A.K.Capital Services Ltd Management Discussions

1. Indian Economy

Indias real GDP growth accelerated to a robust 7.7% for FY 2025-26, up from the 7.1% in the previous scal year. This expansion reinforces Indias position as one of the fastest-growing major economies globally. The growth momentum was visible throughout the year, culminating in a strong 7.8% expansion in Q4 FY 2025-26. This economic resurgence was primarily driven by a powerful rebound in manufacturing and industrial activities, alongside sustained momentum in the service sector. On the demand side, urban consumption recovered remarkably, bolstered by substantial household tax reliefs introduced in the Union Budget, which signi cantly enhanced domestic disposable income. Furthermore, rural demand maintained its resilience, supported by stable agricultural output and rural wage growth.

Headline CPI in ation moderated sharply to 2.1% during FY 2025-26, aided heavily by de ation in food and a strong, favorable base effect. Additionally, the strategic rationalization and simpli cation of GST rates in September 2025 successfully limited price pressures across several key goods and services categories. Conversely, core in ation faced upward pressures emanating from rising precious metal prices. Toward the end of the scal year, as con icts escalated in West Asia, a resultant increase in domestic lique ed petroleum gas (LPG) prices pushed up in ation within the fuel and light components.

In response to this broad disin ationary trend and with a clear focus on supporting economic momentum, the RBI adopted an expansionary stance. The MPC lowered the policy repo rate by a total of 75 basis points over successive cycles, bringing it down from 6.00% to 5.25% by March 2026. Financial system liquidity remained highly accommodative, well-supported by active central bank operations that maintained comfortable credit delivery across the productive sectors of the economy.

2. The Growth Environment

The global macroeconomic environment remained highly uid during CY 2025 and early CY 2026. Protracted trade and tariff adjustments across major global geographies, a broad-based shift in global asset allocations toward AI-centric markets, and deep-seated West Asian geopolitical con icts created signi cant external volatility. According to the IMF, global economic output growth slowed toward 2.8%, inducing a widespread "risk-off" sentiment across emerging market economies.

Amidst these severe external headwinds, Indias domestic growth engines exhibited exceptional resilience. Private consumption and gross xed capital formation expanded at healthy clips. Urban demand was rejuvenated by the coupled impact of the governments personal income tax rationalizations and the lower interest rate regime. On the scal front, the government successfully advanced its consolidation roadmap, achieving a scal de cit of 4.4% of GDP for FY 2025-26 (RE) and aggressively targeted a 4.3% scal de cit for FY 2026-27 (BE), ful lling its multi-year commitment to structural scal discipline. This exemplary discipline led to sovereign credit rating upgrades and positive outlook shifts from major global agencies, including S&P, Morningstar DII, and R&I.

On the external front, Indias foreign exchange reserves scaled historic highs near USD 700 billion by the end of FY 2025-26. This buffer provides an import cover of approximately 11 months, standing as a formidable shield against external shocks. Driven by geopolitical events and broad-based dollar strength, the Indian Rupee (INR) faced depreciation pressures, averaging near INR 90.00 to INR 93.50/USD through the nal quarters of the scal year. To prevent excess volatility and ensure orderly market conditions, the RBI actively intervened in the foreign exchange market to absorb structural capital shocks.

3. Industry Structure and Bond Market Developments

Early in the FY 2025-26, the curve steepened as monetary easing and INR 2.39 lakh crore in OMO purchases softened short-to-medium yields. However, a shift to a neutral policy stance in June 2025 muted rate-cut hopes. Yields hardened by mid-year due to strong initial GDP data, US tariff concerns, and GST rationalisation induced scal fears, though capped by predictable government borrowing. Moving into the winter months, yields saw two-way movements; strong growth data and fading easing expectations after Decembers 25-bps cut pushed yields up, but INR1.81 lakh crore in OMO actions cushioned the rise. Finally, the closing months brought pronounced hardening pressures driven by high borrowing targets in the Union Budget 2026-27 and soaring crude oil prices from Middle East con icts. Despite INR 4.57 lakh crore in year-end OMO support, the 10-year g-sec yield crossed 7% by the end of the FY 2025-26.

The average daily secondary market turnover in the corporate bond segment rose to INR 7,100 crore during FY 2025-26, up from INR 6,200 crore the previous year (Source: RBI). This momentum re ects growing participation from retail investors, driven by easy access through Online Bond Platform Providers ("OBPPs"). As per SEBI data, primary issuances of listed corporate bonds on domestic stock exchanges declined to INR 9.1 lakh crore during FY 2025-26 from INR 9.9 lakh crore during the previous year. Indias municipal bond market saw a historic breakthrough in FY 2025-26, raising a record INR 1,756 crore across 14 issuances (Source: SEBI). This surge re ects deepening sub-sovereign debt appetite, led by major urban local bodies in Tamil Nadu and Gujarat. The market heavily favored amortizing structured payments (STRPPs), pricing ef ciently between 7.65% and 8.50%.

Heading to FY 2026-27, Indian regulators implemented sweeping structural reforms to accelerate foreign portfolio investment ("FPI") in ows into the domestic debt market. A major scal breakthrough effective April 2026 granted FPIs a complete income tax exemption on interest income and capital gains from Government Securities ("G-Secs"), signi cantly enhancing net risk-adjusted returns. Simultaneously, the RBI liberalized the debt market by expanding the Fully Accessible Route ("FAR") to include long-tenor 15, 30, and 40-year instruments, while eliminating restrictive short-term investment and concentration caps under the General Route.

During FY 2025-26, key initiatives taken by the regulatory authorities to deepen the bond market in India are as follows:

i. Introduction of derivatives on corporate bonds: The RBI has released draft guidelines for public comment on the introduction of derivatives on credit indices and total return swaps on corporate bonds. The move aims to foster ef cient management of credit risks, improve liquidity in the corporate bond market, and encourage issuance across the rating spectrum.

ii. Revision of Threshold for High-Value Debt Listed Entities: SEBI has increased the threshold for identifying a "High Value Debt Listed Entity" ("HVDLE") from INR 500 crore to INR 5,000 crore. The move aims to ease compliance burdens for mid-sized issuers, lower administrative costs, and facilitate more ef cient capital-raising efforts in the corporate bond market.

Other key measures announced at the start of FY 2026-27 include:

iii. Tax exemption for FPIs/FIIs investing in G-Secs: The government has exempted FIIs and SEBI-registered FPIs from the 20% withholding tax on interest income and Capital gains arising from the sale, transfer, exchange or redemption of G-Secs.

iv. Expansion of the FAR: RBI expanded the universe of securities eligible under the FAR to include all new issuances of 15-year, 30-year and 40-year government securities and Sovereign Green Bonds ("SGrBs") in FAR-eligible tenors.

v. Relaxation of Investment Restrictions under the General Route: To facilitate greater participation of FPIs in G-Secs the Short-term investment limit; concentration limit and security-wise investment limit have been removed.

vi. SEBI allows issuers to offer incentives: SEBI has also introduced provisions allowing issuers to offer incentives such as additional interest rates or discounted issue prices to speci c categories of investors including retail investors.

vii. SEBI approves municipal re nancing and pooled funding: Municipal bodies will now be permitted to raise funds for re nancing existing project debt. SEBI has also established a framework for pooled nancing by multiple municipalities to support infrastructure funding.

4. Our Business

i. A. K. Capital Services Limited ("AK Capital"/ "the Company"), incorporated on October 5, 1993, is Flagship Company of the A. K. Group, and is registered with SEBI as a Category I Merchant Banker since April 1, 1998 which is valid permanently unless suspended/ cancelled by SEBI.

AK Capital is one of the countrys leading merchant bank managing private placements as well as public issues of debt securities. AK Capital is primarily engaged in providing various fee-based services such as fund mobilization through issue of debt securities, structured hybrid instruments, pass through certi cates, direct assignments etc. for over 250 clients including Indias premier central and state Government undertakings, public and private sector banks, nancial institutions, infrastructure investment trusts ("InvITs"), real estate investment trusts ("REIT") and private corporates. AK Capital aspires to facilitate making the debt markets accessible to retail investors and relentlessly strives towards ful lling its motto of "Building Bonds". AK Capital is acknowledged for its unmatched management consultancy, advisory services, nancial restructuring etc. and is also one of the few merchant bankers who has direct access as counterparty to almost all domestic banks / institutions.

AK Capital has 5 subsidiaries and 2 step down subsidiaries which conduct their operations through a network of branches spread over 7 cities of India and 1 at Singapore. The group has interests in diversi ed business elds and the subsidiaries have been incorporated to specialize and operate in each business area.

ii. A. K. Capital Finance Limited ("AK Capital Finance"), a subsidiary of AK Capital, is registered with the Reserve Bank of India ("RBI") as a Middle Layer Non-Banking Financial Company (NBFC-ML) under the RBIs Scale Based Regulatory framework and categorized as Investment and Credit Company (NBFC-ICC). AK Capital Finance is engaged in the business of investment and lending activities. The Company primarily operates in a hybrid business model, under which the revenue streams comprises of a regular and stable interest income from its loan book, fees income and treasury income from its investment and treasury book. The lending book of AK Capital Finance comprises of term loans and instruments including non-convertible debentures issued by the companies rated investment grade and above. The treasury book includes G-Sec plus highly rated papers that are liquid and have relatively lower risk. AK Capital Finance is amongst one of the few NBFCs having Tri-Party Repo Settlement (TREPS earlier known as CBLO) membership given by the Clearing Corporation of India Limited ("CCIL") which enables the company to access funds on tap against SLR securities like G-Secs and SDLs at very competitive cost. AK Capital Finance has strong risk management policies and credit appraisal systems in place, which have helped to maintain good asset quality over the years and the same is re ected by the fact that there is Nil Non-Performing Assets as on March 31, 2026.

AK Capital Finance is also a debt listed entity having its debt securities listed on Wholesale Debt Market ("WDM") segment of the BSE Limited and National Stock Exchange of India Limited.

Further, pursuant to amendment(s) effective from March 27, 2025 in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations") and outstanding debt test conducted as on March 31, 2026, AK Capital Finance is not a High Value Debt Listed Entity.

iii. A. K. Stockmart Private Limited ("AK Stockmart"), a wholly owned subsidiary of AK Capital incorporated in 2006 is full service brokerage house with membership of Indias two key stock exchanges viz., National Stock Exchange of India Limited and BSE

Limited. AK Stockmarts services span across equity and debt markets. Further, AK Stockmart is also registered as a Depository Participant with the Central Depository Services (India) Limited ("CDSL") and National Securities Depository Limited ("NSDL") for seamless settlement and clearing of securities.

Since FY 2009-10, AK Stockmart has distributed debt products of private sector companies as well as public sector companies such as Tata Capital Financial Services Limited, Tata Capital Housing Finance Limited, L&T Finance Limited, Mahindra & Mahindra Financial Services Limited, Aditya Birla Finance Limited, Cholamandalam Investment and Finance Company Limited, Muthoot Finance Limited, Shriram Transport Finance Company Limited, Piramal Capital & Housing Finance Ltd., Poonawalla Fincorp Limited (formerly Magma Fincorp Limited), Credit Access Gramin Limited, Adani Enterprises Limited, 360 One Prime Limited, JM Financial Products Limited, Shriram City Union Finance Limited, Indiabulls Housing Finance Limited, Indore Municipal Corporation, Nashik Municipal Corporation, Surat Municipal Corporation, National Highways Infrastructure Trust, Power Finance Corporation Limited, REC Limited, National Highways Authority of India, NTPC Limited, NHPC Limited, Indian Railway Finance Corporation Limited, India Infrastructure Finance Company Limited, Indian Renewable Energy Development Agency Limited, National Bank for Agriculture and Rural Development.

iv. A. K. Wealth Management Private Limited ("AK Wealth"), incorporated in November 2006 and a wholly owned subsidiary of AK Capital, is registered with SEBI as a Portfolio Management Company. AK Wealth is in the business of providing portfolio management services, private wealth management, asset management, investment advisory and research backed investment solutions to ensure returns commensurate to risk appetite of its clients. v. A. K. Capital Corporation Private Limited ("AK Capital Corporation), incorporated in November 2006 is a wholly owned subsidiary of AK Capital.

vi. A. K. Capital (Singapore) Pte. Ltd. ("AK Singapore"), domiciled in Singapore, was incorporated on July 29, 2013 as a wholly owned subsidiary of AK Capital.

vii. Family Home Finance Private Limited ("Family Home Finance), incorporated on June 29, 2017 and is a step-down subsidiary of AK Capital through AK Capital Finance. Family Home Finance is registered as a Housing Finance Company with the National Housing Bank and classi ed as Middle Layer NBFC as per Scale Based Regulation issued by RBI. Family Home Finance primarily offers Home Loans, LAP and secured lending products through co-lending, strategic partnership, Securitization and DA model with channel partners.

viii. A. K. Alternative Asset Managers Private Limited ("AK Alternative), incorporated in December 2022 is a step-down subsidiary of AK Capital through AK Wealth. AK Alternative acts as an Investment Manager and provides Investment Management Services to SEBI registered Alternative Investment Funds.

5. Execution and other services

AK Capital has marked a glorious journey of over 3 decades and has gained expertise as well as recognition in various facets of the corporate bond markets by undertaking and successfully executing various landmark transactions.

AK Capital has been reckoned as a leading arranger for private placement of secured/ unsecured, senior/ subordinated, redeemable, non-convertible debentures/ bonds, perpetual bonds, pass through certi cates, redeemable preference shares, etc. for a diverse pro le of issuers comprising of:

a. Central Public Sector Undertakings; b. State Government Undertakings; c. Municipal Corporations and Urban Local Bodies; d. Public and Private Sector Banks; e. Public Financial Institutions; f. Non-Banking Finance Companies; g. Housing Finance Companies; h. Infrastructure Finance Companies; i. Infrastructure Development Funds; j. Core Investment Companies; K. Infrastructure Investment Trusts ("InvITs"); l. Real Estate Investment Trusts ("REITs"); m. Manufacturing and services sector companies; and n. Managing Alternative Investment Fund.

6. Recognition, Awards & Accolades

i. The Company has acted as Sole Transaction Advisor Cum Merchant Banker in January 2026 for the Private Placement of Maiden Municipal Bond of Coimbatore City Municipal Corporation for an aggregating to INR 150.85 Crores. Issue got overwhelming response from the investors getting subscription of INR 210 Crores i.e. oversubscription of 3 times against the base issue size of INR 70 Crores.

ii. The Company has acted as Sole Transaction Advisor Cum Merchant Banker in January 2026 for the Private Placement of Green Municipal Bond (Series- II) of Greater Chennai Corporation aggregating to INR 205.59 Crores. Issue got overwhelming response from the investors getting oversubscription of 5.02 times against the base issue size of INR 100.03 Crores.

iii. The Company acted as Sole Transaction Advisor Cum Merchant Banker in November, 2025 to the maiden Clean Godavari Municipal Bonds 2030 issue of Nashik Municipal Corporation aggregating to an amount of INR 200 Crore. The issue witnessed an exceptional response from investors, receiving oversubscription of 3.95 times against the base issue size of INR 100 Crore, with total bids worth INR 395 Crore on NSEs Electronic Bidding Platform.

iv. The Company acted as Transaction Advisor cum Lead Manager in September 2025 to Internationally Certi ed Public Issue of Green Municipal Bonds of Surat Municipal Corporation for an amount of INR 200 Crores. The Issue got overwhelming response from the investors by receiving total subscription of INR 805 Crores i.e. oversubscription of 8.05 times against the base issue size of INR 100 Crores.

v. The Company acted sole Transaction Advisor cum Lead Manager cum Merchant Banker in June 2025 for the Private Placement of Maharashtras First Green Municipal Bonds of Pimpri Chinchwad Municipal Corporation for an aggregating to INR 200 Crores. The issue has got overwhelming response from the investors getting oversubscribed 5.13 times against the base issue size of INR 100 Crore with bids worth INR 513 Crores received on Electronic Bidding Platform of BSE Limited.

vi. The Company acted as Transaction Advisor Cum Merchant Banker in May 2025 for the Private Placement of Maiden Municipal Bond of Greater Chennai Corporation for an aggregating to INR 200 Crores. The issue got overwhelming response from the investors getting subscription of INR 421 Crores i.e. oversubscription of 4.21 times against the base issue size of INR 100 Crores.

vii. The Company has acted as Transaction Advisor Cum Merchant Banker in May 2025 for the Private Placement of Maiden Municipal Bond of Prayagraj Nagar Nigam aggregating to INR 50 Crores. 28 Management Discussion and Analysis Report viii. The Company has acted as Transaction Advisor Cum Merchant Banker in May 2025 for the Private Placement of Maiden Municipal Bond of Varanasi Nagar Nigam ("VNN") aggregating to INR 50 Crores.

ix. The Company has acted as Transaction Advisor Cum Merchant Banker in April 2025 for the Private Placement of Maiden Municipal Bond of Agra Nagar Nigam ("ANN") of aggregating to INR 50 Crores.

x. The Company has been felicitated with the prestigious award of "India Bond House of the Year" at the IFR Asia Awards 2023 which was held on April 16, 2024 at Hong Kong.

xi. The Company has been awarded "Issuer Investment Banker / Merchant Banker of the year" - Runner Up by Associated Chambers of Commerce and Industry of India ("ASSOCHAM") at the "6th National Summit & Awards Corporate Bond Market 2023" organized on August 3, 2023 at Mumbai.

xii. Ms. Aditi Mittal Non-executive Woman Director of the Company was invited as an esteemed panelist for a panel discussion on the theme "Innovative Solutions for Financing Infrastructure" organized by IIFCL a Government of India undertaking under Ministry of Finance on January 6, 2023.

xiii. The Company has been awarded "Investment Banker / Merchant Banker of the year" by Associated Chambers of Commerce and Industry of India ("ASSOCHAM") at the "5th National Summit & Awards Corporate Bond Market 2022" organized on May 12, 2022 at Mumbai.

xiv. A. K. Stockmart Private Limited ranks amongst the highest mobilisers of subscription in debt public issues over past decade.

xv. The group is one of the few merchant banking groups to have TREPS membership.

xvi. Besides private placements and public issues of debt, the Company and its subsidiaries have demonstrated their progressive presence in undertaking and executing transactions in the following segments:

a. Loan syndication, project nancing, syndication of short term debt (CPs etc.) b. Syndication for Venture Capital Funds, Infrastructure Development Funds, structured hybrid nancial products c. Asset backed nancing, investment and trading in debt securities, loan against property, real estate funding etc. d. Direct assignment and securitization of receivables e. Trading/investment in Government Securities and Corporate Bonds f. Stock broking, WDM broking and Depository services g. Providing portfolio management services, private wealth management, asset management and investment advisory h. Retirement fund advisory i. Global nancial advisory, cross border funding solutions, foreign currency bonds.

7. Outlook and Strategy

The Indian economy displayed strength and resilience in FY 2025-26, with real GDP growth reaching 7.7%. This robust performance was primarily driven by a strong expansion in private consumption and xed investment, supported by positive business expectations and resilient manufacturing and services sectors. The economy entered this period of global turbulence with much better macroeconomic fundamentals than in previous episodes, enabling it to withstand external shocks with limited immediate pain. However, the outlook for the coming year is tempered by downside risks, including the prolonged geopolitical impasse in West Asia, which has caused volatility in energy markets and supply chain disruptions. Furthermore, uncertainty regarding the sub-normal southwest monsoon forecast and potential El Nino conditions poses a risk to agricultural production and rural demand.

The Central Government successfully reaf rmed its commitment to scal consolidation, with the Gross Fiscal De cit ("GFD") for FY 2025-26 standing at 4.4% of GDP. This gure is lower than both the previous years actuals and the revised estimates, strengthening the credibility of the governments scal path. For FY 2026-27, the government has budgeted for a further reduction in the scal de cit to 4.3%, while maintaining a focus on robust capital expenditure, which is budgeted to expand by 11.5%. This continued focus on high-quality spending is intended to support sustained investment activity across the country.

Following successive policy rate reductions by the Monetary Policy Committee ("MPC") that commenced in early 2025, borrowing costs have effectively recalibrated across the yield curve. In its June 2026 policy review, the RBI revised down its growth forecast for FY 2026-27 to 6.6% and increased its in ation forecast to 5.1%. Considering the sharp correction in energy prices, risks to the in ation outlook now primarily stem from adverse weather events, as other risks have subsided. On the growth front, the effects of rising supply chain disruptions and recent hardening of energy prices are expected to act as a drag on economic expansion heading into FY 2026-27. This may warrant the RBI prioritizing safeguarding economic growth over managing transitory in ation.

8. Opportunities and Challenges Opportunities

a. Corporate bond markets have witnessed an exponential growth in the Country over last decade which may be seen from the table given below:

Private Placement of Debt (Non-Convertible Debentures/ Bonds)

FY 2025-26		FY 2015-16
Total No. of issues	Amount (INR in Crores)	Total No. of issues	Amount (INR in Crores)
4,334	10,73,570.99	2,682	4,92,047.23

Further, the successful inclusion of Indias government bonds in the widely tracked JP Morgan EM Bond Index, alongside the completed phased inclusion in the Bloomberg Emerging Market (EM) Local Currency Government Index, continues to facilitate robust foreign capital in ows. This enhanced systemic liquidity is anticipated to free up domestic nancial resources for private sector investment, thereby helping to deepen the countrys corporate bond markets.

b. SEBIs recent step to reduce face value of privately placed debt securities from INR 1,00,000 to INR 10,000 under speci c cases, has increased retail investor participation in the corporate bond markets.

c. Bond structures backed with partial credit enhancement by high rated nancial institutions shall open up window for lower-rated companies for accessing bond markets and move beyond conventional bank/ institutional funding.

Challenges

Like any other market: a. Corporate bond markets are vulnerable to market risks originating from volatility in interest rates. b. Operations in corporate bond markets are vulnerable to competition thereby affecting margins. c. Besides market risks, corporate bonds are vulnerable to credit risk.

d. Growth and performance of domestic corporate bond markets is dependent upon a host of domestic and global macro and microeconomic factors. India offers moderate-risk, high-yielding debt investment opportunities to offshore investors. However, any signi cant tightening of monetary policy rates by the global central banks may lead to a ight of capital and pose competition to Indian bond markets.

9. Segment wise performance

Companys whole business is being considered as one segment, viz. proving merchant banking services within India. The Company has only one segment of activity in accordance with the de nition of "Segment" covered under Indian Accounting Standard (Ind AS) 108 on Operating Segments.

The performance of the Company is discussed in this Report.

10. Financial and Operational Performance of the Company

On standalone basis, your Company earned total income of INR 18,822.68 Lakhs during the Financial Year under review. The pro t before tax is INR 7,311.27 Lakhs. After making provision for tax, the net pro t of your Company is INR 6,158.92 Lakhs.

The consolidated total income of your Company stood at INR 57,301.58 Lakhs for the Financial Year ended March 31, 2026. The consolidated pro t before tax is INR 15,328.93 Lakhs for the current Financial Year. After making provision for tax, the consolidated net pro t of your Company is INR 11,404.48 Lakhs.

In compliance with the requirement of the SEBI LODR Regulations, the key nancial ratios of the Company along with explanation for signi cant changes (i.e., for change of 25% or more as compared to the immediately previous Financial Year will be termed as signi cant changes), has been provided hereunder:

Sr. No. Particulars	Financial Year 2025-26	Financial Year 2024-25
1. Debtors Turnover Ratio	28.70	21.36
2. Interest Coverage Ratio	2.49	1.85
3. Debt Equity Ratio	0.96	1.51
4. Operating pro t margin %	39.50%	30.81%
5. Net pro t margin %	32.72%	25.82%
6. Return on net worth	11.68%	6.57%
7. Inventory Turnover Ratio	Not Applicable
8. Current Ratio	Not Applicable

Debtors Turnover Ratio: On a standalone basis, the Debtors Turnover Ratio as on March 31, 2026 stood at 28.70 as against 21.36 as on March 31, 2025. The increase is on account of prompt customer payments and ef cient collection and credit policies of the Company.

Interest Coverage Ratio: On a standalone basis, the Interest Coverage Ratio as on March 31, 2026 stood at 2.49 as against 1.85 as on March 31, 2025. The increase is on account of decrease in borrowings of the Company.

Debt Equity Ratio: On a standalone basis, the Debt Equity Ratio as on March 31, 2026 stood at 0.96 as against 1.51 as on March 31, 2025. The decrease is on account of decrease in borrowings of the Company.

Operating pro t margin%: On a standalone basis, the Operating pro t margin % as on March 31, 2026 stood at 39.50% as against 30.81% as on March 31, 2025. The increase is on account of enhanced operational ef ciencies, optimized deal execution costs, and tight control over administrative expenses relative to top-line growth.

Net pro t margin%: On a standalone basis, the Net pro t margin % as on March 31, 2026 stood at 32.72% as against 25.82% as on March 31, 2025. The increase is on account of combination of optimized transaction-level costs and disciplined administrative spending, leading to superior bottom-line conversion from our core revenue streams.

Return on net worth: On a standalone basis, the Return on net worth as on March 31, 2026 stood at 11.68% as against 6.57% as on March 31, 2025. The increase is on account of increase in pro ts.

11. Human Resource

Our employees continue to be our core asset and an integral part of our success. We recognize that our workforce has a life beyond the workplace and are committed to fostering an environment that supports a healthy work-life balance while providing opportunities for professional development and growth. We remain committed for making AK Group a workplace, wherein the determination and dedication of our employees helps to serve our large clientele & generate long-term value for our shareholders.

As on March 31, 2026, the Company had 85 employees on its payroll.

i. Diversity & Inclusion

At AK Group; diversity is our strength. We hire from different cultural and social backgrounds and have a non-discriminatory approach to acquiring talent. Openness and inclusion makes AK Group a place where you would like to work. Our focus is on developing skills, encouraging talent and helping people do the best they can, each day. We work with our employees as partners and provide opportunities for high quality learning, get coaching from industrys best and offer a challenging yet rewarding workplace.

We are committed to developing and sustaining a diverse workforce that is well equipped to understand and respond to the evolving needs of our diverse client base and the sectors in which we operate. We believe that a diverse workforce brings varied perspectives, experiences and capabilities, thereby strengthening our ability to deliver effective solutions and create long-term value.

Our Management Trainee Programme is designed to provide opportunities to fresh talent from management institutions as well as professional institutes. The programme focuses on nurturing young talent through structured learning, practical exposure and mentoring by experienced professionals within the Company, enabling participants to develop relevant skills and build a strong foundation for their professional careers.

ii. Teamwork & Leadership

At AK Group, we believe that effective teamwork is fundamental to our success. Our employees work across diverse teams and multiple of ces, bringing together different areas of expertise and perspectives. While each team has its own responsibilities and areas of specialisation, achieving our common objectives requires employees to work collaboratively, demonstrate exibility and support one another across functions and locations.

We encourage a culture of leadership at every level, where employees are empowered to take ownership, demonstrate initiative and make meaningful contributions beyond their de ned responsibilities. The Company identi es and recruits people who share their commitment towards business in addition to their intellect and experience.

iii. Employee Programs

We invest in every step of our employees careers and ensure their long term interests remain closely aligned with those of our clients and shareholders. Our goals are to reinforce the rms culture, maximize individual potential and expand our employees professional opportunities and abilities. We hold varied employee engagement activities, offer development workshops and create an environment of openness where learning is always a possibility and asking questions is the norm rather than the exception.

Annual cricketing event which involved participation of employees from various functions which fostered team spirit. This employee engagement activity proved to be an ice breaker between new incumbents & fostered inter-functional and inter-department communication.

We also place a strong emphasis on employee health and well-being. As part of our wellness initiatives, we conduct an Annual Health Check-up Camp to help employees proactively monitor and manage their health, reinforcing our commitment to their overall well-being.

Birthday celebrations, Festive celebrations & Team outings are another method in which an environment is created for employees to connect, celebrate & discuss ideas.

12. Risk and Concern

As a diversi ed enterprise, the Company continues to adopt a systematic and structured approach to business risk management. Risk management is embedded within the Companys corporate strategy and decision-making processes, ensuring that organizational capabilities are effectively aligned with evolving market opportunities. The Company focuses on building distributed leadership, strengthening succession planning, nurturing domain expertise, and enhancing organizational capabilities to effectively identify, assess, monitor, and mitigate risks. Accordingly, risk management remains an integral part of the Companys overall business strategy and governance framework.

13. Internal Control Systems and their Adequacy

The Company has established an adequate system of internal nancial controls commensurate with the nature, size, and complexity of its business operations. These controls are designed to provide reasonable assurance regarding:

a. the orderly and ef cient conduct of business, including adherence to Companys policies and procedures; b. the safeguarding of the Companys assets against unauthorized use, loss, or disposal; c. the prevention and detection of frauds, errors, and irregularities; d. the accuracy and completeness of accounting records; e. the timely preparation of reliable nancial and operational information; and f. compliance with applicable laws, regulations and internal policies.

The Company has implemented appropriate policies, standard operating procedures, and control mechanisms to ensure that all transactions are duly authorized, accurately recorded, and appropriately reported. These systems incorporate adequate checks and balances to support effective governance, operational ef ciency, and nancial discipline.

The effectiveness of the internal control framework is monitored through periodic internal audits and continuous management reviews. The internal audit function adopts a risk-based approach in evaluating the adequacy and effectiveness of internal controls, governance processes, and risk management practices. To maintain its independence and objectivity, the internal audit function reports directly to the Audit Committee of the Board.

The Audit Committee periodically reviews the scope, ndings, and effectiveness of the internal audit function, evaluates the adequacy of the internal nancial control framework, and monitors compliance with applicable statutory and regulatory requirements. The Committee also oversees the timely implementation of corrective and preventive actions arising from audit observations. Based on such reviews, the Board is of the opinion that the Companys internal nancial controls are adequate and operating effectively during the year under review.

14. Safe Harbour

The statements made in this report describe the Companys objectives, expectations, estimates, projections, or forecasts may constitute that may be forward looking statement within the meaning of applicable laws and regulations. The actual result might differ materially from those expressed or implied depending in the economic conditions, regulatory developments, government policies, market conditions, industry trends and other incidental factors which may be beyond the control of the Company.

The Company has obtained all market data and other information from sources believed to be reliable or its internal estimates, although its accuracy or completeness cannot be guaranteed. We are under no obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.