SMC Global Securities Ltd

“Success is not key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful”

It is with great pleasure and a deep sense of gratitude that I present to you SMC Global Securities Limited s Annual Report for FY 2023-24. As we gather to reflect on the milestones of the past year and set our course for the future, I am reminded of the extraordinary journey we've embarked upon together a journey fueled by resilience, innovation, and unwavering commitment. The year has been very special for SMC as we completed 30 years. While this milestone has given us an opportunity to look back at our journey, it has also enabled us to create a transformation roadmap.

In the dynamic landscape of the present global economy, we find ourselves navigating through a multitude of challenges and opportunities. The fiscal year 2023-24 has been a testament to the resilience of nations and industries as they continue to adapt to the ever-evolving circumstances. From the ongoing repercussions of the pandemic to geopolitical tensions, we have witnessed the profound impact of these factors on economies worldwide. However, amidst these challenges, we have also seen remarkable displays of innovation, collaboration, and resilience. Nations, businesses, and individuals have come together to overcome adversity, leveraging technology, and forging new pathways towards growth and sustainability. The global economy is poised for recovery, fueled by stimulus measures, digital transformation, and renewed optimism. In line with the global trend towards digitalization and innovation, your Company remains at the forefront, placing a strategic focus on technology as a key driver of our future growth.

As a financial services sector company, we have remained steadfast in our commitment to navigating through these uncertain times with prudence, agility, and foresight. Our robust risk management practices, relentless pursuit of innovation, and unwavering focus on client-centricity have positioned us well to not only weather the storm but emerge stronger and more resilient.

In the Financial Year 2023-24, your Company has demonstrated a strong and resilient performance. The Company has recorded consolidated revenue of Rs. 1,63,849.69 lacs which is 35.24% higher as compared to Rs. 1,21,157.33 lacs of the previous financial year and a PAT i.e. Profit after tax of of Rs. 18,827.65 lacs which is 56.38% higher as compared to Rs. 12,039.62 lacs in previous year. The Company recorded earnings per share at 17.89 per share on consolidated basis against 11.25 per share in previous financial year. The profits of the Company has increased significantly from the previous year both on standalone basis and consolidated basis. This is mainly because; the company has expanded its client base by attracting new investors and strengthening relations with the existing clients. Your Company s client centric approach and tailored investment solutions have contributed to enhanced market share and revenue growth. Further, our continued investments in technology infrastructure and digital platforms have improved operational efficiency, reduced transaction costs, and enhanced the overall trading experience for our clients. On consolidated basis, every segment of the Company has contributed significantly towards the growth in revenue. In this regard, the category wise performance has been discussed in detail in the Management Discussion and Analysis Report forming part of this Annual Report.

Your Company is one of the leading players providing financial services across the Country. The Company has a diversified portfolio of offering services to its customers such as brokerage, clearing services, depository participant services, investment banking, wealth management, PMS, real estate broking, mortgage & loan advisory, NRI & FPI services etc. categorised under Broking, Distribution and Trading segment apart from Financing business and Insurance Broking business. The diversified business of the Company is conducted through the subsidiaries and joint venture companies. The broking, distribution and trading segment of the Company recorded a profit before interest and tax of 24,877.70 which is 57.88%. higher as against 15757.14 lakhs in the previous year,. The insurance broking segment recorded a profit before interest and tax of 1,442.57 lakhs which is 30.31% higher as against 1,106.97 lakhs in previous year and financing activities segment recorded a profit before interest and tax of 13,585.33 lakhs which is 64.39% higher as against 8,264.28 lakhs in previous year.

The performance of material subsidiary companies of the Company i.e. Moneywise Financial Services Private Limited and SMC Insurance Brokers Private Limited has been exceptional. The total Asset under Management of Moneywise Financial Services Private Limited (Middle Layer NBFC-ML as per RBI guidelines) as on 31st March, 2024 has reached approximately 1,237 crores and the cumulative loans disbursed till date amounts to Rs.3,100 crores. During the year under review, the total revenue stood at 20,454.54 as compared to 13,118.17 Lakhs in previous year, which is an increase in revenue by 55.93% as compared to previous year. In this regard, SMC Insurance Brokers Private Limited has also performed well with approximately 9,95,979 active policies during FY 2023-24 as compared to 9,57,635 active policies during the previous year. During the year under review, the total revenue of the said company stood at 52,434.28 lakhs as compared to 34,486.92 Lakhs in previous year, which is an increase in revenue by 52.04% as compared to previous year.

If we talk about profit distribution during the year, I would like to mention that the Company during the financial year has declared an interim dividend of 60% i.e. 1.20/- per equity share of 2/- each. Further, the Board of Directors considering the performance of the Company for the financial year, also recommends declaration of final dividend of 60% for FY 2022-23 i.e. 1.20/- per equity share of 2/- each, which if approved, shall result in payment of total dividend of 120%* i.e. 2.4/- each on the face value of the equity share of 2/- each for the FY 2023-24.

In our pursuit of excellence, we have also welcomed esteemed independent directors to our organization i.e. Mr. Gobind Ram Choudhary, Mr. Hemant Bhargava, Mr. Dinesh Kumar Sarraf and Ms. Neeru Abrol bringing with them a wealth of experience and expertise. Their guidance and strategic insights have been invaluable in shaping our corporate governance framework and driving sustainable growth. While I would like to also take this opportunity to express our deepest gratitude for the dedicated service and invaluable contributions of Mr. Chandra Wadhwa, Mr. Kundan Mal Agarwal, Mr. Hari Das Khunteta and Dr. Madhu Vij, whose tenure have reached its completion.

At the heart of our success lies our unwavering dedication to our clients. We understand that their trust is our most valuable asset, and we remain steadfast in our commitment to exceeding their expectations. By offering tailored solutions and personalized services, we continue to be the partner of choice for our clients on their journey towards financial prosperity. I'm proud to share that your Company has seen remarkable growth in its client base. This expansion is a testament to the trust and confidence placed in us by our clients, reaffirming our commitment to delivering value and excellence in every interaction. Our relentless focus on understanding and meeting the diverse needs of our clients has been instrumental in strengthening these relationships and driving sustainable growth.

Over the past year, and indeed, the preceding one, we have made significant investments in the development of technology platforms. These investments underscore our unwavering dedication to enhancing client servicing capabilities and ensuring that we remain at the forefront of innovation in the financial services industry. These investments have not only strengthened our technological infrastructure but also positioned us better to meet the evolving needs of our clients in an increasingly digital world.

Your Company has re-launched its websites, with cutting edge technology stack, revolutionizing online financial services experience with intuitive interfaces and comprehensive features. The next generation trading tools of the Company i.e. SMC ACE, SMC Easy Invest, SMC Algotrader, Autotrender NXT, HFT Trading, and Zendesk has assisted our clients to have a hassle free trading interface experience. Further, our forthcoming next-generation mobile app epitomizes our dedication to providing a seamless trading and investment experience. Designed to be your one-stop destination for all financial needs, it integrates equities, mutual funds, IPOs, insurance, fixed deposits, and research, all within the convenience of your pocket.

While our extensive network of 185+ branches and around 2300 APs (Authorized Persons) across 400+ cities/towns in India remain a cornerstone of our strength, we're strategically expanding our digital footprint. This digital expansion isn't just about numbers; it's about creating meaningful connections and fostering growth opportunities for our online community.

Furthermore, in tandem with our focus on technological advancement, we have prioritized cyber security measures. Recognizing the paramount importance of safeguarding our systems and client data, we have employed advanced security protocols to prioritize system integrity and proactively address vulnerabilities.

These efforts underscore our commitment to maintaining the highest standards of security and trust in an increasingly digital world.

Furthermore, it brings me great pleasure to announce that our Company has authorized the issuance of debentures totaling Rs. 150 crores through a public offering. This allocation comprises a base size of Rs. 75 crores with an additional Rs. 75 crores earmarked for over subscription. These debentures are slated for listing on the exchange, which will not only bolster our financial flexibility but also empower us to leverage strategic growth opportunities. As we look ahead, we remain receptive to exploring similar fundraising avenues in the near future, aligning with our strategic approach to navigate the dynamic landscape of the financial services sector.

We realize the importance of ensuring that the future growth is inclusive and does not come at the cost of the environment. We believe that to generate superior long-term value, we need to look beyond just profits and care for all our stakeholders our customers & business partners, people, shareholders and above all, the planet and society. We believe in giving back and fulfilling our social responsibilities. SMC Group has contributed approximately 320.50 lakhs (PY 244.99 lakhs) towards Corporate Social Responsibility initiatives. The vision and mission of the Company is always aligned with the Company s CSR initiatives. Through various CSR initiatives, we have contributed to the betterment of the society, focusing on education, healthcare and upliftment of weaker sections of the society.

In our workplaces, we continue to foster equity, diversity & inclusion, and the overall engagement on gender diversity across the organization has been strengthened. In fact, we strive to be a workplace where everyone feels they belong and are able to thrive. By 2024, the women representation in the Company was at 22%.

Additionally, we have doubled down on our commitment to corporate governance. As stewards of shareholder interests, we recognize the importance of transparency, accountability, and ethical conduct in all our operations. By adhering to the highest standards of corporate governance, we aim to build trust, foster long-term relationships, and create sustainable value for all stakeholders.

With immense gratitude and joy, I want to thank every one of you for your unwavering support, guidance, and partnership. It has been an honor and privilege to serve as the Chairman of the Board of your Company. I am confident that the Company will continue its growth trajectory in the years to come. I would like to wish good health, safety, and sincerely thank our customers, the Board, the management, most importantly, the dedicated employees for their consistent support and commitment to the Company during the year.

Sincerely

Sd/-