Swarna Securities Ltd Management Discussions

a) INDUSTRY STRUCTURE AND DEVELOPMENT:

With the surrender of the certificate of registration to the Reserve Bank of India, the Company has stopped the business of non-banking finance company. There has been no fresh issue of any loans during the year. The Company has only been collecting the outstanding dues from its borrowers.

b) OPPORTUNITIES AND THREATS:

The Company is prospecting entry into the real estate sector.

c) SEGMENT WISE PERFORMANCE:

The Company as of now is not into non-banking finance business and has only been liquidating its financial assets by collecting its dues - the performance of which was discussed earlier in the report.

The current revenue of the company is only other income in the form of lease rentals, dividend income.

d) RISKS AND CONCERNS:

Risk of delayed receipt of installments:

In case of delayed receipts of installment amounts of the hire purchase finance given, the funds of the Company get blocked resulting in high non-performing assets.

To mitigate this risk, the Company is trying to put pressure on the delayed payers for payment of installments and in inevitable cases legal action is also being initiated.

Risk of insolvency of the borrowers:

Where the borrower becomes insolvent, and is unable to clear the loan, the same becomes a bad debt and the total loan amount and the interest accrued thereon becomes a charge on the income generated by other good transactions.

To mitigate this risk, the company follows a very conservative policy of lending.

e) INTERNAL CONTROL SYSTEMS:

The Company has an adequate system of internal control and management with respect to disbursement of loans and follow-up action for collection of installments.

f) HUMAN RESOURCES:

There are no significant developments in this front during the year under review.

CERTIFICATION BY MANAGING DIRECTOR (MD) AND CHIEF FINANCIAL OFFICER (CFO)

(Compliance Certificate as required under Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

We, the under signed to the best of our knowledge and belief, certify that:

a. We have reviewed the financial statements including cash flow statement (standalone and consolidated) for the financial year ended 31st March, 2026 and to the best of our knowledge and belief:

I. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

II. These statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

b. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year, which are fraudulent, illegal or violative of the Companys code of conduct.

c. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to address these deficiencies.

d. We have indicated to the auditors and the Audit Committee that:

I. There have been no significant changes in the internal control over financial reporting during the year;

II. There have been no significant changes in the accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and

III. there are no instances of significant fraud of which they have become aware of and involvement therein of the management or an employee having a significant role in the Companys internal control system over financial reporting.

For Swarna Securities Limited

Place: Vijayawada
Date : 30.05.2026

Chaya Devi G	M. Murali Krishna
Chief Financial Officer	Chairman & Managing Director
	DIN: 01889812