SMC Global Securities Ltd Management Discussions

1. Overview & Outlook

1.1 Global and Indian Economy

The global economy, after stabilizing from a series of shocks, is now facing renewed uncertainty as governments reorder priorities and the long-standing global economic order undergoes a reset. Escalating trade tensions-driven by U.S. tariff hikes and retaliatory measures-have pushed global tariff rates to historic highs, fuelling policy unpredictability and slowing growth. Geopolitical instability remains the top-cited risk for the third consecutive year. The euro areas growth forecast is revised down to 0.8%, while China and others are relying on fiscal stimulus to mitigate the impact. Emerging markets are especially vulnerable, depending on how trade dynamics evolve. The IMF warns of a "major negative shock" to global growth, emphasizing that the path forward hinges on how nations manage rising risks and capitalize on opportunities in this shifting landscape.

India s economy remains in a Goldilocks phase, with strong growth and manageable macro risks despite global headwinds. FY26 is expected to see headline inflation ease to 4.0%, fiscal deficit narrow to 4.5% and current account deficit stay below 2%. However, India s resilient domestic demand, policy support, and reform momentum support a projected 6.5% real GDP growth through FY28. With nominal GDP set to cross USD 6 trillion by FY30,

India is on track to become the world s third-largest economy. Manufacturing, services exports, and digitalization will drive gains, but risks from job creation challenges and global volatility remain. Navigating the tariff war wisely could accelerate India s path to developed economy status.

1.2 Industry Structure and Developments- Capital Market

The Indian financial services sector is poised for strong growth in FY25 26, driven by steady economic expansion, rising credit demand, and deepening financial inclusion. Bank credit is projected to grow in the low double digits, led by the retail, SME, and services sectors. Asset quality continues to improve, with gross NPAs declining, while banks maintain robust capital adequacy and stable net interest margins. Despite tighter funding conditions, NBFCs are expected to maintain growth momentum, particularly in underpenetrated areas such as MSME and rural lending. Retail investor activity is rising steadily, supported by growth in demat accounts, mutual fund SIPs, and heightened interest in equities. Demat accounts crossed 194 million in FY2025, underscoring the growing appetite for financial assets and contributing to the financialization of household savings. Fintech innovations and regulatory initiatives such as UPI, Account Aggregators, and digital KYC are expanding access to credit, insurance, and wealth management, especially in underserved regions.

Going forward, capital markets are expected to remain resilient in FY25 26, backed by robust domestic flows and sustained retail participation. A shift in investor preference towards domestic-focused sectors is emerging amid global uncertainties. While valuations remain elevated, strong corporate earnings, stable macroeconomic fundamentals, and government focus on capex will likely support equity markets. However, external risks such as global financial volatility, interest rate shifts, and foreign portfolio outflows may create intermittent headwinds. Overall, the sector s outlook remains constructive, with structural reforms and digital transformation paving the way for inclusive and sustainable growth.

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), 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 2025

MCX Awards Leading Membership -Participating in futures-MCX 2024

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 nine subsidiaries 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., 2,147 (PY 2,327) authorized persons and sub brokers, SMC footprints cover nearly over 424 (PY

437) cities across India. SMC group employs more than 4,083 (PY 4,264) employees as on March 31, 2025, 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

Increasing our service/product portfolio through expanding our geographical 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, Insurance Broking & Discount broking business

Extensive corporate relationship.

3. Financials Performance Highlights

Table 3.a: Statement of Profit and Loss Consolidated

(in Lakhs)

Particulars	FY 2024-25	% to Total Income	FY 2023-24	% to Total Income
Total Income	1,78,572	100.00%	1,64,459	100.00%
Total Expenditure	1,59,369	89.25%	1,40,006	85.13%
Profit before tax	19,203	10.75%	24,449	14.87%
Less: Tax expense	4,522	2.53%	5,622	3.42%
Profit After Tax (PAT) Before Minority Interest	14,681	8.22%	18,828	11.45%
Total other comprehensive income for the Year	87	0.05%	82	0.05%
Total comprehensive income for the Year	14,768	8.27%	18,910	11.50%
Share of Minority Interest in Profit (Loss)	112	0.06%	100	0.06%
Net Profit After Tax and Minority Interest	14,569	8.16%	18,728	11.39%
Earnings per Share (Basic) (FV 2 ) In " "	13.92		17.89

Table 3.b: Statement of Profit and Loss Standalone

(in Lakhs)

Particulars	FY 2024-25	% to Total Income	FY 2023-24	% to Total Income
Total Income	95,538	100.00%	88,346	100.00%
Total Expenditure	82,421	86.27%	70,351	79.63%
Profit before tax	13,117	13.73%	17,994	20.37%
Less: Tax expense	2,591	2.71%	3,892	4.41%
Profit After Tax (PAT)	10,526	11.02%	14,103	15.96%
Total other comprehensive income for the Year	(137)	(0.14%)	(10)	(0.01%)
Total comprehensive income for the Year	10,389	10.87%	14,093	15.95%
Earnings per Share (Basic) (FV 2) In " "	10.05		13.47

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 2024-25 and FY 2023-24 is tabulated below:

Table 3.c: Segment-wise Performance- Consolidated

(in Lakhs)

	Year Ended
Particulars	March 31, 2025	March 31, 2024
Segment Revenue
(1) Broking, distribution and trading	1,04,454	96,145
(2) Insurance broking services	57,025	52,829
(3) Financing activities	22,262	20,571
Total	1,83,741	1,69,545
Less: Inter Segment Revenue	5,169	5,086
Total Revenue	1,78,572	1,64,459
Segment Profit/(Loss) before tax
(1) Broking, distribution and trading	24,687	25,311
(2) Insurance broking services	1,363	1,336
(3) Financing activities	13,849	13,350
Total	39,899	39,997
Less: Interest	20,696	15,548
Total Profit/(Loss) Before Tax	19,203	24,449

Table 3.d Performance of Material Subsidiaries- Standalone (for the year ended March 31, 2025)

(in Lakhs)

Company Name	Total Income	Profit before tax	Profit after Tax
Moneywise Financial Services Private Limited	22,262	6,057	4,631
SMC Insurance Brokers Private Limited	57,025	1,488	1,117

3.2 Business Performance Highlights Segment 1 1(a). Broking, Distribution & Trading

Equity, Currency and Commodity Broking

SMC on a standalone basis has been successful in generating a revenue from operation of 924.29 crores (PY 853.15 crores) increased by 8% as compared to previous year. Total number of clients in this segment are 11,68,860 (PY 10,48,334).

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

- Focus on increasing FPI & NRI accounts. Actively participating in international conferences along with Indian Exchanges

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 can subscribe to the platform and trade unlimited. 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, 2025, total clients are 2,62,951 (PY 2,39,619) and numbers of partners associated are 3711 (PY 3,319). Recently STOXKART launched "SMART TRADER" plan which will facilitate a greater market share for the company.

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 Exchange at Gift City and DGCX (Dubai Gold & commodity Exchange in UAE)

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 6,748 (PY 7,040) for distribution of third-party products.

Built a cumulative Asset under Management (AUM) of around 4,178 crores (PY 3,801 crores) and having number of running SIP more than 86,815 (PY 72,885) as on March 31, 2025.

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

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 24-25 stood at 10,19,884 as compared to 9,95,979 policies in FY 23-24. SMC Insurance Brokers Pvt Ltd has a huge network of 16,022 (PY 15,308) POS (Point of Sales) Person and 348 (PY 311) MISP (Motor Insurance Service Provider) registered with the entity for solicitation of insurance as at 31 March 2025.

During the year under review, the total income stood at 57,025 Lakhs as compared to 52,829 Lakhs in previous

Sphere

Total Clients served are 11,763

We manage 9,477 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 year, an increase in revenue by 7.94% as compared to previous year.

Segment 3

Financing Business

Moneywise Financial Services Private Limited (MWFS) is registered with RBI and is classified as an NBFC- Investment and Credit Company (NBFC-ICC). Pursuant to Scale Based Regulation (SBR) put forth by RBI in October 2023, it has been categorised as a Middle Layer NBFCs (NBFC-ML)

MWFS offers wide spectrum of financial products like SME Micro LAP, SME Equipment Finance (Medical & Industrial Equipment), SME WCTL (Unsecured Business Loans), Gold Loans, Onward-lending (lending to NBFC) and loan against securities. The AUM is well diversified across products and geographies, predominantly in 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.

MSME clusters. It continues to have long term credit rating of "A-" (Stable) from CARE, "A- "(Stable) from ICRA and IVR A/Stable from Infomerics.

The Assets under Management (AUM) stood at 1291 crore as on March 31, 2025. The total number of employee headcount stood at 488 and number of branches stood at 41 as on March 31, 2025. Over the last three years, MWFS has demonstrated AUM growth at CAGR of 23.19% and revenue growth at CAGR of 30.84%. MWFS enjoys a capital adequacy of 36.98 %, which is well above the RBI norms. The Gross & Net NPA ratio stood at 3.55% and 2.22 % respectively as on March 31, 2025.

MWFS plans to increase the secured portfolio in forthcoming years primarily driven by increase in portfolio of SME Micro LAP, SME Equipment Finance & Gold Loans.

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

Particulars	FY 2025	FY 2024
Return on Average Equity	12.70%	18.56%
EBIT Margins	22.47%	24.41%
Net profit Margins	8.27%	11.49%
Debt equity Ratio	1.36	1.30
Interest Coverage Ratio	1.92	2.57

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.

We face competition in our businesses, which may limit our growth and prospects.

The Indian securities industry is fragmented and typified by low barriers to entry. Accordingly, we face competition from companies seeking to attract our clients financial assets. We compete with, amongst others, Indian and foreign brokerage houses. We compete on the basis of a number of factors, including execution, depth of product and service offerings, innovation, reputation, price and convenience. In addition, with technology advancement and advent of many of the new age discount stock brokers, younger generation investors are losing interest in traditional and conventional stock brokers. If we are not able to upscale our technology and our products, we may stand to lose to these new age players, thus impacting our number of clients base and thus the margins.

Further, many of our product and service offerings in the brokerage and distribution businesses are easy to replicate. This increases the risk of competition from commercial banks, service providers and distribution platforms to enter the market. Further, any consolidation in the Indian securities industry would also expose us to competitive pressures. These competitive pressures may affect our business, and our growth will largely depend on our ability to respond in an effective and timely manner to these competitive pressures. Our business, financial condition, cash flows, results of operations and prospects may be materially and adversely affected if we are not able to maintain our market position, sustain our growth, develop new products or target new markets. In addition, competitive pressures and regulatory changes may also lead to downward pressures on our brokerage commission rates, which could also affect our financial condition and results or operations.

Further, we use technology in almost every aspect of our business, including sales, risk management, fraud detection, compliance, client service and settlement. The Indian financial services industry (including securities industry) is undergoing technological and other changes. Our competitors could utilise technology, big data and innovation to simplify and improve the client experience, increase efficiencies, redesign products, improve client targeting, alter business models more effectively than or to effect disruptive changes in the Indian financial services industry. If we do not anticipate, innovate, keep pace with, and adapt to, technological and other changes impacting the Indian financial services industry, it could harm our ability to compete in the market, decrease the attractiveness of our products to clients and materially and adversely affect our business, financial condition and results of operations.

General economic and market conditions in India and globally could have a material adverse effect on our business, financial condition, cash flows, results of operations and prospects.

Our business is highly dependent on economic and market conditions in India. General economic and political conditions in India, such as macroeconomic and monetary policies, industry-specific trends, mergers and acquisitions activity, legislation and regulations relating to the financial and securities industries, household savings rate, investment in alternative financial instruments, upward and downward trends in the market, business and financial sectors, volatility in security prices, perceived lack of attractiveness of the Indian capital markets, inflation, consumer confidence, currency and interest rate fluctuations, availability of short-term and long-term market funding sources and cost of funding, could affect our business. Global economic and political conditions may also adversely affect the Indian economic conditions.

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.

We are subject to extensive statutory and regulatory requirements and supervision and operate in a highly regulated environment, which is subject to change, and existing and new laws, regulations and government policies affecting the sectors in which we operate could adversely affect our business, financial condition and results of operations.

Our Company is registered with SEBI under the Stock Brokers and Sub Brokers Regulations, 1992 and is a member of BSE, NSE, MCX and NCDEX. Our Company is also registered with CDSL and NSDL in the capacity of depository participant. Further, we are also registered with other regulatory agencies including, inter alia RBI, IRDAI, Association of Mutual Funds in India, RERA, CERSAI, KYC Registration Agencies and NSDL Database Management Limited, etc. To undertake some of our business activities, including for the launch of new products, we may need to obtain registrations and approvals under, and comply with, regulations issued by various regulatory authorities, including, SEBI, IRDAI, NSDL, CDSL, BSE, NSE, MCX and NCDEX from time to time. Such regulations include the SEBI Depositories and Participants Regulations, SEBI Stockbrokers Regulations, SEBI Mutual Funds Regulations, AMFI Guidelines, IRDAI Registrations of Corporate Agents Regulations, 2015 and Real Estate (Regulation and Development) Act, 2016. Additionally, we need to ensure compliance with various statutes, such as the SCRA read with the SCRR, the SEBI Act, and various rules, regulations, notifications and circulars issued under such statutes. In addition, our business operations are subject to regulatory limits on brokerage fee rates and net worth requirements imposed by the Stock Exchanges.

We believe that significant regulatory changes in our industry are likely to continue, which is likely to subject industry participants to additional and generally more stringent regulations. The requirements imposed by our regulators are designed to ensure the integrity of the financial markets and to protect investors and other third parties who deal with us and may not always coincide with the interests of our shareholders. Consequently, these regulations may serve to limit our activities and/or increase our costs, including through investor protection, compliance management and market conduct requirements. We may also be adversely affected by changes in the interpretation or enforcement of existing laws and rules by various governmental authorities and self-regulatory organizations.

Though we ensure compliance with applicable law including various acts, rules, regulations and circulars issued by SEBI and other applicable regulatory authorities relating to our activities including margin trading, we cannot assure you that the Government or the regulatory authorities will not take different interpretations regarding applicability of, or compliance with, the laws and regulatory framework governing our business. We may be unable to obtain, maintain or renew, or comply with the terms of, the regulatory approvals and registrations applicable to our business activities, and this may have adverse consequences for our business operations. In such an event, we may also be subject to regulatory action, including fines, suspension or termination of approvals or registrations, or restrictions on undertaking all or some of our business activities.

Additionally, the laws applicable to our business continue to evolve and may be amended, revised, or replaced in the future by the Government or regulatory authorities, or due to judicial decisions. Due to the nature of business activities undertaken by us, our employees are also required to comply with various regulations, such as SEBI Insider Trading Regulations, SEBI Stock Brokers Regulations, etc. Even though we have established an internal framework to monitor the conduct of our employees, we cannot assure you that none of our employees will violate the provisions of applicable law in the course of their employment with us or that all such violations would be detected by us in a timely manner, or at all. Any violation of applicable laws by our employees related to their employment with us may affect our business operations.

Our operations rely heavily on the effectiveness of our IT systems and their ability to record and process accurately a large number of transactions on a daily basis and in a timely manner to provide a seamless digital experience to our clients. While we are compliant with the circulars on Cyber Security & Cyber Resilience framework for Stock Brokers/ Depository Participants dated December 3, 2018, March 15, 2019, October 15, 2019, June 7, 2022 and June 30, 2022 issued by SEBI, we have recognised and continue to address the need to have sophisticated technology systems in place to meet our clients requirements. A prolonged disruption of, or failure of, our information processing or communications systems would limit our ability to process transactions. In the last three financial years, there have been few technical disruptions, however, these did not materially impact the operations of our Company. We cannot assure you that a similar or material disruption may not occur in the future, thereby materially affecting our competitiveness, financial condition, cash flows and results of operations.

The operation of our businesses is highly dependent on information technology, and we are subject to risks arising from any failure of, or inadequacies in, our IT systems.

Our Company recognizes the criticality and need of its business and understands the importance of the availability of its information, information systems and processing facilities. In case of man-made or natural disaster, it is essential that our Company is prepared to re-establish business or services as swiftly and smoothly as possible, thus ensuring minimal loss or disruption. Our system for processing securities transactions is automated and we rely heavily on the ability of our trading system to handle a large number of transactions. While we regularly monitor and upgrade the capacity of our trading system and conduct mock tests in anticipation of high volumes of transactions, we cannot assure you that we will be able to process all trading orders at a time of increased demand, including due to increased market volatility. If we are unable to efficiently process all trading orders received, we may lose clients, become subject to client complaints, litigation or regulatory action, face financial losses and may adversely affect our reputation. Although we back up our business data regularly and have a business continuity and disaster management policy, we cannot assure you that there will not be an unforeseen circumstance or that our disaster recovery planning is adequate for all eventualities.

The securities industry is characterized by rapidly changing technology and the future success of our business will depend in part on our ability to effectively adapt to technological advances and to emerging industry standards and practices on a cost-effective basis. Web platforms and mobile applications are popular among clients due to their convenience and user-friendliness. We rely heavily on technology and rely on our electronic brokerage platform and mobile apps to provide a wide range of brokerage and distribution services. If we are unable to effectively compete on IT-enabled offerings, it could have a material adverse effect on our business, financial condition, cash flows, results of operations and prospects.

System failures or inadequacy and security breaches in computer systems may adversely affect our business. We face the threat of fraud and cyber-attacks, such as hacking, phishing, trojans and other threats, attempting to exploit our network to disrupt services to customers and/or theft of sensitive internal company data or customer information. This may cause damage to our reputation and adversely impact our business and financial results. Our technology operations are also vulnerable to disruptions from human error, catastrophic events including natural disasters, lack of capacity during peak trading times or times of unusual market volatility, power failure, computer viruses, spam attacks, ransom ware, distributed denial of services attacks, unauthorized access, data leakage and other similar events, and we may not be able to adapt to the evolving technology in the industry. Disruptions such as hacker attacks, frauds, virus or worm infestation of our IT systems, or an internal problem with information protection, such as failure to control access to sensitive systems, could materially interrupt our business operations or cause disclosure or modification of sensitive or confidential information and could harm our business, reputation and prospects.

The proper functioning of our internet-based trading system, order routing system, back-office systems, settlement system, risk management system, financial controls, accounting, client database, client service and other data processing systems, together with the communications networks linking our IT systems with relevant exchanges, banks, depositories, registrar and transfer agents and client interfaces, is critical to our business and our ability to compete effectively. Our business activities would be materially disrupted in the event of a partial or complete failure of any of these IT systems, communication networks or their backup systems and procedures.

Risk Factors Related to Technological Competitiveness and Mobile App Performance

Our business heavily relies on the robustness, efficiency, and competitiveness of our technological applications and platform, including our mobile app based and web based services and solutions. The financial technology landscape is rapidly evolving, with continuous advancements and innovations. Our ability to remain competitive and attract clients depends significantly on the quality and functionality of our technological offerings. However, several risks are associated with this dependency: The fast-paced nature of technological advancements means that our current mobile apps and platform features may become outdated quickly. If we fail to continuously innovate and upgrade our technology to meet evolving market standards and client expectations, we risk losing our competitive edge.

Competitors with more advanced and user-friendly platforms may attract our clients, leading to a potential loss of market share. Our clients expect seamless, reliable, and efficient mobile applications for their trading activities. Any issues related to the performance, speed, user interface, or security of our apps can significantly impact user satisfaction. Negative user experiences can lead to client attrition, adverse reviews, and a damaged reputation, making it challenging to attract and retain clients. The financial services sector is a prime target for cyberattacks.

Any security breaches, data leaks, or vulnerabilities in our mobile apps and technical platform can result in substantial financial losses, legal liabilities, and regulatory penalties. Ensuring robust security measures requires continuous investment and monitoring, which can strain our resources. As technology evolves, ensuring compatibility and seamless integration with other financial systems and third-party applications becomes increasingly complex. Any failures in integration can disrupt client operations, leading to dissatisfaction and potential loss of business. Staying competitive in the technology space requires significant ongoing investments in research and development, platform enhancements, and regular maintenance. These costs can impact our profitability and financial stability, especially if the investments do not yield the expected returns in terms of client acquisition and retention. The perception of our technological capabilities influences our market position. Competitors continuously improving their platforms can create pressure to match or exceed their offerings. Failure to do so can result in a perception of inferiority, affecting our ability to compete effectively.

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 Dinesh Kumar Sarraf

(Chairman & independent Director (the Non-Executive Independent Director of the Company and has been associated with our Company since August 9, 2023. He holds a bachelor s in commerce from the University of Delhi from the year 1976, and also holds a master s in commerce from the University of Delhi from the year 1983. He is member of Institute of Company Secretaries of India since 1991, and the Institute of Cost and Works Accountants of India since the year 1983. He has been associated with Oil and Natural Gas Corporation Limited, where he held various position including Director (Finance), Group CFO and also Chairman & Managing Director from 2014 to 2017. Mr. Sarraf has served as the Chairperson of the Petroleum and Natural Gas Regulatory Board from 2017 to 2020. He was also associated with the UN Global Compact Network- India as President, with the Federation of Indian Petroleum Industry (FIPI) as Chairman, with Bharat Lok Shiksha Parishad (of Ekal Foundation) as Trustee, with Council of Scientific and Industrial Research (CSIR) as Member of Governing Body and currently he is associated with Indian Institute of Petroleum of CSIR as Chairman-Research Council.)

Shri Naveen ND Gupta (Non-Executive and Independent Director of the Company and has been associated with our Company since January 31, 2018. He holds a bachelor s in commerce from the University of Delhi from the year 1993. He is also a fellow member of the Institute of Chartered

Accountants of India since 2001. He has been associated with the Institute of Chartered Accountants of India as a President. He was formerly the Chairman of Shaheed Sukhdev College of Business Studies, Delhi University. He has been a category A member on the Board of International Federation of Accountants, New York, USA a federation of accounting regulators of 176 countries. He has also been a part of the Board of South Asian Federation of Accountants (Apex body of SAARC) and Confederation of Asian and Pacific Accountants, Manila from the year 2018-2019, and a member of the board of the Insurance Regulatory Development Authority from the year 2018 to 2019. He is Chairman of Corporate Affairs Committee of PHD Chamber of Commerce and Industry.)

Shri Hemant Bhargava (the Non-Executive Independent Director of the Company and has been associated with our Company since August 9, 2023. He also holds a master s in economics from Lucknow University from the year 1982. He has been on the Board of the National Mutual Fund, Mauritius. He has also been associated with LIC as the country head for LIC Mauritius and founded the "Indo-Mauritian Business Group". He was the founding CEO of LIC Cards Services Company for credit cards business. He has over 35 years professional experience with expertise in finance and insurance. He was on the Boards of Larsen & Toubro Limited from July 2018 to May 2024 and currently is on the

Boards of ITC Limited, UGRO Capital Limited, Wealth Company Asset Management Holdings Private Limited and Providence Life Limited PCC, Mauritius.)

Shri Narendra Kumar (the Non- Executive Independent Director of the Company and has been associated with our Company since September 16, 2022. He is a retired I.A.S (AGMUT Cadre 1988), C.A. I.I.B. (Certified Associate of Indian Institute of Bankers, Bombay), from the year 1987. He holds a Bachelors and master s in commerce degree from the University of Delhi, from the year 1979 and 1982 respectively. He served as the Financial Commissioner (Government of NCT of Delhi), the Managing Director of Delhi State Financial & Development Corporation, the Probationary Officer of SBI in 1980. Apart from this, he was an election commissioner of Union Territories of Andaman and Nicobar Islands, Lakshadweep, Dadra Nagar Haveli and Daman & Diu. He has over three decades of experience in various sectors of the Government.)

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 during 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),

Shri Mahesh Chand Gupta (Vice Chairman) and Shri Dinesh Kumar Sarraf

(Independent Director).

Our corporate social responsibility committee oversees CSR initiatives undertaken by our company. During the FY 2024-25, the group has spent 404.65 Lakhs (PY 320.50 Lakhs) on CSR activities.

9. Human Resources

Over the past year, the HR department has played a pivotal role in spearheading organizational transformation and driving excellence. With a strong emphasis on talent acquisition, employee development, and nurturing an inclusive workplace culture, the team has launched several impactful initiatives to advance the company s strategic goals.

For the 2024 2025 period, the primary objective was to enhance employee skillsets, support professional growth, and attract top-tier talent ultimately cultivating a workforce of engaged and satisfied employees. Below is an overview of the department s key functions and the new initiatives introduced during this time:

A. Talent Acquisition & Management

a) Organizational Branding & Talent Acquisition:

Employer branding has played a transformative role in redefining our talent acquisition strategy, positioning us as an employer of choice in a competitive market. By clearly articulating our organizational values, work culture, and employee value proposition, we were able to attract candidates who not only possess strong technical competencies but also align with our mission and vision.

To support this shift, we invested in advanced recruitment software that streamlined hiring processes, enhanced candidate experience, and provided actionable analytics to optimize sourcing strategies. Our refreshed brand story was strategically communicated through targeted digital campaigns, employee testimonials, and social media engagement, significantly amplifying our reach and visibility.

These efforts led to a remarkable increase in high-quality applications year-over-year. More importantly, the calibre of talent we attracted has directly contributed to business innovation, enhanced team performance, and long-term organizational growth. The success of our employer branding strategy has demonstrated that aligning talent attraction with authentic brand representation is key to building a resilient and forward-looking workforce.

b) Strategic Workforce Expansion:

The previous fiscal year marked a period of exceptional and sustained growth, which necessitated a large-scale recruitment initiative to support our expanding operations and seize emerging business opportunities. With consistent growth across verticals and increased client demands, it became imperative to scale our teams to ensure operational excellence and maintain service quality.

In response, we strategically increased our hiring efforts, resulting in significant growth in workforce strength. This included the onboarding of highly skilled professionals across various functions such as technology, operations, finance, HR, and customer engagement. Our focus was not only on increasing headcount but also on quality hiring.

This significant expansion has bolstered our delivery capacity, improved agility, and enhanced our ability to respond to new market demands. The reinforced talent base positions us strongly for sustained success and competitiveness in the dynamic business for 2024 2025.

c) Structured Training Programs:

At the core of our organizations success is a dedicated team focused on fostering continuous learning and professional development. The Training team has been pivotal in equipping our workforce with the essential skills, knowledge, and capabilities needed to excel in an ever-evolving business environment. By identifying emerging trends and responding to business needs, the team ensures our employees stay ahead of industry shifts and equipped to tackle new challenges.

Through strategic planning and collaboration with various departments, the Training team has curated a comprehensive and diverse portfolio of learning programs designed to support both individual growth and organizational objectives. These programs span various areas, including:

a. Leadership Development:

Tailored courses aimed at nurturing current and future leaders, focusing on strategic thinking, decision-making, and team management.

b. Technical Skills Training

Specialized programs to enhance expertise in key areas such as data analysis, software proficiency, and advanced problem-solving techniques.

c. Soft Skills Workshops:

Interactive sessions focusing on communication, teamwork, emotional intelligence, and conflict resolution to foster a collaborative and positive workplace culture.

d. Compliance and Industry-Specific Certifications:

Ensuring employees stay compliant with industry regulations and earn necessary certifications to maintain operational excellence.

e. Personal Development and Wellness:

Programs designed to support employee well-being, work-life balance, and career advancement, empowering individuals to thrive both professionally and personally.

f. Induction Training Program :

For all new hires across the organization, providing a comprehensive overview of the companys structure, leadership, and business portfolio.

g. Training Programs focused on enhancing knowledge of Products and Services:

i. Abhinandan: An intensive product training program that covers both technical and nontechnical platforms.

h. Training Programs tailored for new graduates and entry-level employees across the organization:

i. Buniyad: A foundational product training module aimed at building core knowledge.

ii. Prarambh: A comprehensive program that blends product knowledge, selling skills, and soft skills, specifically designed for sales professionals.

These initiatives are not only designed to address current skill gaps but also to prepare our team for future growth and the challenges of tomorrow s business landscape.

i. Advanced Learning Technologies:

Leveraging the power of innovation, the Training team has introduced a cutting-edge Learning Management System (LMS), E-guru. This platform serves as a centralized hub for course delivery, progress tracking, and encourages collaborative peer-to-peer learning.

j. Ongoing Enhancement and Adaptation: The Training team is dedicated to the continuous evaluation and enhancement of its programs. By incorporating regular feedback, learner analytics, and industry best practices, the team ensures its offerings remain dynamic and relevant, effectively addressing the evolving needs of both the organization and its employees.

B. Employee Benefits Health and Family:

a. Significant efforts were undertaken to ensure compliance with the Standards for Better Health. As part of this initiative, a company-sponsored Group Mediclaim Policy was introduced, offering coverage for employees and their family members.

b. In a similar vein, the company has also launched a fully paid Group Term Life Insurance policy. Under this scheme, in the unfortunate event of an employees demise, their nominated family member will receive the policy amount.

c. Both the Group Mediclaim Policy (GMP) and Group Term Life Insurance (GTL) are available to all confirmed 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. SMC Foundation Day Celebration:

To mark the milestone of our 34th Foundation Day, a coordinated plantation drive was organized across all regional offices and operational sites. This initiative was a reflection of our ongoing commitment to environmental sustainability, ecological balance, and social responsibility.

Over 2,000 saplings were planted by employees, volunteers, and community members, covering diverse locations including corporate premises, local parks, and nearby communities. The selected saplings were chosen based on regional climate and environmental suitability to ensure long-term growth and positive ecological impact.

The drive not only strengthened our green footprint but also fostered a sense of unity and purpose among employees, encouraging them to contribute toward a greener future. The initiative was widely appreciated and aligned with our larger ESG

(Environmental, Social, and Governance) goals, reinforcing our role as a responsible corporate citizen.

2. 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.

3. Yoga Day Celebration: Yoga Day was celebrated where the CMD of SMC Group, Mr. Subhash Chand Aggarwal motivated all the employees by leading the yoga session.

4. SAMARTHAN:

In line with our ongoing commitment to social responsibility, we are proud to continue the "SAMARTHAN" initiative. This program highlights SMCs dedication to giving back to society and creating a lasting impact, going beyond business success to leave a meaningful legacy.

a. Social Impact Program for Children with Special Needs and Limited Means

In a heartwarming initiative to promote inclusion and community engagement, children from underprivileged backgrounds and those with special needs were invited to exhibit and sell their handmade crafts during festivals such as Rakshabandhan and Mother s Day across various office locations.

The initiative aimed to empower these young artisans by providing a platform to display their creativity, generate income, and foster awareness among employees about the importance of supporting inclusive and diverse communities. The event was met with enthusiastic participation and served as a meaningful celebration of talent and compassion.

b. Clothing Donation Drive at a School for Underprivileged Children

As part of our continued commitment to social responsibility, we organized a Clothing Donation Drive at a local school for underprivileged children. The initiative aimed to provide essential clothing to students from economically disadvantaged backgrounds, ensuring they have access to clean and appropriate attire for daily life.

Employees actively participated by contributing gently used and new clothes, reflecting a strong spirit of compassion and community support. The drive not only addressed a basic need but also brought smiles and a sense of dignity to the young recipients. This small yet meaningful gesture reinforces our belief in making a positive difference beyond the workplace.

c. Cleanliness drive

The company organized a Cleanliness Drive aimed at promoting environmental sustainability and fostering a cleaner, healthier community. Employees across various locations participated in cleaning activities, including waste collection, segregating recyclables, and maintaining cleanliness in local neighborhoods and public spaces.

This initiative not only helps reduce environmental impact but also encourages employees to contribute to the well-being of their surroundings. Through this drive, we reinforce our commitment to creating a positive and lasting difference in the communities we serve.

5. SMC Dhamal - 2024:

To celebrate our achievements and foster team bonding, the company hosted an exciting SMC Dhamal event, where employees and their family members came together for an evening of music, dancing, and fun. The event featured a lively DJ performance, creating a vibrant atmosphere for everyone to enjoy.

In addition to the music, the company arranged for a delicious spread of food, ensuring that all attendees had a memorable experience. The night was filled with laughter, games, and various fun activities, strengthening the sense of community and camaraderie among employees and their families.

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

7. Tug of War:

The fiercely contested Tug of War, organized by NSE, brought employees together in an exciting showcase of teamwork and determination. Teams from different functions worked seamlessly, transcending boundaries to demonstrate remarkable synergy. After a hard-fought competition, SMC emerged victorious once again, claiming the Tug of War trophy. This spirited activity not only fostered camaraderie among employees but also boosted morale and reinforced our organizations culture of success and teamwork.

8. 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.

9. Heath check up camps:

As part of our commitment to employee well-being, we regularly organize Health Check-Up Camps to ensure the physical and mental health of our workforce. These camps offer employees convenient access to essential health screenings, including blood pressure, cholesterol, diabetes checks, and general wellness assessments.

By prioritizing preventive healthcare, we aim to support our employees in maintaining a healthy work-life balance, identifying potential health concerns early, and promoting a culture of well-being within the organization.

D. Awards & Recognitions: a. Great Place to Work: Jan 2025 Jan 2026

SMC has one again earned the prestigious Great Place to Work certification for the period of Jan 2025 - Jan 2026. This recognition highlights our unwavering commitment to cultivating a workplace where employees feel valued, supported, and empowered. It is a testament to our continuous efforts in fostering an inclusive culture, prioritizing employee well-being, and promoting professional growth.

Our dedication to creating a collaborative, transparent, and engaging work environment enables individuals to thrive, contribute their best, and achieve their personal and career goals. This certification reflects not only the strength of our workplace culture but also our focus on employee satisfaction, development, and overall success.

b. BW 50HR under 50

SMC has been recognized with the prestigious BW 50HR Under 50 award. This accolade highlights the exceptional contributions and achievements of our human resources leadership. It acknowledges the innovative approaches, strategic initiatives, and impactful programs that have helped shape a dynamic and high-performing workforce within our organization.

This recognition is a testament to our continuous efforts to foster talent, promote employee engagement, and create a culture of growth and inclusion. It reinforces our commitment to nurturing the leaders of tomorrow and positioning SMC as a trailblazer in the industry.

c. OJAS Awards:

In a resounding celebration of accomplishments, our organization hosted the prestigious OJAS Awards ceremony at Lucknow, honouring the remarkable achievements of individuals and teams from the North and South branches. The event commenced with a warm presence of our directors. 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.

d. LAKSHYA Awards:

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.

As we move forward into the future, our organization remains unwavering in its commitment to driving sustained growth, nurturing the potential of our people, and fostering a culture rooted in excellence. With a deep focus on continuous learning and development, we will invest in state-of-the-art training initiatives and leadership development programs to ensure our workforce is equipped with the skills and knowledge to thrive in an ever-evolving business landscape.

By embracing innovation and leveraging cutting-edge technology, we will streamline processes, enhance operational efficiencies, and stay ahead of industry trends. This proactive approach will allow us to deliver better results, optimize resources, and provide a seamless experience for both our employees and clients.

In addition, our commitment to diversity, equity, and inclusion (DEI) remains a top priority. We will continue to build a workplace where diversity is celebrated, and every voice is not only heard but valued. Through targeted initiatives, inclusive policies, and support systems, we will create an environment that fosters collaboration, respect, and equal opportunities for all.

As we look to the future, these pillars of growth, innovation, and inclusivity will guide us in shaping a thriving, resilient, and forward-thinking organization

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 I.T. infrastructure and will continue to progress on the roadmap of using digital, analytics and automation opportunities. We are focusing 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 23.19 % 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 eKYC 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 208 branches & 2,147 APs in around 424 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

MWFS offers wide spectrum of financial products like SME Micro LAP, SME Equipment Finance (Medical & Industrial Equipment), SME WCTL (Unsecured Business Loans), Gold Loans, Onward-lending (lending to NBFC) and loan against securities.

MWFS plans to increase the secured portfolio in forthcoming years primarily driven by increase in portfolio of SME Micro LAP, SME Equipment Finance & Gold Loans.

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.