Devinsu Trading Ltd Management Discussions

Annexure-I

ECONOMIC OVERVIEW GLOBAL ECONOMY SCENARIO

The global economy demonstrated resilience during the year despite continued geopolitical uncertainties, persistent inflationary pressures in several regions, and evolving monetary policies adopted by major central banks. While inflation moderated in many advanced economies, interest rates remained elevated for a significant part of the year, influencing capital flows, investment decisions, and market sentiment. At the same time, technological advancements, particularly in digital innovation and artificial intelligence, continued to reshape industries and create new investment opportunities.

Global equity markets experienced periods of heightened volatility driven by changing economic data, geopolitical developments, and expectations regarding monetary policy. Nevertheless, improving corporate earnings in select sectors, easing inflationary trends, and expectations of policy normalization supported investor confidence in many markets. Emerging economies continued to contribute significantly to global growth, supported by domestic consumption, infrastructure investments, and structural reforms.

The Indian economy remained one of the fastest-growing major economies, supported by robust domestic demand, government-led infrastructure development, a resilient financial sector, and continued policy reforms. The countrys capital markets continued to witness strong participation from both retail and institutional investors, reflecting growing confidence in Indias long-term economic prospects. Increased adoption of digital investment platforms and broader financial inclusion further strengthened market participation.

For companies engaged in the trading of shares and securities, the evolving economic environment presents both opportunities and challenges. Market volatility, while increasing investment risk, also creates opportunities for disciplined trading strategies and portfolio optimization. At the same time, prudent risk management, continuous market analysis, regulatory compliance, and technological capabilities remain critical to sustaining performance in an increasingly dynamic financial landscape.

Looking ahead, the global economic outlook remains cautiously optimistic. Although uncertainties related to geopolitical developments, inflation, interest rate movements, and global trade persist, improving macroeconomic stability and continued economic expansion are expected to support financial markets over the medium to long term. The Indian capital market is expected to benefit from sustained economic growth, increasing investor participation, favourable demographics, and ongoing policy initiatives aimed at strengthening the financial ecosystem.

Devinsu Trading Limited remains committed to maintaining a disciplined investment approach, strengthening its risk management framework, identifying value-driven investment opportunities, and enhancing shareholder value. The Company will continue to closely monitor global and domestic economic developments while maintaining financial prudence and operational agility to capitalize on emerging opportunities in the capital markets.

OUTLOOK

The outlook for the global and Indian capital markets remains positive over the medium to long term, supported by improving macroeconomic fundamentals, continued economic growth, increasing corporate profitability, and sustained investor participation. While financial markets may continue to experience short-term volatility arising from geopolitical developments, inflationary trends, interest rate movements, and global economic uncertainties, the long-term investment environment continues to offer attractive opportunities.

For Devinsu Trading Limited, the evolving market landscape presents opportunities to leverage disciplined investment strategies while maintaining a prudent approach to risk management. The Company will continue to focus on identifying quality investment opportunities, maintaining a diversified investment portfolio, strengthening its risk management framework, and ensuring compliance with applicable regulatory requirements.

Going forward, the Company remains committed to enhancing operational efficiency, adopting sound governance practices, and creating sustainable long-term value for its shareholders. By maintaining financial discipline, monitoring market developments, and responding proactively to changing economic conditions, Devinsu Trading Limited is well positioned to capitalize on emerging opportunities and pursue sustainable growth in the years ahead.

INDIAN ECONOMY SCENARIO

The Indian economy continued to demonstrate resilience during the year, supported by strong domestic demand, robust government capital expenditure, improving infrastructure, healthy banking sector performance, and sustained policy reforms. Despite global economic uncertainties, inflationary pressures, and geopolitical challenges, India remained one of the fastest-growing major economies, underpinned by stable macroeconomic fundamentals and prudent fiscal and monetary policies.

The countrys financial markets continued to perform well, supported by resilient corporate earnings, increasing participation from retail and institutional investors, steady foreign investment inflows, and the rapid adoption of digital financial services. Structural reforms, initiatives to improve ease of doing business, and continued investments in digital infrastructure have further strengthened investor confidence and enhanced the overall investment climate.

Indias capital market has witnessed significant growth in recent years, driven by expanding financial literacy, greater accessibility through technology-enabled trading platforms, and rising household participation in equity investments. These developments have contributed to improved market depth and liquidity, creating a conducive environment for companies engaged in investment and trading activities.

Looking ahead, the outlook for the Indian economy remains positive. Continued emphasis on infrastructure development, manufacturing, digital transformation, financial sector reforms, and sustainable economic growth is expected to support long-term expansion. While external risks such as global economic slowdowns, geopolitical developments, inflationary pressures, and interest rate movements may continue to influence market sentiment in the short term, Indias strong domestic fundamentals are expected to provide resilience and support sustained growth.

OUTLOOK

For Devinsu Trading Limited, the evolving economic and capital market landscape presents opportunities to generate value through disciplined investment and trading strategies. The Company remains committed to maintaining a prudent investment approach, strengthening its risk management framework, ensuring regulatory compliance, and continuously evaluating emerging investment opportunities. By leveraging market insights, maintaining financial discipline, and adapting to changing market conditions, the Company aims to enhance long-term shareholder value while sustaining its growth trajectory.

OPPORTUNITY AND THREATS:

OPPORTUNITY:

Growing Capital Markets: Continued expansion of the Indian equity markets, supported by robust economic growth and increasing market capitalization, provides a wider range of investment opportunities across sectors.

Increasing Retail Participation: The rapid increase in retail investor participation, facilitated by digital trading platforms and improved financial awareness, has enhanced market liquidity and trading volumes.

Technological Advancements: The adoption of advanced trading platforms, data analytics, artificial intelligence, and algorithmic tools is enabling better market analysis, faster execution, and more informed investment decisions.

Diversification Opportunities: Expanding investment opportunities across sectors, market

capitalizations, and financial instruments allow the Company to build diversified portfolios and optimize risk-adjusted returns.

Economic Growth: Indias strong domestic demand, favourable demographics, infrastructure development, and ongoing structural reforms are expected to support corporate earnings and create long-term investment opportunities.

THREATS:

Market Volatility: Equity markets are influenced by economic conditions, geopolitical developments, corporate performance, investor sentiment, and global events. Significant market fluctuations may adversely affect investment values and trading opportunities.

Macroeconomic Uncertainty: Changes in economic growth, inflation, interest rates, exchange rates, and fiscal or monetary policies can influence capital market performance and investment returns.

Geopolitical Risks: International conflicts, trade disputes, political instability, and global economic disruptions may lead to increased market volatility and affect investor confidence.

Regulatory Changes: Amendments to securities laws, taxation policies, stock exchange regulations, or regulatory frameworks issued by market regulators may impact trading activities, compliance requirements, and overall business operations.

Liquidity Risk: Periods of reduced market liquidity may limit the Companys ability to execute trades efficiently or exit investments at desired prices.

RISKS AND CONCERNS

At Devinsu Trading Limited, risk management is not merely a compliance function?it is a core strategic priority, integral to the Companys commitment to safeguarding the interests of its customers, employees, shareholders, and the organization at large. Anchored in the principles of ethical governance and long-term sustainability, the Company has developed a comprehensive and dynamic risk management framework aligned with global best practices and tailored to the evolving landscape of the financial services sector.

The Companys risk management architecture is supported by a structured control mechanism and governed by a deeply embedded culture of risk awareness. This culture extends across all levels of the organization and is continually reinforced through detailed operational guidelines, well- articulated policies, and robust internal controls. This disciplined approach enables the Company to anticipate, identify, assess, and manage a wide spectrum of risks.

Key risks and concerns impacting the Company are as follows:

Market Risk: Fluctuations in equity prices due to changes in economic conditions, corporate performance, investor sentiment, geopolitical events, and global market movements may impact the value of the Companys investment portfolio and trading income.

Liquidity Risk: Adverse market conditions or lower trading volumes may affect the Companys ability to buy or sell securities at desired prices, resulting in reduced liquidity and potential losses.

Credit and Counterparty Risk: Although trades are generally executed through recognized stock exchanges and regulated intermediaries, the Company remains exposed to the risk of default by counterparties, brokers, or financial institutions in certain transactions.

Regulatory and Compliance Risk: Changes in regulations issued by the Securities and Exchange Board of India (SEBI), stock exchanges, taxation authorities, or other regulatory bodies may affect the Companys operations, compliance obligations, and business strategies.

Macroeconomic Risk: Inflation, interest rate fluctuations, exchange rate movements, fiscal and monetary policy changes, and economic slowdowns may adversely influence capital market performance and investment returns.

Technology and Cybersecurity Risk: Dependence on electronic trading platforms and digital systems exposes the Company to risks relating to cyber-attacks, data breaches, system failures, and operational disruptions.

The Board maintain stringent oversight, ensuring that risk management remains an enterprise-wide responsibility, deeply integrated into the Companys decision-making processes.

By continuously enhancing its risk control systems and governance structures, Devinsu Trading Limited is well-positioned to navigate challenges while maintaining financial stability and stakeholder confidence. This commitment to prudent risk management not only supports regulatory compliance but also fosters sustainable and resilient growth, reinforcing the Companys long-standing reputation as a responsible and forward-looking financial institution.

COMPANY BUSINESS OVERVIEW

Devinsu Trading Limited is a public limited company incorporated in the year 1985 listed in BSE Ltd. The Company is presently engaged in renting business of immovable properties and also invest in Shares and securities for non-operating income.

FINANCIAL PERFORMANCE

During the FY 2025-26, the income from operations of the Company stood at Rs. 134.65 Lacs as compared to previous Financial Year of Rs. 188.90 Lacs. This Financial Year Companys profits have been Rs. 80.04 Lacs as compared to Rs. 118.34 Lacs of Financial Year 2024-25.

Financial Highlights:

• Income from operation stood at Rs. 134.65 Lacs for FY 2025-26.

• Profit before Taxes of FY 2025-26 was Rs. 100.12 Lacs.

• Profit after Taxes of FY 2025-26 was Rs. 80.04 Lacs.

• Earnings per share for FY 2025-26 were Rs. 15.39 per share.

• Net Worth of company stood at Rs. 2093.87 Lacs as on 31st March, 2026.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The company is engaged in renting business of immovable properties and also invest in Shares and securities for non-operating income and so does not have segment wise performance. The performances are reflected in the balance sheet.

HUMAN RESOURCE

Devinsu Trading Limited places the highest value on its human capital, acknowledging that the sustained success of the organization is deeply rooted in the competencies, capabilities, and contributions of its people. The Companys core philosophy emphasizes creating a safe, healthy, and fulfilling workplace, where employee well-being and productivity are mutually reinforced.

In line with this belief, Devinsu Trading Limited actively nurtures a culture defined by integrity, honesty, and continuous learning. The Company is deeply committed to equality and upholds a strict zero- tolerance policy against harassment. It strives to provide not just employment, but meaningful careers that foster trust, engagement, and long-term growth. Employees are encouraged to grow within a respectful, secure, and transparent environment that values both performance and character.

The Human Resources function plays an essential role in upholding the Companys values and ensuring that every individual within the organization operates in a culture of openness, inclusivity, and accountability. Through proactive engagement and robust policy implementation, HR serves as a strategic partner in building a workplace that balances operational excellence with employee empowerment.

Devinsu Tradings HR policies are thoughtfully designed to prepare employees for a fast-changing and competitive business environment. The Company promotes a performance-oriented culture, one that recognizes and rewards. Individual effort, while also fostering collective achievement. Employees are provided with the tools, training, and opportunities necessary to grow in alignment with the Companys strategic goals. This approach not only enhances internal capabilities but also strengthens the Companys market position in a highly dynamic financial services landscape.

As Devinsu Trading Limited looks ahead, its human resource priorities remain focused on attracting, developing, and retaining high-potential talent. Equal opportunity, holistic employee wellness, and a collaborative work environment continue to be the foundation of its HR philosophy. Every process, from recruitment to leadership development, is shaped by the Companys intrinsic values and a commitment to building an inclusive, future-ready workforce.

Through these ongoing efforts, Devinsu Trading Limited is steadily cultivating an organizational culture that supports innovation, encourages performance, and aligns its people strategy with its vision for sustainable, long-term growth.

INTERNAL CONTROLS SYSTEMS AND THEIR ADEQUACY

The Company has a proper and adequate system of internal controls. This ensures that all transactions are authorized, recorded and reported correctly, and assets are safeguarded and protected against loss from unauthorized use or disposition. In addition, there are operational controls and fraud risk controls, covering the entire spectrum of internal financial controls. An extensive programme of internal audits and management reviews supplements the process of internal financial control framework. Properly documented policies, guidelines and procedures are laid down for this purpose. The internal financial control framework has been designed to ensure that the financial and other records are reliable for preparing financial and other statements and for maintaining accountability of assets.

In addition, the Company has identified and documented the risks and controls for each process that has a relationship to the financial operations and reporting. The Company also has an Audit Committee to interact with the Statutory Auditors, Internal Auditors and Management in dealing with matters within its terms of reference. This Committee mainly deals with accounting matters, financial reporting and internal controls.

HUMAN RESOURCES & INDUSTRIAL RELATIONS

The Companys human resources philosophy is to establish and build a strong performance and competency driven culture with greater sense of accountability and responsibility. The Company acknowledges that its principal asset is its employees. The expertise of the management team, the professional training provided to the staff, their personal commitment and their spirit of teamwork together enhance the Companys net worth. The Company has taken various steps for strengthening organizational competency through the involvement and development of employees as well as installing effective systems for improving their productivity and accountability at functional levels.

Ongoing in-house and external training is provided to employees at all levels to update their knowledge and upgrade their skills and abilities. The effort to rationalize and streamline the workforce is a continuous process. The industrial relations scenario has remained harmonious throughout the year.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO:

Particulars	F. Y. 2025-26	F. Y. 2024-25	% variance	Reason for variance of more than 25%
Current Ratio	149.90	240.52	-38.00	Due to increase in fair valuation and decrease in Current Liability has resulted in decrease in current ratio.
Return On Equity Ratio	0.04	0.08	-44.00%	Due to increase in Net Profit after Tax
Trade Payables Turnover Ratio	4.97	8.76	-43.00%	Due to decrease in Creditors
Return On Capital Employed	-0.01	-0.02	-27.00%	There is revenue from business operation in current year and not recorded in last year
Return On Investment	0.07	0.00	0.00%	-

(In view of nature of business and various components of financial statements, other Ratios as mentioned in Schedule III are not applicable to the Company or has no relevance or not practical to be calculated.)

CAUTIONARY STATEMENT

Statements made in this Management Discussion and Analysis Report may contain certain forward- looking statements based on various assumptions about the Companys present and future business strategies and the environment in which it operates. Actual results may differ substantially or materially from those expressed or implied due to risk and uncertainties. These risks and uncertainties include the national and global effects of economic conditions, political conditions, volatility in interest rates, changes in regulations and policies impacting Companys businesses and other related factors. The information contained herein is as referred to. The Company does not undertake any obligation to update these statements. The Company has obtained the data and information referred here from sources believed to be reliable or from its internal estimates, the accuracy or completeness of which cannot be guaranteed.

Place: Mumbai	By order of the Board
Date: July 18, 2026	For Devinsu Trading Limited I
	SD/-	SD/-
	Deniis Desai	Mukesh Kumar Bothra
	Chairman & Whole Time Director	Non-Executive Director
	DIN:02904192	DIN: 02309927