Rikhav Securities Ltd Management Discussions

Economic Overview

The Global Economic Landscape

Navigating a ‘Steady but Slow Global Economy with Proven Resilience and Strategic Focus.

According to IMF World Economic Outlook 2025 The global economy continues to show resilience amid tighter monetary policies. The IMF projects steady growth of 3.2% for 2024 and 2025, with advanced economies slightly accelerating and emerging markets experiencing a mild slowdown.

Inflation is easing globally, expected to decline from 6.8% in 2023 to 4.5% by 2025. This disinflationary trend may allow central banks to begin easing policy rates.

However, risks persist, including geopolitical tensions, trade fragmentation, and policy uncertainty. The World Bank forecasts global growth to stabilise around 2.7% in 2025 26, with emerging economies facing a tougher recovery path.

In a world characterized by such economic divergence and heightened uncertainty, a one-dimensional strategy is insufficient. At Rikhav Securities, we believe our strength lies in our diversified and agile business model, which is intentionally structured to perform across varied market cycles. The challenging global environment underscores the strategic importance of our sophisticated proprietary trading desk. This desk deploys non-directional, algorithm-driven strategies such as arbitrage and delta-hedging, designed to generate returns that are not solely dependent on the markets upward or downward movements. Heightened volatility in global markets often increases the demand for effective hedging tools, a core service we provide through our robust derivatives trading platform.

Consequently, our comprehensive, technology-driven risk management framework is not merely a compliance function but a core strategic asset, enabling us to navigate turbulent market conditions with confidence and safeguard both client and proprietary capital. Indian Economy Overview

India continues to lead as the worlds fastest-growing major economy as per PIB. Following an 8.2% GDP growth in FY24, FY25 projections remain strong at 6.2% 6.8%, supported by robust domestic demand, rising private consumption, and sustained government capex.

Harnessing the Power of the Worlds Fastest-Growing

Major Economy to Fuel Our Domestic Expansion.

Retail inflation has moderated to 4.9% in FY25, nearing the RBIs 4% target, enabling a more accommodative monetary stance. With strong macro fundamentals, healthy corporate and bank balance sheets, and ongoing structural reforms, India is well-positioned to drive long-term economic growth and support domestic business expansion.

This exceptional performance of the Indian economy serves as the primary tailwind for our business. A growing economy translates directly into rising disposable incomes, a higher national savings rate (which stood at 30.2% of GDP in 2023), and increased investor confidence the essential ingredients for vibrant capital market activity. This virtuous cycle benefits every vertical of our business. It expands the potential client base for our brokerage services, increases the assets under custody for our depository arm, drives flows into our mutual fund distribution services, and creates a thriving primary market that is crucial for our market-making activities. Our strategic decision to deepen our commitment to the Indian market, evidenced by our successful listing on the BSE SME platform in January

2025, is a direct reflection of our unwavering confidence in the long-term India growth story.

Industry Overview

Indian Capital Markets: A New Era of Depth and Vibrancy The Indian capital markets achieved historic milestones in FY 2024-25, demonstrating remarkable depth, resilience, and vibrancy. Total fundraising through equity and debt reached a record _14.6 lakh crore, a 33% year-on-year increase, underscoring the markets capacity to fuel corporate Indias growth ambitions. The markets growing scale is further reflected in the BSE market capitalization-to-GDP ratio, which stood at a healthy 136% at the end of December 2024.

India is 4th Largest Market by Market Cap Indias domestic equity markets continues to rank fourth-largest globally with over $4.0 Tn on market cap.

Country	US$ Tn Market Cap
USA	59.3
China	7.8
Japan	5.6
India	4.4
United Kingdom	3.9

A defining feature of the year was the markets extraordinary resilience. Historically, Indian market performance has been closely tied to the sentiment of Foreign Portfolio Investors (FPIs). However, FY25 witnessed a significant departure from this trend. Despite record FPI outflows of _1.27 trillion from the equity segment, driven by global uncertainties and rising US bond yields, the benchmark indices remained buoyant.

This resilience was made possible by the powerful countervailing force of domestic investors. Domestic Institutional Investors (DIIs) stepped in with record net investments of _6.0 trillion, while retail investors, through mechanisms like Systematic Investment Plans

(SIPs), provided unprecedented and stable inflows.

This phenomenon is more than a temporary anomaly; it signals a structural "de-coupling" of the Indian markets from an over-reliance on foreign capital. The consistent and growing pool of domestic savings, channeled into the markets through mutual funds and direct equity participation, is creating a strong institutional foundation. This domestic liquidity buffer absorbs foreign selling pressure, reducing imported volatility and enhancing overall market stability. This structural shift makes India a more resilient and attractive long-term investment destination.

This profound change validates our long-standing focus on the domestic market and our strategic imperative to aggressively cater to the retail investor. Our three-- decade presence has allowed us to build deep-rooted trust with domestic clients. Our significant investments in accessible technology, such as the

Rikhav Plus trading application and the seamless Meon

Aadhaar eKYC onboarding platform, are precisely tailored to capture this burgeoning domestic capital flow. We see ourselves not merely as participants in

- this trend but as key enablers, providing the tools and trust necessary to bring millions of new investors into the fold.

Indian Capital Markets Regulatory Framework: Fostering Stability and Growth According to Zeroda & ICRA the Securities and Exchange Board of India (SEBI) remained proactive and vigilant throughout FY 2024-25, introducing a series of well-calibrated regulations aimed at fortifying market stability, enhancing investor protection, and improving the ease of doing business. These measures reflect a mature regulatory approach that balances growth with governance.

A key area of focus was the derivatives market. To curb excessive speculation and reduce systemic risk, SEBI introduced measures to rationalize index derivatives, . including increasing minimum contract sizes and limiting the number of weekly expiry contracts for benchmark indices. These changes are designed to discourage hyperactivity from small-ticket traders and promote a more stable trading environment. On the market infrastructure front, landmark steps were taken to introduce an optional T+0 settlement cycle and a

UPI-based block mechanism for secondary market trading, both of which are set to dramatically improve efficiency and safeguard client funds. Furthermore, SEBI has intensified its surveillance capabilities by deploying AI-driven tools to detect market manipulation, cracked down on unregistered financial influencers, and streamlined procedural requirements for IPOs and rights issues to reduce timelines.

We at Rikhav Securities view a robust regulatory framework not as a constraint but as a cornerstone of a healthy and sustainable market. We welcome SEBIs measures to curb excessive speculation, as they align perfectly with our own philosophy of promoting disciplined, long-term investing. Our multi-layered, technology-driven risk management framework and our unwavering commitment to compliance mean that we are already well-aligned with the regulators forward-looking direction. While the new derivatives rules may pose a challenge to business models that rely solely on high-volume, low-margin retail trading, our diversified client base which includes High Net-worth Individuals (HNIs), corporates, and institutional clients and our focus on value-added services like the Margin Trading Facility (MTF) and personalized relationship support, position us to thrive in this more mature regulatory landscape. Our proactive adoption of advanced compliance technology like Trackwhizz ensures we remain ahead of the regulatory curve, turning compliance into a competitive advantage

The Indian Broking Industry: A Digital Transformation The Indian security brokerage industry is in the midst of a profound transformation, driven by technology and evolving investor demographics. The market, valued at USD 2.14 billion in 2024, is projected to exhibit steady growth, fueled by the rapid adoption of digital trading platforms. The rise of fintech platforms and mobile-first applications has democratized access to capital markets, leading to an unprecedented surge in first-time and millennial investors who now constitute a significant portion of the investor base. This digital wave has intensified competition, leading to a structural shift in the industry towards technology-centric, user-friendly, and low-cost service models.

While the prevailing industry narrative has been dominated by the rise of "discount broking," we believe the future of brokerage lies in a more nuanced "hybrid" model that skillfully combines the efficiency and accessibility of technology with the enduring value of human expertise and personalized service. This philosophy is the very essence of Rikhav Securities strategy. Our proprietary Rikhav Plus application provides a state-of-the-art digital experience, offering multi-asset trading, real-time data, and portfolio analytics that rival any fintech platform in the market.

However, we consciously differentiate ourselves by complementing this powerful technology with dedicated relationship support and tailored solutions. This "tech-and-touch" approach is critical for serving and retaining our diverse clientele, from the digitally-native new investor to the sophisticated HNI and active trader who requires more complex solutions and guidance.

This balanced model is the primary reason behind our industry-leading 99% client retention rate. We offer our clients the convenience of a cutting-edge digital platform with the confidence that comes from having a trusted human partner.

Key Shifts Driving Indian Equities

The Indian equity market in 2024 was characterized by distinct sectoral trends and investment themes, reflecting the broader shifts in the domestic and global economy. The market demonstrated a healthy balance across industries, mitigating concentration risks often seen in other emerging markets. As of December

2024, the top weighted sectors were Financials (25%), Technology (14%), Industrials (13%), and Consumer Discretionary (12%).

Indian households are steadily moving from a savings-oriented mindset to an investment-driven approach. NSE data shows that, over the past five years, individual - investors have made net investments of _4.5 trillion in the cash market segment, with FY25 alone accounting for 27.5% of these inflows. This growing participation has played a pivotal role in wealth creation household wealth expanded by _40 trillion (US$459.24 billion) during the same period, as per the Economic Survey 2025.

The transformation is evident in the rising number of retail investors, increased trading activity, and sustained net inflows, all of which have made Indias equity market more inclusive and broad-based. As of December 2024, individual investors ownership in NSE-listed companies stood at 18.2% including both direct equity holdings and investments through mutual funds—overtaking the share of Foreign Portfolio Investors (FPIs) for the first time (SEBI, 2024). This milestone underscores the growing strength and influence of domestic capital in shaping the Indian stock market.

Several sectors delivered strong performance, driven by powerful underlying themes. The Technology and

IT sector benefited from the global AI upcycle and increased demand for digital transformation services. The Health Care and Pharmaceuticals sector had another strong year, buoyed by robust growth in both domestic demand and pharmaceutical exports. The Industrials and Capital Goods sector was propelled by the governments sustained push for infrastructure development and increased capex, while the Consumer Discretionary sector, particularly automobiles, was supported by strong domestic consumption.

Navigating such a dynamic and multi-themed market requires a platform that offers comprehensive access and deep insights. Rikhav Securities provides clients with an integrated, multi-asset trading platform that covers equities, derivatives, commodities, and currencies across all major Indian exchanges NSE, BSE, and MCX. This unified ecosystem allows our clients to seamlessly formulate and execute complex strategies across different sectors and asset classes from a single interface. Looking ahead, our strategic roadmap includes significantly enhancing our in-house research and advisory capabilities. We aim to provide our clients with timely, actionable insights into these emerging sectoral themes, empowering them to navigate the market with greater knowledge and confidence.

The Indian IPO Market: Fuelling Indias Growth Engine

FY 2024-25 was a landmark year for Indias primary markets, which acted as a powerful engine for capital formation and economic growth. India emerged as the top IPO market globally by volume, with a record

_1.6 lakh crore raised across 320 companies through mainboard IPOs. This fundraising frenzy was driven by strong market conditions, robust investor appetite, and a diverse pipeline of companies from sectors like renewable energy, technology, and manufacturing tapping the public markets. As per the The EY Global IPO Trends 2024 SME IPO segment was particularly explosive and emerged as a vibrant ecosystem in its own right. Calendar year 2024 saw a phenomenal 247 SME listings, raising over _9,000 crore in FY24, with an astonishing 90% of these IPOs delivering positive listing day gains. This segments success is critical for funding the next generation of Indian enterprise and fostering widespread entrepreneurship. to

Financial Year	Total No. of IPOs	No. of mainline IPOs	Amount raised by mainlines ( Cr)	No. of SME IPOs	Amount raised by SMEs	Total amount raised ( Cr)
FY25	318	79	1,62,517	239	9,967	1,72,484
FY24	273	78	67,558	195	6,070	73,628
FY23	164	39	52,549	125	2,307	54,857

Rikhav Securities is proud to be at the very heart of this ecosystem. Our role as a leading, SEBI-registered market maker for SME IPOs on both the BSE and NSE is a core pillar of our strategy and a significant competitive differentiator. We actively support over 45 SME IPOs annually, providing essential two-way quotes to ensure post-listing liquidity, facilitate fair price discovery, and build investor confidence. This function is vital for the stability and success of the SME platform.

Our involvement, however, creates a deeper, symbiotic relationship with this high-growth segment. Market making is not just a fee-based service for us; it is a strategic ecosystem-building engine. By providing this crucial support, we build deep, long-term relationships with the promoters and management teams of these emerging companies at a very early stage of their public journey. These relationships create a powerful and sustainable business pipeline. The listed SME itself becomes a potential institutional client for our brokerage services, while its promoters, employees, and early investors become potential HNI clients for our broking and wealth management verticals. Our leadership in this niche, built over more than a decade since we first registered as a market maker in 2012, positions us as the trusted partner of choice for companies looking to tap the capital markets and for investors seeking to participate in their growth.

The Involvement of Retail Investors: Democratizing Wealth Creation According to PIB The most transformative trend in the Indian capital markets over the past few years has been the spectacular rise of the retail investor. This is not just a cyclical phenomenon but a deep, structural shift that is democratizing wealth creation and fundamentally altering the markets character. The number of demat accounts has surged, with the total investor base growing from 4.9 crore in FY20 to an impressive 13.2 crore by the end of December 2024.

The most powerful evidence of this retail revolution is the relentless and record-breaking growth in Systematic

Investment Plan (SIP) contributions. Monthly SIP inflows consistently set new records through 2024, crossing the _25,000 crore mark for the first time in October 2024. The total SIP inflow from January to November 2024 alone stood at a staggering _2.42 lakh crore, a figure that not only highlights the immense savings potential of Indian households but also provided the crucial liquidity that counterbalanced FPI outflows during the year. We at Rikhav Securities recognized this tectonic shift early on and have architected our entire digital strategy to serve this new wave of investors. Our Meon Aadhaar eKYC platform was specifically designed to offer instant, paperless, and secure onboarding, removing what was once the single biggest friction point for new investors and reducing account opening times from days to mere minutes. Rikhav Plus application is designed to be intuitive for the novice yet powerful for the seasoned trader, providing a seamless and empowering trading experience. By offering a full suite of services under one roof—from equity and derivatives trading to mutual fund distribution and depository services we provide a comprehensive, one-stop solution for the retail investors entire financial journey. This positions us perfectly to acquire, serve, and retain this rapidly growing and increasingly influential client base.

The Future of Investing: Technology, Accessibility, and Diversification Looking ahead, the landscape of investing in India will be shaped by three powerful, interconnected forces: technology, accessibility, and diversification. The future will be dominated by technology-driven solutions, including AI-powered advisory, robo-advisory platforms, and sophisticated algorithmic trading tools that offer personalized and cost-effective services. Accessibility will continue to improve, with mobile-first platforms breaking down geographical and financial barriers for investors across the country. Concurrently, investors are showing a growing appetite for a more diverse range of products beyond traditional equities, including leveraged instruments, derivatives for hedging, commodities, and alternative investments. Our strategic roadmap is fully aligned with this vision of the future. We are committed to being at the forefront of this evolution, not merely keeping pace with change but building the platforms that will define the future of investing for our clients. We are continuously investing in our technology stack to enhance our platform capabilities and develop proprietary quantitative trading strategies for both our clients and our own desk. The recent launch and planned scaling of our Margin Trading Facility (MTF) directly addresses the growing demand for regulated and secure leveraged products from sophisticated traders and HNIs. Our plans to expand our institutional and HNI offerings, coupled with our established strength in the derivatives and commodities segments, demonstrate our commitment to providing a diversified, future-ready product suite that caters to the entire spectrum of investor needs. We are building an integrated financial ecosystem where every investor, regardless of their profile, can find tools, products, and support they need to achieve their financial goals.

Operational And Financial Review

The fiscal year 2024-25 was a landmark period for Rikhav Securities Limited, defined by transformation and the realization of long-term strategic goals. Our successful listing on the BSE SME platform in January 2025 was not a beginning, but a culmination of years of disciplined and focused effort. Over the preceding years, we meticulously built a robust and scalable foundation—a foundation composed of cutting-edge technology, a comprehensive and integrated product suite, a resilient and automated risk management framework, and an unwavering culture of compliance and client-centricity. Our theme for this year, "Built the Foundation, Ready to Deliver," encapsulates our current strategic posture with precision. The extensive groundwork is complete. The systems, platforms, and trust are firmly in place. We are now poised to leverage this powerful foundation to accelerate our growth, expand our geographic and demographic reach, and deliver sustained, long-term value to our clients, partners, and esteemed shareholders.

Company Overview: Three Decades of Trust and Innovation

Incorporated in 1995 and relaunched in our current, focused form in 2006, Rikhav Securities has evolved from a traditional broking firm into a diversified, technology-driven financial services powerhouse. With over three decades of cumulative experience vested in our leadership and operations, our core mission is to empower investors by providing a full spectrum of capital market solutions, delivered through an efficient and optimal blend of advanced technology and expert human resources.

Our fully integrated business model spans equity and derivatives broking, proprietary trading, market making, depository services, mutual fund distribution, and margin trading. This comprehensive suite of services allows us to serve a diverse client base of over 23,000, including retail investors, HNIs, and corporates, with an industry-leading 99% client retention rate a testament the to the trust and satisfaction we command. Financial Performance Analysis

The financial year 2025 was one of strategic transformation, a fact clearly reflected in our financial performance. The Companys Total Income witnessed an exceptional rise to _327.77 Cr, a growth of 196% from _110.60 Cr in FY24. This remarkable surge was primarily driven by a significant and deliberate scaling of our proprietary trading and investment activities, a strategic decision to deploy our capital more efficiently.

Revenue from this segment grew from _94.39 Cr in FY24 to _301.55 Cr in FY25. Simultaneously, our traditional fee-based businesses, which form the bedrock of our client relationships, also demonstrated robust growth.

Brokerage & Commission income increased by a healthy

85% to _14.45 Cr, while our Demat operations grew by 43% to _11.77 Cr, reflecting strong client activity, new client additions, and buoyant market participation.

While EBITDA and PAT for the year stood at _34.50 Cr and

_23.67 Cr respectively, it is crucial for our stakeholders to understand these figures within the context of our strategic pivot. The Profit & Loss statement for FY25 includes significant line items for "Purchase of Stock In Trade" (_364.44 Cr) and "Changes in Inventory" (-_111.19 Cr), which are directly related to the scaled-up activities of our proprietary desk and were absent in prior years. This fund-based activity, by its very nature, operates on different margin profiles compared to our annuity-like, fee-based businesses. This strategic capital allocation is designed to generate higher absolute returns and enhance overall capital efficiency in the long run. Despite this shift in business mix and on a significantly expanded capital base post our successful IPO, our Return on Equity (ROE) remained healthy at 10.40% for the fiscal year.

( In Cr)

Particulars	FY23	FY24	FY25
Total Income	54.52	110.60	327.77
EBITDA	28.43	54.91	34.50
EBITDA Margin (%)	52.15%	49.64%	10.53%
PAT	19.57	42.20	23.55
PAT Margin (%)	35.90%	38.16%	7.18%
EPS (_)	6.38	28.17	7.51
ROE (%)	20.61	30.46	10.40
ROCE (%)	26.64	30.38	14.91

Operational Highlights

Our operational performance in FY25 reflects the strength and synergy of our integrated business model. While we strategically scaled our proprietary desk, our core client-facing businesses continued their strong growth trajectory, demonstrating our ability to execute successfully on multiple fronts. We added over 450 new clients during the year, expanding our total base to over 23,000, all while maintaining our industry-leading 99% client retention rate.

Our Average Revenue Per User (ARPU) remains robust at over _28,900, indicating high levels of client engagement and activity.

? Market Making: We further solidified our leadership position in the SME segment, acting as the designated market maker for over 45 IPOs. In doing so, we provided crucial liquidity and stability to this burgeoning market, reinforcing our reputation as a key enabler of Indias entrepreneurial ecosystem.

? Depository Services: Our base of active depository clients continued to grow, reaching over 18,400. This vertical, through our long-standing partnership with CDSL, provides a stable and growing stream of annuity-like revenue, adding resilience to our business model.

? Margin Trading Facility (MTF): The successful launch of our MTF service, with requisite approvals from both BSE and NSE, was a key strategic initiative accomplished during the year. This high-value service provides enhanced leverage to our active HNI and retail clients, and we have witnessed promising initial uptake and positive client feedback.

Particulars	FY23	FY24	FY25
Total No. of Clients	22,116	22,787	23,571
New Clients Added	329	386	455
Client Retention (%)	99%	99%	99%
ARPU (_)	17,245	17,643	28,900

Note: For the purpose of calculating ARPU we have considered only active clients.

Digital Adoption: The Core of Our Strategy

Technology is the fundamental backbone of our "Built the Foundation, Ready to Deliver" theme. We view technology not as a support function, but as the core driver of client experience, operational efficiency, and scalability. Our digital ecosystem is meticulously designed to provide a superior, seamless experience for our clients while creating a lean and efficient operational structure.

? Rikhav Plus Platform: Our next-generation mobile trading application, Rikhav Plus, is the centerpiece of our digital client interface. It is more than just a trading tool; it is a comprehensive market access platform.

It offers integrated, multi-asset trading across NSE, BSE, and MCX, real-time market intelligence, rapid one-tap order execution, and complete in-app portfolio oversight. Every transaction and data point is secured with bank-grade, multi-factor authentication and end-to-end encryption. Its high 4.2-star rating on the Google Play Store is a direct testament to our focus on intuitive, user-centric design.

? Meon Aadhaar eKYC Platform:Wehaverevolutionized the client onboarding process with our adoption of the Meon Aadhaar eKYC platform. By enabling instant, paperless, and fully compliant digital identity verification, we have transformed what was once a cumbersome, multi-day process into a smooth experience that can be completed in minutes. This scalable architecture is not just a convenience; it is a critical enabler of our strategic goal to acquire clients from every corner of India, efficiently and securely.

Industry Opportunities: Capitalizing on Tailwinds As detailed extensively in our macroeconomic and industry overview, Rikhav Securities is strategically positioned at the confluence of several powerful and enduring tailwinds. Our business model and future strategy are designed to directly capitalize on these opportunities:

? The Rise of Domestic Capital: India is witnessing a structural shift towards the financialization of domestic savings. Our deep roots in the domestic market, trusted brand, and retail-focused digital platforms like Rikhav Plus are ideal for capturing this historic surge in retail and DII investment.

? The SME IPO Boom: The small and medium enterprises segment is a hotbed of entrepreneurial activity. Our established leadership and expertise as a market maker allow us to not only ride this wave but to be an integral part of its success, creating a unique ecosystem of future corporate and HNI clients.

? Pervasive Digital Transformation: Our early and ongoing investments in a robust technology stack, including Rikhav Plus and Meon eKYC, give us a distinct competitive advantage in acquiring and serving the new generation of digitally-savvy investors.

? Demand for Sophisticated Products: As the market matures, so do investor needs. Our recent launch of the Margin Trading Facility (MTF) and our established, strong derivatives platform cater directly to the evolving requirements of active traders for sophisticated leverage and hedging tools. Future Initiatives and Strategic Roadmap

Having successfully built a formidable foundation, our strategic roadmap for the future is sharply focused on disciplined execution and driving scalable growth. We will channel our resources and energy into five core pillars that will define our next phase of expansion :

? Systematic Geographic Expansion: We will strategically expand beyond our traditional strongholds in Maharashtra and Gujarat to build a pan-India presence. This will be achieved through a dual-pronged approach of aggressive digital client acquisition and the establishment of a robust network of franchise partnerships and sub-brokers.

? Scaling High-Growth Verticals: We will continue to strategically allocate capital to scale our high-potential businesses. This includes growing our Margin Trading Facility (MTF) book and further enhancing the capabilities of our risk-optimized proprietary trading desk to improve capital efficiency and diversify our revenue streams.

? Digital-First Client Acquisition: We plan to significantly increase our investment in targeted digital marketing and brand-building initiatives. The goal is to drive mass online onboarding by further leveraging the seamless experience offered by our Rikhav Plus and Meon eKYC platforms.

? Building an Institutional Business: A key focus area is the development of a robust institutional brokerage business. We will actively target empanelment with domestic banks, financial institutions, and Foreign Direct Investors (FDIs) to build a new and significant revenue vertical.

? Continuous Investment in Technology & Talent: We recognize that our people and our technology are our greatest assets. Our roadmap includes continuous investment in upgrading our trading, research, and back-office systems, and in attracting, training, and retaining the high-performing talent required to execute our ambitious growth plans.

Key Risks and Mitigation Strategies

Our business operates in a dynamic environment and is subject to various risks inherent in the financial services industry. Our proactive, comprehensive, and multilayered risk management framework is designed not just to comply with regulations, but to serve as a strategic tool to identify, monitor, and effectively mitigate these risks, thereby protecting the interests of our clients and shareholders.

Market & Credit Risk: This is the risk of losses arising from adverse movements in market prices (equities, interest rates, currencies) and the risk of counterparty default. This risk is most pronounced in our proprietary trading and Margin Trading Facility (MTF) operations.

? Mitigation: Our risk management is technology-driven and automated. The core system, powered by N-Prime RMS, employs real-time, Value-at-Risk (VaR)-based stress testing across all portfolios. We have instituted strict, pre-defined, and automated stop-loss triggers and segment-specific exposure limits. For instance, trades are auto-blocked for clients exceeding margin norms. Our proprietary desk is managed as an independent risk unit with stringent strategy-level monitoring and diversification checks to prevent directional overexposure. This encompasses risks arising from potential system failures, process breakdowns, human error, or external events that disrupt business operations.

? Mitigation: We have invested heavily in building a robust and resilient technology infrastructure.

This includes built-in redundancies, real-time data backups, and well-defined disaster recovery protocols, such as the N-Prime fallback system which ensures continued control in case of primary RMS failure.

We utilize automated workflows and compliance-checking tools like Trackwhizz to minimize manual intervention, reduce the probability of human error, and flag any abnormal activity for immediate review.

Regulatory & Compliance Risk: This is the risk of non-compliance with the complex and evolving web of regulations from SEBI, the exchanges, and other statutory bodies, which could lead to financial penalties and reputational damage.

? Mitigation: We have a strong, independent compliance department led by experienced professionals.

More importantly, we have embedded a culture of compliance across the organization, viewing it as a shared responsibility. We proactively track regulatory changes and work to ensure our systems, processes, and products are not only compliant but often ahead of the curve. We treat our reputation for integrity and transparency as a key competitive advantage.

Cybersecurity Risk: In a digital-first business like ours, the threat of data breaches, cyber-attacks, and service disruptions is ever-present and constantly evolving.

? Mitigation: The security of our client data and funds is paramount. Our digital platforms, including Rikhav Plus, are built with bank-grade security protocols, featuring multi-factor authentication and end-to-end encryption for all sensitive data. We conduct regular, independent third-party vulnerability assessments, penetration testing, and security audits to identify and rectify potential weaknesses. Our cybersecurity - posture is aligned with the best practices of the

. industry and Indias top-tier global cybersecurity framework, ensuring our defenses remain robust against emerging threats. Human Resources The Human Resources department plays a pivotal role in fostering a productive and positive work environment.

HR is responsible for attracting and retaining top talent, ensuring that the companys workforce is equipped with the skills and motivation needed to drive business success. As of 31 March, 2025, the Company had a total of 195 employees.

HR oversees the entire employee lifecycle, including recruitment processes, onboarding, training, and development programs. It also manages performance evaluation, employee relations, and compliance with applicable labor laws. By promoting a culture of continuous learning and professional growth, the

HR department helps employees achieve their full potential, thereby contributing to overall organizational effectiveness. Furthermore, HR places emphasis on employee satisfaction and engagement through regular feedback mechanisms, wellness programs, and initiatives that foster diversity and inclusion.

Internal Control Systems and Adequacy

The Company has established a comprehensive system of internal controls designed to ensure the reliability of financial reporting, operational efficiency, safeguarding of assets, and compliance with all applicable laws and regulations. Our internal control framework is commensurate with the size, scale, and complexity of our operations and is deeply integrated into our day-today business processes.

The control systems are built around a robust technology backbone, featuring automated checks and balances within our core platforms like ODIN and N-Prime RMS.

This minimizes the scope for human error and ensures real-time monitoring of transactions and exposures.

Key components of our internal control system include clearly defined roles and responsibilities, documented policies and procedures, and a strong, independent compliance function that utilizes tools like Trackwhizz to monitor and report on regulatory adherence. The Board of Directors, supported by the Audit Committee, holds the ultimate responsibility for the internal control framework. The committee periodically reviews the effectiveness of these controls and the findings of internal and external auditors to ensure any identified weaknesses are promptly addressed. Based on this continuous review and the operational results, the Board is of the opinion that the Companys internal control systems are robust and adequate for the current scale of our business Cautionary Statement This Annual Report includes forward-looking statements about our objectives, estimates, and expectations. These statements, which use terms like ‘anticipate, ‘estimate, ‘expects, and similar expressions, reflect our plans and assumptions but cannot guarantee future results. Various factors, such as political and economic changes, exchange rate fluctuations, and sector- specific conditions, could impact our operations. Actual outcomes may differ due to risks and uncertainties, and we do not commit to updating these statements publicly.