Ajcon Global Services Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Your company is primarily engaged in Stock Broking, Corporate Advisory, Merchant Banking and Depository participant Services. All these activities are subject to volatility in capital markets and economic turbulences due to prevailing geopolitical situations. Your company is gearing up to face such developments and re-engineer business strategy as required to bring in growth in all its main verticals. The Companys Corporate Advisory and Merchant Banking business also face severe competition and to meet these challenges the company had during the previous year issued convertible warrants to raise some resources within a period of 18 months. The major slide in the market at year end has affected the profitability of the company due to value erosion in its portfolio. The company has however added a few more institutional clients for the secondary market operations which may results into improving the institutional brokerage income in future.

Indias macroeconomic environment remains resilient, supported by strong domestic demand, improving fiscal metrics, and continued policy stability. While, the Reserve Bank of India (RBI) estimates GDP growth at 7.6% for FY26, the medium-term projections from other key multilateral agencies continue to indicate sustained expansion with the RBI forecasting FY27 growth at 6.9%, the IMF at 6.5%, and the World Bank at 6.6%. The outlook reflects the strength of Indias structural growth drivers, including rising consumption, public capital expenditure, formalisation of the economy and on-going digital adoption. Fiscal indicators also remain encouraging. Gross GST collections crossed 22.27 lakh crore in FY26, registering 8.3% year-on-year growth, driven by healthy economic activity, improved compliance and continued formalisation across sectors. External sector performance has also remained supportive, with merchandise and services exports rising 4.59% y-o-y to USD 863.11 billion during FY26.

On the monetary front, the RBI maintained the repo rate at 5.25% in the April 2026 MPC meeting while retaining a neutral policy stance. The central banks approach indicates a balanced assessment of growth and inflation dynamics, with policy flexibility preserved amid evolving global uncertainties. Inflation expectations remain relatively anchored, with CPI inflation for FY27 projected at 4.6%, comfortably within the RBIs target tolerance band of 2 6%, thereby reducing the likelihood of any sharp monetary tightening.

Indias external position continues to provide a key macroeconomic cushion. Foreign exchange reserves stood at $690.69 billion as of May 01, 2026, providing import cover of more than 10 months and strengthening the economys ability to absorb external shocks, manage currency volatility and maintain financial stability during periods of global uncertainty.

However, the macro-outlook is not without risks. Escalating geopolitical tensions in West Asia remain the primary external vulnerability, particularly through their impact on global crude oil prices and supply chains. A sustained increase in energy prices could widen Indias import bill, exert pressure on the fiscal and current account balances, and contribute to imported inflation. Additionally, any prolonged depreciation in the Indian rupee may further aggravate external imbalances. Nevertheless, robust domestic demand conditions, healthy reserve adequacy, and a stable banking system are expected to provide meaningful resilience against these external headwinds. It is a temporary phase and your company is optimistic about stable growth in the market.

- Long-term economic outlook positive will lead to opportunity for financial services.

- Increasing domestic flows of funds in the equity markets through mutual funds and direct investment. - Retail investor participation in IPO market augurs well for Indian broking industry. 32

- Strong equity research cell.

- The requirement of the funds by the corporates to increase Capex and Working Capital in the coming months will augur well for the corporate advisory and merchant banking services of the company. Threats

- Low capital base as the business requires large funds to expand its network and increase its Net Worth for empanelment with large Mutual Funds and FIIs for institutional broking (Internal). However, the company has plans to strength its capital base. - Fewer dealing branches & franchisee outlets (Internal). - Competition in the Market place especially with discount brokerage firms. (External). - Regulatory Challenges. (External).

The Companys internal control systems are adequate, operating effectively and are commensurate with the size of business and the same is provided through competent management, implementation of standard policies and processes, maintenance of an appropriate audit program with internal control environment, effective risk monitoring and management information systems. Moreover, the Company continuously upgrades these systems in line with the best available practices. The Board has constituted an Audit Committee, which is headed by a Non-Executive Independent Director. The Audit Committee periodically reviews internal audit reports and brings to the notice of the Board any significant deviations.

Your company has only one segment (i.e. Financial Services) and entire revenue is generated from financial services only. Accordingly, segment reporting as required under Ind-AS-108, issued by the Institute of Chartered Accountants of India, is not applicable.

The Company operates in the Challenging business environment and exposed with following risks which includes economic risk, competition risk, market risk, human resources risk and regulatory risk etc. Any unfavorable changes in the government policies and economic condition of the Indian & Global financial market impact the growth of the Company. In this competitive world, your Company faces competition from existing players and new entrants. However, we have always considered competition as a favorable factor since it drives us further towards growth. The Company with its well diversified service offerings, nationwide reach, coupled with the latest technological infrastructure and strong risk management systems will facilitate continuous growth in the coming years Availability of skilled man power is the most important factor for the growth of the Company, your Company try to retain its skilled man power.

Due to the geopolitical situation, the Market remained volatile for most part of the year and was substantially down at the end of the year leading to decline in profits for FY 2025-26.

The summary of previous three years financial results are given below:-

( Rs.in Lacs)

The key financial ratios and details of significant changes in these ratios, to the extent applicable, as required by SEBI Listing Regulations are given below:

*Both operating and net profit margins are lower due to decreased profitability led by geo-political situation and adverse market conditions.

The outlook for future remains cautious due to continued geopolitical situation especially the west Asian and Russia-Ukraine wars. However, your Company expects the financial year 2026-2027 to be better than the previous year as we expect good activities on both capital market front and corporate advisory front. The outlook for investment banking and merchant banking also seems to be brighter. The expected fresh capital from the conversion of convertible warrants will strengthen companys financials for working capital, technology adoption & up gradation and also for business development. The Company will continue to keep its thrust on its business under the tie up with Bank of India for 3 in 1 Accounts through Companys online Platform www.pyarapaisa.com and also through off line services. The Company will also benefit with the increased activity by the Institutions being categorised0 as the Institutional Broker & increasing number of Institutional clientele.

The Company has been following standard procedure for recruitment of best personnel for all the departments and is making constant and continuous efforts to retain and groom them to meet its present and future requirements. The relation between the management and staff remained very cordial during the year. The HR department has very cordial relations with the employees and takes due care of their growth and professional credentials & abilities of employees.

As a part of code of conduct, the Company has a well-defined and laid down policy approved by the Board for the prevention of Insider Trading in line with SEBI Insider Trading Prohibition Regulations, as amended from time to time which is applicable to all Directors, senior management/ Employees categorized as "Designated Employees".

In this Annual Report, we have disclosed forward-looking information to enable stakeholders to comprehend our future prospects and make informed investment decisions. This report and other statements - written and oral - that we periodically make, contain forward-looking statements that set out anticipated results based on the managements plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as anticipates, estimates, expects, projects, intends, plans, believes and words of similar substance in connection with any discussion of future performance. As we know that the current geopolitics is full of uncertainties and vulnerabilities due to unexpected war in the West Asia region along with Russia Ukraine old war which drastically impacted the world trade, currency and economy, we cannot guarantee that these forward-looking statements will be realized on actual basis in future, although we believe we have been prudent in assumptions. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, unforeseen future events or otherwise.