Swastika Investmart Ltd Management Discussions

Economic Overview Global Economy Overview

The global economy plays a pivotal role in the growth and development of nations, acting as a web of interconnected economic activities across countries. These activities can lead to both positive and negative impacts, influencing national economies through trade, investment, and financial flows.

Key Dynamics

Global economic conditions are shaped by factors such as growth dynamics, commodity price fluctuations, and monetary policy shifts. These elements affect inflation rates, trade balances, and capital movements. Recently, global interconnectedness has been further complicated by geopolitical tensions, supply chain disruptions, and climate-related challenges.

Economic Performance in FY 2024-25

Despite significant challenges, the global economy displayed resilience in FY 2024-25. According to the International Monetary Fund (IMF), global growth for 2025 was estimated at 3.3%, slightly below the 2000-2019 historical average of 3.7%. The Organisation for Economic Co-operation and Development (OECD) reported a median services price inflation rate of 3.6% across member countries. Additionally, the Shanghai Containerized Freight Index (SCFI) fell by around 40% from early January to late March 2025, indicating a potential decrease in global trade demand.

Risks and Policy Challenges

The medium-term global economic outlook is marked by downside risks, while the near-term scenario shows varying risks across regions. The United States may experience growth acceleration, while other countries face policy uncertainties. Disruptions in the disinflation process could hinder monetary policy easing, impacting fiscal sustainability and financial stability. Effective management of these risks necessitates balanced policy approaches to inflation control and economic activity, alongside structural reforms to boost long-term growth.

Outlook

The global economic forecast for 2025 and 2026 suggests modest growth with easing inflation. The IMF projects growth at 3.3% for both years, while the World Bank estimates a slightly lower rate of 2.7%. Headline inflation is expected to decrease to 4.2% in 2025 and further to 3.5% in 2026, aligning faster with targets in advanced economies compared to emerging markets. To address slow growth and fiscal challenges, policy measures should include enhancing workforce participation, addressing demographic shifts, and investing in infrastructure.

Indian Economy Overview Resilience Amid Global Uncertainties

India has solidified its position as the worlds fastest-growing major economy over the past decade, demonstrating remarkable resilience despite global uncertainties in FY 2024-25. Real GDP growth stood at 6.5%, a decline from 9.2% in FY 2023-24. According to the Ministry of Statistics and Programme Implementation (MoSPI), the real GDP was estimated at 187.95 lakh crore, while nominal GDP rose by 9.9% to 331.03 lakh crore. The Gross Value Added (GVA) increased by 6.4% to 171.80 lakh crore.

Sectoral Performance

The sectoral performance showcased mixed but largely positive results. Agriculture recorded a growth of 3.8%, supported by favorable monsoon conditions, while the construction sector expanded by 8.6%, driven by infrastructure projects. Financial, real estate, and professional services reported a robust 7.3% growth, reflecting sustained market activity. The trade, hotels, transport, and communication sectors grew by 6.4%, indicating a rebound in consumer demand.

Inflation and Monetary Policy

Retail inflation dropped significantly to 3.16% in April 2025, marking the lowest level since July 2019. This decline was attributed to reduced food and fuel prices, coupled with the Reserve Bank of Indias (RBI) strategic monetary policies. In response to the inflation trends, the RBI reduced the repo rate to 6.00%, adopting an accommodative stance to support both growth and economic stability.

Challenges and Strategic Responses

While Indias growth prospects remain strong, potential risks include global economic slowdowns, geopolitical tensions, and inflationary pressures due to unforeseen supply shocks. However, the RBIs accommodative monetary stance is likely to bolster consumption and investment, while government policies, such as increased capital expenditure and tax incentives, are expected to sustain growth momentum. Additionally, stabilized global commodity prices and a resilient services sector are anticipated to support continued economic activity.

Future Growth Prospects

Looking ahead, India is expected to maintain its position as the worlds fastest-growing major economy, with the IMF forecasting growth rates of 6.2% in 2025 and 6.3% in 2026, outpacing many of its global counterparts, while the Confederation of Indian Industry (CII) estimates a more optimistic 6.5%, supported by strong economic fundamentals and strategic policy measures. Further, the IMF projects global economic growth to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026, highlighting Indias exceptional out performance.

Conclusion: Navigating Global Headwinds

Indias economic outlook for 2025 and 2026 is among the brightest globally, as highlighted by the IMF. Despite uncertainties and revised downward growth forecasts for other large economies, India is positioned to retain its leadership in global economic growth. With ongoing reforms in infrastructure, innovation, and financial inclusion, the country is poised to navigate challenges effectively. The IMFs projections underscore Indias resilience, reinforcing its growing significance in the global economic landscape. As global challenges persist, India not only withstands economic turbulence but also actively contributes to shaping a dynamic and resilient global growth narrative.

Capital Market Overview Navigating Volatility to Drive Growth

Indias capital markets are a cornerstone of its economic progress, effectively channeling domestic savings into vital investments that bolster the financial system and fuel long-term sustainable growth. This crucial role fosters enhanced productivity, real wage growth, employment opportunities, and overall macroeconomic stability.

Market Dynamics in FY 2024-25

Fiscal Year 2024-25 proved to be a dynamic period for Indian equities. While the market ultimately delivered positive returns, the journey was marked by significant volatility. Following record highs in September 2024, Indian equities experienced a sharp correction between October and February, influenced by elevated valuations, increased global risk aversion, and sustained foreign capital outflows.

Despite this turbulence, the fiscal year concluded on an optimistic note. The BSE Sensex registered a gain of 3,763.57 points (5.1%), and the NSE Nifty rose by 1,192.45 points (5.3%), marking the second consecutive year of positive performance. A key factor in this resilience was the increasing participation of Domestic Institutional Investors (DIIs), which effectively counterbalanced the impact of Foreign Institutional Investor (FII) outflows.

Sectoral Performance

Sectoral performance during FY25 was varied. Financial services emerged as the top performer with a 19% gain, while the IT and banking sectors recorded mid-single-digit growth. In contrast, the consumer goods and auto sectors remained relatively stagnant, and sectors such as real estate, PSU banks, energy, and media experienced double-digit declines.

Investment Landscape

As highlighted in the Economic Survey 2024-25, the secondary markets demonstrated positive performance amidst the significant volatility experienced since the beginning of FY25. Furthermore, the survey emphasizes that Indian markets have been among the top performers globally over the longer term. This growth has been supported by a notable surge in individual and household participation in capital markets post-pandemic, both through direct trading and indirect investment via mutual funds. The survey attributes this increased engagement to healthy corporate earnings, stable macroeconomic fundamentals, growing trust in the mutual fund ecosystem, and the accessibility of online digital investment platforms.

The number of demat accounts has seen a substantial year-on-year increase of 33%, reaching 18.5 crore by the end of December 2024. Individual investors accounted for a significant 35.6% of the turnover in the equity cash segment between April and December 2024. By the end of December 2024, there were 11.5 crore unique demat account holders and 5.6 crore unique mutual fund investors.

Looking ahead to FY 2025-26, a sense of cautious optimism prevails. The stability of the government, potential benefits from lower interest rates, and an anticipated recovery in corporate earnings contribute to a positive outlook. However, the survey cautions that ongoing global trade tensions could introduce market volatility. Investors are advised to prioritize long-term investment strategies while remaining prepared for potential market fluctuations.

Company Overview and Outlook

Incorporated in 1992, Swastika Investmart Limited ("herein after referred as "Swastika" or "Company") is a one-stop platform providing a diverse range of products and services to customers, helping them identify the right investment opportunities, given domain expertise and knowledge base. We are providing the entire bouquet of financial services to the clients under one roof such as stock broking across equity, commodity and currency segments, Depository Participant, research services, investment advisory, margin funding, mutual fund, third party financial product distribution, Investment Banking and, Portfolio management Services etc. With over 30 years of experience, we have established a strong brand presence through our broking business, consistently delivering value and expertise to our clients.

Expanding our reach beyond broking, we actively offer insurance solutions through our subsidiary Swastika Insurance Broking Services Limited, which provides tailored products such as motor, health, and life insurance. This strategic expansion has enabled us to diversify our service offerings and cater to the evolving needs of our clients. Additionally, through Swastika Fin-mart Private Limited, an RBI-licensed Non-Banking Financial Company (NBFC), we provide loan facilities, further broadening our financial services spectrum. These diversified services support our overall growth strategy and align with our mission to help clients create and protect wealth while achieving their long-term financial goals.

Further, during the FY 2024-25, we have also incorporated a new Wholly Owned Subsidiary named as "Avisa Wealth Manager Private Limited" on 27^th November 2024 to carry on the activities of fund management, management consultancy or administrator for the purpose of identifying and evaluating potential opportunities including alternative investment funds and/or schemes and matters related there to.

Swastika 2.0: Centralization for Sustainable Growth

The fiscal year 2024-25 marked a transformative phase for Swastika with the launch of Swastika 2.0 a strategic initiative to centralize operations for enhanced efficiency and sustainable growth. The management made a pivotal decision to shift from a decentralized to a centralized operating model to overcome challenges like fragmented processes, inconsistent standards, and slower decision-making. Centralizing our operations has enabled us to streamline workflows, unify teams under a cohesive structure, and empower leadership with data-driven decision-making capabilities. While embracing centralization, we remain committed to maintaining the entrepreneurial spirit and innovation that define Swastika. Striking the right balance between centralized control and decentralized creativity is crucial for our long-term success. We are confident that Swastika 2.0 will unlock unprecedented growth opportunities, solidifying our position in the industry and fostering a prosperous future for our organization and stakeholders.

Merchant Banking Division

Swastika continues to solidify its leadership in the investment banking sector by facilitating client growth through primary market fundraising, startup capital, and venture investment support. These efforts contribute significantly to economic development by empowering businesses to scale sustainably.

In the fiscal year 2024-25, we launched and listed 8 SME IPOs, showcasing our market insight and execution capability. Beyond IPOs, our commitment to Small and Medium Enterprises (SMEs) extends to providing strategic guidance, capital solutions, and comprehensive advisory services, including pre-IPO placements, equity transactions, valuations, private equity, preferential allotments, and open offers.

Our strong market presence is further evidenced by a robust deal pipeline, with several IPOs in progress. During FY 2024-25, we completed 8 private equity transactions ranging from 10 crore to 140 crore, totaling over 400 crore. Additionally, we conducted more than 90 valuations for marquee clients, including HDFC Securities, Yes Securities, Krafton India, and Share India Insurance Brokers. Our expanding network of relationships with domestic and global investors-including fund houses, HNIs, family offices, and international institutions-has significantly bolstered our capital-raising capabilities.

Share Subdivision and Warrant Conversion

To make our shares more affordable and encourage greater participation from small investors, Swastika implemented a strategic share subdivision in the ratio of 5:1, effective from September 25, 2024. In addition, we facilitated warrant holders by allowing them to convert their warrants into equity shares on agreed terms, thereby granting them rights and ownership within the company. This initiative reflects our commitment to inclusivity and shareholder value while reinforcing transparency and building trust among our stakeholders.

Leveraging Technology for Financial Empowerment

To remain ahead in a dynamic market, Swastika is committed to leveraging cutting-edge technology to build a robust, accessible, and inclusive financial ecosystem. We have introduced a suite of innovative tech products, including Trading App, Trading Prelogin, Control Panel, IPO Panel, Swastika & Trading Go Websites, RM Panel, KYC Panel, Research Panel, and Jarvis. These tools enhance the client experience by offering seamless access to trading and investment services, thereby supporting our vision of financial empowerment.

Strong Human Capital and Leadership

Swastikas success is driven by a strong capital base and a talented workforce comprising over 516 employees, including highly qualified professionals such as IITians, CAs, CS, and MBAs. These experts bring their knowledge and expertise to strengthen the companys position in a competitive market. To ensure smooth and efficient operations, Swastika consistently strives to appoint professionals who can adapt to evolving market conditions while maintaining compliance. Strengthening our leadership, Mr. Parth Nyati has been appointed as the Chief Executive Officer in addition to his role as the Whole-Time Director. This strategic decision aims to enhance operational efficiency, uphold best corporate governance practices, and propel the company to new heights.

Expanding Our Footprint

Looking ahead, Swastika aspires to establish itself as a Wealth Management Company, a vision celebrated at our Business Summit "Wealth ka Mahakumbh". The Swastika Group remains focused on expanding its business horizons by diversifying operations and consolidating offerings to enhance customer support and satisfaction. Upholding our core values of integrity, innovation, and client-centricity, we continuously enhance our product portfolio, empowering clients to invest, save, and manage their finances with user-friendly and advanced financial solutions. Our strategic investments in talent, infrastructure, and technology ensure our readiness to adapt to market dynamics, promoting sustainable growth and long-term value for clients and stakeholders.

Our Business Strategies

> Increasing the Market Capitalisation

Swastika is actively working to expand its client base while maintaining strong customer retention by adopting a proactive, front-foot approach. Through the centralization strategy, we are bringing customer services under one unified system, enabling more streamlined and efficient support. Additionally, we are continuously enhancing our product and service offerings to stay agile in a dynamic market environment, ensuring client satisfaction. These initiatives are poised to directly boost the companys market capitalization.

> Building a Technologically Robust Foundation

In light of recent amendments in the securities market concerning cybersecurity and technology, Swastika is committed to staying ahead by continually updating its products and technological infrastructure. We have onboarded experienced IIT professionals to leverage their expertise, which will strengthen our tech-driven platforms and enhance the overall client experience. By aligning our systems with market requirements, we are setting a solid foundation for long-term technological resilience and growth.

> Independent and insightful research

Success in the stock broking business demands a profound understanding of financial markets and trading strategies. Swastika is dedicated to conducting independent, in-depth research to gain comprehensive insights into market trends. This robust research capability will enable us to stay competitive and differentiate ourselves from peers, fostering data-driven decision-making and reliable investment advisory.

> Increasing Geographical diversity

Swastika aims to strengthen its brand presence by venturing into new markets and broadening our geographical footprint. To achieve this, we are employing effective marketing strategies, including digital campaigns, social media engagement, and local advertising, to boost brand awareness. Our focus on unique selling propositions and cultivating positive word-of-mouth will significantly enhance our market penetration and client acquisition.

> Leveraging the funds

We firmly believe that wealth attracts wealth, and Swastika has formulated long-term strategies to effectively leverage our funds. By developing innovative products and policies, we aim to scale our growth trajectory and secure sustainable success. Our commitment to strategic fund management will ensure that resources are optimized to fuel expansion and operational excellence.

Financial Performance

This year, we have not only solidified our position as one of the leading digital broking platforms but also advanced our commitment to innovation and accessibility in the financial markets. Our steadfast commitment to excellence has not only been demonstrated in our financial performance but also in the trust and confidence bestowed upon us by our valued clients. Our strategy of ramping up scale of clients helped us acquire new clients and now we are having total 4.40 Lakhs clients at year end.

On Standalone basis Companys revenue increased by 22%, totalling 13,522.11 Lakhs as against 11,092.23 Lakhs in the previous year, while standalone Profit after tax (PAT) rose by an impressive 83%, reaching 2,212.91 Lakhs from 1,211.45 lakhs of previous year. This exceptional performance highlights our ability to not only scale operations but also significantly improve profitability at the individual business level even in a volatile economic environment. This also demonstrates our agility in adapting to market dynamics and our commitment to driving long-term growth for the company.

On Consolidated basis revenue grew by 23% year-on-year, reaching 14,058.47 Lakhs as against 11,417.38 Lakhs in the previous year. Meanwhile, our Profit After Tax (PAT) soared by 62%, reaching 1,989.19 Lakhs as against previous year in which Company has earned amounting to 1,228.50 lakhs. The consolidated financials reflect the cumulative performances of Swastika Investmart Limited along with its subsidiaries. Detailed description about the business carried out is contained in this Management Discussion and Analysis report.

Key Ratio Analysis

Details of significant changes, if any, in key financial ratios, along with detailed explanations:

S. No Ratios	2024-25 (%)	2023-24 (%)	Variance %
1 Interest Coverage Ratio	5.52	4.58	20.57%
2 Current Ratio	1.39	1.23	13.46%
3 Debt Equity Ratio1	Nil	0.14	-100.00%
4 Operating Profit Margin2	22.76	15.91	43.03%
5 Net Profit Margin3	16.35	10.87	50.42%
6 Return on Net Worth4	21.05	17.23	22.15%
7 Debtors Turnover Ratio	NA	NA	-
8 Inventory Turnover Ratio	NA	NA	-

Note:

1. Debt Equity Ratio decreased from 0.14 times to 0 times as there is no outstanding borrowing as on 31st March, 2025.

2. Operating profit Margin of the company has increased from 15.91% to 22.76% as operating revenue increased to 13522.11 lakhs in FY 2425 from 11092.23 lakhs in FY 23-24.

3. Net profit margin has improved from 10.87% to 16.35% mainly on account of increase in revenue to 13536.34 lakhs in FY 24-25 from 11146.43 lakhs in FY 23-24 and increase in profits to 2212.91 lakhs in FY 24-25 as compared to profit of 1211.45 lakhs in FY 23-24.

4. Return on Net Worth improved from 17.23% to 21.05% mainly on account of increase in revenue to 13536.34 lakhs in FY 24-25 from 11146.43 lakhs in FY 23-24 and increase in profits to 2212.91 lakhs in FY 24-25 as compared to profit of 1211.45 lakhs in FY 23-24.

Segmental Reporting

The Companys operations predominantly relate to Stock Broking activities in equity, derivatives, currency and commodity broking, Depositary Participant functioning and, Investment Banking and its related activities business.

As on 31^st March, 2025, on Standalone basis the Company is having two reportable segments i.e. Stock Broking and Merchant Banking and the data on segmental performance is present in note No. 49 of Consolidated financial statement.

Our company is also having finance and insurance division through its wholly owned subsidiaries.

Details of segment wise performance on consolidated basis are as follows:

Segments	Revenue for the year ended 31st March, 2025 (Rs in lakhs)	Revenue for the year ended 31st March, 2024 (Rs in lakhs)	Change in %
Stock Broking and related activities	11911.19	10676.84	11.56
Merchant banking activities	1610.92	415.39	287.81
Insurance Broking activities	332.64	100.47	231.08
Non BankingFinancial activities (NBFC)	231.56	247.11	-6.29

Strengths of your company

> Diverse Range of Financial Products

Swastikas key strength lies in its extensive portfolio of financial services, offering clients a comprehensive selection of products tailored for both short-term and long-term financial gains. This diverse range of offerings ensures that customers can leverage their investments to maximize economic outcomes, making Swastika a preferred choice in the industry.

> Technology-Driven Operations

As a technology-centric company, Swastika provides an exceptional trading platform and advanced tools for its clients. We have developed in-house applications and systems that streamline operations, reduce costs, and enhance efficiency, creating a smoother working environment and better client experiences.

> Transparent Operations

Transparency is a core value at Swastika. Our services are structured to comply with regulatory standards, ensuring clarity and accountability for customers and authorities alike. This commitment to transparent functioning fosters trust and long-lasting client relationships.

> Client Acquisition and Retention:

Swastika places a high priority on client acquisition and retention, focusing on building strong, enduring customer relationships. With a strategic approach to customer satisfaction, we continue to attract and retain clients, supported by regulatory reforms that encourage broader investor participation.

Opportunities

> Growing Retail participation

With an increasing number of Indian retail investors entering the market, Swastika has a significant opportunity to capture this growing segment. The shift from institutional investors (FIIs) to retail participation creates a favorable landscape for innovative and accessible investment solutions.

> Global Expansion

While primarily focused on the Indian market, Swastika sees opportunities to expand its presence internationally. The global financial service market, valued in billions of dollars, offers immense potential for customer acquisition and revenue growth.

> Increasing Adoption of Online Trading

The rise of online trading in India offers Swastika a chance to extend its product offerings and enhance its customer base. With digital platforms becoming more popular, the company can leverage this trend to increase client engagement and accessibility.

> Technological Advancements

Swastikas commitment to adopting cutting-edge technology ensures the creation of a robust and inclusive financial system. By developing new tech-driven products and platforms, we aim to meet evolving market demands and secure a competitive edge.

Threats & Challenges

> Dependency on Market Performance

Swastikas revenue is closely tied to market performance. During downturns, the number of transactions decreases, impacting earnings. This dependency makes the business vulnerable to market volatility.

> Technology Dependency

As a technology-driven organization, Swastika faces risks related to cyber threats, system failures, and potential technical glitches. Managing cybersecurity and maintaining system reliability are crucial to business continuity.

> Economic Vulnerabilities

Global and domestic economic uncertainties, including geopolitical conflicts, inflation, and economic downturns, can influence investor sentiment and hinder growth prospects. Fluctuating global and domestic economic scenarios can negatively affect investment behaviors. Unpredictable events such as wars, inflation, or economic slowdowns pose a threat to sustained business growth.

> Stringent Regulatory Compliance

As a brokerage house, Swastika must comply with SEBI regulations, which are becoming increasingly stringent. Adapting to evolving compliance requirements demands ongoing vigilance and resource allocation. Frequent updates in regulatory norms can impact business operations, requiring timely adjustments and increased compliance efforts to avoid legal and financial repercussions.

> Marketing Challenges

Convincing Indian customers to invest is a formidable task due to their cautious nature. The presence of multiple competitors necessitates continuous marketing efforts, raising operational costs and demanding persistent client engagement.

Risk Management and Mitigation

SWASTIKA: Navigating Risks for Sustainable Growth

At Swastika, we recognize that proactive and effective risk management is fundamental to our sustained success. Our risk management framework is a dynamic set of processes designed to identify, assess, respond to, monitor, and report potential risks - both internal and external - that could impede our business objectives. By anticipating challenges, we strive to mitigate their impact and ensure the efficient functioning of our operations.

We firmly believe that a proactive approach to risk management enables us to navigate complexities, safeguard our capital and interests, and achieve sustainable growth. Our dedicated Risk Management Team operates independently, employing a standardized, system-driven, and policy-based approach. This ensures we are well-equipped to capitalize on opportunities while protecting stakeholder value. Our Risk Management Framework is regularly updated to reflect evolving regulatory requirements and business needs. This comprehensive framework provides a structured methodology for risk assessment, encompassing both qualitative and quantitative analysis at the organizational level.

Furthermore, the Audit Committee and our Board of Directors actively review and oversee internal audit reports. This critical process ensures the effectiveness and strategic alignment of our risk management practices. Given the diverse risks we encounter, maintaining an efficient and adaptable risk management process is paramount. The primary risks facing Swastika and our strategies for mitigating them are detailed below:

Regulatory Risk: Your Companyoperates in a highly regulated environment which necessitates vigilance and adaptability. Rapid and complex regulatory changes demand prompt identification and integration into our business practices. Non-compliance can result in significant penalties, reputational damage, and legal actions.

Risk mitigation: Swastika employs a team of proficient professionals dedicated to monitoring and ensuring compliance with all applicable laws, rules, regulations, and guidelines. They maintain up-to-date knowledge of changes and amendments, ensuring timely adherence. The Board actively formulates and oversees the implementation of relevant policies. Internal audits further serve as an early warning system, enabling proactive mitigation of potential legal and regulatory issues.

Technology Risk: This encompasses potential adverse outcomes arising from challenges in technology infrastructure, data security, and cyber threats. Recognizing security as a fundamental aspect of our operations, these risks could lead to financial losses and damage our reputation.

Risk Mitigation: We prioritize strategic investments in robust technology and advanced cybersecurity measures. Regular risk assessments and comprehensive business continuity plans are integral to our approach. We continuously upgrade our security mechanisms and processes, conduct periodic internal assessments, and implement robust firewalls to mitigate threats. Comprehensive training programs and Standard Operating Procedures (SOPs) are in place to equip relevant stakeholders to effectively manage IT risk events. The appointment of a Chief Technology Officer and Chief Information Security Officer further strengthens our management bandwidth in this critical area.

Operational Risk: Operational risk involves uncertainties that arise from an organizations daily business operations. These risks can include breakdowns in internal processes, inadequate authorizations, poorly documented transactions, lapses in operational and information security procedures, system failures, fraud, and employee errors. Unlike external risks, operational risks are internal and directly influenced by our organizational processes and decisions.

Risk Mitigation: Swastika has implemented a comprehensive Operational Risk Framework, overseen by a dedicated high-level team with relevant expertise. This team focuses on systematically assessing and addressing operational risks to ensure business continuity and efficiency. Well-defined and regularly reviewed policies and procedures govern our operations. Internal audits are conducted to verify adherence to these guidelines. Furthermore, a robust Maker/Checker mechanism is in place across all operational areas to enforce compliance with established systems and procedures.

Reputation Risk: Positive or negative perceptions regarding our Company and our services can significantly impact customer relations, revenues, interactions with regulatory bodies, and our overall brand value.

Risk Mitigation: We actively monitor social media and other feedback channels, addressing concerns promptly to maintain high levels of customer satisfaction. Our focus on effective product complaint resolution aims to transform each interaction into a positive experience for our investors and customers. We prioritize transparent communication and timely resolutions to foster trust and confidence among all stakeholders.

Business Continuity Risk: This category encompasses threats or risks that can disrupt our business operations. These may include incidents such as fire, natural disasters, cyber-attacks, data breaches, and infrastructure failures. Such events can lead to data loss, client attrition, and business disruption, adversely affecting our financial performance.

Risk mitigation: Swastika maintains up-to-date policies on the preservation of documents and records, coupled with regular internal checks. These measures are designed to minimize the impact of disruptive events and ensure business resilience.

Transparency and Accountability Risk: Lack of transparencyand accountability can erode trust with stakeholders, lead to compliance issues, and damage the companys reputation. Insufficient disclosures may result in regulatory penalties and decreased stakeholder confidence.

Risk Mitigation: Regular and Open Dialogue with Stakeholders help us in maintaining ongoing, open communication with all stakeholders which build trust and address concerns proactively. Additionally, we provide disclosures to stakeholders through multiple channels, including newspaper notices, email communications, our website, annual reports, quarterly results,and exchange disclosures. These efforts foster transparency, ensure accountability, and build confidence among our stakeholders.

Human Resource Management

At Swastika, we recognize our employees as the driving force behind our long-term success. Their dedication and commitment are central to our journey of sustainable growth and value creation for our customers and stakeholders. Our team consists of 516 permanent employees, who play a

pivotal role in shaping our strategic direction and realizing our vision. We highly value their contributions and prioritize providing a safe, healthy, and inclusive work environment.

Our Human Resources department continues to implement employee-centric policies and processes, ensuring alignment between individual growth and business objectives. We actively support professional development through learning platforms, offering training to enhance skills and stay updated with industry trends. This commitment fosters a culture of continuous learning, empowering our workforce to excel and adapt to evolving market demands.

At Swastika, we are committed to nurturing a professional, diverse, and unbiased workplace that encourages leadership at all levels. We promote a culture of engagement through transparent communication, leadership development, and career advancement opportunities. Our employee recognition programs, such as spot bonuses, dedication awards, and mementos, motivate team members to consistently deliver their best and foster a sense of ownership.

One of the key highlights of the year was our Annual Business Meet named as "Wealth Ka Mahakumbh" held in Indore, where we celebrated the outstanding achievements of our employees from PAN India branches. The event, graced by our directors and industry experts, served as an inspiring platform to recognize talent and dedication.

We remain steadfast in our commitment to fostering growth, nurturing talent, and building a culture of excellence. We encourage an entrepreneurial spirit among our employees by offering uncapped incentives and empowering Relationship Managers to innovate and expand client engagements beyond geographical boundaries. This approach nurtures ownership and drives engagement across all levels of the organization.

As we move forward, Swastika will continue to create an environment where employees feel valued, motivated, and equipped to contribute to our shared success.

Internal Control System and their adequacy

Swastikas internal control framework is tailored to the scale, nature and complexity of our operations, embedding comprehensive processes, guidelines and monitoring systems to ensure resilient, efficient business performance. A robust management information system underpins these controls.

Our Internal Auditor conduct regular reviews to assess the internal control and procedures and their reports are reviewed by the Audit Committee of the Board. This Committee continuously evaluates the adequacy and effectiveness of our controls, oversees corrective actions where needed, and confirms full compliance with applicable laws and internal policies.

The internal control system was designed with a firm commitment to complying with all applicable laws and Audits guarantee the integrity of internal control systems and adherence to management policies. Internal control system also enables to safeguard sensitive information, maintain accounting control, ease auditing process which helps to reinforce strong commitment to provide customer with secure technology and transparency and helpful to detect error and fraud.

Cautionary Statement

Statements in this Management Discussion & Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. 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 any one Important factors that could make a difference to the Companys operations include economic developments in the country and improvement in the state of capital markets, changes in the Government regulations, tax laws and other status and other incidental factors.