Kapil Raj Finance Ltd Management Discussions

Overview

Management discussion and analysis of financial condition and results of operations include forward looking statements based on certain assumptions and expectations of future events. The Company cannot assure that these assumptions and expectations are accurate. Although the management has considered future risks as part of the discussions, future uncertainties are not limited to the management perceptions.

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and Generally Accepted Indian Accounting policy in the year. The Management of the Company accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgements used therein.

1. Industry structure and developments:

The company is engaged in the business of financing and investment in bodies corporate in order to yield greater revenue for its stakeholders. The Company is planning to expand and diversify the operational activities in the coming years ahead in order to ta p higher revenues.

2. Opportunities and Threats:

Opportunities:

• Retaining listed status provides an advantageous platform for raising future capital once a viable business model is finalized.

Threats:

• Intense competition and pricing pressure in financial services that may impact margins.

• The primary threat remains the recurring cost of regulatory compliance and administrative overheads, which gradually erode net worth in the absence of operational revenue.

3. Segment Wise or Product-wise Performance

Since the Company did not undertake any commercial operations or business activities during the financial year, segment-wise or product-wise performance reporting is not applicable.

4. Outlook:

The management is actively evaluating viable business proposals and exploring opportunities to diversify operations. The Company intends to recommence its financing and investment activities once a sustainable, high-yield business model is identified and approved by the Board. The focus remains on utilizing the corporate and listed status to generate long-term stakeholder value in the coming years.

5. Risk and Concerns:

The immediate concern for the Company is the absence of operating cash flows. The risks are currently restricted to covering fixed compliance and listing costs under the SEBI (LODR) Regulations, 2015 and the Companies Act, 2013.

6. Internal Control Systems and their adequacy:

• An Audit Committee of the Board of Directors of the Company has been constituted as per provisions of the Companies Act, 2013 and SEBI (LODR), 2015.

• The Internal Audit Function is looked after internally by the finance and accounts department, and reviewed by the audit committee and the management at the regular intervals.

• The Internal Auditors Reports dealing with Internal Control Systems are considered by the Audit Committee and appropriate actions are taken, whichever necessary.

7. Discussion on financial performance with respect to operational performance:

• The Financial Statements have been prepared in accordance with the requirements of the Act, Indian Generally Accepted Principles (Indian GAAP) and the Accounting Standards as prescribed by the Institute of Chartered Accountants of India.

• The Management believes that it has been objective and prudent in making estimates and judgments relating to the Financial Statements and confirms that these Financial Statements are a true and fair representation of the Companys Operations for th e period under review.

8. Human Resources and Industrial Relations:

During the year, human resources were limited to Key Managerial Personnel (KMPs) and essential staff required strictly for administrative and compliance purposes. Industrial relations are not applicable given the current operational status.

9. Disclosure of Accounting Treatment:

Financial Statements are prepared as per Ind AS duly following the principles laid in the Ind AS. Management has not adopted any other standards other than the prescribed Accounting Standards in preparing the financial statements.

		By the order of the Board
		Kapil Raj Finance Limited
	Sd/-	Sd/-
	Harit Anand	Amit Balkrishna Ghume
	Director	Managing Director
Date: 21.09.2026	DIN:11812939	DIN: 10428357
Place: Delhi