SW Investments Ltd Management Discussions

MANAGEMENT AND DISCUSSION ANALYSIS OVERVIEW

The Management Discussion and Analysis Report has been prepared in accordance with the provisions of Regulation 34(2)(e) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule V Para B thereto, with a view to provide an analysis of the business and Financial Statements of the Company for FY 2023-24 and should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Report and Annual Accounts FY 2023-24. The objective of this Report is to convey the Managements perspective on the external environment and Service industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during FY 2023-24. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (SEBI) from time to time.

INDUSTRY STRUCTURE AND DEVELOPMENTS

A. Global Economy

The global economy demonstrated robust growth over the last year, defying widespread recession fears that loomed over developed nations in 2023. Throughout the past seven quarters, systemically important G20 nations have maintained an average growth rate of approximately 2.5%. This performance aligns closely with the pre-Covid-19 pandemic growth levels, underscoring a resilient global economic landscape.

However, the growth narrative was not uniform across the board. While some European countries like Germany and the United Kingdom faced economic contractions, emerging markets exhibited a more dynamic trajectory. Notably, countries such as Russia, China, and Indonesia reported significantly higher growth rates. India, in particular, emerged as a frontrunner, leading the growth charge among its peers.

Even the United States, where a recession was widely anticipated, managed to outperform expectations, further contributing to a positive global economic outlook. This diverse economic performance across various regions highlights the complex interplay of regional policies, market dynamics, and consumer behaviours influencing the global economy.

As we navigate the evolving economic conditions, it is imperative for businesses and investors to consider these disparities and their potential implications on global markets and investment strategies.

B. Indian Economy

The Indian economy has witnessed profound positive transformation in the last ten years. The Indian economy has showed resilience and strong growth across sectors and continues to be among the fastest growing economies in the world. The accelerated pace of economic reforms and strong domestic consumption have led to higher and sustainable growth of the Indian economy and strengthened its position in the world. The geopolitical tensions, supply chain disruptions, high inflation, and tighter monetary conditions were some of the challenges for the economic recovery.

OPPORTUNITIES AND THREATS

Your Company is committed to addressing the changes boosted by its strengths in market position, agile execution capabilities, robust early warning systems and extensive use of analytics for risk mitigation and resource allocation. It will ensure to take advantage of the tailwinds that may emerge during the course of the year. The stringent regulatory norms governing the functioning of the business sector and certain government restrictions acts as hindrance in smooth functioning of Business.

SEGMENT WISE / PRODUCT WISE PERFORMANCE

The Company is engaged in investment activities during the year under review, hence the requirement of segment-wise reporting is considered irrelevant.

OUTLOOK

SW Investments Limited being an investment company seeks opportunities in the capital market. While interest rates were steady in FY 2023-34, the same are expected to decline in the FY 2024-25. The volatility in stock indices represents both an opportunity and challenge for the Company. We continue to see significant volatility in the market and will use periods of weakness as investment opportunities for long term.

The Companys growth prospects remain positive as it is well equipped to handle any exigency. The Company is consistently adding its revenue sources while containing costs and work upon disruptions to its advantage. The Company has adequate capital and financial resources to run its business operations and has adequate internal financial reporting and control.

BUSINESS OVERVIEW

The Company is an Investment Company holds ? 253.15 lakhs of its assets in form of investment in Equity shares and Debentures. The thrust of the business is to hold and continue to hold securities in various companies.

RISKS AND CONCERNS

Capital market activities in which most of the activities depend on is also influenced by global events and hence there is an amount of uncertainty in the near term outlook of the market. The Company has a strong Risk Management System for identification, monitoring, mitigation and reporting of the risks associated with its operations. The Company has an established practice of compliance reporting covering all operations and support functions; compliance reporting is periodically reviewed to ensure comprehensive coverage.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate system of internal controls to ensure accuracy of accounting records, compliance with all laws and regulations and compliance with the rules, procedures and guidelines prescribed by the management. An extensive internal audit is carried out by independent firm. An internal team of inspection regularly visit for ensuring regulatory compliance. Post audit reviews are also carried out to ensure follow up on the observations made.

HIGHLIGHTS OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Total Income from Operations: ? 10.02 lakhs (? 10.04 lakhs in FY 2022-23)

Profit Before Tax: ? 3.57 Lakhs (? 3.53 lakhs in FY 2022-23)

Net Profit: ? 5.02 Lakhs (? 2.69 lakhs in FY 2022-23)

Basic EPS: ? 0.56 (? 0.30 in FY 2022-23).

HUMAN RESOURCES

During the year under review there has been no material development on the Human Resource/Industrial Relations front during the year. The Company places significant importance to its human capital. The Company commends the commitment, dedication and competence shown by its employee in all aspects of business.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied. Investors are advised to exercise due care and caution while interpreting these statements.