Harmony Capital Services Ltd Management Discussions

" ANNEXURE-II"

For the Financial Year ended 31^st March, 2026

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31^st March, 2026, in compliance with Regulation 34(2)(e) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied, depending upon economic conditions, changes in government regulations, tax laws and other incidental factoRs.

(a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company operates in its core business segments in accordance with the objects set out in its Memorandum of Association (MOA). The sector plays a crucial role in supporting economic development and capital formation.

(b) OPPORTUNITIES AND THREATS

Opportunities:

? Growing financial markets and increased retail participation

? Expansion of digital financial services

? Opportunities in capital market investments

? Improved access to diversified funding sources

Threats:

? Market volatility and economic uncertainties

? Regulatory changes impacting financial services

? Competition from established and emerging players

? Liquidity and funding risks

The Company continues to focus on leveraging its strengths and mitigating risks through prudent financial and operational strategies.

(c) SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in investment activities; hence, segment-wise reporting is not applicable. Product-wise performance forms part of the financial statements.

(d) OUTLOOK

The outlook for the Company remains cautiously optimistic. The capital markets present both opportunities and challenges due to inherent volatility. The Company aims to capitalize on market opportunities while maintaining a disciplined investment approach.

(e) RISKS AND CONCERNS

The Company operates in an environment exposed to various risks including:

? Market and price volatility risks

? Regulatory and compliance risks

? Liquidity and funding risks

? Economic and geopolitical uncertainties

The Company has a structured approach to identify, assess and mitigate these risks through appropriate risk management practices.

(f) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems commensurate with its size and nature of business. These systems ensure:

? Proper recording of financial and operational information

? Compliance with applicable laws and regulations

? Safeguarding of assets

The Company follows established accounting policies in line with applicable Accounting Standards and regulatory requirements. Periodic reviews are undertaken by the management to ensure effectiveness of these controls.

(g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the Company is primarily driven by investment activities and market conditions. The management regularly reviews financial results and operational efficiency to ensure alignment with strategic objectives.

(h) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

There were no material developments in Human Resources or Industrial Relations during the year. The Company continues to focus on talent acquisition, retention and development, recognizing human capital as a key asset.

SUBSIDIARY COMPANIES

The Company does not have any subsidiary companies during the year under review.

(i) 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:

Details of significant changes (25% or more as compared to the immediately previous Financial Year) in key financial ratios in 2025-26.

Particulars	Variation (%) Increase/ (Decrease) over previous
	Financial Year
Debtors Turnover Ratio	Nil
Inventory Turnover Ratio	Nil
Interest Coverage Ratio	Nil
Current Ratio	121%
Return on equity ratio	Nil
Debt Equity Ratio	Nil
Operating Profit Margin ( %)	Nil
Net Profit Margin ( %)	Nil

Details of changes in return on net worth as compared to the immediately previous financial year along with a detailed explanation thereof:

There has been no significant change in the Return on Net Worth of the Company as compared to the immediately preceding financial year. The said ratio is also disclosed in the Financial Statements.

CONCLUSION

The Company remains committed to strengthening its position in the financial services sector through prudent investment strategies, effective risk management and operational efficiency.