Softrak Venture Investment Ltd Management Discussions

1) INDUSTRY STRUCTURE AND DEVELOPMENTS:

During the year under review, the industry registered a steady cumulative growth as compared to the corresponding period of the previous year. The cumulative growth across the eight core industries remained broadly in line with the previous year.

The Information Technology and financial services space in India continues to evolve rapidly, driven by digitization of business processes, growing adoption of technology-led solutions, and increasing formalisation of the economy. Regulatory developments aimed at strengthening transparency, governance and investor protection have further shaped the operating environment. The Company continues to closely monitor these developments and align its business strategy to remain competitive and compliant.

2) OPPORTUNITIES AND THREATS Opportunities

• Increase in income levels will aid greater penetration of financial products.

• Positive regulatory reforms.

• Increase in corporate growth & risk appetite.

• Greater efficiency in debt market operations which will also help greater penetration.

• Increased securitization.

• Focus on selling new products/services.

• Emergence of new business avenues and upcoming large-scale projects expected to open fresh revenue streams.

• Growing digital adoption and technology-driven service delivery creating scope for new product lines.

• Strategic alliances, partnerships and collaborations that can widen the Companys market reach.

Threats

• Inflation could trigger an increase in consumer price inflation, which would dampen growth.

• Increased competition in both local and overseas markets.

• Unfavourable economic developments.

• Market risk arising from changes in the value of financial instruments as a result of changes in market variables like interest rates and exchange rates.

• Regulatory changes requiring continual monitoring and compliance investment.

• Execution risk associated with the timely completion of upcoming projects.

3) SEGMENT-WISE PERFORMANCE:

The Company has identified its activities as a single segment. Hence, the Companys performance is to be viewed as that of a single segment company operating in Information Technology.

4) RECENT TREND AND FUTURE OUTLOOK:

Notwithstanding global uncertainties, regulatory tightening and cyclical economic downtrends, the financial services industry in India, on the whole, is expected to continue moving ahead at a healthy pace over the long term. Interest rates are expected to remain stable or move southward, with liquidity easing in the coming quarters, which should augur well for demand growth in the financing and lending business.

Looking ahead, the Company anticipates very good growth in the year(s) to come, supported by a number of upcoming big projects that are currently under evaluation and development. The Company remains committed to pursuing these opportunities in a disciplined manner and is confident that the successful execution of these projects will meaningfully strengthen its business position, scale and profitability.

The Companys growth strategy going forward will be anchored on scaling up its core operations, exploring new business verticals, and strengthening its execution capabilities to deliver the upcoming projects within envisaged timelines. The management is optimistic that a combination of favourable industry tailwinds and the Companys own growth initiatives will enable it to deliver sustainable, long-term value to all stakeholders.

5) RISK AND CONCERNS:

Like any other industry, this industry is also exposed to risks arising from competition, government policies, natural factors, etc. As the Company is proposed to export raw materials/finished products, the Company is exposed to risk on account of exchange rate fluctuations. The Company has taken necessary measures to safeguard its assets and interests.

The Company also recognises risks associated with the timely implementation of its upcoming projects, including approvals, funding and execution risk. The Board and management periodically review these risks and put in place appropriate mitigation measures to ensure that the Companys growth plans remain on track.

6) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorised use or disposition, and that transactions are authorised, recorded and reported correctly. The Company conducted an audit of various departments through an independent internal auditor. The views of the statutory auditors are also considered to ascertain the adequacy of the internal control system.

7) FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

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

8) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:

The Company would like to inform that, since it has very few employees who are personally taken care of by the Board of Directors of the Company, there is no separate HR policy in the Company.

9) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

As mentioned in clause B(i) of Schedule-V read with Regulation 24(3) and 53(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifying the requirement of additional disclosure as inserted by the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, applicable w.e.f. 01.04.2019, it is confirmed that there is no significant change (i.e. change of 25% or more) in any of the key financial ratios as compared to the previous financial year 2024-25.

10) CAUTIONARY STATEMENT:

Statements 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 might differ materially from those either expressed or implied.

Date: 31/08/2026	For & on behalf of the Board of Director
Place: Ahmedabad	Softrak Venture Investment Limited
	Sd/-	Sd/-
	Sarjeevan Singh	Raghvendra Kulkarni
	Director	Managing Director
	(DIN: 08258683)	(DIN: 06970323)