Indo Thai Securities Ltd Management Discussions

FINANCIAL YEAR 2024-25 AT A GLANCE

ECONOMIC OVERVIEW

GLOBAL

The global economy navigated a complex landscape in uenced by geopolitical shifts, trade uctuations and in ationary pressures in 2024. Despite persient challenges, proactive policies and continued invements in key sectors rengthened ability and resilience. The global economy grew by 3.5% in 2023, with a slight slowdown to 3.3% in 2024. Advanced economies grew at a eady 1.7% in 2023 and at 1.8% in 2024, conrained by high intere rates. Meanwhile, Emerging Markets and Developing Economies (EMDEs) expanded by 4.7% in 2023 and 4.3% in 2024. Heightened supply chain vulnerabilities prompted businesses and governments to re-evaluate trade dependencies and implement rategic measures to enhance economic ability.

Several countries introduced tariffs on global trade in March 2025, followed by retaliatory actions that disrupted international trade, increased in ation, and slowed economic growth. Higher import cos are expected to raise consumer prices in many regions. The global economy is projected to grow eadily at 2.8% in 2025 and 3.0% in 2026, supported by able performance in both advanced and emerging markets. Growth in advanced economies is likely to ay mode at 1.4% in 2025 and 1.5% in 2026, in uenced by domeic demand and different policy approaches. Meanwhile, emerging markets such as China and India are expected to show ronger growth of 3.7% in 2025 and 3.9% in 2026, despite global uncertainties and recent trade tensions. Even so, economies are expected to ay resilient by adopting new technologies and implementing rategic policy measures.

Geopolitical tensions and ongoing war situations during FY 2024 25 disrupted global supply chains, raised commodity prices, and increased market volatility. These factors led to cautious inveor sentiment, in ationary pressure, and tighter monetary policies worldwide. While the Indian economy showed resilience, global uncertainties continued to in uence market dynamics and invement ows.

The Indian economy has demonrated remarkable resilience in the face of the deteriorating global situation due to rong macroeconomic fundamentals. eps to promote ease of doing business, skilled manpower, presence of natural resources, liberal FDI policies, huge domeic market and prospects of healthy GDP growth have made India an attractive deination for foreign inveors. Thus, going forward, India is expected to see relatively ronger growth.

Chart: Indias GDP growth highe among major peers

GDP growth rate (%)	2023	2024	2025P	2026P
World Output	3.50%	3.30%	2.80%	3.00%
USA	2.90%	2.80%	1.80%	1.70%
China	5.40%	5.00%	4.00%	4.00%
Japan	1.50%	0.10%	0.60%	0.60%
Germany	-0.30%	-0.20%	0.00%	0.90%
India	7.50%	6.50%	6.20%	6.30%
UK	0.40%	1.10%	1.10%	1.40%
France	1.10%	1.10%	0.60%	1.00%
Italy	0.70%	0.70%	0.40%	0.80%
Canada	1.50%	1.50%	1.40%	1.60%
Russia	4.10%	4.10%	1.50%	0.90%

Source: IMF World economic outlook, Apr25

INDIAN ECONOMY OVERVIEW

India has emerged as the fae-growing major economy over the pa decade, expanding from US$ 2.1 trillion in 2015 to US$ 4.3 trillion in 2025, surpassing all other major economies in growth rate and solidifying its position as a global economic powerhouse. In recent years, the countrys rapid economic expansion enabled it to surpass the UK, making it the worlds fth-large economy.

Furthermore, India is on the brink of surpassing Japan (US$ 4.4 trillion GDP) as the worlds fourth-large economy by the third quarter of 2025. If the current trajectory holds, India is projected to overtake Germany (US$ 4.9 trillion) as the third-large economy by 2027-28. The countrys economic resilience is underpinned by sound macroeconomic policies, a robu banking syem and eady scal consolidation.

India continued on a eady path of economic growth, driven by a rong manufacturing sector, an expanding services indury and increased invements in infraructure. Various government-led initiatives, including digital transformation efforts and nancial inclusion programs, played a crucial role in rengthening domeic manufacturing capabilities and attracting foreign direct invement (FDI) across key sectors. The availability of capital, evolving invement trends and access to credit remained essential factors in driving economic expansion, supporting business growth, facilitating infraructure development and creating employment opportunities. Additionally, intere rates and government policy measures signi cantly contributed to maintaining economic ability, positively in uencing various induries and booing consumer demand. With these rong economic drivers in place, Indias economy is projected to grow at a robu rate of 6.5% in FY2026.

Outlook

Indias economic outlook remains highly optimiic, with projections suggeing an addition of US$ 1 trillion to GDP every 1.5 years. By the end of 2032, India could emerge as a US$ 10 trillion economy (IMF data), fuelled by rong domeic consumption, expanding global trade partnerships and increasing foreign direct invement.

Indias foreign direct invement (FDI) in ows surpassed US$ 1 trillion in 2024, with a robu 26% y-o-y growth to US$ 42.1 billion in H1 FY25. This re ects con dence in Indias policy reforms, including G simpli cation and sectoral liberalisation. The World Competitive Index ranking improved to 40th in 2024, while the Global Innovation Index leapfrogged 41 positions since 2015. Multinationals like Apple and Samsung have expanded operations, leveraging Indias co-competitive labour and rategic location, linking Europe, Africa and Asia.

Indias demographic pro le is one of the greate economic rengths, with a current median age of around 28 years, signi cantly lower than that of developed economies. The country is expected to witness a eady increase in its working-age population, with about 120 million individuals projected to enter the workforce by 2040. This demographic dividend, coupled with rising urbanisation, job creation and digital adoption, is poised to accelerate per capita income. As incomes rise, so too will household savings, with a growing share of these savings expected to move from physical assets to nancial inruments. This shift presents a tremendous opportunity for the nancial services indury, as more Indians seek to inve in equities, mutual funds, insurance and other market-linked products to secure and grow their wealth.

INDUSRTY RUCTURE AND DEVELOPMENTS

The Indian broking indury continues to undergo rapid transformation, supported by rising retail participation, regulatory reforms, and increasing use of technology. A key trend during the year was the continued growth in demat and trading accounts, driven by greater nancial awareness, mobile-based trading apps, and ease of access to capital markets.

A major development has been the rise of algorithmic (algo) trading, which allows trades to be executed automatically based on pre-de ned rategies. While algo trading was earlier limited to initutional inveors, it is now seeing growing intere among retail inveors as well, supported by low-co APIs and broker platforms offering algo features. This has made markets more ef cient, but also prompted regulators to keep a close watch to ensure fair practices and risk control.

There is also an increased focus on fund-based activities, such as margin funding. This is helping broker rms generate suainable earnings. They are also expanding the range of products and services to rengthen client relationships.

The indury gained popularity owing to a signi cant increase in trading activities. The nancial brokerage market operates through different business verticals, such as full-service, discount, and hybrid brokerage.

INDO THAI OVERVIEW

Indo Thai Securities Limited ("Indo Thai) eablished as a ock broking company in year 1995, commenced its journey with a vision to build an empire with high quality growth business in nancial services. Ever since our inception, our rategy has been to align capabilities and market insights to countrys rapidly changing business environment. Today, Indo Thai is one of the leading broking company across central India. Our focus on self - de ned rules of good behavior has contributed signi cantly to growth. Over the la 30 Years we have experienced various growth phases in our journey. Our client centricity has enabled us to emerge as a symbol of dependability, tru and con dence. We have come this far solely based on our core values serving as moral compass in our dealings.

OPPORTUNITIES

The indury offers varied opportunities for the company to maintain growth. The Company continues to take efforts to identify opportunities in various types of products, technological initiatives, and competitive advantage and deploys efforts and resources that may be required. increasing accessibility of trading platforms through mobile applications, offering a comprehensive suite of features online, presents a signi cant opportunity to enhance cuomer engagement and expand the inveor base across diverse demographic segments;

Emerging trends in technology has also opened up new ways for future growth. Consequently, we further plan to train our employees through Arti cial Intelligence and Machine Learning mechanisms;

Insurance and Invement Penetration is rising in rural areas;

Focus on nancial inclusion by the government, channelizing the untapped savings currently lying in the form of bank deposits and change in attitude from safeguarding wealth to growing wealth will also enhance the participation of inveors across segments thereby proliferating the prospects of Equity Brokerage business;

Earning Urban Youth and increased formal market job opportunities;

Growing purchasing power of nancially middle-class inveors are intereed in more invement opportunities;

Favorable demographics of Indian capital markets like growing middle class and larger younger population with disposable income and inveible surplus focused on wealth creation will offer opportunities for our Wealth Management and Mutual Fund Diribution business

THREATS

The company conantly monitors the threats from competition, indury and takes eps to maintain/ enhance exiing competence.

Market trends making other assets relatively attractive invement avenues;

Syematic and non-syematic risks; Security market risks are of two types: Syematic (non-diversi able) and non-syematic (diversi able) risks. Individual companies do not have any control over syematic risks. Non-syematic risks basically fall in the company or indury-speci c risk category. Non-syematic risks can be tackled by holding a portfolio that contains multiple ocks from different sectors. This is the reason why market experts include ock speci c risks; Increased intensity of competition from local and global players; In ationary pressures and reduction in household savings in nancial products is another threat to the sector; In nancial services indury, security and sanctity of client data is of utmo importance. There exis a regular threat for rm data theft via malicious malwares and emails. Cyber-attacks are getting larger in scale and size, even to the extent of co- ordinated attack from different geographies. If the current tight liquidity situation does not normalize soon, it could affect the natural growth of the complete sector; Changes in regulatory environment can adversely affect the business. Sudden changes may pose operational challenges; Slower than expected recovery of macro-economy, domeically as well as globally and inability of government to push through major economic reforms can delay the return of growth.

Technology and discount brokerage. Invement through Mutual Fund/SIP route.

SEGMENTWISE PERFORMANCE

Equity Segment	Rs. 354.13 Rs. 5555.27
The Companys turnover in the equity segment was Rs	Crores Crores
354.13 Crores in BSE and Rs. 5555.27 Crores in NSE
consiing essentially of secondary market equity,
currency, derivatives and debt broking.	BSE NSE
F&O Segment	Rs. 11078.85
The annual turnover recorded by the Company in this	Crores
segment for the nancial year 2024-25 amounts to Rs.
11078.85 Crores.
	FY 24-25
Currency Derivatives Segment	Rs. 111.55
The total turnover for the Company for the currency	Crores
derivatives segment has been Rs. 111.55 Crores, as
compared to Rs. 214.75 in the nancial year ended
2024.	FY 24-25
Mutual Fund Segment	Rs. 182.51
The Company has recorded the Asset under	Crores
Management as on 31 March 2025 of Rs. 182.51 crores
for the Assets Mutual Fund Diribution Business.
	FY 24-25
Income from Depository Operations
Your Company is a Depository Participant with Central	Rs. 34.40
Depository Services (India) Limited (\u201cCDSL\u201d), providing
services of dematerialization, rematerialisation and	Lakhs
settlement of trades through market transfers and off
market transfers. Our income from depository
operations for the nancial year ended 31 March,	FY 24-25
2025 are Rs. 34.40 lakhs.
Commodity Segment:	Rs.7122.30
The annual turnover recorded by the company in	Crores
Commodity segment for the nancial year 2024-25
amounts to Rs. 7122.30 Crores.

BUSINESS OUTLOOK

Indo Thai has remained focused on operating excellence, executing our projects and enhancing shareholder value.

Indo Thai was successfully able to navigate all the dislocations in the market and continued to manage its nancial market risks prudently. As we contemplate in the matter of Indo Thai Securities Limited, in the preparation for the next phase of growth we see a lot of opportunities but, at the same time this demands a lot of dedication and ef ciency. We believe in empowering our people with the be available facilities such as Technological upgradation and Initutional client to build a workforce ready for the future.

The Company expanded its physical presence by inaugurating two additional branches. A new branch was opened in Rajkot on 06th November 2024 and another branch in Surat on 07th May 2025. This expansion re ects the Companys commitment to rengthening its regional outreach and enhancing cuomer accessibility.

Indo Thai is also accelerating in margin trading considering its mo apparent bene ts. It enhances your buying power by several notches with extra funds available in your account. With it, you can expand your invements by acquiring more shares or other nancial inruments than your available capital alone would permit. This booed buying power can signi cantly enhance your pro ts.

During the previous nancial year, the company raised funds through preferential allotment of equity shares and convertible warrants. The proceeds were primarily used to increase margin deposits with various ock exchanges, enabling the company to support client funding activities and proprietary trading. A portion of the funds was also used for general corporate purposes.

RISKS & CONCERNS

Risk management entails identifying, assessing and prioritizing risks. Once threats in a company have been identi ed, assessed and prioritized, resources are used to control and reduce the likelihood that the identi ed risk occurs. Risk Management is an integral part of yearly business plan at Indo Thai. It is valued as an important tool for organizations risk assessment. This process helps us identify variables (risks and opportunities) to which the Company may be exposed - internal or external, or emerging.

Risk management at Indo Thai involves both top-down and bottom-up approaches for assessing risks/ opportunities, which is then consolidated/calibrated to get an overview of the entire organization.

The Risk Management Committee is chaired by Mr. Parasmal Doshi. The Committee reviews, analysis and discusses the risk trends, exposure and potential impact (including suainability and information security related risks).

Key risks:

The risk factors that can be speci cally identi ed with our business operations are as outlined below:

1. Regulatory and Compliance Risks:

The Company is exposed to risks attached to various atutes, law and regulations. The Company is mitigating these risks through internal as well as external compliance audits. Any non-compliance pertaining to regulations may result in considerable penalties and harms the reputation of the Company.

Mitigation: The Company has implemented compliance management syem capable of effectively tracking and managing regulatory and internal compliance requirements. Our legal and regulatory specialis are heavily involved in monitoring and reviewing our practices to provide reasonable assurance that we remain aware of and are in line with all relevant laws and legal obligations.

2. Operational Risk:

These risks arise from the failure of the syems, people and processes. The rapid development in nancial services business may increase such risks.

Mitigation: The Company maintains a syem of internal controls designed to provide high degree of assurance regarding the effectiveness and ef ciency of operations, the adequacy of safeguards for assets, the reliability of nancial controls and compliance with applicable laws and regulations.

3. Market Risks:

The nancial sector is affected by variety of factors linked to domeic, economic progress and global developments. Equity brokerage is the major source of revenue for the Company. Therefore, any changes in the market sentiment can highly affect the trading volumes and revenues for the Company.

Mitigation: The Company has diversi ed its revenue reams across multiple businesses including mutual funds and wealth management services in order to mitigate such risks.

4. Competition Risks:

The Company is exposed to tremendous competition at national level. Entry of discount broking houses has also affected other nancial broking companies in the indury.

Mitigation: Diversi ed and innovative services are offered to keep the clients and other akeholders intact as well as continuous research and development helps in mitigating the competition risk.

5. Financial Risks:

Maintaining exible co ructure for protecting pro tability in a market downturn and other related factors exposes the Company to nancial risks. Change in policies of the government of India may adversely impact our business and prospects.

Mitigation: The risk framework makes de nite that risks are monitored and timely actions are taken for every potential violation. Additionally, the asset liability mismatch and margin utilizations are regularly assessed along with close monitoring of liquidity requirements to maintain suf cient liquidity for uncertainties.

INTERNAL CONTROL SYEMS AND THEIR ADEQUACY

Indo Thai has an effective internal control and risk - mitigation syem which are conantly assessed and rengthened with new/revised andard operating procedures.

Internal control review is an overall assessment of the internal control syem and its adequacy of each business area to address the relevant risks. Through control review, an organizations resources are directed, monitored, and measured in an effective manner. It plays an important role in protecting the organizations tangible and intangible resources.

To create an effective internal control syem, your Company eablished the following:

Policies and procedures including, among others, organizational ructure, job descriptions; Segregation of duties and responsibilities; Authorization and approval process; Performance monitoring and control procedures; Safeguarding assets, completeness and accuracy; Manpower management; Independent internal audit function; Regulatory compliance and risk management.

Internal Control Syems are implemented:

1. To safeguard the Companys assets from loss or damage.

2. To keep conant check on co ructure.

3. To provide adequate nancial and accounting controls and implement accounting andards.

The syem is improved and modi ed according to the changes in dynamic business condition, atutory and accounting requirements. Internal controls are adequately supported by Internal Audit and periodic review by the management.

The Audit Committee of the company meets periodically to review - Financial atements, with the management and atutory auditors. Adequacy/scope of internal audit function, signi cant ndings and follow-up thereon of any abnormal nature, with the internal auditors.

The eablishment of an effective corporate governance and internal control syem is essential for suainable growth and long-term improvements in corporate value, and accordingly INDO THAI works to rengthen such ructures. We believe that a rong internal control framework is an important pillar of Corporate Governance. The current syem of Internal Financial Controls is aligned with the requirement of the Companies Act, 2013 and the Securities and Exchange Board of India (Liing Obligations and Disclosure Requirements) Regulations, 2015.

The material information about the Company are promptly provided to all its akeholders through its website www.indothai.co.in. where by enhanced level of information syem security controls and monitoring syems are integrated.

REVIEW OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL

PERFORMANCE

1. Sources of funds/ Application of funds

(a) Share Capital:

At present, the Company has only one class of shares i.e. equity shares of face value of Rs.10/- each. The Companys authorized share capital increased from Rs. 12 Crore to Rs. 15 Crores, divided into 1.50 Crores equity shares of Rs. 10/- each. The issued, subscribed and paid up capital is Rs. 11.69 Crores as on 31 March, 2025, primarily due to fund raised through preferential allotment of equity shares and warrants convertible into equity shares.

(b) Reserves & Surplus:

(I) Security Premium Reserve & Retained Earnings:

The balance in Securities Premium Account & Retained Earnings including premium received on issue of equity shares and warrants convertible into equity shares on preferential basis as on 31 March, 2025 amounted to Rs. 16,672.08 Lakhs, The balance reported in previous year was Rs 6169.96 Lakhs.

2. Shareholders Funds (NET WORTH)

The total Shareholders Funds is Rs. 17841.28 Lakhs as on 31 March, 2025. The balance reported in previous year was Rs. 7169.96 Lakhs

3. Prices on exchanges during the year:

The Companys shares high and low prices in BSE & NSE are as under:

	High		Low
Exchange
	Price per Share (Rs.)	Date	Price per Share (Rs.)	Date
BSE	2200.20	11/02/2025	241.5	19/08/2024
NSE	2200.15	11/02/2025	236.00	19/08/2024

4. Deferred Tax Assets / Liabilities

We recorded 2.81 Lakh deferred tax assets as on 31 March, 2025 as compared to Rs. 170.85 Lakhs deferred tax liabilities during the previous year.

5. Trade Receivables

There is an increase in trade receivables of the Company as compared to previous year. The gure of trade receivables was reported at Rs. 1841.09 Lakhs as on 31 March, 2025 which was Rs. 776.50 Lakhs as on 31 March, 2024.

6. Cash & Cash Equivalents

The Cash & Cash Equivalents of the Company has decreased as compared to previous nancial year and reached at Rs 53.19 Lakhs on 31 March, 2025 which was Rs 228.52 Lakhs in previous year.

7. Revenue

Total revenue from operations has been reported Rs. 2671.86 Lakhs as on 31 March, 2025 as compared to Rs. 3102.44 Lakhs on 31 March, 2024.

8. Earnings Per Share

The earnings per share for the nancial year 2024-25 is Rs. 8.86/- (Basic) and 8.67/-(Diluted) in comparison to gure reported for nancial year 2023-24 i.e. Rs 16.60/- (Basic and Diluted both).

9. Key Financial Ratios

Ra_o	March	March	Change	Explana_on
	31, 2025	31, 2024	in %
Current Ra_o	2.16	0.93	132.32	Current assets have been increased due to increase in
(In _mes)				Current invements and Trade receivables. Some
				por}on of fund raised during the year were inveed in
				invements. Due to increase in funding to clients under
				MTF Trade receivables have been increased in 2025 in
				comparison to 2024. Similarly borrowings have also
				been decreased during the year 2025.
Debt Service	-0.47	-0.84	-43.82	It is decreased due to decrease in borrowings as on 31
Coverage				March 2025.
Ra_o (%)
Return on	7.29	25.87	-71.83	During the year 2024-25 company has raised further
Equity (%)				capital through issue of equity shares and warrants on
				preferen_al basis resul_ng in to lower ROE in
				comparison to FY 2023 -24. Secondly net gain on fair
				value changes have also been decreased during the FY
				2024-25.
Inventory	12.84	24.13	-46.78	Inventory turnover ra_o had declined due to lower
Turnover				average inventory value. Ra_o had declined due to
Ra_o (In				decrease in sale value also.
_mes)
Debtors	2.04	5.84	-65.04	Due to increase in funding to clients under MTF Trade
Turnover				receivables have been increased in 2025 in comparison
Ra_o (In				to 2024 resul_ng in to lower debtors turnover ra_o in
_mes)				the year 2024-25.
Trade	4.57	6.86	-33.45	This ra_o has been declined due to decrease in trade
Payables				payables and increase in expenses
Turnover
Ra_o (In
_mes)

Net Capital	1.15	-2.45	-	Due to increase in Current Assets including trade
Turnover			147.07	receivables and Invements this ra_o increased during
Ra_o (In				FY 2024-25
_mes)
Return on	1.92	9.70	-80.17	During third and fourth quarter of the year 2024 -25
Capital				company had raised further capital through issue of
Employed				equity shares and warrants on preferen_al basis
(%)				resul_ng. Said fund was u lised for the part of the year
				hence lower ROCE in comparison to FY 2023 -24.
				Secondly net gain on fair value changes have also been
				decreased during the FY 2024-25.
Return on	33.78	85.06	-60.29	Due to decrease in Net Gain on fair value changes
Invement				return on invement declined.
(%)
Net Pro t	34.11	53.51	-36.26	Due to adverse market condi_ons during the second
Margin (%)				half of the FY 2024-25 pro t margin had declined.
Opera_ng	45.50	69.15	-34.35	Due to adverse market condi_ons during the second
Pro t Ra_o				half of the FY 2024-25 pro t margin had declined.
Intere	10.41	25.44	-59.06	Intere coverage ra_o improved due to decrease in
Coverage				borrowings
Ra_o
Return on	7.29	25.87	-71.83	Due to increase in Equity and other equity return on net
Net worth				worth had also declined.

DEVELOPMENTS IN HUMAN RESOURCES

At Indo Thai, our relentless focus is on attracting, retaining and nurturing the be of talents to lead the organization towards achieving its rategic goals. We ensure a work culture free of discrimination and bias and provide equal opportunity to all.

In the pa, training was the only planned way of developing human resources. But now Human Resource Development (HRD) has emerged as an interdisciplinary and integrated approach to the development of human resources.

In the organizational context, human resource development may be described as a continuous and planned process by which employees of an organization are helped to:

(a) Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles.

(b) Develop their general capabilities as individuals and discover and exploit their own inner potential for their own and/or organizational development purpose.

( c ) Develop an organizational culture in which superior-subordinate relationships, teamwork and collaboration among sub-units are rong and contribute to the professional well-being, motivation and pride of employees.

HRD for Indo Thai in brief is transformation of potential human resources into kinetic human resources for optimization of the potential capacity of employees. Human rather than capital is the key to development. HRD is needed by any organization that wants to grow continuously.

The scope of HRD is not limited to the development of the organizational role of the employees but extends to the individuals inner feelings, genius and latent potentialities of those working in the organization. Individuals in an organization have unlimited potential for growth and development and this can be multiplied and channelized through syematic efforts. The company views human resources as the total knowledge, skills, creative, abilities, talents and aptitudes of an organizations workforce as well as the values, attitudes and beliefs of the individual involved.

The highe andards of safety and precautionary measures were eablished, Work from Home concept was initiated wherever possible. In order to uphold the values of ethical conduct and compliance, the Company ensured all employees followed a detailed and ructured training and awareness to familiarize themselves with the andards and expectations on ethics. During these dif cult times, the Company reached out to the disadvantaged and weaker sections of society and provided assiance through our CSR program. The Indo Thai family consis fof 73 employees including 7 Key Managerial Personnel.

CAUTIONARY ATEMENT

This report contains several forward-looking atements that involve risks and uncertainties, including, but not limited to, risks inherent in Indo Thais growth rategy, acquisition plans, dependence on certain businesses, dependence on availability of quali ed and trained manpower, economic conditions, government policies and other factors. The companys actual results, performances or achievements could thus differ materially from those expressed or implied in such forward-looking atements. This report should be read in conjunction with the nancial atements included herein and the notes annexed thereto.