Visco Trade Associates Ltd Management Discussions

for the Year Ended 31st March, 2024

INDUSTRY STRUCTURE & DEVELOPMENTS, OPPORTUNITIES & THREATS, SEGMENTWISE PERFORMANCE

Indian economy

Overview: The Indian economy was estimated to grow 7.8% in FY2023-24 fiscal against 7.2% in FY2022-23, mainly on account of the improved performance in the mining, quarrying, manufacturing and certain segments of the services sector. India retained its position as the fifth largest economy. The Indian rupee displayed relative resilience compared to the previous year; the rupee opened at Rs.82.66 against the US dollar on the first trading day of 2023 and on 27 December was Rs.83.35 versus the greenback, a depreciation of 0.8%.

The nations foreign exchange reserves achieved a historic milestone, reaching USD 645.6 billion. The credit quality of Indian companies remained strong between October 2023 and March 2024 following deleveraged Balance Sheets, sustained domestic demand and government-led capital expenditure. Rating upgrades continued to surpass rating downgrades in H2 FY24.

The FY24 growth in the economy was the highest since FY2016-17, excluding the 9.7% post- Covid rebound in gross domestic product (GDP) in FY2021-22 from the 5.8% contraction in FY2020-21.

As per the first advance estimates of national income released by the National Statistical Office (NSO), the manufacturing sector output was estimated to grow 6.5 % in FY2023-24 compared to 1.3% in FY2022-23. The Indian mining sector growth was estimated at 8.1% in FY2023-24 compared to 4.1% in FY2022-23.

Real GDP or GDP at constant prices in FY2023-24 was estimated at M71.79 Lakh Crores as against the provisional GDP estimate of FY2022-23 of M60.06 Lakhs Crores (released on 31st May 2023). Growth in real GDP during FY2023-24 was estimated at 7.3% compared to 7.2% in FY2022-23. Nominal GDP or GDP at current prices in FY2023-24 was estimated at Rs.296.58 Lakhs Crores against the provisional 2022-23 GDP estimate of Rs.272.41 Lakhs Crores. Indias exports of goods and services were expected touch USD 900 billion in FY2023-24 compared to USD 770 billion in the previous year despite global headwinds. Indias net direct tax collection

increased 19% to M4.71 Lakhs Crores by January 2024. The gross collection was 24.58% higher than the gross collection for the corresponding period of the previous year. Gross GST collection of Rs.20.2 Lakhs Crores represented an 11.7% increase; average monthly collection was Rs.1,68,000 Crores, surpassing the previous years average of Rs.1,50,000 Crores.

The agriculture sector was expected to grow 1.8% in FY2023-24, lower than the 4% expansion recorded in FY2022-23. The Indian automobile segment was expected to close FY2023-24 with a growth of 6-9%, despite global supply chain disruptions and rising ownership costs.

The construction sector was expected to grow 10.7% year-on-year from 10% in FY2022-23. Public administration, defence and other services were estimated to grow by 7.7% in FY2023-24 compared to 7.2% in FY2022-23.

India reached a pivotal phase in its S-curve, characterized by acceleration in urbanization, industrialization, household incomes and energy consumption. India emerged as the fifth largest economy with a GDP of USD 3.6 trillion and nominal per capita income of Rs.23,945 in FY2023-24.

Indias Nifty 50 index grew 30% in FY2023-24 and Indias stock market emerged as the worlds fourth largest with a market capitalization of USD 4 trillion.

Outlook, Risks & Concern, Internal Control Systems & their adequecy: India withstood global headwinds in 2023 and is likely to remain the worlds fastest-growing major economy on the back of growing demand, moderate inflation, stable interest rates and robust foreign exchange reserves. The Indian economy is anticipated to surpass USD 4 trillion in FY2024-25.

Union Budget FY2024-25: The Interim Union Budget 2024-25 retained its focus on capital expenditure spending, comprising investments in infrastructure, solar energy, tourism, medical ecosystem and technology. In FY2024-25, the top 13 ministries in terms of allocations accounted for 54% of the estimated total expenditure. Of these, the Ministry of Defence reported the highest allocation at Rs.6,21,541 crores, accounting for 13% of the total budgeted expenditure of the central government. Other ministries with high allocation included Road transport and highways (5.8%), Railways (5.4%) and Consumer Affairs, food and public distribution (4.5%).

Discussion on financial performance

Revenues: Revenues from operations grew from Rs.7801.62 Lakhs in FY2022-23 to Rs.21155.27 Lakhs in FY2023-24.

Margins: EBITDA for the year was Rs.4570.77 Lakhs as against Rs.(699.69) Lakhs in FY2022-23. EBITDA margin of the Company was at 30.58 % in FY2023-24 compared to (8.97)% in FY2022-23. The profit after tax, excluding exceptional items of the Company, was Rs.3312.72 Lakhs in FY2023-24 compared to Rs. (963.69) Lakhs in FY2022-23.

Sources of funds: The capital employed by the Company stood at Rs.11238.98 Lakhs as on 31st March 2024 compared Rs.8219.23 Lakhs as on 31st March 2023. The debt-equity ratio of the Company stood at 1.23 in FY2023-24 compared to 3.50 in FY2022-23.

There are no material developments in Human Resources/Industrial Relation front including number of people employed.

Key ratios and numbers -

Financial statements

Annexure-4

Particulars of Employees

(i) The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the Financial Year 2023-24 - No Director of the Company is paid remuneration.

(ii) The percentage increase in the remuneration of each Director, Chief Financial Officer and Company Secretary or manager in the Financial Year-

(iii) The percentage increase in the median remuneration of employees in the Financial Year 2023-24 - NIL

(iv) The number of permanent employees on the rolls of the Company - 6

(v) Average percentage increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentage increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration - NIL

(vi) Affirmation that the remuneration is as per the Remuneration Policy of the Company - Yes.

Place: Kolkata Managing Director

Date: 2nd August, 2024 DIN: 03472302

Annual Report 2023-24 : 31