williamson magor company ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRIAL STRUCTURE AND DEVELOPMENTS

Financial Year2022-23 (FY2023) began on a mixed note. On the positive side, after two years, the impact of the Covid-19pandemicon lives and livelihoods started receding-thanks to a successful mass immunization programme and the advent of a less virulent variant called Omicron. However, the impact of inflationary trends, supply chain disruptions emanating from China, and the Russia-Ukraine conflict have been impacting commodity prices.

In FY2023, the Indian economy faced multiple challenges. the countrys retail inflation indicator, consumer price inflation (CPI) went above the RBIs tolerance range of 6% in January 2022. It remained above this range for almost ten months, right up to October 2022. Rising international crude prices coupled with inimical domestic weather conditions kept food prices high, fuelling retail inflation. the government cut excise and customs duties and restricted exports to cool off inflation. Like other central banks, the RBI raised the monetary policy rates and reduced excess systemic liquidity. Major areas of concern were elevated commodity prices, higher retail inflation, depreciation of the Indian rupee and a rising current account deficit (CAD).

However, despite the se challenges, India emerged as the fastest growing major economy in the world. the second advance estimate of national income released by the Central Statistics Office (CSO) on 28 February 2023 expects real GDP growth in FY2023 to be 7%. the Government of India announced a growth oriented and expansionary budget for the FY 2024. It has tried to strike balance between fiscal consolidation and growth by continuing its focus on capital expenditure and creating fiscal space for that by curtailing revenue expenditure. It has set a target of reducing the Central Governments fiscal deficit to 5.9% of the GDP in FY 2024 from 6.4% (revised estimate or RE) in FY 2023, while using the infrastructure capex tool to support the economy. It has budgeted for Rs. 10 lakh crore towards capital expenditure for FY2024, an increase of 33% year-on-year.

On balance, we believe that the Indian economy has weathered the external shocks reasonably well. the proof of it is that the country has emerged as the fastest growing majore conomy in the world. the general expectation is that Indias GDP for FY 2024would record a growth in excess of6%.

The Company is carrying on the business of investment and lending mainly to the Group Companies. the business strategy is largely dependent on the economic environment of the Country. the Management continues to review the business strategy from time to time depending on the changes in Government policies.

OPPORTUNITIES

• Recovery in economic activity

• Revival in rural consumption

• Digitalisation and data driven decision making

• Low retail penetration of financial services/products in India

• Changing demographic profileof the countryin favourof the young

THREATS

• Impacton demand in the backdrop ofsustained inflation.

• Uncertain global political environment.

• Future waves of the pandemic may negatively impact asset quality.

• Regulatorychanges

RISK&CONCERNS

Any slowdown in economic growth in India could cause the business of the Company to suffer. Similarly, any sustained volatility in global commodity prices including a significant increase in the price of oil and petroleum products could once again spark off a new inflationary cycle, the reby curtailing the purchasing power of the consumers. Further, the Company is exposed to specific risk that is particular to its business and environments within which its operate, including market risk, competition risk, credit risk, liquidity and interest rate risk, human resource risk,operational risk, information securityrisks, regulatory riskand macro-economic risks. the level and degree of each riskvaries depending upon the nature of activityundertaken bythem.

SEGMENT WISE PERFORMANCE

During the Financial Year 31st March 2023, the Company operated mainly under asinglesegmentviz Investmentand Lending.

The Company has received the Notice No. KOL.DOS.RSG. NO. S949/03.03.008/2002-23 dated July 04, 2022 from the Reserve Bank of India (RBI) for surrenderoforiginal certificate of Registration pursuantto an orderdatedJune 29,2022 passed by RBI forcancellation ofcertificate of Registration No. N.05.05534 dated March 31,2003 issued to the Company for Non-Banking Financial Company under Section 45-IA(6) of the Reserve Bank of India Act, 1934. In this regard the company filed an appeal before the Appellate Authority for NBFC, Ministry of Finance against the said order which was rejected vide order dated May 04,2023.

The Company is in process to filewrit petition in the Honble High Court ofCalcutta against the rejection order of appellate authority.

OUTLOOK

Earnings of the Company particularly depend on the performance of the Companies where your Company has invested funds in equities and lent money. During the year, some of the said companies have not fared well for various reasons explained above. the Stock market

was also very volatile and wide fluctuations have been witnessed in the Stock prices. the Government at the Centre is taking various measures to ensure more liquidity in the market at a lower cost which is expected to help the Company directly and indirectly. Revival of economic growth for which the government is striving hard should boost the demand growth and also the stock market. the companies in which your Company has invested and lent funds should derive benefits from the measures taken by the Government and your Company will be a beneficiary of the same.

INTERNAL CONTROL SYSTEMS AND the IR ADEQUACY

The Company maintains a system of Internal Control commensurate with its size. the Internal Auditors, an independent firm of chartered Accountant, regularly review the operations and conduct a risk based audit with a view to not only test adherence to laid down policies and procedure but also to suggest improvements in processes and systems. the ir audit program is agreed upon by the Audit Committee. Internal Audit observations and recommendations are reported to the Audit Committee, which monitors the implementation of such recommendations and also reviews the adequacy of Internal Control System at regular intervals and provides guidance for improvement.

The Risk Management Committee formed by the Board of Directors of the Company also has a policy by which it periodically reviews the various risks to which the Company is exposed to and ensures proper record maintenance and proper legal compliances for exercising effective Internal Controls. the Audit Committee of the Board provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken.

Moreover, the KYC Norms (i.e. Know Your Customer Norms) and the Revised Fair Practices Code as pert he RBI directives act as integral parts of the overall Internal Control System of the Company.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

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

DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO the IMMEDIATELY PERVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS:-

Ratio	2022-23	2021-22	Change(%)	Reason
Debtors Turnover Ratio (number oftimes)
Interest Coverage Ratio (number oftimes)	2.30	0.72	(219.08)	There is change in the ratio on account of substantial decrease in finance cost compared to last year.
Current Ratio (number oftimes)	0.67	0.64	(5.36)	-
Debt Equity Ratio (number oftimes)	(4.70)	(3.91)	(20.12)	-
Operating Profit Margin	-	-	-	-
Net Profit Margin (%)	30.26	(54.03)	156.01	There is significant change in it as the re is profit in the current year and total income has also increased compared to last year.
Return on Net Worth (%)	NA	NA	-	This ratio is not applicable Since Net Worth is Negative

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

There is no material development on the Human Resources front. the Company maintains harmonious relationship with its employees. the Company is having 2 persons employed currently.

CAUTIONARY STATEMENT

Statements in the Management Discussion & Analysis Report in regard to projections, estimates and expectations have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Market information contained in this Report has been based on information gathered from various published and unpublished reports, and the ir accuracy, reliability and completeness cannot be assured.

	For and on behalf of the Board
	NEVILLEALLEN BETREEN
	Director
	DIN:09774939
	MADHUMITA SINGH BHASIN
Place: Kolkata	Director
Date :11th August 2023	DIN:10078878