Vedant Asset Ltd Management Discussions

OVERVIEW

Vedant Asset Limited, incorporated in 2015, is a financial services company operating in the "Finance - Others" sector, based in Jharkhand, India . The company is engaged in providing financial advisory and related services, with a focus on wealth management and acting as a corporate business correspondent for institutions like NSDL Payments Bank Limited. Vedant Asset is listed on the Bombay Stock Exchange (BSE). The company has made strides in expanding its service offerings and strengthening its governance framework during FY 2024-25.

INDUSTRY AND ECONOMIC ENVIRONMENT

The Indian financial services sector has experienced robust growth, driven by increasing financial inclusion, digital adoption, and favorable economic policies. The wealth management industry, in particular, has benefited from rising disposable incomes, a growing investor base, and increased demand for diversified financial products

However, challenges such as regulatory changes, market volatility, and competition from fintech platforms have necessitated agility and innovation. Vedant Asset has navigated this environment by focusing on strategic partnerships and operational efficiency, as evidenced by its agreement with NSDL Payments Bank Limited to act as its Corporate Business Correspondent.

FINANCIAL PERFORMANCE

The financial results for Vedant Asset Limited for FY 2024-25 reflect a mixed performance, with growth in revenue but a decline in profitability compared to the previous year. Below is a summary of key financial metrics based on standalone audited financial results for the year ended March 31, 2025:

REVENUE:

Total revenue for FY 2024-25 was Rs.3.8 crore, representing a year-on-year (YoY) growth of 22.6% from Rs.3.1 crore in FY 2023-24. Operating revenue stood at Rs.3.4 crore (up 28.6% YoY), while other income contributed Rs.0.5 crore.

Expenses: Total expenses increased to Rs.3.5 crore, a 32.6% rise from Rs.2.8 crore in FY 2023-24. Key expense drivers included:

Employee expenses: Rs.1.2 crore (up 58.7% YoY).

Other expenses: Rs.1.9 crore (up 39.5% YoY).Depreciation: Rs.0.3 crore (up 44.2% YoY).

Profitability: Profit before tax (PBT) was Rs.0.37 crore, up 26% YoY from Rs.0.31 crore. However, net profit after tax (PAT) was Rs.0.22 crore, reflecting a 5.7% YoY decline from

Rs.0.23 crore in FY 2023-24. The net profit margin (NPM) decreased to 6.54% from 9.25%. Earnings per share (EPS) stood at Rs.0.8, down from Rs.0.85 in FY 2023-24.

The revenue growth was driven by expanded service offerings and the successful transfer of Assets Under Management (AUM) from ARN 16320 to ARN 104974, enhancing the companys wealth management portfolio. However, rising operational costs, particularly in employee and other expenses, pressured profitability margins.

OPERATIONAL HIGHLIGHTS

Strategic Partnership: On March 26, 2025, Vedant Asset entered into an agragreement with NSDL Payments Bank Limited to act as its Corporate Business Correspondent, expanding its service reach and revenue potential.

AUM Transfer: The company successfully transferred AUM from ARN 16320 to ARN 104974, strengthening its position in the wealth management segment.

GOVERNANCE ENHANCEMENTS:

The company reconstituted its Audit, Nomination & Remuneration, and Stakeholders Relationship Committees on March 10, 2025, to strengthen oversight and compliance. Additionally, key appointments included:

Ms. Garima Jain as Company Secretary and Compliance Officer (December 2, 2024). Mrs. Pooja Pandey as Chief Financial Officer (November 14, 2024).

Mr. Aman Poddar as Additional Director (Independent and Non-Executive) (February 3, 2025).

REGULATORY COMPLIANCE:

Vedant Asset complied with SEBI regulations, including the submission of a certificate under Regulation 74(5) of SEBI (DP) Regulations, 2018, confirming that all shares are held in dematerialized form. The company also filed initial disclosures as a Large Corporate under SEBI guidelines, reporting zero outstanding borrowings as of March 31, 2025.

RISK FACTORS AND MITIGATION

The company operates in a competitive and regulated industry, facing risks such as:

Market Risk: Volatility in financial markets can impact AUM and revenue streams. Mitigation: Diversifying service offerings and strengthening client relationships through partnerships like NSDL Payments Bank.

Regulatory Risk: Changes in SEBI or RBI regulations could affect operations. Mitigation: Robust compliance framework with dedicated auditors and governance committees.

Operational Risk: Rising costs, as seen in employee and other expenses, could erode margins. Mitigation: Focus on cost optimization and operational efficiency.

Liquidity Risk: Negative cash flows from operations pose challenges. Mitigation: Prudent working capital management and exploring new revenue streams.

STRATEGIC PRIORITIES AND OUTLOOK

Vedant Asset Limited is focused on the following strategic priorities for sustainable growth:

Expansion of Service Offerings: Leveraging the NSDL Payments Bank partnership to enhance financial inclusion and tap into new client segments.

Technology Adoption: Investing in digital platforms to improve client engagement and operational efficiency.

Cost Management: Addressing rising operational costs through process optimization and resource allocation

Governance and Compliance: Strengthening internal controls and transparency to maintain investor confidence

Market Penetration: Expanding AUM through targeted marketing and strategic alliances.

Looking ahead, the company anticipates steady growth in FY 2025-26, supported by a favorable economic environment and increasing demand for financial advisory services. The management remains committed to delivering value to shareholders while navigating industry challenges.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCE POLICY

Our Company believes that the human capital is key to bring in progress. The Company believes in maintaining cordial relation with its employees, which is one of the key pillars of the Companys business. The Companys HR policies and practices are built on core values of Integrity, Passion, Speed, and Commitment. The Companys focus is on recruitment of good talent and retention of the talent pool. The Company is hopeful and confident of achieving the same to be able to deliver results and value for our shareholders.

ACCOUNTING POLICIES

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis.The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgment used therein.

CONCLUSION

Vedant Asset Limited has demonstrated resilience in FY 2024-25, achieving revenue growth despite profitability challenges due to rising costs. Strategic initiatives, such as the NSDL partnership and AUM transfer, position the company for future growth. The management is focused on optimizing costs, enhancing governance, and expanding its market presence to drive long-term value creation.

CAUTIONERY STATEMENT

Statements in this report on Management Discussion and 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.

For and on behalf of the Board of Vedant Asset Limited

Sd/-

Lallit Tripathi

Director

DIN: 07220161

Date: - 04.09.2025 Place: - Ranchi