Vibrant Global Capital Ltd Management Discussions

Your company is a NBFC which has been in existence for almost three decades. Your Company is registered with the RBI as a NBFC without accepting public deposits under section 45 IA of the RBI Act, 1934 and has been in the business of providing short term and long-term loans and advances, investing in equity products for a substantial long time now.

Your Company is managed under the stewardship of personnel with financial acumen to ensure optimal utilization of the assets and improve the overall profitability and financial efficiencies of the company.

MACROECONOMIC OVERVIEW:

The global economy remains remarkably resilient, with growth holding steady as inflation returns to target. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, a Russian-initiated war on Ukraine that triggered a global energy and food crisis, and a considerable surge in inflation, followed by a globally synchronized monetary policy tightening. Yet, despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops.

Global Economy Remains Resilient despite Uneven Growth; Challenges Lie Ahead

Instead, almost as quickly as global inflation went up, it has been coming down. On a year-over-year basis, global growth bottomed out at the end of 2022, at 2.3%, shortly after median headline inflation peaked at 9.4%. According to latest projections, growth for 2024 and 2025 will hold steady around 3.2%, with median headline inflation declining from 2.8% at the end of 2024 to 2.4% at the end of 2025. Most indicators point to a soft landing. Markets reacted exuberantly to the prospect of central banks exiting from tight monetary policy. Financial conditions eased, equity valuations soared, capital flows to most emerging market economies excluding China have been buoyant, and some low-income countries and frontier economies regained market access. Even more encouraging, we now estimate that there will be less economic scarring from the pandemic-the projected drop in output relative to pre-pandemic projections-for most countries and regions, especially for emerging market economies, thanks in part to robust employment growth. Astonishingly, the US economy has already surged past its pre-pandemic trend.

Resilient growth and faster disinflation point toward favorable supply developments, including the fading of earlier energy price shocks, the striking rebound in labor supply supported by strong immigration flows in many advanced economies. Decisive monetary policy actions, as well as improved monetary policy frameworks, especially in emerging market economies, have helped anchor inflation expectations. The transmission of monetary policy may have been more muted this time around in countries such as the United States, where an increased share of fixed-rate mortgages and lower household debt levels since, the global financial crisis may have limited the drag on aggregate demand up to now.

Despite these welcome developments, numerous challenges remain, and decisive actions are needed. First, while inflation trends are encouraging, we are not there yet. Somewhat worryingly, the most recent median headline and core inflation numbers are pushing upward. This could be temporary, but there are reasons to remain vigilant. Most of the progress on inflation came from the decline in energy prices and goods inflation below its historical average. The latter has been helped by easing supply-chain frictions, as well as by the decline in Chinese export prices. But services inflation remains high-sometimes stubbornly so-and could derail the disinflation path. Bringing inflation down to target remains the priority.

Interest Rates Restrictive, but Set to Fall

To counter rising inflation, major central banks have raised policy interest rates to levels estimated as restrictive. As a result, mortgage costs have increased and credit availability is generally tight, resulting in difficulties for firms refinancing their debt. However, despite concerns, a global economic downturn caused by a sharp rise in policy rates has not materialized, for several reasons. First, some central banks-including the European Central Bank and the Federal Reserve-raised their nominal interest rates after inflation expectations started to rise, resulting in lower real rates that initially supported economic activity. With expectations of lower interest rates in advanced economies, the appetite for assets in emerging market and developing economies has picked up, and sovereign spreads on risk-free government debt have fallen from their July 2022 peaks toward their pre- pandemic levels. Accordingly, more governments that earlier faced severe funding shortages are accessing international debt markets this year.

THE OUTLOOK: STEADY GROWTH AND DISINFLATION

Latest projections are for the global economy to continue growing at a similar pace as in 2023 during 2024-25 and for global headline and core inflation to decline steadily. There is little change in the forecast for global growth since the January 2024 WEO Update, with some adjustments for major economies, including a further strengthening in the projection for the United States, offset by modest downward revisions across several other economies. The forecast for global growth remains higher, however, than in the October 2023 WEO. The outlook for inflation is broadly similar to that in the October 2023 WEO, with a downward revision for advanced economies, offset by an upward revision for emerging market and developing economies. Medium-term prospects for growth in world output and trade remain the lowest in decades, with the pace of convergence toward higher living standards slowing for middle- and lower-income countries. The baseline forecasts for the global economy are predicated on a number of projections for global commodity prices, interest rates, and fiscal policies.

GROWTH OUTLOOK: STABLE BUT SLOW

Global growth, estimated at 3.2% in 2023, is projected to continue at the same pace in 2024 and 2025. The projection for 2024 is revised up by 0.1% age point from the January 2024 WEO Update, and by 0.3% age point with respect to the October 2023 WEO forecast. Nevertheless, the projection for global growth in 2024 and 2025 is below the historical (2000-2019) annual average of 3.8%,reflecting restrictive monetary policies and withdrawal of fiscal support, as well as low underlying productivity growth. Advanced economies are expected to see growth rise slightly, with the increase mainly reflecting a recovery in the euro area from low growth in 2023, whereas emerging market and developing economies are expected to experience stable growth through 2024 and 2025, with regional differences.

GROWTH FORECAST FOR EMERGING MARKET AND DEVELOPING ECONOMIES

In emerging market and developing economies, growth is expected to be stable at 4.2% in 2024 and 2025, with a moderation in emerging and developing Asia offset mainly by rising growth for economies in the Middle East and Central Asia and for sub-Saharan Africa. Low-income developing countries are expected to experience gradually increasing growth, from 4.0% in 2023 to 4.7% in 2024 and 5.2% in 2025, as some constraints on near-term growth ease.

Growth in emerging and developing Asia is expected to fall from an estimated 5.6% in 2023 to 5.2% in 2024 and 4.9% in 2025, a slight upward revision compared with the January 2024. Growth in China is projected to slow from 5.2% in 2023 to 4.6% in 2024 and 4.1% in 2025 as the positive effects of one-off factors-includingthe post- pandemic boost to consumption and fiscal stimulus-ease and weakness in the property sector persists. Growth in India is projected to remain strong at 6.8% in 2024 and 6.5% in 2025, with the robustness reflecting continuing strength in domestic demand and a rising working-age population.

Risks to the Outlook: Broadly Balanced

Risks to the global economic landscape have diminished since October 2023, leading to a broadly balanced distribution of possible outcomes around the baseline projection for global growth, from a clear downside tilt in the April 2023 WEO and the October 2023 WEO.

Downside Risks

Despite the surprisingly resilient global economic performance since October 2023, several adverse risks to global growth remain plausible:

! New commodity price spikes amid regional conflicts:

The conflict in Gaza and Israel could escalate further into the wider region. Continued attacks in the Red Sea and the ongoing war in Ukraine risk generating additional supply shocks adverse to the global recovery, with spikes in food, energy, and transportation costs. Further geopolitical tensions--including a possible reescalation of the war in Ukraine could also constrain cross-border flows of food, fuel, and fertilizer, causing additional price volatility and undermining business and consumer sentiment. As the risk analysis, such geopolitical shocks could complicate the ongoing disinflation process and delay central bank policy easing, with negative effects on global economic growth. Overall, such adverse supply shocks may affect countries asymmetrically, with particularly acute effects on lower-income countries where food and energy constitute a large share of household expenditure.

! Persistent inflation and financial stress.

A slower-than-expected decline in core inflation in major economies as a result, for example, of persistent labor market tightness or renewed tensions in supply chains could trigger a rise in interest rate expectations and a fall in asset prices, as in early 2023.

! Chinas recovery faltering:

In the absence of a comprehensive restructuring policy package for the troubled property sector in China, a larger and more prolonged drop in real estate investment could occur, accompanied by expectations of future house prices declining, reduced housing demand, and a further weakening in household confidence and spending, with implications for global growth. Unintended fiscal tightening on account of local government financing constraints could amplify the impact.

Additional monetary policy easing, especially through lower interest rates, as well as expansionary fiscal measures, including funding of unfinished housing and support to vulnerable households could further support demand and ward off deflationary risks.

! Disruptive fiscal adjustment and debt distress:

Fiscal consolidation is necessary in many advanced and emerging market and developing economies to curb debt-to-GDP ratios and rebuild capacity for weathering future shocks. Despite recent improvement in international bond market conditions, the risk of debt distress in low-income countries continues to constrain scope for necessary growth-enhancing investment. The share of low-income countries (54%) and emerging markets (16%) in or at high risk of debt distress in 2024 remains elevated.

! Distrust of Government eroding reform momentum:

Across broad income groups, confidence in government, legislative bodies, and political parties is below 50%, by some measures. Low confidence in governments and institutions, amid political polarization in some cases, could sap support for structural reforms, complicate the adoption of and adaptation to technological advances, create resistance to raising the revenue needed to finance necessary investments, and in some cases increase the risk of social unrest.

! Geoeconomic fragmentation intensifying:

The separation of the world economy into blocs amid Russias war in Ukraine and other geopolitical tensions could accelerate. Such a development could generate more restrictions on trade and cross-border movements of capital, technology, and workers and could hamper international cooperation. IMF research suggests that intensified geoeconomic fragmentation could reduce portfolio and foreign direct investment flows, slow the pace of innovation and technology adoption, and constrain the flow of commodities across fragmented blocs, resulting in large output losses and commodity price volatility.

Upside Risks

More favorable outcomes for the global economy than expected could arise from several sources:

! Short-term fiscal boost in the context of elections:

In the near term, new expansionary measures such as tax cuts, increased fiscal transfers, and infrastructure investment could boost economic activity, especially in economies in which sovereign risk is perceived as low, and raise global growth above current projections. However, such fiscal expansions could add to inflationary pressures, especially in countries with overheated economies and steep inflation-unemployment trade-offs and result in higher interest rates, which would increase the challenge of curbing debt. A more disruptive policy adjustment could follow, with a negative impact on growth.

! Further supply-side surprises, allowing for faster monetary policy easing:

Downside surprises to core inflation on account of a faster-than-expected fading of pass-through effects from past relative price shocks and the easing of global supply constraints are plausible in several cases. A faster-than-envisaged compression of profit margins to absorb past cost increases is also plausible. Planned developments could lead to a greater-than-expected decline in inflation expectations and allow central banks to bring forward their policy-easing plans, which would reduce borrowing costs, raise consumer confidence, and reinforce global growth.

! Spurs to productivity from artificial intelligence:

Recent advances in artificial intelligence, notably the emergence of large language models and of generative pretrained transformers, have marked a leap in the ability of technology to outperform humans in several cognitive areas.At the same time, as during the introduction of past general-purpose technologies, the impact of artificial intelligence on economic outcomes, as well as its timing, remains highly uncertain.

Globally Consistent Risk Assessment of the World Economic Outlook Forecast

The risk of a hard landing has faded since the October 2023 WEO, as the quantitative analysis in, based on the IMFs Group of Twenty (G20) Model, illustrates. The estimated probability that global growth in 2024 will fall below 2.0% an outcome that has occurred only five times since 1970 is now at about 10%, consistent with an approximately symmetric risk distribution. This estimated likelihood is down from an estimated 15% at the time of the October 2023 WEO. For 2025, the probability of such an outcome is also about 10%. A contraction in global per capita real GDP-which often happens in a global recession-in 2024 has an estimated probability below 5%. At the same time, the probability of global growths exceeding the 3.8% historical average during 2000-19 is slightly above 20% for 2024, highlighting the relatively weak baseline outlook for global growth. Turning to prices, the probability that core inflation in 2024 will be higher than that in 2023, instead of declining to 4.9% in 2024 from 6.2% in 2023, is assessed at less than 10%, consistent with a high level of confidence that disinflation will continue.

Climate Resilience

Enhancing climate-risk-monitoring systems and risk management frameworks and stronger safety nets and insurance are also needed to enhance climate resilience. Mobilizing climate finance for both adaptation and mitigation in low-income countries will require coordinated efforts by international organizations, private investors, country authorities, and donors.

Source: https://www.imf.org/en/Publications/WEO/Issues/2024/04/16/world-economic-outlook-april-2024

ECONOMIC OVERVIEW: INDIA

Key performance indicators for Indian Economy 2023-24:

! Real Gross Domestic Product (GDP) has grown by 8.2% in FY 2023-24 as compared to the growth rate of 7.0% in FY 2022-23. Nominal GDP has witnessed a growth rate of 9.6% in FY 2023-24 over the growth rate of 14.2% in FY 2022-23.

! Real Gross Value Added (GVA) has grown by 7.2% in 2023-24 over 6.7% in 2022-23. This GVA growth has been mainly due to significant growth of 9.9% in Manufacturing sector in 2023-24 over -2.2% in 2022-23 and growth of 7.1% in 2023-24 over 1.9% in 2022-23 for Mining & Quarrying sector.

Source: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2022323

Economic Outlook for India

Strong economic growth in the first quarter of FY23 helped India overcome the UK to become the fifth-largest economy after it recovered from the COVID-19 pandemic shock. Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated at INR 293.90 lakh crores (US$ 3.52 trillion), against the First Revised Estimates (FRE) of GDP for the year 2022-23 of INR 269.50 lakh crores (US$ 3.23 trillion). 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 FY24. During the period January-March 2024, Indias exports stood at US$ 119.10 billion, with Engineering Goods (25.01%), Petroleum Products (17.88%) and Organic and Inorganic Chemicals (7.65%) being the top three exported commodity. Rising employment and increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months.

Future capital spending of the government in the economy is expected to be supported by factors such as tax buoyancy, the streamlined tax system with low rates, a thorough assessment and rationalisation of the tariff structure, and the digitization of tax filing. In the medium run, increased capital spending on infrastructure and asset-building projects is set to increase growth multipliers. The contact-based services sector has demonstrated promise to boost growth by unleashing the pent-up demand. The sectors success is being captured by a number of HFIs (High-Frequency Indicators) that are performing well, indicating the beginnings of a comeback.

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

Source: https://www.ibef.org/economy/indian-economy-overview

India GDP growth forecast:

The International Monetary Fund (IMF) has revised Indias GDP growth forecast for the fiscal year 2024-25 to 7%, up by 20 basis points from its previous estimate of 6.8%.

The upward revision is driven by improved consumption prospects, particularly in rural areas, which are expected to bolster the countrys economic growth.

For the following financial year, the IMF has maintained its growth projection at a slower rate of 6.5%, according to the latest World Economic Outlook report.

The increased forecast for FY25 reflects the positive carry over effects from upward revisions to 2023s growth and the enhanced outlook for private consumption in rural regions.

However, persistent inflation in the services sector is complicating monetary policy normalisation, potentially leading to prolonged higher interest rates amidst rising trade tensions and increased policy uncertainty.

Source:https://www.indiatoday.in/business/story/india-gdp-growth-forecast-boost-imf-key-reasons-explained-2567908-2024-07-17

NBFC OUTLOOK WITH RESPECT TO INDUSTRY

India has a diversified financial sector undergoing rapid expansion both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed new entities such as payment banks to be created recently, thereby adding to the type of entities operating in the sector. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64% of the total assets held by the financial system.

NBFCS are expected to play a crucial role in the India growth story fueling formalised credit penetration among the underserved.

The Government of India has introduced several reforms to liberalise, regulate and enhance this industry. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These measures include launching Credit Guarantee Fund Scheme for MSMEs, issuing guidelines to banks regarding collateral requirements and setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by Government and private sector, India is undoubtedly one of the worlds most vibrant capital markets.

Note: Data are provisional. Source: RBI supervisory returns. 1. Financial Stability Report 2023, RBI, accessed on 24 January 2024

2. Report on trend and progress of banking in India 2022-23, RBI, accessed on 24 January 2024

Source:https://assets.kpmg.com/content/dam/kpmg/in/pdf/2024/02/nbfcs-in-india-growth-and-stability.pdf

GOVERNMENT INITIATIVES IN FINANCIAL SERVICES SECTOR Some of the major Government Initiatives are:

! In 2023, the government revamped the credit guarantee scheme. The inflow of INR 9,000 crore (US$ 1,080.97 million) into the corpus of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will give MSMEs more access to collateral-free loans.

! In September 2021, the international branch of the National Payments Corporation of India (NPCI), NPCI International Payments (NIPL), has teamed with Liquid Group, a cross-border digital payments provider, to enable QR-based UPI payments to be accepted in 10 countries in north and southeast Asia.

! On September 30, 2021, the Reserve Bank of India communicated that the applicable average base rate to be charged by non-banking financial companies - micro-finance institutions (NBFC-MFIs) to their borrowers for the quarter beginning October 1, 2021, will be 7.95%.

! On September 30, 2021, the IFSC Authority constituted an expert committee to recommend an approach towards the development of a sustainable finance hub and provide a road map for the same.

! In August 2021, Prime Minister Mr. Narendra Modi launched e-RUPI, a person and purpose-specific digital payment solution. e-RUPI is a QR code or SMS string based e-voucher that is sent to the beneficiarys cell phone. Users of this one-time payment mechanism will be able to redeem the voucher at the service provider without the usage of a card, digital payments app, or Internet banking access.

ROAD AHEAD

Indias financial services industry has experienced huge growth in the past few years. This momentum is expected to continue. Indias private wealth management Industry shows huge potential. India is expected to have 16.57 lakh HNWIs in 2027. This will indeed lead India to be the fourth-largest private wealth market globally by 2028. Indias insurance market is also expected to reach US$ 250 billion by 2025. This will further offer India an opportunity of US$ 78 billion in additional life insurance premiums from 2020-30.

India is today one of the most vibrant global economies on the back of robust banking and insurance sectors. The relaxation of foreign investment rules has received a positive response from the insurance sector, with many companies announcing plans to increase their stakes in joint ventures with Indian companies. Over the coming quarters, there could be a series of joint venture deals between global insurance giants and local players.

The Association of Mutual Funds in India (AMFI) is targeting a nearly five-fold growth in AUM to INR 95 lakh crore (US$ 1.15 trillion) and more than three times growth in investor accounts to 130 million by 2025.

Indias mobile wallet industry is estimated to grow at a CAGR of 23.9% between 2023 and 2027 to reach US$ 5.7 trillion.

According to Goldman Sachs, investors have been pouring money into Indias stock market, which is likely to reach >US$ 5 trillion, surpassing the UK, and become the fifth-largest stock market worldwide by 2024.

Source: https://www.ibef.org/industry/financial-services-india

GROWTH OPPORTUNITIES: NBFC

KEY REASONS FOR GROWTH

Deep demographic and addressable market understanding: With their operations in the unorganised and underdeveloped segments of the economy, NBFCs have created a niche for themselves by understanding what customers want from them and guaranteeing last-mile delivery of goods and services.

Tailored product offerings: NBFCs have adapted their product offering to meet the specific characteristics of a customer group and are focused on meeting appropriate needs by carefully analysing this target segment and customising pricing models.

Wider and effective reach: NBFCs are now reaching out to Tier 2, Tier 3 and Tier 4 markets, distributing the loan across several customer touchpoints. In addition, they are building a connected channel experience that provides an omnichannel, seamless experience of sales and service 24 hours a day, seven days a week.

Co-lending: RBI, in November 2020, issued co-lending norms that enable banks and NBFCs to collaborate for priority sector lending (PSL).

Government and central bank Initiatives: The Government of India also unveiled several initiatives aimed at addressing some of the structural issues stressing the small business lending segment. These include granting licenses to account aggregators, initiating the Pradhan Mantri Mudra Yojana (PMMY), launching UPI platforms, unveiling platforms such as TReDS, GeM and Open Network for Digital Commerce (ONDC) and implementing GST.

SHARE OF CHALLENGES: NBFC

One of the biggest challenges facing NBFCs in India is access to funding. Unlike banks, which have access to low-cost deposits, NBFCs must rely on borrowing from banks or issuing bonds to raise funds. This can make it difficult for NBFCs to compete with banks on interest rates. Another challenge faced by NBFCs is the regulatory environment. While the RBI regulates NBFCs, there are also several other regulators that oversee different aspects of the financial services industry. This can create confusion for NBFCs, especially those that operate across multiple states or regions.

Despite these challenges, NBFCs have continued to grow in India. The government is taking several measures to ease the challenging situations prevailing in the sector by way of providing liquidity support to NBFCs, Housing Finance Companies (HFCs), as well as Microfinance Institutions (MFIs) and introducing partial credit guarantee schemes, etc.

NBFCs have increasingly been playing a significant role in financial intermediation by complementing and competing with banks, and by bringing efficiency and diversity into the financial ecosystem. NBFCs enjoy greater operational flexibility to take up a wider scale of activities, enter new geographies and sectors and thus grow their operations.

Source: https://www.ibef.org/research/case-study/nbfcs-building-the-future-of-india

BUSINESS RISK MANAGEMENT

Operational Risk is inherent in all banking/ financial products, services, activities, processes, and systems. Effective management of Operational Risk is an integral part of the risk management framework. Sound Management of Operational Risk shows the overall effectiveness of the Board of Directors and Senior Management in administering the portfolio of products, services, activities, processes, and systems.

An operational disruption can threaten the viability of the NBFC and impact its customers and other market participants, and ultimately have an impact on financial stability. It can result from man-made causes, Information Technology (IT) threats (e.g., cyber-attacks, changes in technology, technology failures, etc.), geopolitical conflicts, business disruptions, internal/external frauds, execution/ delivery errors, third party dependencies, or natural causes (e.g., climate change, pandemic, etc.).

The NBFC needs to factor in the entire gamut of risks (including the aforesaid risks in its risk assessment policies/ processes), identify and assess them using appropriate tools, monitor its material operational exposures and devise appropriate risk mitigation/management strategies using strong internal controls to minimize operational disruptions and continue to deliver critical operations, thus ensuring operational resilience.

Senior Management has to ensure the comprehensive identification and assessment of the Operational Risk inherent in all material products, activities, processes and systems to make sure the inherent risks and incentives are well understood. Both internal and external threats and potential failures in people, processes and systems should be assessed promptly and on an ongoing basis. Assessment of vulnerabilities in critical operations should be done in a proactive and prompt manner. All the resulting risks should be managed in accordance with operational resilience approach.

The Board of Directors has to take the lead in establishing a strong risk management culture, implemented by Senior Management. The Board of Directors and Senior Management has established a corporate culture guided by strong risk management, set standards and incentives for professional and responsible behaviour, and ensure that staff receives appropriate risk management and ethics training.

Source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12679

As you are aware, the Company has quoted investments which are exposed to fluctuations in stock prices. The Company continuously scans the environment, be it market or regulatory or industry trends and its concurrent movements to assess and realign market exposure for equity. Based on that, it takes remedial and preemptive measures. Thus, portfolio Risk Management Strategy is a key imperative for Managing risk of our business.

MANAGING OVERALL PORTFOLIO RISK

We as a company are aware that we can optimize profits and build a portfolio that is compatible with investment goals and risk tolerance by using these strategies that are well established:

! Diversification Strategy - The goal of the diversification strategy is to lower the portfolios total risk by investing in various assets. With diversity, losses in one asset can be compensated by gains in another asset because not all investments will perform poorly at the same time.

! Asset Allocation Strategy that includes distributing a portfolio among various asset classes, including stocks, bonds, and cash. In order to build a portfolio that is compatible with the investors risk tolerance and investing objectives, asset allocation is used.

! Hedging Strategy - Using financial instruments to counter a portfolios risk, such as options or futures contracts, is a method known as hedging. An investor who is worried about the value of a particular stock declining, for instance, can buy a put option to hedge against losses.

! Portfolio Management and optimization Strategy - that entails choosing the best combination of assets to increase a portfolios expected return while lowering its risk. By analyzing various investing scenarios using mathematical models, the best portfolio is chosen.

! Active Management Strategy - Making investment selections based on market conditions and in-depth security analysis.

! Budgeting for Risk - Allocating risk among various investing strategies or asset classes. Making a portfolio that is compatible with companys risk tolerance and investment objectives is the aim of our risk budgeting.

HUMAN RESOURCES RISK MITIGATION:

We, as a company do believe that Human Resource Risk Management aimed at developing strategies to mitigate business risk due to human capital has to the holistic, proactive and with due consideration to human capabilities and limitations. The effectivemanagement of human resource-based risks is a cornerstone factor of corporate success. Effective Human Resource Risk management is crucial for organizations to avoid issues that negatively impact productivity, legal compliance, finances, company culture and reputation. By regularly performing Human Resource risk assessments, the Company can proactively address vulnerabilities and support strategic goals.

OPERATIONAL RISK MANAGEMENT:

In todays uncertain operational environment marked by volatile business outlook, rising number of regulations and regulatory updates, and high costs of services, along with internal challenges such as operational lapses, internal fraud, and de-motivated employees, there is a clarion call for effective Operational Risk Management (ORM)by organizations.

We have adopted continuous monitoring or early warning systems built around key risk indicators (KRIs). Key risk indicators are metrics used by us to provide an early signal of increasing risk exposure in various areas of the enterprise.

INTERNAL CONTROL SYSTEMS AND THEIR ACCURACY

Considering the size and nature of the business, presently adequate internal control systems are in place. However, as and when company achieves further growth and higher level of operations, Company will review the internal control system to match with changed requirement.

The company has proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against unauthorized use or disposition and that transaction are authorized and recorded correctly.

The company has constituted Audit Committee consisting of non-executive. Independent Directors to look into various aspects of Accounts. The company has a clearly defined organization structure in place.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Consolidated Segment-wise Performance

A table showing brief on the Segment-wise revenue is stated as below: (INR in lakhs)

Particulars	FY 2023-24	FY 2022-23
Capital Market	14,251.48	4,912.63
Trading	1,221.69	6,525.31
Manufacturing	8,569.74	7,831.58
Unallocated	139.53	461.78
Total	24,182.44	19,731.30

The capital revenue stood at INR 14,251.48 lakhs during current fiscal year 2023-24 as compared to INR 4,912.63 lakhs during previous year, buoyed by the performance of various investments that were done by the company. Trading revenue stood at INR 1,221.69 lakhs during current fiscal year 2023-24 as compared to INR 6,525.31 lakhs during previous year. There was increase in the Manufacturing revenue which stood at INR 8,569.74 lakhs during current year as compared to INR 7,831.58 lakhs for previous year. This was possible due to excellent performance in the government tender sales that gave a fillip to production of salt in our manufacturing unit. Detailed Segment revenue-wise revenue forms part of notes to consolidated financial statements. Synergy & Strength derived from our Subsidiary Companies: Our company is a part of "Vibrant Global Group" with the operation of our group and Subsidiaries spanning from Manufacturing of Iodized Edible Salt, Trading of steel products and polyester films.

A brief highlight of the revenues of our subsidiaries for FY 2023-24 is as follows: (INR in lakhs)

Name of the Company	Revenue	PAT
Vibrant Global Trading Pvt. Ltd. - Subsidiary Company	4,947.50	143.62
Vibrant Global Salt Pvt. Ltd. - Subsidiary Company	13,008.44	407.17

This was possible due to excellent performance in the government tender sales that gave a fillip to production of salt in our manufacturing unit as well as tie up for contract manufacturing for other companies.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The company believes that human resources will play a key role in its future growth. Planned efforts are made to develop and retain talent. Learning and development initiatives focus on developing the professional capabilities. The company continues to provide growth opportunities to internal talent by assigning them higher responsibilities with suitable exposure and training. The company continues to maintain positive work environment and constructive relationship with its employees with a continuing focus on productivity and efficiency.

EXPERIENCED MANAGEMENT TEAM

Our core management team has substantially contributed to the growth of our business operations. Our Company is managed by Mr. Vinod Garg, Managing Director and Mr. Vaibhav Garg, Whole Time Director and Chief Financial Officer. Our professionally qualified Directors have added to our operational and business strengths.

PERFORMANCE DURING THE YEAR On Standalone Business:

The standalone total income increased to INR 6,347.27 lakhs during current fiscal year 2023-24 as compared to INR 388.24 lakhs during FY 2022-23. The Company made a profit (after Tax) of INR 4,222.22 lakhs during current fiscal year as compared to loss (after Tax) of INR 207.74 lakhs during FY 2022-23. On Consolidated Business: The consolidated total income increased to INR 24,182.44 lakhs during current fiscal year as compared to INR 19,731.30 lakhs during previous FY 2022-23. The Company made a profit (after tax) of INR 4,767.39 lakhs during current fiscal as compared to loss (after Tax) of INR 781.70 lakhs during previous FY 2022-23.

As on 31st March, 2024, total market value of quoted investment stood at INR 9,769.32 lakhs whereas unquoted investments were recorded at INR 2,836.13 lakhs. SIGNIFICANT CHANGES

For details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios & change in return on net worth as compared to the immediately previous financial year, refer note no. 27 of the financial statements, which is annexed with this Annual report.

CAUTIONARY STATEMENT

Statements made herein describing the Companys expectations or predictions are "forward-looking statements". The actual results may differ from those expected or predicted. Prime factors that may make a difference to the Companys performance include market conditions, Government policies & regulations, economic development within/outside country etc.