Dhoot Industrial Finance Ltd Management Discussions

1. Industry Structure and developments:

The Company operates as a Non-Deposit Taking NBFC-ND Type I registered with the Reserve Bank of India and focuses on prudent investment activities while maintaining a conservative risk profile.

Within this regulatory landscape, NBFC-ND Type I NBFC Companies operated under the framework prescribed by the Reserve Bank of India (RBI) Master Directions, with restrictions on accepting public deposits. Their activities remained primarily focused on investment operations, including investments in equity securities, debt instruments, and structured products.

The regulatory oversight continued to emphasize prudent capital adequacy, robust corporate governance practices, and transparent risk management and disclosure standards.

2. Opportunities and Threats:

Opportunities:

The Company continues to explore opportunities in trading and investment activities across various asset classes. Improving economic conditions, increasing participation in capital markets, and favorable long-term growth prospects of the Indian economy provide opportunities for the Company to enhance its trading portfolio and generate sustainable returns. The Company also aims to leverage market opportunities through a disciplined investment approach, effective capital deployment, and prudent risk management practices.

Threats:

The Companys performance is influenced by fluctuations in capital markets, changes in economic conditions, interest rate movements, and regulatory developments. Further, volatility in financial markets, geopolitical uncertainties, inflationary pressures, and changes in government policies could adversely affect investment returns and business operations. The Company continuously monitors these risks and adopts appropriate mitigation measures to safeguard its interests and maintain long-term stability.

3. Segment wise Performance:

The company usually operates in Trading. The segment wise information is provided at Note No. 20 in Notes to Financial Statements.

4. Outlook:

Due to increased focus on investment activities, the Company remains optimistic about its future growth prospects. As market conditions continue to improve and economic activity strengthens, the Company expects to benefit from emerging opportunities across equity, debt, and other investment avenues. Supported by a disciplined investment approach, prudent risk management practices, and a favorable domestic economic environment, the Company is well positioned to enhance its performance and create sustainable value for its stakeholders in the coming years.

5. Risk & Concerns:

The Company is exposed to various risks inherent to its business operations, including market risk, liquidity risk, credit risk, regulatory risk, and operational risk. Fluctuations in capital markets, changes in economic conditions, interest rate movements, and amendments to regulatory requirements may impact the Companys investment and trading performance.

The Company also faces market competition. To mitigate these risks, the Company follows a prudent investment strategy, maintains robust internal control systems, regularly monitors market development, and ensures compliance with applicable regulatory guidelines. The management continuously reviews risk management practices to safeguard the Companys assets and protect stakeholders interests.

6. Internal Control Systems and their adequacy:

The Company have adequate internal control framework designed to ensure operational efficiency, regulatory compliance, and effective risk management. A comprehensive internal audit mechanism was in place to periodically review investment activities, financial controls, statutory compliances, and operational processes. Oversight of the internal control environment was exercised by the Board through its Audit Committee and Investment Committee, which regularly monitored governance, compliance, and investment-related matters.

The Company also adhered to well-defined policies governing Related Party Transactions, ensuring that all such transactions were conducted on an arms length basis and in compliance with applicable regulatory requirements. Further, the adoption of digital Management Information System (MIS) tools strengthened portfolio monitoring, reporting accuracy, and compliance tracking, thereby enhancing transparency, accountability, and informed decision-making across the organization.

7. Financial Performance and Operational Performance:

The company has achieved a total income and turnover of INR 4128.22 Lakhs and net Profit is at INR 1798.91 Lakhs during the year ended 31 st March, 2026 as compared to INR 4041.13 Lakhs and net Profit is at INR 1888.34 Lakhs respectively for the last financial year.

8. Human Resources / Industrial Relations: (including number of people employed)

Your Company considers its intellectual capital as its most asset. Personnel policies of the Company are designated to ensure fairness to and growth of all individuals in the organization and aim to provide a challenging work environment. The Industrial Relations remained cordial during the year under review.

9. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor:

As per the Reserve Bank of India (Non-Banking Financial Companies - Prudential Norms on Capital Adequacy) Directions, 2025, the NBFCs registered as NBFC - ND (Type I) are exempt from the regulatory imposed capital requirements. Hence, the company is not required to disclose the analytical ratios such as CRAR , Tier I CRAR, Tier II CRAR & Liquidity coverage ratio.

10. Return on Net worth was 4.13% in the previous year while return on net worth in current year is 4.06% The difference is due to decrease in net profit for the financial year 2025-26.

	For DHOOT INDUSTRIAL FINANCE LIMITED
	Sd/-
Place: Mumbai	Rajgopal Dhoot
Date: 20/05/2026	Chairman