Williamson Financial Services Ltd Management Discussions

Overview

The Company is registered with the Reserve Bank of India (RBI) as a non-deposit accepting NBFC. As per RBIs ‘Scale Based Regulations (SBR), the Company shall be classi3ed as NBFC- Base Layer (NBFC-BL) as the Company has no public deposits and no customer interface.

The global economy is exhibiting resilience and fortitude. There are, however, multiple challenges emanating from still elevated in3ation, tight monetary and financial conditions, escalating geopolitical tensions, rising geoeconomic fragmentation, high public debt burdens and financial stability risks. Global financial markets are on edge, with recurrent bouts of volatility as every incoming data increases uncertainty around monetary policy trajectories of major central banks.

Amidst global challenges, Indian economy exhibited robust growth in 2024-25, underpinned by strong investment activity, amidst subdued external demand. The growth outlook remains buoyant, given the governments sustained focus on capital expenditure while maintaining 3scal consolidation. Strong corporate balance sheets, rising capacity utilisation, double digit credit growth, healthy financial sector, and the ongoing disin3ation are likely to be other growth levers. Indian economy boasted an impressive growth rate of 6.5% in the 2024-25 3scal year (FY) and exceeded the average G20 rate of 3.2%.

India achieved its 3scal de3cit target of 4.8% of GDP for FY 2024–25, driven by strong revenue collections and disciplined expenditure.

The Reserve Bank of India transfers a record 2.69 trillion as dividend to the central government for the financial year 2024-25 (FY25). This is a 27 per cent increase from the 2.1 trillion payout in FY24 and signi3cantly higher than the

87,416 crore transferred in FY23.

Indian stock markets have generated an impressive performance during the FY 2024-25.According to the data shared by the National Stock Exchange (NSE), the growth of the Indian markets has marked the eighth consecutive year of positive returns. Notably, the last instance of negative returns in the Indian market dates back to 2015, highlighting the consistent upward trajectory of Indian equities.

NBFCs remain an important constituent of Indias financial sector, and continue to leverage their superior understanding of regional dynamics and customised products and services to expedite financial inclusion in India. Growth in the business of NBFCs is primarily attributed to a substantial increase in the demand for specialised financial services, particularly from Micro, Small and Medium Enterprises (MSMEs), which typically face challenges in obtaining loans from traditional banks. Moreover, the rise of digitisation has been a driving force behind the NBFC sectors growth. Adoption of digital platforms has enabled NBFCs to broaden their customer base, streamline operations, reduce costs and enhance overall customer experience. This transformation is further accentuated by the role of emerging technologies like arti3cial intelligence, machine learning, robotic process automation.

Capital and asset quality of banks and NBFCs remain healthy, supporting the growth in bank credit and domestic activity. Pre-emptive regulatory measures aimed at curbing excessive consumer lending and bank lending to NBFCs, and investments in alternate investment funds are expected to contain the build-up of potential stress in balance sheets of financial intermediaries and contribute to financial stability. While domestic banks and NBFCs have exhibited the interest rate risk, banks may have to address both trading and banking book risks. Accordingly, the RBI is striving to make its regulations more principle based, activity-oriented and proportionate to the scale of systemic risk, rather than entity-oriented.

The RBI has been continually strengthening the supervisory framework for NBFCs in order to ensure sound and healthy functioning and avoid excessive risk taking. It has issued several new guidelines in the recent past.

The uncertainties and volatility in the financial market are a continuing threat to the organizational performance. However, the features of foresightedness and focused analysis of the market have challenged the threat of adverse performance.

The business of the Company predominantly falls within a single primarily business segment viz. "Financial and Related Services" and hence the disclosure requirement under applicable Accounting Standard w.r.t. "Segment Reporting" is not applicable.

The Company is mainly exposed to market risk (including liquidity risk), interest risk and credit risk. While risk is an inherent aspect of any business, the Company is conscious of the need to have an e3ective monitoring mechanism and has put in place appropriate measures for its mitigation including business portfolio risk, financial risk, legal risk and internal process risk.

The Company is presently facing negative Net Worth condition which is expected to improve along with the improvement of the market condition which will increase the value of the Companys investments. This is certainly a matter of concern to the Company. However, the Company endeavours to achieve better asset and liability management and improve its financial health.

The Internal Control is mainly based upon the regular Internal Audit System with Quarterly Audit Reports given by the Internal Auditor, which is produced at the Audit Committee Meetings from time to time and discussed - any corrective action/s to be recommended by the Committee to the Board. Besides, the Vigil Mechanism and Risk Management process and the Corporate Government Measures in entirety are operational which may be considered as e3ective tools in this respect. Given the class of the business the Company, the nature of its transactions and quantum of its operations, the Internal Control works out to be suitable and adequate.

This section is covered in the Boards Report under the section of Financial Results and state of a3airs.

There is no material development in the Human Resource front. The Company as on 31st March, 2025 has only two employees on the payroll of Company. The Company enjoys cordial relations with its work force across all categories. The Company strives to provide conducive working environment to its employees and to maintain the pace with the economic situations, Company has always focused on enhancing the e3ciency of the employees including restructuring their compensation, working conditions etc.

Certain statements in the Management Discussion and Analysis describing the Companys objectives, predictions may be ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may vary signi3cantly from the forward-looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the e3ect of economic and political conditions in India, volatility in interest rates, new regulations and Government policies that may impact the Companys business.