SMC Global Securities Ltd Management Discussions

1. OVERVIEW & OUTLOOK

1.1 Global and Indian Economy

The global economy has shown surprising resilience despite challenges. Inflation is dropping closer to central bank targets, and the overall outlook is becoming more stable. The International Monetary Fund (IMF) even predicts a US interest rate cut this year, despite some fears of a hike. This positive outlook is due in part to strong consumer spending, particularly in the US, which has been bolstered by a healthy job market. Meanwhile, the Eurozone emerged from a recession with growth accelerating, and inflation is easing. In a major shift, Japan ended its era of negative interest rates, signalling a potential change for businesses, consumers, and investors there. This follows a trend started by the European Central Bank in 2014 to combat deflation. Even China managed a healthy growth rate in 2023, demonstrating its ability to overcome obstacles. Indias economic rise has been nothing short of remarkable. In just a decade, it has jumped from the worlds ninth-largest economy to the fifth, boasting a $3.4 trillion GDP. This growth surge is unprecedented, making India a bright spot in a sluggish global economy. With ambitions to become a $30 trillion powerhouse by 2047, India is rapidly increasing its share of global GDP. This success can be attributed to a wave of structural reforms, including a unique and unparalleled digital infrastructure boom that has provided everyone with a digital identity. Streamlined corporate taxes have also made India more competitive. While inflation remains a concern, its expected to ease in the coming year. Indias growing middle class, with its rising purchasing power, is fueling demand across all sectors, including luxury goods. A synchronized global recovery next year is anticipated to further boost exports, investments, and consumption. This strong economic performance could lead to a faster decline in the fiscal deficit and a surge in private investments. As India races towards the number three GDP spot, its consumer market is also poised to become the worlds third-largest by 2027.

1.2 Industry Structure and Developments- Capital Market

The year 2024 is shaping up to be an interesting year for the Indian financial services sector due to a slowing global economy and multiple disruptive factors that are causing a fundamental shift in the way banking and capital markets operate. The Indian market recently reached record highs, but quickly encountered turbulence amid rising geopolitical concerns, particularly tensions in the Middle East. However, its important to remember that geopolitical events typically cause short-term volatility, as seen during the Russia-Ukraine war. The Indian equity market is expected to continue performing well due to strong macroeconomic fundamentals, with Indias GDP growth estimated at 7% - the highest among major world economies - and a strong corporate earnings growth outlook for FY 25-26. The expectation of re-election of the BJP government under Prime Minister Modi bodes well for the equity markets, as a stable government provides clarity on the continuity of policy reforms. The rising number of Mutual Fund folios indicates increasing participation by domestic investors in stock market to capitalize on the India growth story. This, coupled with the growing number of Demat accounts, clearly indicates higher retail participation towards stock markets. This shift has undeniably reflected broader changes in the overall Indian economy, including improved financial literacy, widespread digitization, and the availability of diverse investment products. Additionally, a changing demographic profile with younger investors leading the way signifies their adoption of more diversified investment strategies.

On the flip side, escalating geopolitical concerns could impact crude oil prices, making inflation the next big concern for investors. Rising energy prices are a concern for global inflation, and major central banks will be closely monitoring inflation data before starting to cut interest rates. The RBI is likely to follow suit with other global central banks, considering Indias strong growth outlook.

2. SMC- ONE OF THE LEADING INVESTMENT SOLUTIONS GROUP

With around three decades of expertise, SMC Global Securities Ltd. (SMC), with its subsidiaries is one of the leading Investment Solutions Companies in India, having a robust model reflecting a significant presence in almost all the important segments of the financial services section such as Broking, Distribution of Mutual funds, IPOs & other third party products, Debt Securities (Bonds), Discount broking, Insurance Broking, Financing (NBFC), Real Estate Advisory, Wealth Management, Mortgage & Loan Advisory, Investment Banking, Clearing Services, Depository Participant Services, NRI and FPI Services.

The company s growth has been powered by strategic vision, strong belief and adherence to its core values and guiding principles, ability to attract and retain talent, strong focus on technology, corporate governance and risk management. SMC has been recognized at national platforms by various bodies.

SMC has won many awards in the past. The list of awards in last four years are as follows:

Great Place to work 2024

MCX Awards Leading Proprietary Trading MCX 2023

Member Partner- New Initiatives & Market Outreach Commodity NCDEX 2023

MCX Awards Leading Bullion Segment MCX 2022

Significant Contribution to The Commodities Market NCDEX 2022

MCX Awards Leading Member-option MCX 2022

Krishi awards developing the retail segment- NCDEX 2021 The diversified business of SMC is being conducted through an organizational structure consisting of ten subsidiaries and one joint venture including one foreign subsidiary. These subsidiaries are regulated by various regulators in India & respective jurisdiction, depending upon business handled by them. We have presence in major cities in India through various offices through a strong network of approx., 2,327 (PY 2,548) authorized persons and sub brokers, SMC footprints cover nearly over 437 (PY 452) cities across India. SMC group employs more than 4,264 (PY 3,900) employees as on March 31, 2024, leveraging a strong partnership and ownership culture.

2.1 SMC Strategy

We intend to strengthen and extend our position as a leading diversified financial services provider. Key elements of our strategy include to:

Intensify our cross-selling efforts across our client base

Continue expanding our geographic presence and reach

Expand our services and product portfolio through continued innovation

Pursue additional strategic alliances and acquisitions to grow our client base and increase our revenues

Expand Financing & Discount broking business

Extensive corporate relationship.

3. FINANCIALS PERFORMANCE HIGHLIGHTS

Table 3.a: Statement of Profit and Loss Consolidated

(Rs.in Lakhs)

Particulars	FY 2023-24	% to Total Revenue	FY 2022-23	% to Total Revenue
Total Revenue	1,64,504	100.00%	1,21,565	100.00%
Total Expenditure	1,40,052	85.14%	1,05,370	86.68%
Profit before tax	24,449	14.86%	16,196	13.32%
Less: Tax expense	5,622	3.42%	4,156	3.42%
Profit After Tax (PAT) Before Minority Interest	18,828	11.45%	12,040	9.90%
Total other comprehensive income for the Year	82	0.05%	503	0.41%
Total comprehensive income for the Year	18,910	11.49%	12,543	10.32%
Share of Minority Interest in Profit (Loss)	100	0.06%	34	0.03%
Net Profit After Tax, Minority Interest	18,728	11.38%	12,006	9.88%
Earnings per Share (Basic) (FV 2 ) In “ ”	17.89		11.25

Table 3.b: Statement of Profit and Loss Standalone

(Rs.in Lakhs)

Particulars	FY 2023-24	% to Total Revenue	FY 2022-23	% to Total Revenue
Total Revenue	88,382	100.00%	69,281	100.00%
Total Expenditure	70,388	79.64%	57,294	82.70%
Profit before tax	17,994	20.36%	11,987	17.30%
Less: Tax expense	3,892	4.40%	2,649	3.82%
Profit After Tax (PAT)	14,103	15.96%	9,337	13.48%
Total other comprehensive income for the Year	-10	-0.01%	-28	-0.04%
Total comprehensive income for the Year	14,093	15.95%	9,310	13.44%
Earnings per Share (Basic) (FV 2 ) In “ ”	13.47		8.72

3.1 Segment Wise Performance

SMC s revenue from operations largely comprises of income from equity, commodity and currency brokerage & trading, clearing services, income from depository business, income from distribution of third-party financial products, income from insurance brokerage & real estate advisory, Financing, capital market operations, etc. A comparison of the segment wise revenue and profit before tax in FY 2023-24 and FY 2022-23 is tabulated below:

Table 3. c: Segment-wise Performance- Consolidated

(Rs.in Lakhs)

	Year Ended
Particulars	March 31, 2024	March 31, 2023
Segment Revenue
(1) Broking, distribution and trading	96,191	76,779
(2) Insurance broking services	52,829	34,822
(3) Financing activities	20,571	13,194
Total	1,69,591	1,24,795
Less: Inter Segment Revenue	5,087	3,229
Total Revenue	1,64,504	1,21,565
Segment Profit/(Loss) before tax
(1) Broking, distribution and trading	24,878	15,757
(2) Insurance broking services	1,443	1,107
(3) Financing activities	13,585	8,264
Total	39,906	25,128
Less: Interest	15,456	8,933
Total Profit/(Loss) Before Tax	24,449	16,196

Table 3.d Performance of Material Subsidiaries- Standalone (for the year ended March 31, 2024)

(Rs.in Lakhs)

Company Name	Revenue from Operations	Profit before tax	Profit after Tax
Moneywise Financial Services Private Limited	20,571	6,817	5,598
SMC Insurance Brokers Private Limited	52,829	1,410	1,000

3.2 Business Performance Highlights SEGMENT 1

1(a). Broking, Distribution & Trading

Equity, Currency and Commodity Broking

SMC has been successful in generating a combined turnover of approx. 689.50 Lakhs crores (PY 721.83 Lakhs crores) reduced by 4% as compared to previous year. Total number of clients in this segment are 10,48,334 (PY 9,37,026).

Full Broking Services

SMC Global is a full service broker which provides you option to diversify your portfolio by investing in Stocks, Mutual Funds, Corporate FDs, ETFs, US Stocks, Commodities, Futures & Options, Bonds etc.

SMC offers

- Free dedicated RM support to resolve your woes in trading with advice on how and where to invest - Conducting free research based webinars for knowledge enhancement - Free research advisory for better decision making - Free AMC (for 1st year) - Launched new ekyc, mobile trading app and website - Trade Stocks, Mutual Funds, IPOs, Insurance, FDs, SIPs etc - Digital Marketing to acquire clients online

- FPI and NRI services - Algo Trading

- Market analysis through Autotrender tool - New Branches expansion in T2 and T3 cities - 3in1 Banking Tieups - Margin Trading Facility (MTF) - Focus on PCG Branches - IFSC, India INX, Gift city

Discount Broking

Moneywise Finvest Ltd., a wholly owned subsidiary of SMC Global Securities Ltd. is a Discount broking platform under brand name STOXKART. It s a first of its kind in broking industry where customers are charged only for profitable transactions. STOXKART is a rapidly growing financial brokerage platform with the goals of making trading easier and cheaper by breaking all barriers that traders and investors face in India in terms of cost, support and technology. With vast experience in financial markets and a strong understanding of growing customer needs, STOXKART empowers traders & investors by sharing its Market Expertise, New-age technology, zero brokerage advantages and excellent trading platform. As on 31st March, 2024, total clients are 2,39,619 (PY 1,94,243) and numbers of partners associated are 3,319 (PY 2,895).

1(b). Clearing Services

SMC offers clearing and settlement services to trading members in the following segments /exchanges:

Equity Market (Capital Market): NSE, BSE

Equity Derivatives: NSE, BSE, India INX & NSE-IFSC.

Currency Derivatives: NSE, BSE, MSEI, India INX & NSE-IFSC.

Commodity Derivatives: MCX, NCDEX, NSE, BSE, IIBX, India INX & NSE-IFSC

SMC is one of the leading clearing services providers on Pan- India basis.

1 (c) . Financial Products Distribution

SMC offers distribution services of IPOs, Mutual Funds, Non-Convertible Debentures (NCDs), Corporate Fixed Deposits, PMS, Capital gain bonds and Floating rate bonds through its network of branches and channel partners across India. Our initiatives have been quite successful and we are/have:

Consistently ranked among Top 20 syndicate in most of the debt & equity issuances (for over last ten years).

Developed vast network of channel partners around 7,040 (PY 6,928) for distribution of third-party products.

Built a cumulative Asset under Management (AUM) of around 3,801 crores (PY 3,000 crores) and having number of running SIP more than 72,885 (PY 69,000) as on March 31, 2024.

1(d). Investment Banking

SMC Capitals Limited, the Investment Banking arm of the SMC Group is a category I Merchant Banker registered with SEBI. SMC Capitals is led by professionals having collective experience of more than 100 years. The entity provides services in areas of Equity & Debt Capital Markets, M&A Advisory, Private Equity and Debt Syndication. Starting July 2023, SMC Capitals became the India partner of Translink Corporate Finance, est. in 1972, a world leader in cross-border mid-market M&A advisory services, present in 35+ countries, specialising in transactions ranging from 10M to 250M.

1(e). Wealth Management

Established wealth management business in 2008 to complement trading and distribution

Awarded Best Wealth Management Company of India by Business Sphere

Total Clients served are 11,263

We manage 9,079 Mn of assets under our wealth management business

Direct sales branches/ regional offices at Delhi, Mumbai, Bangalore, and Pune.

SMC Wealth: Product Details

• In house Products

• Financial Planning

• Portfolio Mgmt. Service

Quant based portfolio management

Plain vanilla equity portfolio based on the client s risk profile

• Third Party Products Open Architecture

• Investment Products

Mutual Funds, Portfolio mgmt. services, Private equity etc.

• Protection Products

Protection Plans, Return of Premium plan etc.

• Others

Real Estate broking, Home Loans, Estate Planning etc.

1(f). Real Estate Advisory

Started Real Estate Advisory Services in Fy14

Business done in SMC Real Estate Advisors Private Limited

RERA Registered with 9 states Authorities

• Services Offered: For Buyers/Investors

Buy and Sell

Home Loan

Mortgage

Construction/ Real Estate Loans

End To End Advisory

Real Estate Research

For Developers

Facilitate FSI

Arrange JV and Collaborations

Private Equity Funding

Leasing of Commercial Properties

Finance from Banks and NBFCs

Distribution Reach

Focused Locations:

Delhi NCR, Mumbai, Lucknow, Pune.

Team Size:

Dedicated Team Size of 291+ employees

Backed by:

1200+ Exclusive Real Estate Sub- Brokers

Supported by:

Digital Marketing (Google, Facebook etc.) one of major sources of Lead Generation

Segment 2

Insurance Broking Business

SMC Insurance Brokers Pvt. Ltd. is a Direct Insurance Broker registered with Insurance Regulatory and Development Authority of India (IRDAI) and provides a complete array of services in Life Insurance and General Insurance Category.

The number of policies for FY 23-24 stood at 9,95,979 as compared to 9,57,635 policies in FY 22-23. SMC Insurance Brokers Pvt Ltd has a huge network of 15,308 (PY 13,672) POS (Point of Sales) Person and 311 (PY 294) MISP (Motor Insurance Service Provider) registered with the entity for solicitation of insurance as at 31 March 2024.

During the year under review, the total revenue stood at 52,829 Lakhs as compared to 34,822 Lakhs in previous year, an increase in revenue by 51.71% as compared to previous year.

Segment 3 Financing Business

Moneywise Financial Services Private Limited (MFSPL) is registered with RBI as a Middle Layer NBFCs based on Asset size as per RBI guidelines stipulated in Master Direction Reserve Bank of India (Non-Banking Financial Company Scale Based Regulation) Directions, 2023 dated October 19, 2023 and updated from time to time. The Company offers wide spectrum of financial products like SME- LAP (loan against property), SME-Onward-lending (to NBFC/MFI), SME Equipment Finance (Medical & Industrial Equipment s), SME WCTL (Unsecured Business Loans), Gold Loans and loan against securities. The AUM of the Company is well diversified across products and geographies. The Company is focused on expanding its operations across MSME clusters PAN INDIA. The Company continues to have long term credit rating of “A-” (Stable) from CARE and “A- “(Stable) from ICRA.

Moneywise has Assets under Management (AUM includes off-book) of approx. 1237 crore as on 31st Mar, 2024. Over the last three years, Moneywise has demonstrated AUM growth at CAGR of 33.89% and revenue growth at CAGR of 44.48 % and a very comfortable CAR of 35.35 %. During the year, the company continued to increase its focus on expansion of retail loan book (i.e., secured and unsecured products like SME-WCTL, SME-LAP, SME-Assets Finance, Loans to NBFC/MFI for onward lending and SMC Gold. The aggregate amount of term loans disbursed during the year is Rs. 999 (PY 858) crores. Major expansion plans envisaged include opening of new branches PAN India. The company is investing heavily in up gradation of its systems, human resources and processes on an on-going basis in order to meet its expansion plan.

4. Key Ratios SMC Global Securities Ltd. (Consolidated)

Particulars	FY 2024	FY 2023
Return on Average Equity	18.56%	12.95%
EBIT Margins	24.26%	20.67%
Net profit Margins	11.44%	9.90%
Debt equity Ratio	1.30	0.98
Interest Coverage Ratio	2.58	2.81

5. Swot Analysis

STRENGTH:

PAN India reach, large network

Over 30 years experience and expertise

Wide range of financial products under one roof Innovative IT Solution Reputed & well established brand in the Indian financial services sector Experienced top management Prominent market share on IIBX Platform.

WEAKNESS:

Lower Institutional broking business

Lower presence in southern part of the country

OPPORTUNITIES:

Positive ecomomic outlook in long term will lead to growth in the financial services business

Interest rates are stabilising now and going to create opportunities for financing business with higher spread and also for the trading and distribution business

Domestic expansions

THREATS:

Intense Competition

6. Risks and Concerns

SMC has adequate Risk Management techniques and safeguards in place to ensure that major risks are properly assessed, analyzed and mitigation tools are applied and that the identified risks are commensurate with the potential returns.

SMC is active in various markets and in its course of doing business with various counter parties the organization is exposed to various risks. These risks can be broadly classified as market risk, credit risk and operational risk. SMC risk team constantly evaluates these risks & puts necessary mitigation measures in place on near real time basis.

Market Risk

SMC & some of its subsidiaries participate in trading and investment in various asset classes such as equity, debt securities, commodities, foreign currency and derivatives. These asset classes experience volatility due to economic growth levels, inflation, prices, interest rates, foreign exchange rates and other macro-economic factors. Any changes in market prices of these asset classes will affect the Company s income or the value of its holdings of financial instruments. The Group segregates its exposure to market risks in price risk, interest rate risk and currency risk.

The objective of market risk management is to manage and minimize market risk exposures within acceptable parameters, while optimizing the return on risk. The Companys exposure to market risk is determined by a number of factors, including size, composition and diversification of positions held and market volatility.

Credit Risk

The Company operates in a highly regulated environment which limits its credit risk against exchanges and clearing houses. The Company collects upfront margins in the form of funds and/or securities/commodities from clients and trading members against their trading positions. The Company monitors positions, margins, mark to market losses and risks on real time basis through risk management systems and policies specially designed to mitigate the credit risk.

The Group also runs the financing business through its wholly owned subsidiary Moneywise Financial Services Private Limited. The Company is exposed to high credit risk due to the inherent limitation of the business. The Company lends both secured and unsecured loans to its customer. To mitigate the credit risk the Company has implemented a loan policy to identify the broad principles which the Company follows to accept borrowers and loan proposals, to manage loan portfolio, and recover its dues so as to protect business revenues with consumer satisfaction. To reduce the credit risk in financing, the Company performs a detailed credit assessment on the prospective borrower or seeks security over some assets of the borrower or a guarantee from a third party. The Company takes all reasonable and business precautions through policies and procedures to mitigate and manage the credit risk. The company has also maintained the adequate provisions as per RBI norms, ECL provisions as per Ind AS and any additional provisions required based on management assessment.

At the portfolio level, the Company manages credit risk through limiting concentration of credit at individual borrower level, group levels, industry level etc. The loan proposals are assessed based on various factors like repayment capacity, credit worthiness, repayment history, business/ professional profile, future business prospects etc. of prospective borrower, field investigation, quality & value of security etc.

The senior management in the Company is responsible for evaluation of internal financial controls and risk management systems. The Company conducts regular internal audits where ever applicable in respect of group companies or various business units to identify scope of improvement/ enhancement in the Companys processes, quality control, fraud prevention and compliance with laws & regulations. The internal audit reports are reviewed by the Audit Committee and also placed before the Board.

Operational Risk

SMC faces operational risks arising from people, systems and processes through which it operates. Operational risk broadly encapsulates other category of risks; inter alia, reputation risk, fraud risk, legal risk and environment risk.

SMC has well defined processes and systems to check & balance operational risks at key points. A platform for exception reporting of violations is in place, which are reviewed regularly and remedial actions are being taken immediately. Enough importance is attached to compliance related issues to keep reputation risk at bay.

Apart from the above risks, management perceives others risks also like Technology risk, Compliance risk and Human resource risk. SMC has put in place a strong management team and risk management committee with active involvement to set the overall strategic moves and it regularly reviews risks to ensure that it is commensurate with the appetite.

7. Internal Controls

SMC has adequate internal audit and control systems across all companies / business segments. Risk based internal audits, through external audit firms, are being conducted periodically to independently evaluate adequacy of internal controls, adherence of processes and procedures and compliance of regulatory and legal requirements. The internal audit programme is periodically reviewed by Audit committee of Board, which comprises of: Shri Hari Das Khunteta, Chairman & Independent Director (Former Chairman & MD, REC Ltd. having over 42 years of experience in Financial Management and Corporate Governance), Shri Kundan Mal Agarwal (Over 42 years of experience in audit, taxation and corporate matters), & Shri Naveen ND Gupta (Over 24 years of relevant experience, Past president of the Institute of Chartered Accountants of India) for its effectiveness and timely reporting. The scope of internal audit covers all aspects of business including regular front-end and back-end operations and internal compliances. The internal control procedures include segregation of roles and responsibilities, independent confirmations, physical verifications and preventive checks on compliance risk. Every time, a compliance audit of earlier audit observations is conducted by external audit firms to assess the implementation status and improvements in Internal control systems.

Statutory and standard auditing practices employed include, inter alia, compliance to accounting and auditing standards, compliance of all relevant rules & regulations, tax laws and review of related party transactions. The Audit Committee reviews the instances of fraud, if any, and takes appropriate action to strengthen the system and to prevent such recurrence.

The company employs specialized audit firms to carry out specific audit of some critical functions, such as half yearly internal audit of broking business mandated by SEBI/Exchanges, DP Process, Know your customer (KYC) verifications, Demat transfers, pay-out verifications, systems audit, branches and sub brokers audit, PMS, mutual fund distribution audit, credit audit, loan documentation audits, pre/post disbursement audit and end use verification audit among others.

SMC believes in conduct of its affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behavior.

7.1 Internal Financials Controls

As per the requirement of Companies Act 2013, the Board of Directors is required to lay down Internal Financial Controls to be followed by the company and that such Internal Financial controls must be adequate and operating effectively. As per the “Guidance Note on Audit of Internal Financial Controls Over Financial Reporting” issued by the Institute of Chartered Accountants of India (ICAI), the respective Board of Directors of the Holding Company and its subsidiaries (“the Group”), which are companies incorporated in India, are responsible for establishing and maintaining Internal Financial Controls.

The group has involved an Independent professionally competent Chartered Accountants firm (hereinafter “consulting firm”) for review of the existing Risk registers and Controls that have been designed and implemented by the group and to provide assistance in documentation of the Internal Financial Controls over financial reporting to comply with the requirements of the Guidance Note on Audit of Internal Financial Controls over financial reporting issued by ICAI.

The consulting firm has reviewed and documented the Internal Financial Controls for the group in the form of Entity Level Controls, Process Narratives and Risk and Control Matrix for all major processes and sub processes related to internal controls over financial reporting.

8. Corporate Social Responsibility

The Company s Corporate Social Responsibility (CSR) Policy encompasses the Company s philosophy for delineating its responsibility as corporate citizen and lays down the guidelines and mechanism for undertaking socially useful programs for the welfare & sustainable development of the community at large in alignment with the vision of the company. Company s CSR initiative strives to create and enhance value in the society and in the community in which it operates, through its services, conducts & initiatives, so as to promote sustained growth and development and welfare for the society and community at large, more specifically for the deprived and underprivileged persons. CSR Activities identified are related to the activities included in the Companies Act 2013 (the Act) and the Companies (CSR Policy Rules) 2014 and exclude the activities undertaken in the normal course of business as well as exclude projects or programs or activities that benefit only the employees of the Company and their families.

SMC spends 2.0% of its average net profits of three immediately preceding financial years on corporate social responsibility activities as required by the Companies Act 2013. SMC Global Securities Ltd. has a corporate social responsibility committee comprising of:

Shri Subhash Chand Aggarwal (Chairman & Managing Director-Chairman)

Shri Mahesh C Gupta (Vice Chairman & Managing Director- Member)

Shri Kundan Mal Agarwal (Independent Director-Member)

Our corporate social responsibility committee oversees CSR initiatives undertaken by our company. During the FY 2023-24, the group has spent 320.50 Lakhs (PY 244.99 Lakhs) on CSR activities.

9. Human Resources

The HR department has been at the forefront of driving organizational change and excellence over the past years. With a focus on talent acquisition, employee development, and fostering an inclusive culture, the team has implemented several transformative initiatives to propel our company forward.

The main objective of 2023-2024 was enhancing employee skill set, growth and getting the best resources onboard, creating a cradle of engaged happy employees. Highlighting the key functioning and new initiatives undertaken by the HR department over the 2023-2024 period:

A. Employee Benefits Health and Family

a) A great deal of work was put into ensuring the requirements under Standards for Better Health were met. Company paid group Mediclaim policy has been introduced which covers employees and their family members. Sum Insured has been decided on the basis of their job roles.

b) Similarly, company paid group term insurance has been introduced where family member of employees will receive Rs. 10 Lakh sum insure in case of any eventuality.

c) Both GMP & GTL are provided to confirmed employees.

B. Talent Management & Acquisition

a) Employer Branding & Recruitment: Employer branding revolutionized talent acquisition, attracting top candidates aligned with our values. Our funding on recruitment software and compelling brand story, amplified through strategic campaigns, boosted applications by 40%, securing high-caliber hires who drive innovation and propel organizational success.

b) Mass Hiring: The previous fiscal year witnessed unprecedented growth, necessitating a large-scale recruitment drive. With the increase of incessant growth in business opportunities, our team hiring has been augmented approximately by 43% talented professionals across various domains, bolstering our workforce and positioning us for continued success in the dynamic business landscape in 2023-2024.

c) Explicit Training Programs: At the heart of our organizations success lies a dedicated team committed to fostering continuous learning and professional development. The Training team has been instrumental in equipping our workforce with the skills and knowledge necessary to thrive in an ever-evolving business landscape.

The Training team has curated a robust portfolio of learning programs as:

The Induction Training Program for all the New Joiners across the Organization. It gives the overall idea about the Organization, Leadership and Business Portfolio.

The Training Program designed for augmentation of knowledge in Products and Services:

Abhinandan - Intensive Product Training - Both on Tech & Non Tech platforms.

The Training Programs designed for the Fresher hired across the Organization:

Buniyad - Basic Product Training Module.

Prarambh - Blend of Products, Selling Skills & Soft Skills specifically for Sales Professionals.

Cutting-Edge Learning Technologies Embracing the power of technology, the Training team has implemented a state-of-the-art Learning Management System (LMS) E-guru. This platform serves as a centralized hub for course delivery, tracking progress, and fostering peer-to-peer learning.

Continuous Improvement and Adaptation: The Training team is committed to continuously evaluating and improving its offerings. Regular feedback loops, learner analytics, and industry benchmarking inform the teams decisions, enabling them to adapt and refine their programs to meet the evolving needs of our organization and its employees.

C. Employee Engagement & Benefits:

Prioritizing employee well-being, comprehensive engagement initiatives and benefits fostered a supportive, inclusive culture. Robust wellness programs, recognition, and work-life balance policies boosted morale and retention.

1. Encourage Health and Wellness: SMC has always been at the front foot in organizing Health awareness and wellness campaign. The Blood Donation Camp exemplified our commitment to social responsibility and community care. Maximum employee participation showcased our spirit of selflessness, potentially saving numerous lives through this noble act of generosity.

2. Yoga Day Celebration: Yoga Day was celebrated on 21st June 2023, where the CMD of SMC Group, Mr. Subhash Chand Aggarwal motivated all the employees by leading the yoga session.

3. SMC Foundation Day Celebration: In a grand Pan-India celebration, our organization marked its 33rd Foundation Day, commemorating over three decades of growth, innovation, and unwavering commitment to success. The Foundation Day events not only celebrated our organizations remarkable journey but also acknowledged the invaluable contributions of our employees. From long-serving veterans to rising stars, individuals and teams who exemplified our core values and consistently delivered outstanding results were recognized for their invaluable contributions.

4. SAMARTHAN: On our organizations 33rd Foundation Day, we took a momentous step towards fulfilling our social responsibility by launching the "SAMARTHAN" initiative, which translates to "support" or "empowerment,". Through a holistic approach, encompassing education, healthcare, skill development, and livelihood opportunities, we aim to create a lasting impact and foster sustainable change. SAMARTHAN exemplifies our organizations commitment to giving back to society and leaving a lasting legacy that transcends mere business success.

Some of the key highlights of Samarthan campaigns include -

Visited NGO Salaam Baalak Trust

Celebration done at Blind School

Spreaded happiness at Arya Mahila Aashram

Rakhi Bazaar organized in coordination with Pragati Wheel school

Conducted Pan India Blanket drive, where over 2,000 blankets were distributed

Providing shelter for homeless strays

Cleanliness drive

5. Host Dandiya Night 2023: The

Dandiya Night celebration was a resounding success, fostering camaraderie and cultural appreciation. Employees from diverse backgrounds joyfully participated, immersing themselves in the vibrant festivities. This inclusive event boosted morale, strengthened bonds, and cultivated a sense of belongingness, reinforcing our organizations commitment to an engaged and cohesive workforce.

6. Ekal Run: A marathon initiative powered by SMC, towards a brighter future. Every step counts in this Marathon Run for a cause.

7. Host SGT (SMC Got Talent): An initiative by SMC to mark the hidden talents of our employees. Pan India participation received on categories like singing, dancing, mimicry, art, painting, sketching, yoga, martial arts etc. Winners were awarded with the cash prizes.

8. Host Tug of War: The fiercely contested Tug of War, organized by NSE, united employees in an exhilarating display of teamwork and determination. Transcending boundaries, cross-functional teams showcased incredible synergy, culminating in our hard-fought victory. This engaging activity fostered a spirited sense of camaraderie, bolstering morale and reinforcing our winning culture.

9. GOQII Challenge: To promote health awareness amongst the employees, SMC organized the fitness campaign in coordination with GOQII.

10. Corporate Tie up: Several corporate tie ups have been done with various business entities in health & telecom sectors wherein employee and their family members can avail benefits.

D. Awards & Recognitions:

Great Place to Work: Feb 2024 Feb 2025

Celebrating excellence in workplace culture, SMC has achieved the prestigious Great Place to Work certification. This recognition validates our unwavering commitment to fostering an inclusive, supportive, and employee-centric environment that empowers personal and professional growth.

Outlook Business Awards: Employers of the Future 2024

Proudly, we are amongst the top 30 companies shortlisted from 1000 participants. We are stepping ahead on the verge of Emerging Future Leaders.

OJAS Awards: In a resounding celebration of accomplishments, our organization hosted the prestigious OJAS Awards ceremony at Lucknow, honoring the remarkable achievements of individuals and teams from the North and South branches. The event commenced with a warm presence of our directors, guests from Exchanges and motivational speaker Mr. Venkatesh Maheshwari. Following the ceremony, a gala night and a spiritual visit to the iconic Ram Mandir in Ayodhya fostered camaraderie and cultural connectedness among the awardees.

LAKSHYA: Celebrating Excellence in Distribution, this annual event serves as a platform to recognize and applaud those who have outperformed and made exceptional contributions to our success in the previous financial year. Following the ceremony, the awardees were treated to a glamorous gala night, providing an opportunity to unwind, network, and strengthen bonds with their colleagues.

ZENITH: In a grand celebration of success, our organization hosted the prestigious ZENITH Awards ceremony in the vibrant city of Kolkata, honoring the remarkable contributions of individuals and teams from the East Zone. The highlight of the evening was the much-awaited awards ceremony, where individuals and teams were felicitated for their outstanding performance, unwavering dedication, and innovative approaches in driving business excellence.

KSHITIJ: In a spectacular display of achievement, our organization hosted the prestigious KSHITIJ Awards ceremony, honoring the remarkable contributions of individuals and teams from the West Zone. Following the ceremony, the awardees were treated to a dazzling Vegas-themed show in the picturesque hill station of Lonavala.

As we move forward, our organization remains steadfast in its commitment to driving growth, nurturing talent, and fostering a culture of excellence. With a focus on continuous learning and development, we will invest in cutting-edge training initiatives to equip our workforce with future-ready skills. Embracing innovation and technology, we will streamline processes and enhance operational efficiencies. Our dedication to diversity, equity, and inclusion will create an environment where every voice is heard and valued.

10. The Way Forward

Our IT infrastructure and business continuity processes have allowed us to respond to the situation quickly as it continues to evolve and we are expecting a better growth prospect in time to come. Improvement and expansion of our digital infrastructure, people and geographical reach shall continue to be key focus going forward. We have strengthened our IT infrastructure and will continue to progress on the roadmap of using digital, analytics and automation opportunities. We are focussing on leveraging technology and innovation to enhance our client s trading experience and to achieve this we have developed our in-house mobile trading application. Our HR policies are well aligned to motivate and retain existing employees and are rigorous as well as attractive enough to acquire new talent. We are also looking at further expanding in selective geographies which will help us to gain additional market share. Our financing business has grown at 33.89 % CAGR over last three years and we are confident to grow even faster, in future.

Broking, Distribution & Trading Segment

SMC is committed to empower its clients and APs with the latest technological advancements and to enable that were soon going to unveil our next-generation mobile app, offering a one-stop solution for trading, investing, and financial management. The app would have equities, mutual funds, IPOs, insurance, fixed deposits, and research all conveniently accessible from your pocket.

Furthermore, were revamping our website with a modern user experience and a robust back-office system. This, along with our seamless e-KYC platform, would foster a smoother onboarding experience for new clients.

Looking ahead, SMC is embracing the concept of mass wealth management. Our vision is for clients to effortlessly manage their entire investment portfolio stocks, mutual funds, insurance, and fixed income from a single, secure platform. Well also be equipping them with intuitive tools for goal-based investing and financial planning.

SMCs vast network of over 188 branches & 2,327 APs in around 437 cities/towns across India remains a core strength. Along with it, were strategically expanding our digital presence, aiming to significantly grow our online client base.

In essence, SMC is harnessing technology to deliver a comprehensive and future-proof financial ecosystem for all our stakeholders.

SMC Global is proud to be a clearing and trading member of the key exchanges within GIFT City, including the NSE International Exchange (NSE IX), India International Exchange (INX), and the India International Bullion Exchange (IIBX). This strategic positioning allows us to offer our clients with exciting new investment opportunities, such as trading the recently transitioned GIFT Nifty contract, leveraging the cost-effective environment for algorithmic and high-frequency trading (HFT) strategies, and exploring the potential of investing in US stocks through the IFSC platform, conveniently utilizing the Liberalised Remittance Scheme (LRS) framework. This expanded access allows you to diversify your investment portfolio and capitalize on global market opportunities.

Honourable Prime Minister Shri Narendra Modi envisioned Gift City to become a prominent financial hub that sets the price for globally traded instruments.

Financing (NBFC) Segment

We are focusing on expanding its operations across MSME clusters PAN INDIA. The company currently has more than 23 branches majorly in North and West India covering 8 states and 16 major cities. The Company has recently launched a new Gold Loan product and currently has 6 dedicated Gold Loan branches in Delhi. The company plans to open more Gold Branches across the Delhi NCR Region.

Our focus for the coming years would be on retail/MSME portfolio i.e. Gold Loan, Affordable LAP, SME-Asset Finance and SME-Working Capital Term Loan (WCTL).

Insurance Broking Segment

Our focus is on providing comprehensive coverage and excellent customer service to meet the diverse needs of our clients.

Additionally, we will invest in technology and automation to enhance our operational efficiency and deliver an exceptional customer experience.

We will be focussing on B2B segment through POS, MISP s and Alliances. We aim to increase our Alliances tie up to 100+.

We expect a steady growth in revenue over the next 5 years driven by an increase in the number of clients, higher premiums and improved cross selling efforts.

11. Disclaimer

All statements that address expectations or projections about future, but not limited to the company s strategy for growth, product development, market position, expenditures and financial results may be forward looking statements within the meaning of applicable rules and regulations. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realized. The company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events. There are various factors like conditions in global financial markets, regulatory intervention and other acts of violence which may lead to situations unpredictable for anyone.