Mehta Integrated Finance Ltd Management Discussions

To,

The Members/Shareholders,

GLOBAL ECONOMY:

The Global Economy Showcased Remarkable Resilience, Maintaining Robust Economic Activity. Factors Such as Increased Government Spending, Undiminished Household Consumption, And an Unforeseen Expansion in Labour Force Participation Have Contributed to This Steady Growth.

Global growth is projected at 3.0 percent in 2026 and 3.4 percent in 2027, according to the IMFs July 2026 World Economic Outlook (WEO) Update. Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher for even longer interest rates, in the context of escalating trade tensions and increased policy uncertainty.

The global economic recovery from the COVID-19 pandemic, Russias invasion of Ukraine, and the cost-of-living crisis is proving surprisingly resilient. Inflation is falling faster than expected from its 2022 peak, with a smaller-than-expected toll on employment and activity, reflecting favourable supply side developments and tightening by central banks, which has kept inflation expectations anchored. At the same time, high interest rates aimed at fighting inflation and a withdrawal of fiscal support amid high debt are expected to weigh on growth in 2026

INDIAN ECONOMY:

The Indian economy exhibits robust fundamental policies by Reserve Bank of India (RBI), which plays a key role in maintaining stability through its adept monetary policy framework. By carefully managing interest rates and liquidity, the RBI aims to control inflation while fostering sustainable economic growth. It ensures a resilient financial sector, contributing to overall economic stability.

The resilience of Indian economy has navigated into the stock market to all time high. The record spiked stock market reflects investor confidence in Indias long-term growth prospects, driven by reforms, demographic dividends, and technological advancements.

The IMFs latest World Economic Outlook report indicates that Indias economic growth is projected at 6.4 percent in 2026 and 6.7 percent in 2027. The development has come in the backdrop of notable rise in consumption prospects, especially in rural areas. With this, India continues to maintain its position as the fastest-growing economy among emerging markets and developing economies.

Notably, Indias GDP grew by 7.7 percent in FY 2025-26, according to the provisional estimates released by the National Statistical Office (NSO). Real GDP growth in Q4 FY 2025-26 was estimated at 7.8 percent.

COMPANY OVERVIEW:

Mehta Integrated Financial Limited (hereinafter referred as "MIFL" the Company) is an Ahmedabad based SEBI Registered Category-I Merchant Banker registered with Securities Exchange Board of India (SEBI). Incorporated in 1985, the Company is engaged in providing Merchant banking services to Corporates. The Company offers a wide range of financial services such as lead manager services, valuation report of corporates, banker to an issue, underwriting services for the purpose of Initial public offering & further Public offering to the Corporates.

INDUSTRY STRUCTURE AND DEVELOPMENT:

India has a diversified financial sector undergoing rapid expansion both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed new entities such as payment banks to be created recently, thereby adding to the type of entities operating in the sector. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64% of the total assets held by the financial system.

The Government of India has introduced several reforms to liberalise, regulate and enhance this industry. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These measures include launching Credit Guarantee Fund Scheme for MSMEs, issuing guidelines to banks regarding collateral requirements and setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by Government and private sector, India is undoubtedly one of the worlds most vibrant capital markets.

The Financial Services Industry has seen major achievements in the recent:

• In January 2026, Unified Payments Interface (UPI) processed 21.70 billion transactions valued at Rs. 28.33 lakh crore (approximately US$ 312 billion).

• The number of transactions through Immediate Payment Service (IMPS) reached 353.92 million by volume and amounted to Rs. 6.77 lakh crore in June 2026.

Opportunities

• Facilitated creation and allocation of credit and liquidity

• Playing a vital role in economic development of a country. Financial services are serving as intermediaries for mobilisation of savings.

• Encouraging both savings and investment.

• Helps in capital formation.

• Helps in allocation of risk.

• Facilitating expansion of financial markets.

• Assist the process of balanced economic growth.

Threats

• Regulatory or legislative changes

• Non-Performing Assets (NPAs) and Bad Loans

• Economic slowdown

• Cybersecurity and Data Privacy

• Asset price volatility

• Interest rate fluctuation

• Tech or system failure

SEGMENT WISE PERFORMANCE:

The Company primarily operates in Capital Market Investments and Consulting. The capital raising activity gathered momentum during the year under review. Foreign investors are very positive in India and its policies. The recovery proceedings are going on in a lawful manner. The capital market consulting activity continued at slow pace and the investments have fared better in line with growth of the economy.

Outlook

Global economic conditions continue to evolve, with leading multilateral institutions revising their outlook for the coming years. The International Monetary Fund (IMF) has projected global economic growth of 3.0% in 2026, improving to 3.4% in 2027, while India is expected to remain one of the fastest-growing major economies with an estimated growth rate of 6.4% in 2026. On the domestic front, the Reserve Bank of India (RBI) continues to maintain its focus on balancing price stability with sustainable economic growth. Its inflation-targeting framework, supported by prudent fiscal management, is expected to help moderate inflationary pressures over the medium term.

The Central Government has targeted a fiscal deficit of 4.4% of GDP for FY 2025-26 and 4.3% of GDP for FY 2026-27, reflecting its commitment to fiscal consolidation while sustaining economic growth. Continued emphasis on public capital expenditure is expected to provide strong support to the infrastructure and construction sectors, creating positive multiplier effects across the economy. At the same time, lower budgeted market borrowings compared with the previous year are likely to ease pressure on the debt markets, contributing to a more stable interest rate environment.

Despite these positive macroeconomic indicators, the financial services sector continues to operate in an environment shaped by evolving regulations, changing liquidity conditions and market volatility. The Company remains vigilant in monitoring developments in interest rates, funding conditions and the regulatory landscape, and continues to adopt a prudent and disciplined approach to managing the associated risks while pursuing sustainable growth opportunities.

RISK EVALUATION AND CONCERNS:

The Company is exposed to specific risk that are particular to their respective business and the environments within which they operate, including market risk, competition risk, credit risk, liquidity and interest rate risk, human resource risk, operational risk, information security risk, regulatory risk, and macro-economic risks. The level and degree of each risk varies depending upon the nature of activity undertaken by them. The Company follows conservative approach to overcome the risks of the market and the economy to get early stress signals as capital markets are uncertain to predict for medium to long term. The capital market industry is mainly dependent on economic growth of Country and capital market is also further affected by number of issues arising out of international policies of foreign government as well any change in international business environment. The industrial growth is very sensitive which is dependent on many factors which may be social, financial, economic or political and also natural climatic conditions in the country.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established an adequate system of internal financial controls commensurate with the nature, size and complexity of its business. These controls are designed to safeguard assets, ensure the accuracy and reliability of financial and operational information, promote operational efficiency, and ensure compliance with applicable laws, regulations and internal policies.

The Companys internal control framework incorporates appropriate checks and balances, well-defined policies and standard operating procedures across key business processes. The effectiveness of these controls is reviewed periodically through internal audit and management oversight, and corrective actions are taken wherever necessary.

The Audit Committee regularly reviews the adequacy and effectiveness of the internal control systems, along with the observations and recommendations of the internal and statutory auditors. The Company believes that its internal control environment provides reasonable assurance regarding the safeguarding of assets, prevention and detection of fraud and errors, maintenance of proper accounting records, and timely preparation of reliable financial statements.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial performance of the Company for the financial year 2025-26 is described in the Directors Report under the head "Financial Performance".

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES:

The Company believes that its employees are its most valuable asset and continues to focus on maintaining a professional, ethical and performance-driven work environment. The Company encourages continuous learning, teamwork and adherence to high standards of integrity and regulatory compliance. During the year, industrial relations remained cordial, and the Company continued to strengthen employee engagement through effective communication and a supportive workplace. As on 31st March, 2026, the Company had 5 permanent employees on its rolls.

CAUTIONARY STATEMENT:

Statement in this management discussion and analysis report, describing the companys objectives, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws or regulations. Actual results may differ materially from those either expressed or implied.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

DISCLOSURE OF ACCOUNTING TREATMENT:

During the year, the Company has prepared its financial statements in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015. No treatment different from that prescribed under Ind AS has been adopted.