Chartered Capital & Investment Ltd Management Discussions

A. Industry Structure, Developments and Outlook

The company is engaged in the business of investments and trading in securities, commodities including
precious metals such as gold & silver and other financial instruments; therefore, its performance is largely
dependent on the state of the capital markets and the macroeconomic conditions, within the country and
globally.

India continued to remain one of the fastest-growing major economies during FY2025-26, supported by
strong domestic demand, improving manufacturing activity, resilient services sector growth, and sustained
government focus on infrastructure development. Public capital expenditure towards transportation, energy,
logistics, and digital infrastructure continued to strengthen economic momentum and investor confidence
across sectors

FY26 witnessed a broad-based correction across key Indian equity indices following the positive returns
delivered in FY25. The BSE Small cap declined by -3.3% in FY26 compared to a strong 8.0% gain in FY25,
indicating heightened volatility in the broader market segment. Similarly, the BSE Sensex and Nifty 50 fell by -
7.1% and -5.1%, respectively, against gains of 5.1% and 5.3% in the previous year. Within the broader
weakness observed across benchmark indices, mid-cap performance remained relatively resilient. The BSE
Midcap Index remained largely flat, while the Nifty Midcap 150 recorded gains during the period, in contrast
to the negative returns seen across most other indices. Overall, market performance in FY26 was
characterized by a broad-based decline across most indices, with selective pockets of relative resilience.

Gold and silver maintained strong market momentum during FY 2025-26, driven by sustained central bank
purchases, geopolitical uncertainties, inflation concerns, and continued investor preference for safe-haven
assets. Agricultural commodities such as cereals, edible oils, and other essential food products also
experienced pricing volatility due to changing weather patterns, supply-side constraints, and evolving
consumption trends. The overall rise and volatility in commodity prices continued to influence input costs,
trade margins, and business valuations across commodity-focused sectors.

- Low penetration of financial services and products in India;

- Regulatory reforms would aid greater participation of all class of investors;

- Favorable demographics like huge middle class, larger younger population with disposable income and
investible surplus, change in attitude from wealth creation and risk taking abilities of the youth etc.;

- Execution Risk;

- Regulatory Change impacting the landscape of business;

- Unfavorable economic condition.

The Company is engaged primarily in the business of investments and trading in securities, commodities
including precious metals activities and there are no separate reportable segments as per the Accounting
Standard 17.

It is our constant endeavour to ensure that every risk we take has been thoroughly assessed, and that all risks
are concomitant with their potential return. We have worked to strengthen our enterprise wide risk
management processes and practices through our risk philosophy, whose core lies in the identification,
measurement, monitoring and action along with the development of risk mitigation plans.

Our risk management process is overseen by the Board of Directors. Our risk management approach and
practices continued to focus on minimizing the adverse impact of risks on our business objectives and to
enable the Company to leverage market opportunities based on risk-return parity. Our periodic assessment
and monitoring of business risk and regulatory environment resulted in timely deployment of appropriate
mitigation measures.

The companys internal control systems are adequate and provide, among other things, reasonable assurance
of recording transactions of operations in all material respects and of providing protection against significant

misuse or loss of company assets. The internal control systems lay down the policies, authorization and
approval procedures. The adequacy of the internal control systems has been reported by the auditors under
the Companies (Auditors Report) Order, 2020.

During the year under review, the total income of the Company decreased from Rs. 1175.63 lakhs during the
previous year to Rs. 706.84 lakhs during the current year. The profit after tax decreased from a profit of Rs.
538.51 lakhs during the previous year to a profit of Rs. 270.97 lakhs during the current year mainly due to
decrease in income of the company. The Board of Directors expect this situation to improve further in the
coming years.

Profit Before Tax Margin: The Profit Before Tax Margin for FY26 was 56.56% compared to 70.21% for FY25
mainly because of the decrease in income without similar decrease in expenses.

Net Profit Margin (%): The Net Profit Margin for FY26 was 38.34% compared to 45.81% for FY25 mainly
because of the decrease in income without similar decrease in expenses.

Other parameters, namely Debt Equity Ratio, Debtors Turnover, Inventory Turnover, Interest Coverage Ratio
and Current Ratio, are not applicable to the company.

Return on Networth for FY26 was 1.69% down from 3.47% a year ago mainly due to decrease in income in
comparison to the previous year.

There has been no material development on the Human Resource / Industrial Relations front during the year.
Employee relations at all levels continue to remain cordial. The Company had 8 employees (including
Managing Director) as on March 31,2026.

Statements in this Management Discussion & Analysis 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. Important factors that could
make a difference to the Companys operations include economic developments in the country and improvement in
the state of capital markets, changes in the Government regulations, tax laws and other status and other incidental
factors.