Ashirwad Capital Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The global economy held its ground, sustaining moderate growth through a period defined more by resilience. Technology-led investment and steady services demand provided the principal support, even as elevated borrowing costs and headwinds from geopolitical tensions continued to weigh on sentiment. Consequently, the tone shifted from stabilisation to caution in the latter part of the fiscal, as downside risks increasingly dominate the outlook.

This divergence is increasingly visible in global trade flows. As demand patterns shift and policy priorities turn more inward-looking, world trade growth is expected to slow before a modest recovery. The declaration is structurally driven by a rise in protectionist measures, which now impact over 11% of global imports. Intensifying tariff wars between major economies have disrupted trade flows, increased costs and added friction to global commerce. Ongoing tensions in the West Asia conflict have added severe supply side uncertainties, particularly affecting energy markets and critical maritime choke points. Policy uncertainty has compounded this fragmentation further.

B. OPPORTUNITIES AND THREATS:

Your Company is exposed to external and internal risks associated with the business. It is exposed to strong competitive pressures and financial risks from changes in interest rate, economic cycles etc.

The independent finance industry, issues debt and lends the proceeds to individuals and Corporations on both Secured and Unsecured basis. Consequently, the ability to access the short, medium and long-term markets at competitive rates is critical to their ongoing viability. Your company faces tough competition from Nationalized, Foreign and Private Sector Banks due to their ability to grant loan at a considerably low rate of interest. Private Banks are also working on the similar business model as the NBFCs do, thereby giving a very strong competition to the NBFCs.

RBI and Government restrictions: With more stringent norms governing the functioning of NBFC and certain government restrictions act as a hindrance in smooth functioning of NBFC.

C. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

The Company is a Non-Banking Finance Company (NBFC). It is engaged in the business of investment and lending which is the only segment in the Company. Hence, the results for the year under review pertain to only financing activity.

D. RISK AND CONCERNS:

The Company has a strong Risk Management System for identification, monitoring, mitigation and reporting of the risks associated with its operations. The Company has an established practice of compliance reporting covering all operations and support functions; compliance reporting is periodically reviewed to ensure comprehensive coverage.

E. OUTLOOK:

Company would definitely try to establish itself and remain as a strong player in the finance industry. With the Capital market expected to be in a better mode than the previous few years and with our efforts we can look forward to a prosperous year for the company.

Our portfolio at Ashirwad "Ashirwad-200" remains strong, focused and varied yet balanced and is well on its way to deliver a dynamic performance for the next five years. We are excited to see how the macro model of the Indian economy benefits the micro, i.e., the results of the large cap Companies of India.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY.

The Company has an adequate system of internal control to ensure that the resources are used efficiently and effectively so that:

- Assets are safeguarded and protected from unauthorized use or disposition.

- All significant transactions are authorized, recorded and reported correctly.

- Financial and other data are reliable for preparing financial information.

- Other data are appropriate for maintaining the accountability of assets.

The internal control system is supplemented by an extensive internal audits programme, review by management, documented policies, guidelines and procedures.

G. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your Company has cordial relations with its employees. The Company commends the commitment, dedication and competence shown by its employees in all aspects of business. With the growing requirements of the Company, Company has taken necessary initiatives to ensure not only the retention of the employees but also their growth and development.

H. KEY FINANCIAL RATIOS

Sr. No	Particulars	Financial Year 2025-26	Financial Year 2024-25
1.	Current ratio	0.01%	0.09%
2.	Operating Profit Margin (%)	69.71%	79.67%
3.	Net Profit Margin (%)	60.91%	68.40%
4.	Debt Equity Ratio	0.16%	0.14%
5.	Debtors Turnover Ratio	-	-
6.	Interest Coverage Ratio	-	-
7.	Inventory Turnover ratio	-	-
8.	Return on Net Worth	13.17%	10.91%

I. DISCLOSURE OF ACCOUNTING TREATMENT:

In the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has not been followed, thus managements explanation is not required.

Registered Office:	By Order of the Board
303, Tantia Jogani Industrial Estate,	Ashirwad Capital Limited
J. R. Boricha Marg, Lower Parel, Mumbai - 400011.	Sd/-
	Dinesh Ramprasad Poddar
Date: August 21,2026	Chairman & Managing Director
Place: Mumbai	DIN: 00164182