strict adherence to applicable laws and regulations. The Company has put in place adequate systems to ensure that assets are safeguarded against loss from unauthorized use or disposition and that transactions are authorized, recorded and reported. The Audit Committee of Directors in its periodical meetings, reviews the adequacy of internal control systems and procedures and suggests areas of improvements. Needless to mention, that ensuring maintenance of proper accounting records, safeguarding assets against loss and misappropriation, compliance of applicable laws, rules and regulations and providing reasonable assurance against fraud and errors will continue to remain central point of the entire control system.


Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies and processes to meet its business needs. The Company aims to develop the potential of every individual associated with the Company as a part of its business goal. Respecting the experienced and mentoring the young talent has been the bedrock for the

Companys growth.

Human resources are the principal drivers of change. They push the levers that take futuristic businesses to the next level of excellence and achievement.


Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate intend, will, expect and other similar expressions are intended to identify "Forward Looking Statements". The company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Actual results could differ materially from those expressed or implied. Important factors that could make the difference to the Companys operations include cyclical demand and pricing in the Companys principal markets, changes in Government Regulations, tax regimes, economic developments within India and other incidental factors.

Date: September 04, 2023

By Order of the Board

Place: New Delhi

For Shashank Traders Limited

Regd. Office:

702-A, Arunachal Building,


19,Barakhamba Road,

Praveen Jaswant Rai Jain

Connaught Place,

Chairman & Managing Director

New Delhi-110 001

DIN: 01776424