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.

INDUSTRY STRUCTURE & DEVELOPMENTS, OPPORTUNITIES AND FUTURE OUTLOOK:

According to the Organisation for Economic Co-operation and Development (OECD) (March 2026 Report), the global economy grew by 3.3% in the calendar year 2025, unchanged from the growth recorded in the calendar year 2024.

The OECD has projected global economic growth of approximately 2.9% for the calendar year 2026 and 3.0% for the calendar year 2027. However, these projections are contingent upon the assumption that the ongoing geopolitical tensions, including the US Iran conflict, do not escalate further or persist for an extended period.

India, on the other hand, benefited from a stable macroeconomic environment and relatively benign inflation during FY 2025-26. According to the Reserve Bank of India (RBI), real GDP growth is estimated at approximately 7.6% in FY 2025- 26, compared to 7.1% in FY 2024-25. However, the escalation of the Middle East conflict and its impact on crude oil prices pose significant risks to the domestic economy, given Indias dependence on energy imports from the region. Consequently, the macroeconomic environment is expected to transition from a phase of high growth and low inflation to one requiring more cautious and defensive economic management.

Reflecting these emerging challenges, the RBI has projected a GDP growth of 6.9% and inflation of 4.6% for FY 2026-27, factoring in heightened geopolitical tensions, elevated global crude oil prices and potential supply chain disruptions. These projections could face further downside risks should the conflict persist and crude oil prices remain elevated.

Against this backdrop, the operating environment for financial markets is expected to remain volatile. The Company, a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India as a Non-Deposit Accepting NBFC, derives a substantial portion of its revenue from investments. The value of its portfolio of equities, bonds and other financial assets is inherently linked to developments in domestic and global capital markets, which are influenced by macroeconomic conditions, interest rate movements, investor sentiment and geopolitical events. The Companys ability to preserve capital, manage risk prudently, identify attractive investment opportunities and generate sustainable risk-adjusted returns will hence continue to be critical to its long-term success.

The investments of the Company are typically long-term in nature and predominantly in the equity markets. The Company also invests in companies where it is a part of the Promoter group from a long-term perspective. All investments decisions are reviewed by the Audit Committee and the Board of Directors, respectively, on a periodic basis.

RISKS, THREATS AND CONCERNS:

Risk management comprises of identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor and control the probability and / or impact of unfortunate events or to maximize the realization of opportunities.

The Risk Management Committee (‘RMC) of the Board of Directors manages and monitors the Companys risks, as detailed herein below under the heading “Risk Management Process”.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an adequate internal audit and control system commensurate with its size and nature of business to ensure operational efficiency, accuracy and promptness in financial reporting and compliance of various laws and regulations. The Audit Committee of the Board of Directors reviews the Internal Audit Report and the adequacy and effectiveness of internal controls periodically.

HUMAN RESOURCES:

Employee relations continued to remain cordial during the year under review. As on March 31, 2026, there were 5 (Five) employees including Key Managerial Personnel (‘KMP) of the Company.

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, INCLUDING: