Khandwala Securities Ltd

Dear Shareholders,

I am delighted to present the FY24 Annual Report of Khandwala Securities Limited (KSL). Since our inception, we have remained steadfast in our mission to enable wealth creation for our customers. This year, we have once again demonstrated the strength of our customer loyalty and strategic growth initiatives, achieving significant success in an increasingly competitive market.

Over the years, KSL has grown into a leading full-service brokerage and a highly trusted investment services company in India. Our reach extends across India, complemented by our online services, customer care, and WhatsApp channels.

Today, we continue to leverage advanced trading and investment platforms to providecomprehensivefinancialservices, simplifying the investment journey for our customers. Our extensive knowledge base and in-depth research capabilities allow us to channel household savings into the capital markets effectively, helping our clients build long-term wealth. As a tech-driven financial consistently led the way in innovation, enhancing the trading experience, and providing our customers with expert guidance and personalized support every step of the way.

The past financial year has seen steady global growth, driven by increased government spending, robust household consumption, and expanded labor force participation. However, we also faced challenges such as high borrowing costs, the withdrawal of fiscal support, and geopolitical tensions, including conflicts in regions like Russia-Ukraine and Israel-Gaza. Additionally, China's economic slowdown introduced further uncertainty to international markets. Despite these global challenges, India achieved significant milestones in FY24, maintaining its position as the world's fifth-largest economy with an impressive growth rate of 8.2%. This was fuelled by strong domestic consumption and increased government capital investment, with the robust financial sector and rapidly expanding fintech ecosystem playing key roles in facilitating this growth.

A crucial factor in the progress of the financial sector has been the role of the Securities stringent regulations and maintaining vigilant oversight, SEBI has ensured that our financial markets operate fairly and transparently, safeguarding the interests of all stakeholders and fostering trust and stability within the financial system. The stock exchanges, which serve as the pulse of economic potential, also posted impressive numbers. The National Stock Exchange (NSE) saw a remarkable 98% increase in the average daily turnover in the equity cash segment, and the Nifty index rose by 29% during the fiscal year.

India's financial landscape is undergoing a significant transformation as Tier 2 and 3 cities emerge as vibrant hubs of financial Traditionally dominated by major metropolitan areas, or Tier 1 cities, the narrative is shifting dramatically due to several key factors, especially the explosive growth of digital penetration.

In 2023, it was reported that Tier 2 and 3 cities are now home to a staggering 139 Mn consumers aged between 15 and 55, nearly matching the population of Tier 1 cities. This demographic powerhouse, characterized by rising incomes and an increasing number of graduates and postgraduates, is driving unprecedented demand for financial services in these regions. The aspirations of a young and upwardly mobile population in Tier 2 and 3 cities are reshapingfinancialinclusion. The growing participation of investors from these areas in the stock market and mutual funds is a testament to this shift. Enhanced digital access and financial literacy programs are empowering these new investors, providing them with opportunities that were previously concentrated in larger cities. This trend not only broadens the base of financial inclusion but also highlights the potential for economic growth and development driven by a more inclusive financial ecosystem. As Tier 2 and 3 cities continue to grow in prominence, they are set to play a crucial role in the future of India's financial sector.

Advancements in digital technology are revolutionizing the broking and investment sector. Today, stockbrokers are harnessing developments in data analysis, decision-making, and risk management to enhance efficiency and provide a more customized user experience. By analysing user behaviour and usage patterns, AI algorithms offer tailored recommendations for news, research reports, and investment products. This personalized approach helps investors make informed decisions aligned with their interests and goals. Investment apps can also use AI to evaluate a user's portfolio and risk profile, suggesting investment strategies that suit their individual technological advancements, we can enhance our clients' experience, providing intuitive, responsive, and highly personalized services that cater to their unique financial objectives.

These technological advancements enable brokers to make more informed decisions, execute trades more more effectively. By embracing technology, the broking industry is poised to deliver enhanced services, driving greater financial inclusion and improving overall market efficiency.

Looking to the future, we see exciting times ahead for the investment sector. The dynamic synergy of technology and greater financial inclusion in India will continue to reshape the investment landscape, providing unprecedented opportunities for growth. KSL is well-positioned to leverage these advancements to further enhance its offerings and deliver superior value to our customers. As we remain dedicated to staying at the forefront of innovation, we will continue to guide our customers through their investment journey with expertise and personalized support. I am confident that the future holds immense potential, and KSL will continue to drive growth and create wealth for all stakeholders.

As India strides towards its ambitious goal of becoming a 5 trillion-dollar economy, the landscape of financial investments is set for remarkable expansion. With rising incomes and a growing awareness of the importance of investing, more individuals are actively seeking opportunities for wealth creation. As a well-established investment services provider, KSL is poised to play a crucial role in this transformative journey.

Drawing on our decades of experience and deep expertise, coupled with our unwavering commitment to innovation, KSL continues to lead the way in guiding savings fromtraditionalphysicalassetsto financialinvestments . Our cutting-edge technology anddiversearrayof extensive knowledge base empower us to be a trusted partner for our customers, helping them navigate the complexities of the financial markets and achieve their long-term financial goals.

Strategically, we are focused on de-risking the company by increasing our non-brokerageincome,therebyfuture-proofingKSL. As we assist our customers in building long-term wealth, we are confident that our proud legacy, rich heritage, and profound sector understanding will drive our evolution and deliver sustainable growth.

As I conclude this communication, I would like to extend my heartfelt gratitude to all our customers, investors, regulators, and employees for the trust they have placed in us. My special thanks go to our Board members for their continued guidance.

I would also like to express my deep appreciation to Mr. Kalpen Shukla, our independent director, who joined our esteemed board in January 2024. His visionary leadership and guidance will be instrumental in shaping the company's future success, and we wish him well in his endeavors.

We look forward to your unwavering support as we continue on our growth trajectory, committed to creating long-term value for all our stakeholders.