Systematix Corporate Services Ltd Management Discussions

A. OVERVIEW & OUTLOOK

FY 24 was marked by momentum in the Indian economy maintaining our countrys status as the fastest-growing major economy in the world. Key growth drivers included a strong manufacturing sector and increased infrastructure spending. The RBIs wait-and-watch stance on interest rates and close monitoring of inflation trends will be closely watched. Positive indicators such as increased government capex, a rising tax-to-GDP ratio, and strong foreign opportunities.investment FY 24 was also a landmark year for India as it assumed presidency of the worlds highest profile global economic assembly, the G20, and showcased its economic powers and diplomatic finesse to the world.

• Indian economy remained resilient with robust 7.6% growth rate of GDP in FY 24 over and above 7% growth rate in FY 23. India has been a key growth engine for the world, contributing 16% to the global growth in FY 23.

• The International Monetary Fund (IMF) has raised Indias growth forecast for 2024-25 to 6.8% from 6.5% on the back of strong domestic demand and a rising working age population. According to the PHD Chamber of

Commerce and Industry (PHDCCI), Indias economy is poised to grow between 8 to 8.3% in the current fiscal year emphasizing the countrys robust growth fundamentals, projecting an average GDP growth rate of 6.7% over the next 23 years

• Double-digit growth rate of Construction Sector (10.7%), followed by a good growth rate of Manufacturing

Sector (8.5%) have boosted the GDP growth in FY 24. Private consumption in the first half of FY 24 was the highest since FY 15 and this led to a boost to production activity resulting in enhanced capacity utilisation across sectors.

• The central governments fiscal deficit shrank from 6.4% of GDP in FY 22 to an estimated 5.8% in FY 23. Revenue performance exceeded expectations and pushed the deficit lower than the budget target of 5.9% of

GDP in FY 23.

• Personal income tax collections are estimated to have grown by 23.0% in FY 23, highlighting surging incomes for salaried professional. This was also a sign of successful government effort to widen the tax base by keeping tax exemption limits stable and using digital tools to prevent tax leakage.

• Strong domestic demand for consumption and investment, along with Governments continued emphasis on capital expenditure are seen as among the key driver of the GDP in the first half of FY 24.

• Cumulative FDI Equity Inflow were estimated to be at US$ 953.14 billion (from April 2000-September 2023). The share of the top investing countries in FDI Equity Inflow were- Mauritius (25%), Singapore (23%), the US

(10%), Netherlands (7%), Japan (6%), the UK (5%), the UAE (3%), the Cayman Islands (2%), Germany (2%), and Cyprus (2%) (data from April 2000-September 2023).

• Key sectors attracting the Highest FDI equity inflow were Services Sector (16%), Computer Software & Hardware

(15%), Trading (6%), Telecommunications (6%), Automobile (5%), Construction Activities (5%), Construction Development (4%), Drugs and Pharmaceuticals (3%), Chemicals (3%), and Metallurgical Industries (3%) (data from April 2000-September 2023).

B. INDUSTRY STRUCTURE AND DEVELOPMENTS - CAPITAL MARKETS

Indian capital markets continued their strong run during the year, with a broad-based rally in benchmark indices (Sensex up 25% and Nifty up 29%) and BSE Midcap (up 63%) and Small cap

(up 60%). With structural multi-year drivers such as the financializationof savings and formalization of investment management and advisory, firmly in place, the future looks promising.

An evolving and proactive regulatory environment, coupled with a thriving technology ecosystem, provides ample opportunity for well-governed organisations to further fortify their stronghold in the sector. The continued low penetration of the financial services sector in India underscores the sectors vast potential for growth.

Primary markets saw a spate of Initial Public Offers (IPOs) in FY 24, raising more than INR 620 Billion (up 19% over FY 2022-23). Retail participation continued to rise with the addition of around 37 Million demat accounts during the year - the largest ever increase. The total number of demat accounts grew by 11.9% over the preceding year to 151.4 Million. Activity in derivative volumes too remained buoyant, with the monthly notional value of derivatives traded on Indian exchanges doubling to INR 8,737 Trillion in March 2024 over March 2023.

1. Broking Industry and Our Business:

• Broking Industry

The stock broking market in India is a dynamic and evolving sector that facilitates the buying and selling of stocks and securities on behalf of investors. From traditional full-service brokers to modern discount brokers, the industry offers a variety of options to investors.

The Indian stock broking market is poised to reach INR 12,000 crore by 2025, exhibiting a robust Compound annual growth rate ("CAGR") of 12.6%. This growth is fueled by increasing investor participation and technological advancements.

A robust economy generally leads to increased investor participation in the securities markets. Regulations set by the Securities and Exchange Board of India (SEBI) govern the operations of brokerage firms, including licensing requirements, compliance standards, and investor protection measures. Changes in regulations can affect brokerage business models and profitability. Advancements in technology, such as online trading platforms, algorithmic trading and mobile trading apps have transformed the brokerage industry in India.

Brokerage firms invest in technology infrastructure to offer innovative services and improve client experience. Competition among brokerage firms drives innovation, pricing strategies, and service offerings. Brokerage firms differentiate themselves based on factors such as brokerage rates, research capabilities, trading platforms, and customer service.

Efforts to educate investors about the securities markets and financial products influence investor behaviour and participation levels. Brokeragefirmsoften play a role in investor education through seminars, workshops, and online resources. Indias integration with global financial markets and participation in international investment activities influence the operations of brokerage firms. Cross-border investment opportunities, regulatory harmonization, and global markettrendsimpactthestrategiesofIndianbrokeragefirms. Overall, the security brokerage market in India is dynamic and influenced by a combination of economic, regulatory, technological, competitive, demographic, and global factors. Adapting to market dynamics and meeting client needs are key challenges and opportunities for brokerage firms operating in India.

• Our Broking Business

Our PCG (Private Client Group) and Retail Broking businesses showed strong growth in FY24 with improving margin availability for our clients and strong capital markets volumes – thereby leading to improved market share of Systematix in the non-institutional brokerage business. Our Institutional Broking business provides offerings in the forms of cash and derivatives to domestic and foreign institutions. We continued to acquire new empanelment and grew our active clients to over 220 in FY24. We witnessed strong improvement in domestic client rankings in several key accounts led by broad-based team servicing, high quality research product and strong execution across our trading desk. Our research product consists of 185+ companies covering 17 sectors. Our corporate access domain has always been a focus area with execution of successful events, especially Industry Specific Investor Conferences in India.

2. Investment Banking & Merchant Banking Industry and Our Business:

• Investment Banking & Merchant Banking Industry

The FY24 was a great year for initial public offerings (IPOs) with 75 issues launched in the year, the highest in

Rs. 61,915 crore through main board IPOs 2years.Atotalof75firms during this period, up significantly from the Rs. 52,116 crore in FY23. The strong demand for equities, propelled by the increasing number of domestic investors, laid the foundation for heightened activity in the primary market.

The Indian startup ecosystem is going through a recovery phase, there have been larger funding rounds, an increase in the number of deals, a surge in secondary deals and ESOP buybacks, and a decline in layoffs. Indian startups raised nearly USD 7 billion in funding during the H1 2024. This is more than the USD 5.92 billion raised in H1 2023. But its also far less than USD 20 billion in H1 2022 which now seems like the golden phase for startups, at least in terms of venture capital inflow.

While the peaks of H1 2022 might take some time to be reached and crossed again, often following a cycle of 3-5 years, however the things are certainly improving fast. While stability in government helps in booming stock markets and can significantly impact startup funding.

Investors who realize gains from successful IPOs or market gains often reinvest these profits into startups, seeking potentially higher returns. Ironically, many firms that could barely get Venture Capital or Private Equity funding have managed IPOs in recent weeks, further underscoring the case for a correction in the stock markets or a diffusion of the bullishness to startup funding as well.

But while the markets will continue to value revenues and some profitability ideally, the real job of backing ideas and innovations will also benefit as multiple VCs, family offices and other investors return to the startup funding market to seed the next crop of startups.

• Our Business:

During FY24, we at Systematix were associated with several marquee transactions across listed and unlisted companies. We were advisors to one of Indias largest Spices brands - Pushp – for a INR 1,000 million Private Equity Fund raise, the largest ODM for Lighting industry – RK Lighting – for a INR 1,300 million Private Equity fund raise, a leading Central India based Cancer Hospital – SRJ-CBCC - for a INR 500 million sell side transaction, besides several other private fund raise transactions. We were also Book Running Lead Manager (BRLM) to Indias largest EV Charging Solutions Company – Exicom Power – for their INR 5,000 million IPO, besides handling over 3 preferential issues, 4 QIPs (including one of the largest private sector QIP in the country – INR 33,000 million for Swan Energy), 1 Open Offer and over 8 large block deals. We follow an expertise-led approach focusing on specific sub-segments of strength, where we have deep understanding of industries, including industry trends, corporate and investor relationships and execution track record. And hence our majority of transaction coverage is in sectors like Consumption, Healthcare, Industrials, Green Energy and Logistics / Supply Chain, with a strong focus on emerging trends in each of these industries. We continue to have rich pipeline across capital markets and advisory with the year FY2023 expected seeing us make significant strides in IPOs (Initial Public Offers) and QIP (Qualified Institutional Placement) transactions.

3. Wealth Management Industry and Our Business:

• Wealth Management Business

The robust performance of the Indian equity market, especially post-pandemic, has catalysed a substantial increase in equity investments. This is evidenced by the dramatic rise in the number of Demat accounts— from

2.5 Croressignificantincrease in equity mutual fund folios, which 2015to14.4Crores 2023 and doubled from 2019 to 2024 to reach 12 Crores. These figures underscore a growing enthusiasm for equity investments among Indian investors.

As of December 2023, the top five cities Mumbai, Delhi, Bengaluru, Pune, and Kolkata accounted for about

53% of the Assets Under Management (AUM) of mutual funds in India. Notably, Mumbai and Delhi alone made up approximately 40% of thetotalAUM.Thisconcentrationhighlightsthesignificantrole these urban centres play in the countrys investment landscape.

However, there is a shifting trend in investment preferences among retail investors, particularly noted in the

B30 cities i.e. towns and cities that are classified beyond the top 30 urban areas by market potential. With rising income levels and the growth of an affluent middle class, there is a noticeable shift from the traditional preference for physical assets likerealestateandgoldtoequitiesandotherfinancialsecurities

In response to these changing investor preferences, wealth managers are rethinking their strategies. The focus is expanding from merely growing financial assets to providing holistic financial planning services that cater to individual goals. This shift requires a more detailed understanding of the clients personal aspirations, risk tolerance, and life stages.

Modern investors are increasingly adopting a targeted approach to financial planning, which aligns investment strategies with specific personal and financial objectives. This trend marks a shift from traditional investment goals that primarily focussed on wealth maximisation. Todays investors have a broad spectrum of short-term and long-term goals, ranging from immediate purchases like the latest smartphone or a holiday trip, to significant life events such as funding a childs education or planning for retirement.

• Our Wealth Management Business:

We at Systematix have been consistently adding clients in the Wealth Management business, thereby steadily growing our assets while also growing our fee pool. As on March 31st 2024, we have more 1600 clients in our Wealth Management business, with AUM of over INR 420cr.

Systematix is also steadily growing its PMS (Portfolio Management) business which has been amongst top quartile PMS in the country as on March 31st 2024.

C. OUTLOOK FOR 2025 Broking Industry:

The future outlook for the Indian stock broking industry remains promising, driven by several key factors. According to a report, the industry is expected to grow at a CAGR of around 15-20% over the next few years, fueled by increasing financial literacy, the expansion of the investor base, and the adoption of digital trading platforms.

Trading volumes and number of contracts traded daily on Exchanges are nearly 100x more than they used to be a few years ago. The last 3 years have seen an unprecedented jump in the investor base. Factors such as COVID-19, internet and mobile penetration, growing awareness about trading and investing in stock markets, and IPOs have contributed to this growth.

Around 4% of the population holds demat accounts based on unique PAN, however, the number is over 120 million otherwise. With increasing awareness, we believe the number can surpass 250 million by 2030.

Investment Banking & Merchant Banking:

Investment banks are likely to adapt by leveraging technology, focusing on niche sectors, and integrating sustainability considerations into their practices. The industry is expected to remain relevant in channelling capital towards productive investments and facilitating economic growth. Investment banking appears to have a promising future and is expanding in the correct direction. The system has ensured that, despite the rupees recent considerable decline versus the dollar, the market is functioning smoothly and that all other matters are correctly managed. Higher client returns are anticipated in the sector shortly, but business model changes are likely.

The Introduction of the Social Stock Exchange is likely to boost the Investment Bank/Merchant Bank business. The

Social Stock Exchange in India heralds a new era in organized, transparent, and efficient fundraising for social causes.

It offers a credible and regulated platform for social enterprises, widening the philanthropy spectrum while ensuring accountability and effective fund utilization for impactful social change. By concentrating on the mergers and acquisitions (M&A) of specialized boutique companies in sectors including technology, healthcare, finance, media, and entertainment, investment banking is expanding its market share and creating major potential for bigger companies.

Indias economy will continue to expand, and there are certainly good possibilities for the sector there. Investment banks will have more opportunities as a result of the Indian governments efforts to liberalize the economy and entice international investment.

Investment banks will also benefit from the rise in M&A as well as Indian companies going public. Much like in any other nation, a variety of macroeconomic and political factors may alter the general investment environment, which may have an effect on the future of investment banking in India.

Wealth Management:

Indias wealth management market is projected to witness a CAGR of 10.02% during the forecast period FY25-FY32, growing from USD 154.25 billion in FY24 to USD 331.13 billion in FY32. The financial services industry is currently by a blend of variousundergoingfactors significant that are reshaping the landscape.

These factors include the increasing urbanity among investors, regulatory changes that are shaping the industrys framework, advancements in technology that are revolutionizing the way financial services are delivered, and shifting . demographicsthatareinfluencingthe

In the context of India, tradition of savings, investments, and wealth preservation, with families traditionally relying on support is evitable. However, with trustedadvisorsforfinancial the rapid economic growth, globalization, enhanced regulatory environment, and enhanced accessibility to global financial markets, the wealth management sector in India has experienced a substantial evolution. Over the past few years, India has witnessed a notable rise in its high-net-worth individual community, propelled by economic expansion, entrepreneurial endeavors, and the expanding middle class. These individuals are in search of expert wealth management services to enhance and safeguard their assets. The demographic landscape of the nation is shifting, with a digitally inclined generation gravitating towards automated wealth management solutions, compelling companies to allocate resources towards technology and digitalization.

As investor preferences continue to evolve, wealth managers who adapt by offering goal-oriented and personalised financial planning are likely to thrive. The future of wealth management will increasingly rely on a combination of advanced technology and personalised service delivery to meet the growing demand for customised financial guidance. This alignment ensures that every investment decision supports the broader context of the clients life goals, enhancing both client satisfaction and loyalty.

D. OPPORTUNITIES/ THREATS/ STRENGTHS Opportunities:

• Long-term economic outlook positive, will lead to opportunity for financial services;

• Growing Financial Services industrys share of wallet for disposable income;

• Regulatory reforms would aid greater participation by all class of investors;

• Leveraging technology to enable best practices and processes;

• Corporates looking at consolidation / acquisitions / restructuring opens out opportunities for the corporate advisory business.

Threats:

• Execution risk;

• Short term economic slowdown impacting investor sentiments and business activities;

• Slowdown in global liquidity flows;

• Increased intensity of competition from local and global players, especially the players with strong technology edge in the business;

• Market trends making other assets relatively attractive as investment avenues.

Strengths:

• Strong Brand name & presence;

• Strong deals execution track record;

• Experienced top management;

• Integrated financial services provider;

• Independent and insightful research;

• State of art infrastructure;

• Road shows and Conferences with senior managements of high repute.

E. RISKS AND CONCERNS

Systematix being in financial sector is highly exposed to major market risks i.e. Credit risk, Market risk, Liquidity risk and Operational risk. We have 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 identifiedrisks are commensurate with the potential returns.

i. Market Risk

Trading and investment in assets like equity, commodities, debts, foreign currency and derivatives is exposed to economic growth levels, inflation, prices, interest rates, foreign exchange rates and other macro-economic factors. Since, our exposure to market risk is determined by a number of factors including size, composition and diversificationof positions held and market volatility, The Market Risk Management minimize market risk exposures within acceptable parameters, while optimizing the return on risk.

ii. Credit Risk

In order to manage and control exposure to Credit risks in the Capital market We collect upfront margins in the form of funds and/or securities/ commodities from clients and trading members against their trading positions. We also monitor 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.

Our approach in the financing business is to effectively implement the loan policy which we follow to accept borrowers and loan proposals. To reduce the credit risk in financing, we perform a detailed credit assessment on the prospective borrower or seek security over some assets of the borrower or a guarantee from a third party.

iii. Operational Risk

We have adopted key risk indicators that assess Operational risk i.e., Internal fraud, External fraud, Technology failures, Process execution and Business practices.

We had set benchmarks for abovementioned risks and track and measure the same through quantifiable data.

Subsequently, our management pre-emptively makes decisions on whether to accept, mitigate, or avoid risk.

Risk management

Equity share capital, other equity and secured borrowings from the banks are considered for the purpose of

Companys capital management.Weaimtomanageourcapitalefficiently so as to safeguard our ability to continue as a going concern and to optimise returns to our shareholders. Our capital structure is based on managements judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, we may borrow from external parties such as banks or financial institutions.

Our policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain shareholder, creditor and stakeholder confidence to sustain future development and growth of our business. We will take appropriate steps in order to maintain, or if necessary adjust, our capital structure.

F. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

We have adequate systems of internal control, to ensure that all assets are safeguarded and protected against loss from unauthorized use and procedures commensurate with the size and nature of business. We continuously upgrade our systems in line with the best availability practices. These systems are supported by periodical reviews by the management and standard policies and guidelines to ensure that financial and other records are prepared accurately.

G. SYSTEMATIX OVERVIEW

Systematix Corporate Services Limited (SCSL) has come a long way since its incorporation, more than three decades ago. We are SEBI registered ‘Category I Merchant Banker and having 5 subsidiaries. Our operations are organized around three broad business lines – Public Issues / Follow on Offerings / Right issues and Private Placements for our prestigious corporate clients. With a knowledge centric approach and our mission to provide our customers with secure, customized and comprehensive financial solutions and thereby achieve sustained growth we have restructured ourselves through a hub-and-spoke model and have become a one stop service provider of financial services across various assets classes during the year. Through our five subsidiaries, we have established our presence in the Wealth

Management, Institutional & HNI / UHNI Broking, Commodities and Loan Against Shares (through RBI registered NBFC). Our Company through associates has also set up a SEBI approved Alternative Investment Funds (AIF). We, through our subsidiaries, have facilities at around 9 locations via branches & 204 franchisees, spread across 6 states, targeting a strong client base across India.

This strategy is complemented by the following strengths:

Diversified revenue streams with a balanced mix of revenue from various businesses

• Strong and liquid balance sheet

Cost flexibility

• Risk Management

• People and culture

As a result, Systematix is fast emerging into Indias leading full-service and integrated financial services provider offering a wide range of products and services. As a knowledge-driven financial services firm, our key objective is to serve all the financial needs of our customers across the value chain and throughout their lifecycle journey. We are a one-stop solution catering to every requirement of our customers related to managing and growing financial assets.

H. SERVICES OFFERED

i. Merchant Banking & Investment Banking:

Merchant Banking & Investment Banking Division comprises of a group of highly experienced professionals with diverse expertise in investment advisory with special skills in assisting medium sized companies raising growth capital, companies going public and advising promoters or stakeholders (with a special focus on Private Equity funds) on stake sale. We help companies to raise capital during the growth and expansion phases as well as acquisition, financing and structuring the deal to maximize value for all its stakeholders. The comprehensive range of services from conception to completion provided under one roof reinforces our commitment on quality assurances through total involvement. Each senior member of the team has more than a decade experience in the capital markets and have handled a variety of deals across several key sectors such as hospitality, automobiles, retail, engineering, media & entertainment, infrastructure, logistics, metals & mining, pharmaceuticals, power, banking & financial services, telecom & IT among others. During the year under review, the division has gone up by 98.81% to 5,587.78 Lakh as compared to last year of 2,810.56 Lakh.

Our offerings are as follows:

• Open Offers/ Delisting / Buy-backs;

• IPOs/ Rights Issues/Follow-on Public Offers;

• Equity / Debt placements;

• Valuations;

• ESOP Advisory;

• Other Corporate Advisory Services.

ii. Financing & Other Activities:

The income from financing & other activities was 1,347.31 Lakh as compared to previous year 902.22 Lakh, an 49.33% increase over the preceding year.

Our product offerings include activities like financing against shares and margin funding.

iii. Broking activities:

The broking division of our company focuses on bridging the gap between the physical and the digital world, catering to Equity, Derivatives, Commodities and Currency markets. We have robust dedicated advisory desk for mass retail and affluent clients. We focus on enhanced customer experience, high quality advisory, digital initiative, distribution of assets based product, system driven trading products and network expansion. The income from broking activities stood at 7,985.82 lakhs as compared to previous year at 4,266.44 lakhs, an 87.18% increase over the preceding year.

iv. Wealth Management:

We have built our Wealth Management offering with a passion for excellence. The Wealth Management team at Systematix works with the objective of providing our clients with a bouquet of smart investment products, each analyzed and evaluated meticulously and thereafter blended together to precisely meet your unique investment needs. We have an enviable research team that spans multiple asset classes bringing insightful research to our clients. The proximity and connectivity of our Management with industry enables us to view in closer detail, the companies we study for investing.

Our approach is entirely client-centric, which means that the services and products will be tailored to suit their specific requirements.

Distribution and marketing income comprises commission, brokerage and marketing income generated from distribution of third party products such as insurance, mutual funds, IPO and online marketing on our website. A part of the income is contributed by commission and brokerage on Mutual Fund Distribution from the wealth management platform. During the year companys income from distribution and marketing was 4968.26 Lakhs as compared to 2,807.76 Lakh, a 76.95% increase from last year.

v. Portfolio Management Services:

Portfolio Management Service (PMS) is a sophisticated investment vehicle that offers customized investment strategies to capitalize on opportunities in the market. Efficient Investment Management requires time, knowledge, understanding, expertise and constant monitoring of developments in micro and macro-economic environment. That is difficult for investors because of involvement in its own business profession and other activities. For those who need an expert to help to manage their investments, PMS is the right answer. Our Portfolio Managers work with clients to design an individual investment strategy in accordance with their objectives, risk tolerance, and liquidity needs and draw upon the best suited portfolio. In a nut shell, based on our holistic investment approach and innovative product capabilities we offer you very active multi asset class portfolio advisory & management services with personalized attention and active participation of Systematix management. We offer both discretionary and non-discretionary portfolio services.

During the year companys income from PMS was Rs. 42.81 Lakhs as compared to Rs. 48.36 Lakhs, a 11.48% decrease from last year.

vi. Research:

Research Team offers incisive, timely, objective and in-depth research across multiple asset classes. Driven by an in-depth understanding of investments and a deep sense of professional ethics and integrity, the Systematix Wealth Research team provides unbiased advice to our clients. Being present across the entire spectrum of investment services / products, such as equities, derivatives, fixed income products, currencies, mutual funds and commodities, Systematix Wealth Research subjects each security in its universe to stringent analytical rigor to arrive at the fair value. We take pride in our philosophy of offering advice which is in the best interest of our clients. Our emphasis on building long-term relationship ensures that we work closely with our clients empowering them to gain from market opportunities.

Our Research Process is structured around the objective of enabling our Wealth Management Team to create winning portfolios for our Clients across diverse assets, capable of delivering superior returns to investors as well as to prevent portfolio erosion in bad times.

The philosophy and goal of Systematix Wealth Research is to provide investors with a clear analysis that enables them to take a rational decision towards achieving the desired profit objectives.

I. FINANCIAL PERFORMANCE HIGHLIGHTS

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and

Generally Accepted Accounting Principles (GAAP) in India.

Table 1: Abridged Statement of Profit and Loss ( in Lakh) –

Particulars	FY 24	% of Total Income	FY 23	% of Total Income
Revenue
	13708.88	93.91%	7252.20	92.06%
Income from Operation
Other Income	888.31	6.09%	625.20	7.94%
Total	14597.19	100%	7877.40	100%
Expenditure
Employees Cost	4371.48	29.95%	3411.26	43.30%
Finance Cost	309.00	2.12%	333.33	4.23%
Net loss on fair value changes	-	-	-	-
Share of loss from Joint Venture LLP	0.20	0.00%	0.17	0.002%
Impairment on financial instruments	(256.55)	1.76%	203.21	2.58%
Depreciation	192.49	1.32%	60.78	0.77%
Other Expenses	3207.88	21.98%	3292.47	41.80%
Total	7824.50	53.60%	7301.22	92.69%
Exceptional Items	-		-	-
Profit Before Tax	6772.69	46.40%	576.18	7.31%
Tax- current & deferred	1438.06	9.85%	67.97	0.86%
Profit after Tax	5334.63	36.55%	508.21	6.45%
Other comprehensive income	(13.36)	0.09%	36.46	0.46%
Total comprehensive income for the year	5321.27	36.45%	544.67	6.91%
Earning per Shares (Basic)	41.10	-	3.92	-
Earning per Shares (Diluted)	41.10	-	3.92	-

The revenues of our Company for the financialyear under review are 14,597.19 Lakh as compared to 7,877.40 Lakh for the previous year. The profit for the year under review is5321.27 Lakh as against the Profit of 544.67 Lakh in the previous year.

Table 2: Abridged Statement of Profit and Loss ( in Lakh) –

Particulars	FY 24	% of Total Income	FY 23	% of Total Income
Revenue
	5574.89	99.79%	2753.24	97.99%
Income from Operation
Other Income	11.99	0.21%	57.32	2.01%
Total	5586.89	100%	2810.56	100%
Expenditure
	1149.41	20.57%	895.74	31.88%
Employeebenefits
Finance Cost	229.16	4.10%	196.16	6.98%
Net loss on fair value changes	-	-	-	-
Impairment on financial instruments	(0.90)	0.02%	(27.18)	0.97%
Share of loss from Joint Venture LLP	0.20	0.01%	0.17	0.01%
Depreciation	74.84	1.34%	2.42	0.09%
Other Expenses	1173.50	21.00%	1197.60	42.62%
Total	2626.21	47.01%	2264.91	80.58%
Exceptional Items	-	-	-	-
Particulars	FY 24	% of Total Income	FY 23	% of Total Income
Profit Before Tax	2960.68	52.99%	545.65	19.42%
Tax- current & deferred	768.48	13.76%	151.20	5.40%
Profit after Tax	2192.20	39.24	394.45	14.02%
Other comprehensive income	(3.33)	0.06%	1.59	0.06%
Total comprehensive income for the year	2188.87	39.18%	396.04	14.08%
Earning per Shares (Basic)	16.89	-	3.04	-
Earning per Shares (Diluted)	16.89	-	3.04	-

Performance of Subsidiaries:

Systematix Shares and Stocks (India) Limited:

Particulars	FY 24	FY 23	Growth %
Total Revenues	7923.80	4256.24	86.17%
EBIDT	2731.38	(26.95)	-
PBT	2500.88	(197.29)	-
PAT	2010.99	(99.49)	-

Systematix Fincorp India Limited:

				( in Lakh)
Particulars	FY 24	FY 23	Growth %
Total Revenues	647.83	683.15	(5%)
EBIDT	731.22	294.96	148%
PBT	723.47	286.14	153%
PAT	653.03	286.19	128%

Systematix Finvest Private Limited:

				( in Lakh)
Particulars	FY 24	FY 23	Growth %
Total Revenues	443.99	219.08	103%
EBIDT	564.01	60.57	831%
PBT	551.96	(58.69)	-
PAT	449.28	(77.04)	-

Systematix Commodities Services Private Limited:

				( in Lakh)
Particulars	FY 24	FY 23	Growth %
Total Revenues	61.08	10.96	457%
EBIDT	50.82	4.25	1096%
PBT	36.46	4.24	760%
PAT	29.93	4.24	606%

Systematix Ventures Private Limited

				( in Lakh)
Particulars	FY 24	FY 23	Growth %
Total Revenues	0.77	0.36	114%
EBIDT	(0.74)	(3.82)	81%
PBT	(0.74)	(3.82)	81%
PAT	(0.79)	(3.82)	79%

Details of significant changes in key financial Ratios:

Sr. No. Particulars	31.03.2024	31.03.2023	change in %	Explanation
1. Debtors Turnover Ratio	11.31	2.89	291.10%	Increase in revenue and decrease in debtors resulted into improvement in Debtor Turnover Ratio.
2. Interest coverage ratio (ICR)	22.92	2.73	739.91%	Increase in profit resulted into improvement in Interest Coverage Ratio.
3. Current ratio	1.68	1.43	17.62%	Increase in current asset resulted in increase in Current Ratio.
4. Debt Equity Ratio	0.88	0.98	9.39%	On account of repayment of existing loan, there is a decrease in Debt Equity Ratio
5. Operating Profit Margin	48.51	11.55	320.18%	Increase in revenue without increase of operational cost resulted into increase of Operational Net profit Margin.
6. NetProfit	36.55	6.45	466.46%	Increase in revenue from operations resulted in Increase in Net Profit Margin.
7. Return on Net Worth	35.02	5.13	582.90%	Increase in profit resulted in increase in Return on Net Worth.

Note: The figures for the corresponding previous period have been restated / grouped wherever necessary.

J. HUMAN RESOURCES

We continue to lay emphasis on developing and facilitating optimum human performance through Employee Engagement, Encourage Health and Wellness and Rewards and Recognition. At Systematix, we aim to create learning and development journeys based on output of the talent assessment process and focus on the leadership mindsets and behaviours. Recruitment process has been strengthened to ensure higher competence levels. There were approx. 189 permanent employees on the roll of your Company and its subsidiaries as on March 31, 2024. We aim to create a thriving, safe and inclusive workplace for its employees and providing merit based opportunities for professional development and growth while providing equal opportunity for employment across gender or ethnic background. Our Company encourages an an entrepreneurial spirit among employees, offering uncapped incentives and empowering Relationship Managers to innovate and expand client engagements without geographical boundaries.

K. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing our 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. Important factors that could make a difference to our operations include global economy, political stability, stock performance on stock markets, changes in government regulations, tax regimes, economic developments and other incidental factors. Except as required by law, we do not undertake to update any forward-looking statements to reflect future events or circumstances. Investors are advised to exercise due care and caution while interpreting these statements.