Vikalp Securities Ltd Management Discussions

A. Industry structure and development:

The Indian stock broking industry has witnessed significant growth driven by increasing retail participation, digitalisation, rising financial awareness and wider access to capital markets. The industry comprises traditional full-service brokers, discount brokers and technology-driven online broking platforms offering equity, derivatives, mutual funds and other investment products. Increased use of mobile trading applications, algorithmic tools and digital on boarding has further improved accessibility and efficiency. Regulatory initiatives by SEBI and stock exchanges continue to strengthen investor protection, transparency and risk management. Going forward, the industry is expected to benefit from continued growth in demat accounts, retail investments and capital market participation, while facing increasing competition, regulatory requirements and pressure on brokerage margins.

B. Opportunities and Threats:

Opportunities:

- Access to global markets allows traders to diversify their portfolios, spreading risk and accessing growth in emerging economies.

- opportunities in currency trading arise from fluctuations in exchange rates, driven by global economic and political events.

- Traders can take advantage of sector rotation by moving investments into emerging or rapidly growing industries like green energy, biotechnology, or fintech.

- Participating in IPOs can provide access to high-growth companies at an early stage, potentially leading to significant returns

- Persistently low-interest rates can drive investors to the stock market in search of higher returns, increasing liquidity and trading opportunities.

- Volatility can increase the premiums on options, allowing traders to profit from market swings through options strategies like straddles and strangles.

Threat:

- Recessions or economic slowdowns can lead to prolonged bear markets, reducing trading opportunities and increasing risk.

- Sudden market crashes, such as those triggered by geopolitical events or financial crises, can lead to significant losses.

- New regulations, such as higher capital requirements or transaction taxes, can increase costs for traders and reduce profitability.

- Regulatory changes that impose trading restrictions, such as bans on short selling, can limit trading strategies.

- Trade wars, sanctions, or political instability in key markets can lead to sudden market disruptions.

- Traders influenced by emotions like fear or greed may make irrational decisions, leading to losses.

C. OUTLOOK:

The outlook for dealing and trading in the shares and investment business remains dynamic, driven by rapid technological advancements, increased access to global markets, and the rise of new financial instruments. The growth of digital platforms, algorithmic trading, and increased global market access provide significant opportunities for traders to capitalize on market movements.

D. Risks and concerns:

The business in which your company deal is based on market performance of securities.

Changes in regulations, such as increased taxes on trades or new compliance requirements, can affect profitability. Unexpected regulatory actions, like bans on short selling or restrictions on certain trading practices, can disrupt strategies and limit market opportunities.

The primary risks and concerns in trading shares and investment include market volatility, which can lead to sudden and significant losses, and regulatory changes that may impose new restrictions or costs. Additionally, geopolitical instability, economic downturns, and technological failures, such as cybersecurity breaches or algorithmic errors, pose substantial risks. Effective risk management and staying informed are crucial to mitigating these concerns. The company always endeavours to follow market trend and risk and benefit attached to it before investing the precious fund in share market, so as to minimise the risk and maximise the returns.

E. Segment-wise or product-wise performance:

The Company is operating in only one segment. Therefore, there is no requirement of Segment wise reporting.

F. Internal control systems and their adequacy:

The Company has in place adequate internal control system commensurate with size and nature of its business. These systems provide reasonable assurance in respect of providing financial and operational information, compliance with applicable statutes and safeguarding the assets of the Company.

Internal control systems are essential for ensuring the accuracy, reliability, and integrity of financial and operational processes within an organization. These systems help safeguard assets, prevent fraud, ensure compliance with laws and regulations, and enhance the efficiency of operations. The adequacy of internal control systems depends on their ability to effectively identify and mitigate risks, detect and correct errors, and ensure that all financial transactions are accurately recorded and reported. Regular audits and continuous monitoring are necessary to assess and improve the effectiveness of these controls, adapting to changing business environments and emerging risks.

G. Discussion on financial performance with respect to operational performance:

The financial performance of the Company for the Financial Year 2025-26 is described in the report of Board of Directors of the Company.

H. Material developments in Human Resources / Industrial Relations front including number of people employed:

The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

Total Number of people employed: -

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: This Details is forming part of the financial statement.

J. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF: This Details is forming part of the financial statement.

By Order of the Board

FOR VIKALP SECURITIES LIMITED

Dipakkumar Patel

Managing Director

Date: 07/09/2026

Place: Vapi

Rajeshkumar P Shah & Co.

Chartered Accountants

25, Swastik Chambers, Near Navjivan Press,

Off Ashram Road,

Ahmedabad