Vardhan Capital & Finance Ltd Management Discussions

The key issues of the Management Discussion and Analysis are given below.

Industry Structure and Developments

With continued efforts and various initiatives by the Government of India, the Management expects a positive impact on the overall development of the industry in the coming years.

Opportunities and Threats

Being primarily an investment company, fluctuations in market conditions and interest rates continue to pose challenges to the business of the Company. However, these challenges can also be converted into opportunities through proper planning, strategic decision-making, and efficient implementation..

Risk and Concerns

The major risks and concerns that could affect the growth and development of the Company include inflationary trends, interest rate volatility, dynamic regulatory frameworks, and frequently changing Government policies.

Segment wise performance

The Company operates in a single segment. There were no major operational activities during the year; hence, segmental reporting is not applicable.

Outlook

The Management remains optimistic about the Companys growth prospects in the long term and is committed to exploring feasible business opportunities that align with its objectives.

Risk Mitigation

The Company has been following the principle of risk minimization as a standard practice. The Board has adopted a structured approach to risk management, which involves identification, evaluation, and mitigation of risks through a well-defined policy framework. The Audit Committee periodically monitors these measures to ensure effective implementation. The objective of the policy is to ensure sustainable business growth while maintaining stability and reducing exposure to potential risks.

Management Perception and Initiatives

The Management continues to monitor the evolving economic and market conditions closely and is prepared to take proactive measures to safeguard the Companys interests. The focus remains on improving operational efficiencies and identifying opportunities that provide a better risk-reward balance.

Internal control systems and their adequacy

Considering the size and nature of the Companys business, the Management believes that the internal control systems in place are adequate and commensurate with its operations. The Management continually strives to strengthen and improve these systems.

Discussion on financial performance with respect to operational performance

During the year under review, the Company earned income primarily from its investments. The Management is confident of sustaining and improving financial performance in the future, subject to favorable market conditions.

Material developments in Human Resources / Industrial Relations front

The Company has an established Human Resource Management policy. Since the Company does not have any employees other than the Key Managerial Personnel, the industrial relations front remained stable during the year.

Key Financial Ratios

Sr.no	Particulars	Numerator	Denominator	Ratio 2025	Ratio 2024	% Variance	Remark
1	Capital to risk - weighted assets ratio (CRAR)	Tier I Capital + Tier II Capital	Total Risk Weighted Assets	1.33	1.46	-8.65%	-
2	Tier I CRAR	Tier I Capital	Total Risk Weighted Assets	1.33	1.46	-8.65%	-
3	Tier II CRAR	Tier II Capital	Total Risk Weighted Assets	NA	NA	NA	-

Disclosure of Accounting Treatment

The Company has followed all applicable Accounting Standards while preparing its Financial Statements for the year under review.

	By Order of the Board
	Sd/-	Sd/-
	Akash Vardhan	Ramesh Vardhan
Date : 13th August, 2025	Managing Director	Director
Place: Mumbai	DIN: 03043186	DIN: 00207488