Krishna Capital & Securities Ltd Management Discussions

1. Overall Economic and Business Review:

The financial year 2025-2026 witnessed a changing global economic landscape, marked by geopolitical developments, shifts in international trade policies, varying inflation trends and adjustments in monetary policies across key economies. Despite these challenges, global economic activity remained relatively stable, supported by gradual improvement in inflationary conditions, better supply chain efficiency and a measured approach towards monetary policy across several major markets. India continued to maintain its position among the leading high-growth economies, underpinned by strong domestic consumption, increased infrastructure and public investment, improving financial sector fundamentals and continued structural and policy reforms. The stability of key macroeconomic indicators, moderation in inflationary pressures and sustained activity in the capital markets provided a supportive environment for businesses and investors during the year. The financial services industry, including the Non-Banking Financial Company (NBFC) sector, continued to experience evolving market conditions and an increasingly robust regulatory framework. The Reserve Bank of India continued to emphasise financial stability, sound governance, effective risk management and prudent financial practices, with the Scale Based Regulation (SBR) framework playing an important role in strengthening the regulatory architecture applicable to NBFCs.

As an RBI-registered NBFC-NON-SI-ICC (not accepting public deposits) falling under the Base Layer, the Company continued to pursue a cautious and well-balanced investment strategy during the year. The Company remained committed to effective deployment of its resources, preservation of capital, maintenance of sufficient liquidity and adherence to applicable regulatory requirements. Investment decisions were undertaken after careful evaluation of associated risks and potential returns, with the objective of maintaining a balanced portfolio and generating sustainable long-term value for the stakeholders.

During the Financial Year 2025-2026 the Company has earned profit of Rs. 0.78 Lakhs.

Any change in the interest rate in the market will have impact on the profit of the company. Trend in Equity & Commodities Markets will also affect the profitability. As an RBI-registered Non-Banking Financial Company classified as an Investment Company (NBFC-NON-SI-ICC), the Companys business and financial performance are influenced by various external factors, including capital market trends, prevailing macroeconomic conditions, interest rate movements, changes in the regulatory framework and prevailing investor sentiment. The management has reviewed the Business from time to time.

The internal control system is looked after by Directors themselves. The Directors also looked after the day-to-day Business activities and other affairs related to the business. The Directors ensures to complies with the guidelines, and policies. The Management has regularly reviewed the Internal Audit Reports and takes follow up action Theron. The Company has adequate internal control system in operation commensurate with the size and nature of its business for enduring efficiency of operation and protection of Companys assets. The Audit Committee formed by the company review on periodical basis the compliance with the companys policies, procedures and prevailing laws. Audit findings are closely reviewed by audit committee along with management response. The committee also reviews the effectiveness of companys internal control and their effectiveness on actual operation and regularly monitors implementation of audit recommendation. The system ensures effective utilization of company resource and protections of assets from loss, theft, misappropriation and relevant risks.

The Company is principally engaged in investment and financial activities and does not undertake any manufacturing, processing or production activities. The nature of its operations is therefore substantially different from that of industrial or manufacturing entities and does not involve processes that ordinarily result in significant industrial emissions, discharge of pollutants, generation of hazardous waste or other forms of environmental pollution. Accordingly, matters relating to industrial emissions, hazardous waste management, effluent treatment and environmental pollution are not directly applicable to the Companys existing operations. The Company continues to remain committed to responsible and sustainable business practices and endeavour to minimize any environmental impact arising from its routine operations. While no major environmental conservation measures are specifically required considering the nature and scale of the Companys activities, the Company remains mindful of the importance of conserving resources and promoting environmentally responsible practices as part of its overall approach to responsible corporate functioning.

At present the Company is carrying on only one segment of financing business.

The Companys philosophy is to provide to its employees friendly working environment and a performance-oriented work culture. The company believes that human resources are important asset for giving Company a competitive edge in a competitive environment

8. Discussion on Financial Performance with respect to Operational Performances.

The Company has reported the profit after met with its salary and other administrative expenses. The company has plans for the right and effective budget and control. The Company has also not reported any borrowings. The company has plans to generate more revenue.

Estimates and expectations stated in this Management Discussion and Analysis may be "forward-looking statements" within the meaning of the applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to your Companys operation include economic conditions affecting the interest rate, inflation, changes in the interest rate, changes in the Government regulations, tax laws, other statutes and incidental factors. The Company undertakes no responsibility to update or revise any forward-looking statement.