Kanungo Financiers Ltd Management Discussions

1. Overall Review

During the financial year under review, Kanungo Financiers Limited continued to focus on its core financial services activities and prudent management of its resources. The Company operates in the financial services sector, where business performance is influenced by prevailing market conditions, interest rates, liquidity, investment sentiment and developments in the capital and financial markets. During FY 2025-26, the Company maintained its focus on disciplined financial management, operational efficiency and effective deployment of available resources.

For the financial year 2025-26, the Company reported nil revenue, which remained unchanged as compared to nil revenue in the previous financial year 2024-25. Despite the absence of revenue from operations, the Company recorded a Profit After Tax (PAT) of Rs.63.05 lakhs during FY 2025-26, as against Rs.23.55 lakhs in FY 2024-25, representing a significant improvement in profitability. The increase in profitability is attributable to better cost management and improved operational efficiency during the year under review.

The management remains committed to strengthening the Companys financial position through prudent deployment of funds, effective cost control, compliance with applicable regulatory requirements and identification of sustainable business opportunities. Going forward, the Company will continue to monitor market developments and financial-sector trends and will endeavor to enhance operational efficiency and long-term value for its stakeholders. The Companys future performance will, however, remain subject to prevailing economic conditions, interest-rate movements, market volatility and other factors affecting the financial services sector.

2. Financial Review

During the financial year 2025-26, the Company did not continue its regular business activities. However, the Company undertook other business and financial activities during the year and, accordingly, recorded a consolidated profit of Rs.63.05 lakhs for the financial year under review. The Company continued to monitor and manage its activities prudently, resulting in an improvement in its overall profitability during FY 2025-26.

3. Risk and Concern

Bullish trend in Equity Markets, Commodities and Real estate will affect volume and profitability of Government Securities business. Changes in rate of Interest will affect Companys Profitability.

4. Internal Control System and their adequacy

The internal control system is looked after by Directors themselves, who also looked after the day to-day affairs to ensure compliance of guide lines and policies, adhere to the management instructions and policies to ensure improvements in the system. The Internal Audit reports are regularly reviewed by the management.

5. Environmental Issues

As the company is not in the field of manufacture, the matter relating to produce any harmful gases and the liquid effluents are not applicable.

6. Financial Performance with Respect to Operation Performance

The Company has all the plans for tight budgetary control on key operational performance indication with judicious deployment of funds without resorting to any kind borrowing were ever possible.

7. Cautionary Statement

Statement in this report on Management Discussion and Analysis may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however, differ materially, from those expressed or implied. Important factors that could make a difference to the companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability and changes in government regulation and tax structure, economic development within India and the countries with which the company has business contacts and other factors such as litigation and industrial relations.

The Company assumes no responsibility in respect of forward - looking statements, which may be amended or modified in future on the basis of subsequent developments, information or events.