Hi-Klass Trading & Investment Ltd Management Discussions

The purpose of this discussion is to provide an understanding of financial statements and a composite summary of performance of our business.

Management Discussion and Analysis (MDA) Is Structured as Follows:

Industry Structure and Developments Business Strengths Opportunity and Threats Operational and Financial Performance Human Resources and Industrial Relations Risk Management Internal Control System Cautionary Statements

Industry Structure and Developments

The Indian NBFC sector plays a crucial role in the development of the countrys financial system by providing credit to the unbanked and underbanked segments. Over the years, NBFCs have evolved into a vital component of the Indian financial ecosystem, especially in retail lending, MSME financing, and infrastructure support.

RBI continues to introduce stringent guidelines and frameworks (such as the Scale-Based Regulation, Risk Management Framework, etc.) to ensure financial stability, transparency, and discipline in the NBFC sector.

Business Strengths

1) Well Qualified and Experienced Promoters

Our management team is backed by promoters who have requisite experience in business field and We believe that their strong technical experience and industry networks will help us in achieving our key business strategies.

2) Maintain And Expand Long Term Relationship with Clients:

To do the business Company maintains strong connection based on trust and communication relationships with clients.

3) To Develop Relations with New Clients and Strengthen the Relations with The Existing Clients:

The relations with the clients help the company to know the client in better way and his integrity can be known to the company.

Opportunity and Threats:

Opportunity: -

Expanding credit demand in MSME and retail segments. Increasing digital adoption and fintech collaborations. Focus on financial inclusion by the Government and RBI.

Threats:

Rising interest rates and tightening liquidity in the market. Credit risk due to borrower defaults. Increased regulatory compliance and scrutiny. Competition from traditional banks.

Operational and Financial Performance: -

The summarized performance of Hi-Klass Trading & Investment Limited was as under:

(In Lakhs)

Particulars	2024-2025	2023-2024
Total Revenue	32.89	19.93
Total Expenses	84.27	137.81
Profit / (loss) Before Tax	(51.38)	(117.88)
Less: Tax Expenses (paid for earlier year)	(9.34)	0.09
Profit (Loss) after tax	(42.04)	(117.97)

Human Resources and Industrial Relations: -

The Company has appropriate policies in place for recruitment, training, skill development and compensation for its workmen, employees and staff. The Company makes an effort to keep on building good relationship with its associates, competitors and all the stakeholders in the various industries wherein it operates.

Risk Management: -

The NBFC sector is poised for cautious growth, backed by economic recovery and increased financial awareness. The Company aims to strengthen its credit portfolio, enhance customer service through digital platforms, and maintain healthy capital adequacy and compliance standards.

Key risks faced by the Company include: Credit Risk: Default in repayment by borrowers. Market Risk: Volatility in interest rates and capital markets. Regulatory Risk: Compliance with ever-evolving RBI norms.

Operational Risk: Technology failures or human errors.

Internal Control System: -

The Company has very effective control system covering both accounting and administrative controls. The internal audit carries out audit tests and report on non - compliance / weaknesses if any, through internal audit reports. These reports are reviewed by the Audit Committee of the Board.

Cautionary Statement:

Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections, and estimates, are forward-looking statements

and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies, and other incidental factors. Readers are cautioned not to place undue reliance on the forward-looking statements

For and on behalf of the Board of Directors

Sanjay Kumar Jain	Dipak Sundarka
Managing Director	Director
(DIN 00415316)	(DIN 05297111)

 

Place: Mumbai

Date: 01.09.2025