GSL Securities Ltd Management Discussions

The Companys main object is Non-Banking Finance activities consisting mainly of investments. The market for this activity offers high potential for growth in view of the growth expected in the Indian economy over the next few years. There have been a number of causes behind growth of Indian economy in last couple of years. A number of market reforms have been instituted by Indian government and there has been significant amount of Foreign Direct Investment made in India. Much of this amount has been invested into several businesses including knowledge process outsourcing industries. Indias foreign exchange reserves have gone up in last few years. All of these could help propel the country into high growth.

BUSINESS SCENARIO

Despite the current positive market sentiment, the management, considering the overall economic scenario and with the objective of safeguarding shareholders interests, has decided to park available funds in mutual funds. This decision is aimed at preserving capital while maintaining liquidity and flexibility.

Opportunities and Threats:

Business opportunities for investing companies are substantial, with new areas and emerging segments being actively explored. These developments present significant potential for growth and diversification.

However, the major challenges faced by investing companies include regulatory changes and volatility in the stock market. These risks require careful monitoring and strategic responses to safeguard investments and ensure sustainable returns.

Risk and Concerns:

Your companys performance to a large extent depends upon scenario of the capital markets, finance scenario, industry performance and the general economic outlook of the country. The volatility in the global equity and commodity market, rate of interest and GDP would affect the profitability of the Company.

Financial Performance:

During the year under review, your Company recorded a total Income of Rs. 5.59 lakhs, compared to Rs. 1.68 lakhs in the previous financial year. The Company incurred a net loss of Rs. 31.38 lakhs, as against a net loss of Rs. 16.46 lakhs in the preceding year. The Earnings per Share (EPS) for the year stood at Rs. (0.73)

Segment wise or product-wise performance:

The company is engaged in the business of Investment in Capital Market and there was no production activity carried out during the financial year.

Outlook:

The focus for the forthcoming financial year for the Company will be continued delivery in progressing mode and grabbing the opportunities and trying to overcome challenges.

The outlook on the Indian economy looks promising this year and GDP growth expected on the back of high liquidity flowing into the Indian markets. We expect good growth in the Indian Equities over the next 2-3 years.

Internal Control systems and their Adequacy:

Internal Control and Audit is an important procedure and the Audit Committee of your Company reviews all the control measures on a periodic basis and recommends improvements, wherever appropriate. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.

Your Company has put in place an adequate Internal Control System to safeguard all assets and ensure operational excellence. The system also meticulously records all transaction details and ensures regulatory compliance. The reports are reviewed by the Audit Committee of the Board. Wherever deemed necessary, internal control system are strengthened and corrective actions initiated.

Material development in Human Resources/ Industrial Relations front, including number of people employed:

The Company was able to retain the talents despite of the hefty attrition rates in its peer companies. The Company continued to maintain cordial relations with its employees.

Disclosure to the Board:

The Senior Management shall make the disclosure to the Board relating to all material financial and commercial transactions, and where they have personal interest, that may have potential conflict with the interest of the Company at large.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATIONS THEREFOR

Details of key financial ratios 2025-26

Particulars	2025-26	2024-25	Variation (%) Increase/(Decrease) over previous Financial Year
Debtors Turnover Ratio	Not applicable since the company is not having any trade receivables
Inventory Turnover Ratio	Not applicable since the company is not having any inventories
Interest Coverage Ratio	Not applicable since the company not paying any interest
Current Ratio	26.54	11.23	There is a substantial increase of 136.33% in the ratio due to a significant increase in cash and cash equivalents forming part of current assets and a reduction in current liabilities during the year.
Debt Equity Ratio	Not applicab borrowings e since the company not having any
Operating Profit Margin (%)	Not applicable since the company not having any revenue from operations.
Net Profit Margin (%)	Not applicable since the company not having any revenue from operations

DETAILS OF CHANGES IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The Return on Net Worth of the Company for the financial year 2025-26 was -4.03% as compared to -2.86% in the immediately preceding financial year. The decrease in Return on Net Worth is primarily attributable to the higher loss incurred during the year, which adversely impacted the profitability and net worth of the Company.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis may be "forward looking statements" and have been issued as required by applicable Securities Laws and Regulations. There are several factors which would be beyond the control of Management and as such, may affect the actual results which could be different from that envisaged.

On behalf of the Board of Directors
For GSL Securities Limited
Sd/-	Sd/-
Santkumar Bagrodia	Shailja Bagrodia
Managing Director	Director
DIN: 00246168	DIN: 00246710
Place: Mumbai
Date: 29.07.2026