Vibrant Global Capital Ltd Management Discussions

Your Company is a Non-Banking Financial Company (NBFC) with a strong presence of nearly three decades in the financial services sector. It is duly registered with the Reserve Bank of India as an NBFC under Section 45-IA of the RBI Act, 1934, and operates as a non-deposit accepting entity. Over the years, the Company has established its business in providing short-term and long-term loans and advances, along with investments in equity products, thereby catering to the diverse financial needs of its clients.

The Company is guided by a management team with deep financial expertise and industry experience, whose stewardship has enabled prudent deployment of resources, efficient management of assets, and consistent efforts towards improving profitability and financial performance. With a continued focus on sound governance, compliance, and operational excellence, the Company remains committed to delivering sustainable value to all stakeholders.

MACROECONOMIC OVERVIEW:

According to the IMFs July 2025 World Economic Outlook Update, the global economy is projected to grow at 3.0% in 2025 and 3.1% in 2026, compared with the earlier baseline of 3.2% for 2024 25. Growth in advanced economies is expected to ease to 1.5% in 2025 and improve slightly to 1.6% in 2026, lower than the earlier projection of 1.8% for 2025. In contrast, emerging market and developing economies are forecast to moderate from 4.2% in 2025 to 4.1% in 2025 and 4.0% in 2026, reflecting a gradual slowdown.

Source:https://www.imf.org/en/Publications/WEO/Issues/2025/07/29/world-economic-outlook-update-july-2025?utm_source

India Poised to Become the 3rd-Largest Economy

Current Standing:

In 2025, India ranks as the fourth-largest economy globally in nominal GDP terms, valued at approximately US $4.19 trillion. It narrowly trails Germany (~US $4.74 trillion) and closely surpasses Japan (~US $4.186 trillion).

Purchasing Power Parity (PPP):

On a PPP basis, which adjusts for cost-of-living differences, India is already the third-largest economy, with an estimated US $17 trillion, placing it ahead of both Japan and Germany.

Source:https://economictimes.indiatimes.com/news/india/indias-economic-rank-contextualising-gdp-numberswhat-it-tells-us-and-what-it-doesnt/articleshow/121774443 notwithstanding persistent global challenges, including elevated interest rates, geopolitical uncertainties, and volatility in commodity markets.

The operating environment, however, was influenced by heightened regulatory oversight, particularly with respect to capital adequacy norms, corporate governance, and asset classification guidelines issued by the RBI. In parallel, rapid technological adoption in loan origination, underwriting, and collections is reshaping competitive dynamics, with NBFCs increasingly competing with fintechs and traditional banks alike. Looking ahead, sustainable growth for the sector will depend on prudent risk management, cost efficiency, funding diversification, and continuous innovation in product and service delivery.

The Non-Banking Financial Company (NBFC) sector retained its pivotal role in augmenting credit penetration, particularly in segments underserved by the traditional banking system. During the year, NBFC credit growth remained buoyant, notably in retail-oriented categories such as vehicle finance, consumer loans, and microfinance. Liquidity conditions in the financial system were generally adequate, with well-rated NBFCs maintaining access to diversified funding sources, including market borrowings, securitization, and bank credit lines.

Source:https://www.imf.org/en/Publications/WEO/Issues/2025/07/29/world-economic-outlook-update-july-2025

Resilient Growth Prospects for NBFCs Despite Global and Domestic Headwinds

Interest Rates Restrictive, but Set to Fall

Interest rates across major economies, including India, remained at elevated levels as central banks sought to anchor inflation expectations and ensure price stability. The restrictive monetary stance, while necessary to curb inflationary pressures, increased borrowing costs for corporates, consumers, and financial intermediaries, including NBFCs.

However, with inflationary trends moderating and growth risks becoming more balanced, market expectations and forward guidance from certain central banks indicate a potential easing cycle in the forthcoming financial year. A calibrated reduction in policy rates would support credit demand, improve funding costs, and provide a conducive environment for sustained economic expansion.

The Outlook: Steady Growth and Disinflation

The Monetary Policy Committee has decided to maintain its real GDP growth projection for FY 2025 26 at 6.5%, reflecting continued confidence in Indias economic resilience amid global uncertainties. Concurrently, the RBI has revised its inflation forecast sharply downward to 3.1% (from the earlier estimate of 3.7%), while keeping its benchmark repo rate unchanged at 5.5% and retaining a neutral policy stance to support balanced growth.

The overall macroeconomic environment remains stable, supported by resilient domestic demand, steady investment flows, and moderating inflation. This provides a constructive backdrop for financial institutions, including NBFCs, enabling sustained credit growth while maintaining financial stability.

Source:https://www.reuters.com/world/india/india-holds-rates-as-expected-but-flags-growth-risks-us-tariffs-2025-08-06/

Growth Outlook: Stable but Slow

The growth outlook for NBFCs during FY 2025-26 is expected to remain stable but relatively moderate. Strong domestic demand, steady credit penetration, and supportive policy measures continue to provide resilience. However, growth momentum is likely to be tempered by rising regulatory compliance costs, tighter liquidity conditions, and global macroeconomic uncertainties.

While NBFCs are well-positioned to support credit expansion in retail and MSME segments, overall sectoral growth is projected to remain gradual rather than rapid.

However, the moderation in growth underscores the importance of prudent risk management, diversification of funding sources, and technological transformation to sustain operational efficiency and profitability in a slower growth environment.

Growth Forecast for Emerging Market and Developing Economies

According to the IMFs World Economic Outlook (April 2025), emerging market and developing economies are expected to grow at 3.7% in 2025, before modestly accelerating to 3.9% in 2026 a slowdown compared with 2024s 4.3%.

Growth in Advanced Economies is expected to remain subdued at approximately 1.6% 1.7%, reflecting tighter financial conditions and aging demographics. According to the International Monetary Fund (IMF), this divergence underscores the stronger role of Emerging Markets and Developing Economies (EMDEs) in driving global economic activity, despite ongoing external headwinds.

Risks to the Outlook: Broadly Balanced

The overall risk profile for the macroeconomic outlook remains broadly balanced, with both upside and downside factors. The outlook for NBFCs in FY 2025 26 appears broadly balanced, supported by resilient domestic demand, enhanced digital penetration, and strengthening regulatory oversight. On the positive side, robust credit growth in retail, MSME, and infrastructure segments, coupled with improving asset quality and capital adequacy, is expected to provide momentum to the sector. Continued focus on digital innovation and financial inclusion initiatives is also likely to expand business opportunities and operational efficiency.

For the NBFC sector, these risks translate into possible fluctuations in funding costs, asset quality, and credit demand. Nevertheless, the presence of strong domestic fundamentals, a robust regulatory framework, and diversified funding sources helps to mitigate these vulnerabilities.

However, potential risks remain from global financial market volatility, elevated interest rates, and liquidity constraints that could impact borrowing costs and asset-liability management. Additionally, heightened regulatory compliance requirements and the possibility of stress in certain borrower segments may pose challenges. Nevertheless, with prudent risk management, diversification of funding sources, and strong governance practices, NBFCs are well-positioned to sustain growth while navigating emerging risks.

Upside Risks

New commodity price spikes amid regional conflicts:

Middle East Tensions and Oil Price Surges

In June 2025, global oil prices surged between 7% and 11% after Israeli airstrikes on Irans nuclear and military infrastructure heightened fears of supply disruptions via the strategic Strait of Hormuz.

Potential for Dramatic Price Spikes

In a worst-case scenario, JPMorgan analysts estimate a 21% probability of disruption to shipping routes like the Strait of Hormuz, which could send oil prices soaring by 75%, potentially reaching USD 120 130 per barrel. The baseline forecast, however, expects stabilization at USD 60 67 per barrel by 2026.

Soucre:https://www.businessinsider.com/iran-strikes-oil-price-forecast-israel-brent-wti-outlook-jpmorgan-2025-6?

Political Changes and Policy Changes

The changes in the import -export policies by US government by the current administration may be verry erratic and unpredictable and may out the capital market situations under extreme volatility and may create a very disruptive environment, not too conducive to bilateral trade and this may also impact the performance of NBFC sector

More favorable outcomes for the global economy than expected could arise from several sources:

Short-term fiscal boost in the context of elections:

In the near term, new expansionary measures such as tax cuts, increased fiscal transfers, and infrastructure investment could boost economic activity, especially in economies in which sovereign risk is perceived as low, and raise global growth above current projections. However, such fiscal expansions could add to inflationary pressures, especially in countries with overheated economies and steep inflation-unemployment trade-offs and result in higher interest rates, which would increase the challenge of curbing debt. A more disruptive policy adjustment could follow, with a negative impact on growth.

Further supply-side surprises, allowing for faster monetary policy easing:

Downside surprises to core inflation on account of a faster-than-expected fading of pass-through effects from past relative price shocks and the easing of global supply constraints are plausible in several cases. A faster-than-envisaged compression of profit margins to absorb past cost increases is also plausible. Planned developments could lead to a greater-than-expected decline in inflation expectations and allow central banks to bring forward their policy-easing plans, which would reduce borrowing costs, raise consumer confidence, and reinforce global growth.

Spurs to productivity from artificial intelligence:

Recent advances in artificial intelligence, notably the emergence of large language models and of generative pretrained transformers, have marked a leap in the ability of technology to outperform humans in several cognitive areas. At the same time, as during the introduction of past general-purpose technologies, the impact of artificial intelligence on economic outcomes, as well as its timing, remains highly uncertain.

Globally Consistent Risk Assessment of the World Economic Outlook Forecast

The IMF projects global growth at 3.0% in 2025 and 3.1% in 2026 (July 2025 WEO Update), revised up from April on account of tariff front-loading, slightly lower effective tariff rates, improved financial conditions, and some fiscal support. EMDE growth is expected at 4.1% in 2025, easing to 4.0% in 2026. Despite the upgrade, policy-induced uncertainty and trade tensions remain key headwinds.

Balance of risks. The April 2025 WEO emphasizes that risks to the outlook are tilted to the downside, chiefly from escalating trade measures, elevated uncertainty, and potential tightening in global financial conditions. The IMFs model-based risk assessment assigns: (i) 37% probability of a U.S. recession in 2025 (growth below 1.2%); (ii) 30% probability that global growth falls below 2% in 2025; and (iii) 31% probability that global headline inflation exceeds

5% underscoring a still fragile disinflation path.

Climate Resilience

The IMF underscores that climate shocks including hurricanes, floods, and droughts pose a substantial threat to macroeconomic stability, particularly in developing countries. For example, disaster-related losses have exceeded 200% of GDP in cases like Hurricane Marias impact on Dominica, illustrating the potentially catastrophic effects on small economies. The IMF recommends embedding climate-resilient, low-carbon infrastructure investments within medium-term fiscal frameworks to protect both growth and debt sustainability.

source:https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic outlook-april-2025

Economic Overview: India

Key performance indicators for Indian Economy 2024-25:

Real Gross Domestic Product (GDP) for FY 2024-25 is estimated to have expanded by 6.5%, reaching a level of INR 187.97 lakh crore compared to INR 173.82 lakh crore in FY 2023-24. This reflects a healthy momentum in economic activity, supported by strong domestic demand, steady investment flows, and continued policy support from both fiscal and monetary authorities.

Nominal GDP has recorded a robust growth rate of 9.8%, increasing from INR 301.23 lakh crore in FY 2023-24 to INR 330.68 lakh crore in FY 2024-25. This growth has been aided not only by real output expansion but also by moderate price growth, indicating a broadly balanced inflationary environment.

Real Gross Value Added (GVA) has risen by 6.4%, amounting to INR 171.80 lakh crore in FY 2024-25 against INR 161.51 lakh crore in the preceding year. This improvement in GVA underscores a broad-based strengthening across productive sectors, with particular impetus from construction, financial services, and industry-related activities.

Nominal GVA witnessed an increase of 9.5%, moving from INR 274.13 lakh crore in FY 2023-24 to INR 300.22 lakh crore in FY 2024-25. The sectoral composition suggests resilience in services alongside a recovery in manufacturing, contributing to the overall expansion in value addition.

ECONOMIC OUTLOOK FOR INDIA- WORLD BANK PERSPECTIVE

According to the World Banks Global Economic Prospects, India is projected to sustain robust growth, reaching 6.7% in FY 2025-26 and FY 2026-27, and maintaining its position as the fastest-growing large economy globally.

However, updated projections moderate this slightly to 6.3% in FY 2025-26, a recalibration driven by challenges in global trade dynamics, subdued external demand, and investment slowdowns.

Regionally, South Asia is expected to grow at 6.2% in 2025-26, with most of the impetus coming from domestic demand and economic resilience in India.

While favorable fundamentals continue to support the outlook, the persistent global uncertainties warrant close attention to export trends, investment momentum, and policy responses

Source: https://www.ibef.org/economy/indian-economy-overview

India GDP growth forecast:

According to the World Banks Global Economic Prospects (June 2025), India is expected to maintain its position as the fastest-growing major economy, with real GDP projected to expand by 6.3% in FY 2025-26. This projection represents a downward revision of 40 basis points from earlier estimates, reflecting the impact of heightened global economic uncertainty, persistent trade policy risks, and a moderation in private investment activity.

The World Bank notes that Indias growth momentum continues to be underpinned by resilient domestic demand, robust services sector performance, and ongoing public sector capital expenditure. However, weaker external demand, coupled with tightening global financial conditions, is anticipated to weigh on export performance and moderate overall economic expansion.

Despite these headwinds, Indias macroeconomic fundamentals remain comparatively strong, enabling the economy to sustain a favourable growth trajectory even amidst a challenging global environment.

Source:https://thedocs.worldbank.org/en/doc/8bf0b62ec6bcb886d97295ad930059e9-0050012025/original/GEP-June-2025.pdf?utm_source

NBFC Outlook with respect to Industry

1. Moderation in Credit Growth

ICRA Ratings anticipates NBFC credit growth to "ease to 13 15% in FY 2025 and FY 2026," down from approximately 17% in the prior two fiscal years. Retail assets, which form nearly 58% of NBFC credit, may grow at a slower compound annual rate of 16 18%, compared to 23% in FY 2023 24. Growth in unsecured segments such as microfinance, personal loans, and credit cards is facing stress due to rising delinquencies.

2. Evolving Funding Mix

RBI policy changes particularly the reduction in risk weights for microfinance loans are expected to enhance bank capital and make bank funding more accessible for NBFCs. This may reduce reliance on expensive short-term instruments like commercial paper over time.

3. Profitability and Margin Outlook

Moodys Ratings projects a moderation in NBFC profitability over the next 12 18 months. Elevated funding costs, prompted by increased capital requirements and tighter bank lending norms, are expected to pressure margins even as loan growth remains robust 15% over the same period.

Government Initiatives in NBFCs

Some of the major Government Initiatives are:

Exemption of TDS on Interest Payments to NBFCs: The Union Budget 2025 26 proposed exempting Tax Deducted at Source (TDS) on interest payable to NBFCs, aiming to reduce their tax burden and improve liquidity.

Finalized Co-Lending Guidelines: The Reserve Bank of India (RBI) has issued final guidelines for co-lending arrangements between banks and NBFCs, effective from January 1, 2026. These guidelines include provisions for blended lending rates, escrow-based distribution of cash flows, and a requirement for lenders to retain at least 10% of each loan on their books.

Lowered Qualifying Asset Criteria: RBI has reduced the qualifying asset criteria for NBFC-MFIs from 75% to 60%, allowing these institutions greater flexibility to diversify their asset portfolios beyond microfinance lending.

Sector Outlook

Despite challenges such as rising defaults in microfinance loans, particularly in states like Bihar, Tamil Nadu, and Uttar Pradesh, the governments initiatives are expected to support the resilience and growth of the NBFC sector. Analysts anticipate a rebound in the sector in the second half of FY26, driven by policy support and improved economic conditions.

Source:https://www.ainvest.com/news/india-credit-market-dilemma-resilience-rising-defaults-2508/

ROAD AHEAD

The Indian financial services sector is poised for significant growth in FY 2025 26, driven by technological advancements, regulatory reforms, and increasing financial inclusion. Key developments include:

Fintech Expansion: India is home to 26 fintech unicorns with a combined market value of $90 billion as of 2024. This growth is supported by initiatives such as the establishment of fintech hubs in cities like Mumbai, Bhubaneswar, and Kolkata, fostering innovation and attracting investment.

Regulatory Advancements: The formation of the India Fintech Foundation (IFF) in April 2025 marks a significant step towards creating a self-regulatory organization (SRO) for the fintech industry, aiming to enhance governance and compliance standards.

Digital Transformation: The ongoing digitalization of financial services, including the adoption of artificial intelligence and blockchain technologies, is expected to improve efficiency, reduce costs, and enhance customer experiences.

As an NBFC, we are committed to leveraging these developments to expand our digital offerings, enhance customer engagement, and contribute to the growth of Indias financial services sector.

Source: https://www.ibef.org/industry/financial-services-india

GROWTH OPPORTUNITIES: NBFC

1. Credit Growth and Market Expansion

NBFCs are expected to maintain a robust credit growth trajectory, with projections indicating a rise from INR 52 trillion in FY25 to approximately INR 60 trillion by FY26. This expansion is anticipated to be fuelled by increased demand in retail, MSME, and infrastructure financing segments.

2. Regulatory Support and Policy Reforms

The Reserve Bank of Indias revised co-lending norms, effective from January 2026, are set to enhance NBFCs lending capabilities by reducing the minimum loan retention threshold to 10% and allowing direct lending guarantees across various loan types. These reforms aim to improve liquidity and facilitate greater credit flow to underserved sectors.

3. Technological Advancements and Digital Transformation

The ongoing digitalization of financial services presents significant opportunities for NBFCs to enhance operational efficiency, reduce costs, and improve customer engagement. Investments in technology-driven solutions are expected to play a pivotal role in the sectors growth.

4. Strategic Diversification

NBFCs are increasingly diversifying their portfolios to mitigate risks and tap into new revenue streams. For instance, Muthoot Microfine is expanding into gold loans, leveraging its existing infrastructure to offer a broader range of financial products.

5. Partnerships and Capital Inflows

Collaborations with global financial institutions are bolstering the sectors growth prospects. Notably, the International Finance Corporation (IFC) has partnered with HDFC Capital Advisors to launch a $1 billion fund aimed at promoting green affordable housing in India.

6. Enhanced Asset Quality and Profitability

NBFCs are focusing on improving asset quality and profitability through prudent lending practices and effective risk management strategies. This focus is expected to contribute to sustained growth and stability in the sector.

SHARE OF CHALLENGES: NBFC

The main challenges for NBFCs in 2025-26 are declining asset quality, slowing credit growth, and tighter regulatory supervision. ICRA predicts that NBFC credit growth will moderate to 13-15% in FY25 and FY26, down from the 17% seen in the previous two fiscal years. This slowdown is mainly due to a decline in loan quality and over-leveraging among borrowers in segments like microfinance, personal loans, and unsecured business loans. This is expected to lead to higher credit costs and more defaults in these areas. Additionally, new guidelines from the Reserve Bank of India (RBI) on co-lending and project finance have increased the compliance burden for NBFCs. Despite these challenges, a potential cut in the repo rate could help NBFCs by lowering borrowing costs and boosting margins.

Source:https://m.economictimes.com/industry/banking/finance/banking/nbfcs-credit-growth-to-moderate-to-13-1 5-in-fy25-and-fy26-from-17-witnessed-in-last-two-fiscals-icra/articleshow/120578816.cms

BUSINESS RISK MANAGEMENT:

The Non-Banking Financial Company (NBFC) sector in India faces a multifaceted risk landscape in FY 2025 26, encompassing credit, market, operational, and regulatory risks. The Reserve Bank of India (RBI) has emphasized the necessity for NBFCs to avoid imprudent growth strategies, strengthen customer grievance mechanisms, and refrain from charging exorbitant interest rates, highlighting the imperative for robust risk management frameworks. Additionally, the RBI has issued new directions on pre-payment charges on loans, applicable to loans sanctioned or renewed on or after January 1, 2026, aiming to standardize the levy of such charges.

To mitigate these risks, the RBI has implemented stringent regulatory measures, including the introduction of a new scale-based regulation for NBFCs, aimed at enhancing risk management and operational resilience. Simultaneously, the World Bank underscores the importance of strengthening regulation and risk management in the financial sector, noting that significant measures have been undertaken to bolster macroeconomic stability and improve outcomes on non-performing assets and capital adequacy.

Managing overall portfolio risk

We as a company are aware that we can optimize profits and build a portfolio that is compatible with investment goals and risk tolerance by using these strategies that are well established:

Diversification Strategy This strategy aims to reduce the overall risk of the portfolio by investing across a variety of assets. Diversification ensures that losses in one asset can be offset by gains in another, as not all investments will perform poorly simultaneously.

Asset Allocation Strategy This involves distributing investments among different asset classes, such as stocks, bonds, and cash. Asset allocation helps in building a portfolio that aligns with the investors risk tolerance and financial goals.

Hedging Strategy Hedging involves using financial instruments, such as options or futures contracts, to mitigate portfolio risk. For instance, an investor concerned about a decline in the value of a specific stock can purchase a put option to protect against potential losses.

Regulatory Compliance and Governance Ensuring that all portfolio management activities comply with applicable regulations and internal governance standards

Liquidity Management Maintaining sufficient liquidity to meet short-term obligations without disrupting investment plans or incurring unnecessary losses.

HUMAN RESOURCES RISK MITIGATION:

Our Company mitigates human resources risks by adopting structured recruitment and selection processes, providing regular training and skill development, and implementing effective performance management systems. We focus on employee retention through engagement initiatives, career growth opportunities, and succession planning to ensure continuity of critical roles. In addition, well-defined HR policies, ethical practices, and the use of technology for monitoring and compliance help safeguard against operational and reputational risks arising from human capital.

The Human Factor Risk Management (HFRM) model adopted by our company intends to maximize the benefits of existing functions and activities in all departments via a human-centric approach. Expected additional benefits are includes:

1. a strategy for human factors risk management across the organization 2. a generic framework, which enables flexible and tailored approaches

3. a systematic managerial tool for the best management of human factors-based risks 4. a common language and culture for corporate risk management 5. a tool for increasing human based opportunities and decrease human based threats 6. a common approach for internal monitoring, control, and review 7. a strong managerial tool for continuous control of Human Factors based risks

OPERATIONAL RISK MANAGEMENT:

Within the monitoring step in Operational Risk Management, we have adopted continuous monitoring or early warning systems built around key risk indicators (KRIs). Key risk indicators are metrics used by us to provide an early signal of increasing risk exposure in various areas of the enterprise.

INTERNAL CONTROL SYSTEMS AND THEIR ACCURACY

The Company has in place an adequate system of internal controls commensurate with the size and nature of its business. These controls are designed to safeguard assets, prevent unauthorized use or disposal, and ensure that all transactions are properly authorized and accurately recorded. The systems are periodically reviewed and will be further strengthened as the Company grows and its operations expand.

An Audit Committee comprising Non-Executive and Independent Directors has been constituted to oversee financial and accounting matters. The Company also operates with a clearly defined organizational structure to support effective governance.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

CONSOLIDATED SEGMENT-WISE PERFORMANCE

A table showing Brief on the Segment-wise revenue is stated as below:

(INR in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Capital Market	14,900.22	14,251.48
Trading	2,156.19	1,221.69
Manufacturing	11,070.15	8,569.74
Unallocated	116.27	139.53
Total	28,242.83	24,182.44

The capital revenue marginally increased to INR 14,900.22 Lakhs during current fiscal year as compared to INR 14,251.48 Lakhs during previous year. Trading revenue double-folded to INR 2,156.19 Lakhs during current fiscal year as compared to INR 1,221.69 Lakhs during previous year, this growth was primarily driven by higher demand, expansion in customer base, improved supply chain efficiency, and the Companys focused efforts on strengthening its product portfolio and market presence. There was increase in the Manufacturing revenue which stood at INR 11,070.15 Lakhs during current year as compared to INR 8,569.74 Lakhs for previous year. This growth is attributable to improved operational efficiencies, better product mix, and rising demand from key customers in salt business. Detailed Segment revenue-wise revenue forms part of notes to consolidated financial statements.

CONSOLIDATED PERFORMANCE OF THE GROUP:

Our company is a part of "Vibrant Global Group" with the operation of our group and Subsidiaries and Associate companies spanning from Manufacturing of Iodized Edible Salt, Trading of steel products and polyester films.

A brief highlight of the revenues of our subsidiaries for FY 2024-25 is as follows:

(INR in Lakhs)

Name of the Company	Total Income
Vibrant Global Trading Pvt. Ltd. Subsidiary Company	12,256.61
Vibrant Global Salt Pvt. Ltd. Subsidiary Company	13,959.43

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company recognizes human resources as a critical driver of its future growth. It undertakes planned initiatives to attract, develop, and retain talent while fostering continuous learning and professional development. Emphasis is placed on enhancing employees capabilities through exposure and by entrusting them with higher responsibilities.

The Company remains committed to providing ample growth opportunities to internal talent and maintaining a positive, collaborative work environment that encourages productivity, efficiency, and long-term engagement. Currently, 2 (two) employees are there on the pay-rolls of the Company except Directors.

Experienced Management Team

The Management team has been instrumental in driving the growth and success of our business operations. The Company is led by Mr. Vinod Garg, Managing Director, and Mr. Vaibhav Garg, Whole-Time Director and Chief Financial Officer, whose strategic vision and leadership continue to strengthen our organizational capabilities. Their professional expertise, complemented by the guidance of our qualified Board of Directors, has significantly enhanced the Companys operational efficiency and business performance.

PERFORMANCE DURING THE YEAR

On Standalone Business:

The standalone total income during current fiscal year is INR 2,165.10 Lakhs, as compared to INR 6,347.27 Lakhs during FY 2023-24. The Company recorded profit (after Tax) of INR 786.38 Lakhs during current fiscal year as compared to Profit (after Tax) of INR 4,222.22 Lakhs during FY 2023-24.

On Consolidated Business:

The consolidated total income increased to INR 28,242.83 Lakhs during current fiscal year as compared to INR 24,182.44 Lakhs during previous FY 2023-24. The Company recorded Loss (after tax) of INR 46.99 lakhs during current fiscal as compared to Profit (after Tax) of INR 4,767.39 Lakhs during previous FY 2023-24.

As on 31^st March, 2025, total market value of quoted investment stood at INR 10,697.15 Lakhs whereas unquoted investments were recorded at INR 2,877.51 Lakhs.

SIGNIFICANT CHANGES

For details of significant changes (i.e. Change of 25% or more as compared to the immediately previous financial year) in key financial ratios & change in return on net worth as compared to the immediately previous financial year, refer note no. 27 of the financial statements, which is annexed with this Annual report.

CAUTIONARY STATEMENT

Statements made herein describing the Companys expectations or predictions are "forward-looking statements". The actual results may differ from those expected or predicted. Prime factors that may make a difference to the Companys performance include market conditions, Government policies & regulations, economic development within/outside country etc.