Kiran Vyapar Ltd Management Discussions

Industry Structure and Developments

The Company is a Non-Banking Financial Company (NBFC) (Non-Deposit Taking) categorized as Middle layer Company as per Reserve Bank of India (Non-Banking Financial Companies Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025 and is registered with the Reserve Bank of India. The Company does not accept Public Deposits. It is mainly engaged in the business of making investments, trading and dealing in shares and securities, mutual funds, loan & financing and carrying on business in accordance with the regulatory framework mandated by the laws of land, including Reserve Bank of India. The Company has been following a disciplined approach to investing and lending for long term and creating value for its shareholders/other stakeholders. The business strategy and performance of the Company is also dependent on the economic and financial environment, state of Capital Markets and policies of the Government of India and Reserve Bank of India in this regard.

The Indian economy during the year under review FY 2026, was impacted by geopolitical tensions, tariff measures and the outbreak of war in West Asia. In order to support trade and logistics, address supply disruptions, , and maintain overall macroeconomic stability, the Government of India has responded with measures in due course. According to the second advance estimates from the Ministry of Statistics and Programme Implementation (MOSPI), Real GDP has been estimated to grow by 7.7% in FY 2026 driven by robust private consumption and strong fixed investment. In response, the RBI s Monetary Policy Committee (MPC), the repo rate stands at 5.25% as of April 2026, while continuing with an accommodative stance.

Supported by steady industrial expansion and robust services sector performance, India continued on a steady path of economic growth. Various government-led initiatives, including PMJDY, PLI Scheme, digital transformation efforts, increased public capital expenditure make in India etc., played a crucial role in strengthening domestic manufacturing capabilities.

Opportunities and Threats

Non-Banking Financial Companies ( NBFCs ) remain one of the most important pillars for ushering financial inclusion in India, reaching out to a hitherto under/unserved populace and in the process leading to formalization of the credit demand. NBFCs cater to the needs of both the retail as well as commercial sectors and, at times, have been able to develop strong niches with their specialized credit delivery models that even larger players including banks, have found hard to match on complete end to end basis. This has further provided a fillip to employment generation and wealth creation and in the process, bringing in the benefits of economic progress to the unserved / underserved sections of the business and society and is vital to the economic growth of the Country.

The RBI has been continually strengthening the supervisory framework for NBFCs in order to ensure sound and healthy functioning and avoid excessive risk taking. It has issued several new guidelines in the recent past. Additionally, policy reforms focused on infrastructure development, manufacturing expansion and export growth are expected to create more employment opportunities, further increasing the size of the middle-income group and improving living standards. India has witnessed notable improvement in funding dynamics from bank lending to NBFCs regaining strong momentum. This rebound reflects renewed lender confidence and opportunistic borrowings by corporates. AUM of NBFCs, as per estimate of CRISIL, could grow a steady 18-19% in FY 2026-27, driven by whetted consumption demand, and cross the INR 50 Lakhs Crores mark by March 2027.

Major threats is to access to capital for the NBFCs in India. NBFCs are forced to rely on bank loans or the issue of bonds/NCD/CP to raise money, as opposed to banks, which have access to low-cost deposits to support credit growth. It may be challenging for NBFCs to compete with banks on interest rates. Ensuring smooth access to low-cost funding is essential for NBFCs to maintain the last-mile flow of credit across the economy. The uncertainties and volatility in the financial market are a continuing threat to the organizational performance. However, the twin features of foresightedness and focused analysis of the market have overcome the challenges posed.

Nonetheless, your Company with its strong parentage, brand recognition, strong net-worth. liquidity and strong client network, is poised to capitalize on this opportunity and foresees several profitable opportunities and tapping deeper markets. Further, the Company s robust risk management framework with a deep understanding of risk evolution, mitigation, underwriting and credit controls shall help to arrest the risk of deterioration in asset quality.

Segment wise performance

The Company being a non-banking financial company operates under a single segment viz providing loans and investments in shares and securities.

Outlook

The outlook of India s economy & NBFC sector remains strong and structurally positive, supported by robust credit demand, increasing financialization and favorable macroeconomic conditions. Supportive factors such as GST rationalization and benign inflation are expected to further strengthen retail credit demand. At the same time, improving funding diversification and enhanced risk frameworks position NBFCs to capitalize on emerging opportunities across segments.

The Reserve Bank of India s Monetary Policy Committee (MPC) has projected real GDP growth for FY 2026-27 at 6.9 per cent and projected CPI inflation for FY 2026-27 at 4.6 per cent. The outlook remains subject to downside risks arising from geopolitical escalation, supply disruptions and adverse weather conditions, and volatility in international energy and commodity prices.

Overall, the outlook for FY 2026-27 remains one of guarded optimism.

Risks and Concerns:

The Company being a Non-Banking Financial Company is mainly engaged in the business of providing Loans and making Investment in Shares and Securities and therefore it is exposed to various financial risks such as credit, market, interest rate and liquidity risks associated with financials products.

However, the Company has a robust financial risk management system in place to identify, evaluate, manage and mitigate various risks associated with financial products and ensure that the Company accomplishes its desired financial objectives. The Company has a Risk Management Policy in accordance with the provisions of the Master Direction Reserve Bank of India (Non-Banking Financial Company Scale Based Regulation) Directions, 2023 issued by Reserve Bank of India. It establishes various levels and types of risks with its varying levels of probability, the likely impact on the business and its mitigation measures. The Management evaluates the execution of Risk Management Practices in the Company, in the areas of risk identification, assessment, monitoring, mitigation and reporting from time to time.

The risk management framework is based on assessment of risks through proper analysis and understanding of the underlying risks before undertaking any transactions and changing or implementing processes and systems. This risk management and mitigation mechanism is supported by regular review, control, self-assessment and monitoring of key risk indicators.

Hence, the Management regularly monitors and reviews the continuous changing economic and market conditions in order to take timely and prudent investment and lending decisions.

Internal Control system and their adequacy:

The Company has a proper and adequate internal control system to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorised, recorded and reported correctly. The internal control is exercised through laid out policies, guidelines and procedures. It is supplemented by an extensive program of internal audits conducted by the Internal Auditors and tested by the Statutory Auditors of the Company. The audit observations and corrective action taken thereon are periodically reviewed by the audit committee to ensure effectiveness of the internal control system. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data, and for maintaining accountability of persons.

Financial and operational performance:

The financial statements have been prepared in accordance with Indian Accounting Standards notified under section 133 of the Companies Act 2013, read together with the Companies (Indian Accounting Standards) Rules, 2015 (as amended) together read with the MCA notification dated 11 October 2018 which states the mandate for adoption of these standards by the NBFC Companies, as defined under the Companies (Indian Accounting Standards) (Amendment) Rules, 2016. Detailed highlighted of financials and operational performance is provided in the Directors Report which forms part of the Annual Report.

Material developments in Human Resources:

Human resources remain central to achieving the Company s goals. The Company continues with the philosophy of thrust and focus on human resources for its continued success. In order to strengthen our human resources for meeting the future challenges and expansion plans, we have focused on hiring the best resources available and retaining and developing our existing talent pool.

The total employee strength as on 31st March, 2026 was 13.

Details of Significant Changes in the Key Financial Ratios:

Pursuant to amendment made in Regulation 34(3) read with Part B of Schedule V, SEBI has notified SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of Significant Changes (i.e. Changes of 25% or more as compared to the immediately previous Financial year) in the Key Financial Ratios and Return on Net Worth of the Company (on standalone basis) including explanation thereof are given below:

Particulars	FY ended 31st March 2026	FY ended 31st March 2025	Changes between FY\u201926 and FY\u201925	Explanation
Debtors Turnover Ratio	NA	NA	NA	NA
Inventory Turnover Ratio	NA	NA	NA	NA
Interest Coverage Ratio	1.41	4.10	-65.52	Increase in borrowings
Current Ratio	1.36	1.82	-25.22%	Increase in borrowings
Debt-Equity Ratio	0.40	0.25	61.99%	Increase in borrowing
Operating Profit Margin (%)	68.29%	77.09%	-11.42%	Not Applicable, changes being below 25%
Net Profit Margin (%)	17.82%	48.52%	-63.27%	Decreased due to increase in finance cost in FY26 vs FY25 along with decrease in Revenue in FY 26 as compared to FY 25
Return on Capital Employed (RoCE)	2.49%	3.93%	-36.61%	Decrease in in EBIT and increase in borrowing
Return on Net Worth	0.91%	3.11%	-70.68%	Decrease in PAT

Note: Profits of the Company in any given year are significantly linked to performance of Capital Markets in respect of its Investment portfolio.

Cautionary statement

Statements in this Management Discussion and Analysis describing the Company s objectives, projections and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect the Company s operations include a downtrend in the industry- global or domestic or both, significant changes in political and economic environment in India, applicable statutes, litigations etc.

For and on behalf of the Board of Directors

	Lakshmi Niwas Bangur	Alka Lakshmi Niwas Bangur
Place : Kolkata	Managing Director	Director
Date : 26.05.2026	(DIN : 00012617)	(DIN : 00012894)