Alexander Stamps & Coin Ltd Management Discussions

1. EXECUTIVE OVERVIEW & MACROECONOMIC ENVIRONMENT

Global and Domestic Economic Overview

Financial Year 2025-26 unfolded against a dynamic global economic backdrop characterized by shifting trade policies, inflationary recalibrations, and evolving consumer discretionary spending. Despite global volatility, the Indian economy demonstrated remarkable resilience, underpinned by robust domestic demand, expanding digital public infrastructure, and sustained public-private investments.

As household incomes grow and digital connectivity deepens across Tier-2, Tier-3, and Tier-4 regions in India, consumer preferences are progressively expanding beyond core essentials toward lifestyle, passion-driven hobbies, historical preservation, and alternative tangible collectibles.

Industry Structure and Developments

The Philatelic (stamps) and Numismatic (coins and currency) sectors represent a unique convergence of cultural heritage, historical research, and alternative asset preservation. Globally and domestically, the collectibles market is undergoing a structural digital transformation.

Key trends shaping the industry include:

• Digitalization of Collectibles: Traditional over-the-counter exchanges are rapidly transitioning to e- commerce platforms, online live auctions, and digital cataloging.

• Alternative Tangible Assets: Discerning collectors and high-net-worth individuals (HNIs) increasingly view rare stamps, postal history, and historical coins as store-of-value assets and tangible inflation hedges.

• Authentication and Grading Demand: Rising market activity has heightened demand for scientific appraisal, state-of-the-art verification, and certified grading services to ensure provenance and eliminate counterfeits.

• Demographic Shift: Younger, tech-savvy generations are discovering thematic collecting (e.g., space exploration, biodiversity, historical milestones) via social platforms, micro-communities, and interactive digital archives.

2. OPPORTUNITIES & STRATEGIC GROWTH DRIVERS

Alexander Stamps And Coin Limited continues to fortify its position as a pioneer in the organized collectibles ecosystem. The Company has identified several strategic vectors to drive long-term value creation:

• E-Commerce & Digital Platform Expansion: Building a robust digital interface and mobile-friendly cataloging platform to enable seamless browsing, buying, and trading for collectors nationwide.

• Authentication & Appraisal Services: Developing specialized, technology-backed in-house expertise for stamp and coin authentication, grading, and valuation, serving collectors, estates, and institutional buyers.

• Postal History & Archives: Expanding focus into rare postal covers, historic cancellations, and postal routes, catering to advanced philatelists and academic researchers.

• Exhibitions & Community Engagement: Participating in and hosting local, national, and international philatelic and numismatic exhibitions, workshops, and auctions to broaden the collector ecosystem.

• Educational Outreach: Partnering with educational institutions, libraries, and cultural bodies to introduce younger generations to history, heritage, and geography through philately and numismatics.

• Institutional Collaborations: Engaging with museums, archives, and historical societies for display curation, historical restoration, and conservation projects.

• Conservation & Preservation: Promoting advanced archival techniques and specialized preservation materials to protect fragile historical paper and metal artifacts for long-term longevity.

3. RISK MANAGEMENT, THREATS, AND CONCERNS

The Companys risk governance framework continuously identifies, evaluates, and mitigates strategic, operational, financial, and compliance-related risks.

Risk Category	Threat / Concern	Impact	Risk Mitigation Strategy
Market & Demand Volatility	Fluctuations in discretionary spending and economic slowdowns.	Muted demand for premium/rare collectibles in the short term.	Diversifying portfolio across multiple price points (entry-level to high-value rare items) and expanding digital reach to hedge localized demand downturns.
Authenticity & Counterfeit Risk	Influx of sophisticated counterfeit stamps/coins in the broader market.	Reputation loss and erosion of customer trust.	Implementing rigorous, multi- tier verification protocols, expert appraisals, and digital certification tracking for high- value inventory.
Cybersecurity & Data Privacy	Cyber threats, platform downtime, or data security breaches on digital platforms.	Disruption of online transactions and loss of customer data integrity.	Adopting Zero-Trust security principles, encrypted transaction gateways, robust cloud architectures, and periodic vulnerability testing.
Sourcing & Inventory Constraints	Scarcity of high-quality, rare historical artifacts and secondary market supply bottlenecks.	Inventory limitations affecting top-line growth.	Building long-term relationships with global collector networks, estates, and auction houses to ensure a steady pipeline of authentic collectibles.

4. FINANCIAL PERFORMANCE & SEGMENT-WISE ANALYSIS Financial Performance

Detailed analysis of the Companys financial state of affairs, operational results, and key balance sheet parameters for the financial year under review are set out in the Financial Statements and the Directors Report.

Segment-Wise Reporting

The Company operates in a unified, integrated business segment focused on dealing, authentication, preservation, and promotional activities related to philatelic and numismatic items. Consequently, segment-wise performance presentation as per Ind AS 108 is not applicable to the Company.

5. FUTURE OUTLOOK

While broader macroeconomic uncertainties persist, the collectibles and heritage preservation market displays structural stability. The coming decade is expected to witness accelerated digital adoption and higher engagement in specialized hobbies.

The Company intends to capitalize on these tailwinds by:

1. Scaling up its digital marketplace and mobile accessibility.

2. Expanding revenue streams via expert appraisal and archiving services.

3. Cultivating a vibrant community of collectors through social-first content and interactive forums.

4. Elevating brand trust through uncompromising quality and provenance verification.

6. ADEQUACY OF INTERNAL CONTROL SYSTEMS

The Company maintains an adequate and effective internal financial control (IFC) framework, commensurate with the size, scale, and complexity of its operations.

Key highlights of the internal control framework include:

• Asset Safeguarding: Robust physical and digital controls to safeguard valuable inventory and financial records against unauthorized access, loss, or disposition.

• Financial Integrity: Systematic authorization and approval matrices ensuring transactions are accurately recorded, processed, and reported in compliance with applicable accounting standards and statutes.

• Audit & Governance: Regular internal reviews and management assessments to evaluate the operating effectiveness of controls and ensure prompt remediation of process gaps.

7. HUMAN RESOURCE DEVELOPMENT & CULTURE

Human capital is vital to the Companys growth. Given the specialized domain of philately and numismatics, the Company prioritizes continuous skill development, domain-specific training, and a culture of performance and trust.

• Capability Building: Organizing specialized workshops on authentication techniques, digital cataloging, and customer service excellence.

• Workplace Flexibility: Leveraging hybrid/virtual office systems ("Work from Home") to enhance operational agility and reduce overheads without compromising productivity.

• Inclusivity & Well-Being: Ensuring a supportive, safe, and meritocratic work environment aligned with best governance standards.

8. ENVIRONMENTAL PROTECTION, SUSTAINABILITY & RESPONSIBLE CORPORATE CITIZENSHIP

As a responsible corporate entity, the Company is committed to resource efficiency and environmental stewardship:

• Paperless Workflow: Accelerated digitalization of documentation, internal communications, and cataloging has significantly minimized paper usage, contributing to a lower carbon footprint.

• Virtual Operations: Transitioning routine administrative tasks to cloud-based virtual environments has optimized energy consumption and reduced operational waste.

• Heritage Conservation: Fostering environmental and historical awareness by actively promoting the conservation and preservation of natural history-themed stamps and historical coins.

9. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, or predictions may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to various external factors, including:

• Global and domestic economic conditions.

• Shifts in governmental regulations, tax frameworks, and statutory policies.

• Price fluctuations and supply dynamics in the global collectibles market.

• Technological disruptions, cyber risks, and incidental market developments.

The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances. Industry and market information contained in this report has been obtained from published and unpublished sources believed to be reliable, though its absolute accuracy cannot be guaranteed.

By Order of the Board

For Alexander Stamps & Coin Limited

Sd/-

Anirudh Sethi

Managing Director

DIN: 06864789

Date: 3rd September, 2026

Place: Vadodara