Trustwave Securities Ltd Management Discussions

(A) INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company operates in the financial services sector and is engaged in the business of dealing in listed and unlisted securities, proprietary investments, arbitrage opportunities, stressed assets and allied financial activities in accordance with its objects. The Indian capital markets continued to witness increased investor participation, technological advancements and evolving regulatory reforms during the financial year under review.

The stressed asset resolution ecosystem also continues to evolve with a well-established regulatory framework under the Insolvency and Bankruptcy Code, 2016, creating opportunities for companies engaged in acquisition and resolution of stressed assets. The Company continues to evaluate suitable business opportunities in line with its objects and long-term business strategy.

(B) OPPORTUNITIES AND THREATS

OPPORTUNITIES

• Increasing participation in the Indian capital markets.

• Growth opportunities in proprietary investments and arbitrage strategies.

• Expansion in investment advisory and securities-related businesses.

• Emerging opportunities in acquisition and resolution of stressed assets.

• Regulatory reforms and increasing transparency in the financial services sector.

• Opportunities arising from private placements, IPOs and capital market transactions.

THREATS

• Volatility in capital markets.

• Changes in regulatory and taxation framework.

• Credit and liquidity risks.

• Increasing competition in the financial services industry.

• Risks associated with stressed asset acquisition and recovery.

• Economic slowdown affecting investment activities.

(C) SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company presently operates in a single business segment, namely financial services. During the financial year under review, the Company continued to evaluate opportunities relating to securities investments, proprietary trading, arbitrage strategies and stressed assets while strengthening its governance framework and regulatory compliance.

(D) OUTLOOK

The outlook for the financial services sector continues to remain positive, supported by increasing participation in the securities market, digital transformation and regulatory initiatives aimed at improving transparency and investor confidence.

The Company intends to strengthen its presence in securities-related activities, proprietary investments and stressed asset opportunities while maintaining a prudent approach towards risk management and regulatory compliance. The management remains focused on identifying sustainable business opportunities to enhance long-term shareholder value.

(E) RISKS AND CONCERNS

The Company is exposed to various business risks including:

• Volatility in equity and debt markets.

• Changes in regulatory and taxation policies.

• Credit and counterparty risks.

• Liquidity risks.

• Market risks associated with investment activities.

• Risks associated with acquisition and recovery of stressed assets.

• Operational and compliance risks.

The Company has established appropriate systems to identify, monitor and mitigate these risks on a continuous basis.

(F) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate system of internal financial controls commensurate with the size, nature and complexity of its business. These controls ensure safeguarding of assets, proper recording of transactions, compliance with applicable laws and timely preparation of reliable financial information. The Audit Committee periodically reviews the adequacy and effectiveness of the internal control systems and recommends improvements wherever considered necessary.

(G) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year under review, the Company recorded a total income of Rs. 15.05 Lakhs as against Nil income in the previous financial year. The Company incurred a loss of Rs. 6.10 Lakhs as compared to a loss of Rs. 17.09 Lakhs in the previous financial year.

The management remains committed to strengthening the Companys operational capabilities and exploring sustainable business opportunities in accordance with its objects.

(H) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resources continue to be one of the Companys valuable assets. During the financial year under review, the Company maintained cordial industrial relations and continued to provide a professional, ethical and healthy working environment. As on 31st March, 2026, the Company had one permanent employee on its rolls.

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. Actual results may differ materially from those expressed or implied due to various factors including economic conditions, regulatory changes, market volatility, competition, investment performance and other risks beyond the control of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

I. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR, INCLUDING:

The details of key financial ratios, including significant changes of 25% or more as compared to the immediately preceding financial year and explanations therefor, wherever applicable, are disclosed in the Notes to the Financial Statements forming part of this Annual Report.

II. DETAILS OF ANY CHANGES IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

The Return on Net Worth (Return on Equity) of the Company improved from (18.26) in the previous financial year to (0.93) during the financial year under review, primarily on account of reduction in the loss incurred by the Company during the year.

III. DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has followed the applicable Accounting Standards in the preparation of its financial statements. No treatment different from that prescribed under the applicable Accounting Standards has been followed during the financial year under review.

CONCLUSION

The Company remains committed to strengthening its business operations through prudent business strategies, effective risk management and operational efficiency while creating sustainable long-term value for its stakeholders.