Rajkot Investment Trust Ltd Management Discussions

ANNEXURE - “C”

I. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian financial services sector continues to play a significant role in supporting economic growth, business activity and capital formation. The sector is undergoing continuous transformation, driven by technological developments, evolving customer requirements, increased focus on financial inclusion and changes in the regulatory environment. Non-Banking Financial Companies (“NBFCs”) constitute an important component of the Indian financial system and complement the banking sector by providing credit and other financial services to various segments of the economy. NBFCs continue to operate in an environment characterised by increasing regulatory oversight, heightened focus on asset quality and provisioning, evolving liquidity conditions, interest rate movements and growing adoption of technology. The NBFC sector also continues to face challenges arising from competition, funding costs, asset quality concerns, regulatory developments and volatility in financial markets. Accordingly, prudent risk management, effective internal controls, adequate provisioning, efficient deployment of capital and strong governance continue to remain critical for sustainable operations. Your Company continues to monitor developments in the financial services sector and evaluates business opportunities in line with its business objectives, risk appetite and applicable regulatory requirements.

II. COMPANY OVERVIEW AND BUSINESS PROFILE

Rajkot Investment Trust Limited (“the Company”) is registered as a Non-Banking Financial Company (“NBFC”) Loan Company with the Reserve Bank of India (“RBI”). The Company is primarily engaged in financing and investment activities in accordance with the applicable regulatory framework. The Company focuses on prudent deployment of its financial resources and evaluates lending and investment opportunities based on commercial considerations and risk assessment. The management continues to focus on maintaining appropriate credit discipline, monitoring exposures, strengthening internal controls and ensuring compliance with applicable statutory and regulatory requirements. During the financial year under review, the Company continued its focus on its core financing and investment activities.

III. ECONOMIC ENVIRONMENT

The Indian economy continues to demonstrate resilience despite an evolving global economic environment. Domestic economic activity continues to be supported by infrastructure development, manufacturing initiatives, digitalisation, entrepreneurship and increasing participation of businesses in the formal financial system. However, the economic environment continues to be influenced by global growth trends, geopolitical developments, movements in commodity prices, changes in interest rates and volatility in financial markets. These developments may have a direct or indirect impact on the financial services sector, including the availability and cost of funds, credit demand, repayment capacity of borrowers and valuation of financial assets. The management continuously monitors macroeconomic and market developments and evaluates their potential impact on the Companys business operations, financial position and risk profile.

IV. BUSINESS PERFORMANCE

During the financial year ended March 31, 2026, the Company continued to focus on its financing and investment activities. The Companys gross loan portfolio increased from approximately 22.94 crore as at March 31, 2025 to approximately 28.01 crore as at March 31, 2026, reflecting growth in the lending portfolio during the year. The loan portfolio comprises, inter alia, term loans and inter-corporate deposits. The management continues to monitor the quality and performance of its lending portfolio and takes appropriate measures in respect of recovery and monitoring of exposures.

The Companys investment portfolio remained substantially stable during the year. Investments are evaluated and monitored by the management having regard to market conditions, expected returns and associated risks. The Company earned interest income of approximately 57.45 lakh during FY 2025 26 as compared to approximately 91.69 lakh during FY 2024 25. The decline in interest income was primarily attributable to changes in the composition and performance of the Companys interest-earning assets and related accruals. The Company reported a Profit Before Tax of approximately 175.15 lakh for FY 2025 26 as compared to approximately 200.26 lakh in the previous financial year. The Profit After Tax for FY 2025 26 stood at approximately 127.65 lakh as compared to approximately 149.26 lakh in FY 2024 25. The Company continues to focus on prudent financial management, control over operating expenditure and efficient deployment of financial resources.

V. ASSET QUALITY AND CREDIT MONITORING

Credit risk is an inherent part of the lending business. The Company seeks to manage credit risk through evaluation of borrowers, assessment of repayment capacity, review of available security or collateral, wherever applicable, monitoring of exposures and timely recovery efforts. As disclosed in the financial statements, the Company continues to monitor its non-performing exposures and maintains provisions in accordance with the applicable accounting and regulatory requirements. The management remains focused on recovery of overdue accounts and monitoring of stressed exposures. Appropriate action is undertaken based on the facts and circumstances of individual accounts.

The Company will continue to strengthen its credit assessment and post-disbursement monitoring processes to manage credit risk effectively.

VI. OPPORTUNITIES AND OUTLOOK

The financial services sector continues to provide opportunities arising from increasing demand for credit, expansion of business activities, development of small and medium enterprises and increasing use of technology in financial services. The Company intends to continue evaluating suitable lending and investment opportunities based on: the quality and creditworthiness of counterparties; expected returns and associated risks; availability and cost of funds; liquidity requirements; regulatory considerations; and overall economic and market conditions. The Companys future performance will depend upon the availability of suitable business opportunities and its ability to prudently deploy funds while effectively managing associated risks. The management remains committed to pursuing sustainable business opportunities while maintaining financial discipline and an appropriate risk management framework.

VII. SWOT ANALYSIS Strengths

Registered NBFC with an established presence in the financial services sector; Experience in financing and investment activities; Diversified portfolio comprising loans and investments; Established financial and regulatory compliance framework; Focus on prudent deployment of funds and credit monitoring; Positive net worth and continued profitability.

Weaknesses

Exposure to credit and counterparty risks inherent in the financing business; Dependence on availability of adequate and cost-effective funding;

Relatively concentrated exposure may increase sensitivity to the performance of individual borrowers or counterparties; Changes in market and economic conditions may affect investment and lending returns.

Opportunities

Growth in demand for financing from businesses and enterprises; Opportunities arising from increasing economic activity; Technology-enabled improvement in financial and operational processes; Identification of suitable lending and investment opportunities;

Potential expansion of financial services based on market requirements and regulatory permissions.

Threats

Changes in interest rates and borrowing costs; Deterioration in asset quality and recovery challenges;

Increased competition from banks, NBFCs and other financial institutions; Regulatory changes and increased compliance requirements; Economic uncertainty and volatility in financial markets.

VIII. RISKS AND CONCERNS

The Companys operations are exposed to various risks, including credit risk, liquidity risk, interest rate risk, market risk, operational risk, regulatory risk and business risk.

Credit Risk

Credit risk represents the possibility of financial loss arising from the failure of a borrower or counterparty to meet its contractual obligations. The Company seeks to mitigate credit risk through appropriate assessment and monitoring of borrowers and counterparties, evaluation of exposures, periodic review and recovery efforts.

Liquidity Risk

Liquidity risk arises when the Company may not be able to meet its financial obligations as they fall due. The Company monitors its liquidity position and cash flow requirements and endeavours to maintain appropriate financial resources to meet its obligations.

Interest Rate Risk

Changes in interest rates may impact the Companys cost of borrowings, financing margins and profitability. The management continuously monitors funding conditions and interest rate movements and evaluates their impact on the Companys financial position.

Investment and Market Risk

The Company is exposed to market risk in respect of its investments. Changes in financial market conditions and valuations may affect the value and return profile of investments. Investment decisions are made after considering relevant commercial, financial and market factors.

Operational Risk

Operational risk may arise from inadequate or failed internal processes, systems, human resources or external events. The Company seeks to mitigate such risks through appropriate internal controls, authorisation procedures, segregation of responsibilities and periodic review of processes.

Regulatory Risk

The Company operates in a regulated environment and is required to comply with applicable provisions of the Companies Act, 2013, RBI directions and other applicable laws and regulations. Any significant change in the regulatory framework may impact the Companys operations, compliance requirements and business strategy.

The Company continuously monitors applicable regulatory developments and takes appropriate steps to ensure compliance.

IX. RISK MANAGEMENT

Risk management is an integral part of the Companys business and governance framework. The Company recognises that effective identification, assessment, monitoring and mitigation of risks are essential for the protection of stakeholder interests and sustainable growth.

The management periodically reviews the key risks affecting the Company and evaluates appropriate mitigation measures. The Companys policies and procedures are reviewed and strengthened, wherever considered necessary, having regard to changes in business operations and the external environment.

The Board of Directors and the Audit Committee, within their respective roles, oversee various aspects of financial reporting, internal controls and risk management.

X. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the nature and size of its operations. The internal control framework is designed to provide reasonable assurance regarding: safeguarding of assets; proper authorisation of transactions; accuracy and reliability of financial information; compliance with applicable laws and internal policies; prevention and timely detection of errors and irregularities; and efficient conduct of business operations. The internal audit function reviews the adequacy and effectiveness of the internal control systems and procedures. The observations of the internal auditors and the status of corrective actions are reviewed by the management and the Audit Committee of the Board, as applicable. The management continuously evaluates and strengthens the internal control framework wherever necessary.

XI. HUMAN RESOURCES

The Company recognises the importance of competent and committed human resources for achieving its business objectives. The Company endeavours to maintain a professional work environment and focuses on accountability, efficiency and effective utilisation of available human resources. The management believes that employee engagement, professional development and a culture of responsibility contribute significantly towards strengthening organisational capabilities and achieving sustainable growth.

XII. TECHNOLOGY AND DIGITALISATION

Technology continues to transform the financial services industry and provides opportunities for improving efficiency, monitoring and record management. The Company continues to evaluate appropriate technological solutions and process improvements based on its operational requirements and business needs. The management remains focused on strengthening systems and processes while ensuring that adequate controls are maintained.

XIII. INTERNAL FINANCIAL CONTROL

The Company has in place internal financial controls commensurate with the size and nature of its operations. These controls are designed to ensure orderly and efficient conduct of business, safeguarding of assets, prevention and detection of fraud and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information. The internal financial control systems are subject to periodic review and appropriate corrective actions are taken, wherever required.

XIV. MATERIAL DEVELOPMENTS

During the financial year under review, the Company continued its financing and investment activities and focused on strengthening its operational and financial processes. The Company recorded growth in its loan portfolio and continued to maintain profitability during the year. The management also continued to monitor asset quality, liquidity, borrowings and regulatory compliance. There have been no material developments after the close of the financial year requiring adjustment to the financial statements, except as may be separately disclosed in the Annual Report.

XV. OUTLOOK

The outlook for the Company will depend upon developments in the Indian economy, financial markets, interest rates, availability of funding, asset quality and the overall regulatory environment. The management will continue to focus on prudent lending and investment decisions, effective recovery and monitoring of exposures, appropriate management of liquidity and borrowings, cost optimisation and regulatory compliance. The Company remains committed to identifying sustainable business opportunities and strengthening its financial and operational framework with a view to creating long-term value for its stakeholders.

XVI. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations, projections, estimates and predictions may constitute “forward-looking statements” within the meaning of applicable laws and regulations. Such statements are based on the Companys current expectations, assumptions and estimates regarding future events and business developments. Actual results may differ materially from those expressed or implied in such statements due to various factors, including changes in economic conditions, interest rates, financial market conditions, asset quality, liquidity conditions, regulatory developments, government policies, competition, geopolitical developments and other risks and uncertainties. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, except as may be required under applicable law.