P. H. Capital Ltd Management Discussions

The global economy is projected to grow at 3.0% in 2025, reflecting a gradual recovery amid persistent geopolitical tensions and trade-related uncertainties. Inflation is easing globally, with the IMF expecting it to decline to 4.2%, potentially allowing central banks to cautiously adjust monetary policies. India continues to lead as the fastest-growing major economy with projected growth of 6.4%, while the U.S. and China are expected to grow at 1.8% and 4.0%, respectively. However, risks remain due to elevated interest rates, supply chain disruptions, and protectionist trade measures. The IMF highlights the importance of fiscal prudence, structural reforms, and international cooperation to sustain global momentum. Investments in green technologies, digital infrastructure, and resilient supply chains will be key to ensuring long-term economic stability and inclusive growth.

India remained one of the fastest-growing major economies in FY25, demonstrating resilience amid global headwinds such as inflationary pressures and geopolitical tensions. Robust performance in the manufacturing and services sectors, along with strong domestic demand, contributed to sustained economic momentum. According to the IMF, Indias GDP is projected to grow at 6.4%, driven by structural reforms, digital innovation, and infrastructure investments. High vaccination coverage and improved public health systems have further supported economic stability. Policymakers continue to focus on maintaining fiscal discipline while enabling inclusive growth through targeted policy interventions and reforms.

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS), notified under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, under the historical cost convention on accrual basis, except for certain financial instruments comprises of stock in trade of shares and securities, which are measured at fair values, as specified at places of respective categories.

The key financial ratios for the financial year 2024-25 and 2023-2024 are as under:

The Company has satisfactory internal control system commensurate with its business, size and operations, the adequacy of which has been mentioned in the Auditors Report.

There has been no material development on the Human Resource/Industrial relations front during the year. The Company had five employees as on March 31,2025.

Indias strong economic growth trajectory presents significant opportunities for the financial services sector to expand and lead broader market growth. The credit-intensive industrial sector is expected to drive demand for innovative financial products, supported by advancements in digital underwriting and lending technologies that improve risk assessment and customer experience. These developments offer the potential for robust investment returns and market share gains. Additionally, increasing integration with global markets and strengthening international partnerships will enhance growth prospects and open new avenues for cross-border financing and investment. The evolving economic landscape positions the financial services industry to play a pivotal role in supporting Indias sustained development.

Tightening monetary policies in major economies have led to a global liquidity squeeze and tighter credit conditions, making borrowing more expensive and challenging. Geopolitical uncertainties and ongoing supply chain disruptions have reduced demand visibility, discouraging investment in long-term projects. Rising production and energy costs continue to weigh on investor sentiment and business profitability. The transition toward sustainability and renewable energy is increasing short-term costs, as investments in conventional energy decline and renewable adoption progresses slowly. India, already grappling with high energy prices, faces pressure on its investment outlook and inflationary risks, which could impact corporate profitability and lending margins within the financial sector.

Risk management is fundamental to the Companys strategy and is deeply embedded across all business functions. Our focus is to optimize the risk-return profile while ensuring strict compliance with applicable laws and regulatory requirements. We promote a strong risk-aware culture to build organizational resilience through a comprehensive and proactive risk management framework. The Company has invested significantly in skilled personnel, streamlined processes, and advanced technology to effectively identify, assess, and mitigate both internal and external risks. This approach enables us to stay ahead of emerging threats and maintain financial stability in a dynamic operating environment.

The ongoing economic recovery has positively influenced capital markets, with the IPO segment experiencing increased activity as several major companies have recently gone public. This surge has enhanced market liquidity and attracted new investors, creating a favorable environment for growth. As firms continue to adopt advanced technologies in their operations, brokerages and financial service providers are realizing improved cost efficiencies and operational effectiveness. To sustain and accelerate revenue growth, companies will need to prioritize further technological innovation, focus on acquiring high- quality, revenue-generating clients, and enhance value-added services that differentiate their offerings in a competitive market.

This Management Discussion and Analysis contains statements about expected future events and financial and operating results of P H Capital Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Do not place undue reliance on forward looking statements as a number of factors could cause assumptions and actual future results or events to differ materially from those expressed in these forward-looking statements.

Place: Mumbai

Date: August 04, 2025.