Williamson Magor & Company Ltd Management Discussions

INDUSTRIAL STRUCTURE AND DEVELOPMENTS

The global economy remained resilient during FY 2025 26 despite trade tensions, geopolitical conicts, and high public debt. Growth was supported by easing ination, stronger financial conditions, technological investment, and steady demand in emerging economies. However, uncertainties from tari s, supply-chain disruptions, and regional conicts continued to weigh on global trade and investment. For FY 2026 27, the International Monetary Fund (IMF) projects moderate global growth of about 3.2%, with ination gradually declining. Risks include geopolitical instability, higher commodity prices, climate-related shocks, and elevated borrowing costs, although continued digital innovation and structural reforms are expected to support sustainable medium-term economic growth.

Indias economy remained one of the worlds fastest-growing major economies in FY 2025 26, supported by strong domestic demand, higher public capital expenditure, resilient services, and steady manufacturing growth. The Economic Survey 2025 26 estimated real GDP growth at 7.4%, while emphasizing macroeconomic stability, controlled ination, and robust infrastructure investment. For FY 2026 27, the Survey projected GDP growth of 6.8 7.2%, driven by private consumption, investment, and digital transformation, although global uncertainties, oil price volatility, and geopolitical risks remain key challenges. Fiscal consolidation and continued structural reforms are expected to sustain medium-term growth and strengthen Indias economic resilience.

Indias Non-Banking Financial Company (NBFC) sector remained resilient during FY 2025 26, supported by strong retail, MSME, vehicle, housing, and gold loan demand. The Reserve Bank of India (RBI) continued strengthening regulation through its scale-based supervisory framework, improving governance, risk management, and capital adequacy. Asset quality improved, with the Gross Non-Performing Asset (GNPA) ratio of upper- and middle-layer NBFCs declining to 3.08% in June 2025 from 3.30% in March 2025. Credit growth remained healthy despite tighter regulatory norms and evolving liquidity conditions. In FY 2026 27, the sector is expected to sustain growth, driven by digital lending, financial inclusion, and rising credit demand from underserved segments. However, RBIs Financial Stability Report highlights the need for prudent risk management as stressed assets could increase under adverse economic scenarios, while capital bu ers may moderate. Overall, well-capitalised and technology-driven NBFCs are expected to remain key contributors to Indias credit expansion and economic growth.

The Company is carrying on the business of investment and lending mainly to the Group Companies. The business strategy is largely dependent on the economic environment of the Country. The Management continues to review the business strategy from time to time depending on the changes in Government policies.

Expanding Financial Inclusion: NBFCs play a vital role in providing credit to underserved segments such as rural households, MSMEs, self-employed individuals, and rst-time borrowers who often have limited access to traditional banking services.

Digital Lending Growth: Rapid adoption of digital technologies, ntech partnerships, AI-based credit assessment, and e-KYC processes has enabled NBFCs to expand their customer base, improve operational efficiency, and reduce loan processing time.

Rising Credit Demand: Indias growing middle class, increasing consumer spending, urbanization, and infrastructure development are driving strong demand for retail, vehicle, housing, and MSME loans, creating signicant growth opportunities for NBFCs.

Supportive Regulatory and Economic Environment: Government initiatives promoting financial inclusion, digital payments, MSME nancing, and infrastructure investment, along with a stable macroeconomic outlook, continue to create favorable conditions for sustainable NBFC growth.

SRising Credit Risk: Economic slowdowns and borrower defaults, especially in MSME and retail lending, can increase non- performing assets (NPAs) and reduce protability.

Liquidity Constraints: NBFCs depend heavily on bank borrowings and market funding. Tight liquidity or higher interest rates can increase funding costs and restrict lending.

Regulatory Tightening: Stricter regulations by the Reserve Bank of India (RBI), including higher capital requirements and governance norms, may increase compliance costs and limit operational flexibility.

Intense Competition: Banks, ntech companies, and digital lending platforms offer faster, technology-driven nancial services, putting pressure on NBFCs market share and prot margins.

RISK & CONCERNS

Any slowdown in economic growth in India could cause the business of the Company to su er. Similarly, any sustained volatility in global commodity prices including a signicant increase in the price of oil and petroleum products could once again spark o a new inationary cycle, thereby curtailing the purchasing power of the consumers. Further, the Company is exposed t o specic risk that is particular to its business and environments within which its operate, including market risk, competition risk, credit risk, liquidity and interest rate risk, human resource risk, operational risk, information security risks, regulatory risk and macroeconomic risks. The level and degree of each risk varies depending upon the nature of activity undertaken by them.

SEGMENT WISE PERFORMANCE

During the Financial Year ended 31 March 2026, the Company operated mainly under a single segment viz Investment and

Lending.

The Company received the Notice No. KOL. DOS. RSG. NO. S949/03.03.008/2022-23 dated July 04, 2022 from the Reserve Bank of India (RBI) for surrender of original certicate of Registration pursuant to an order dated June 29, 2022 passed by RBI for cancellation of certicate of Registration No. N.05.05534 dated March 31, 2003 issued to the Company for Non- Banking Financial Company under Section 45-IA(6) of the Reserve Bank of India Act, 1934. In this regard the company led an appeal before the Appellate Authority for NBFC, Ministry of Finance against the said order which was rejected vide order dated May 04, 2023.

The Company had led writ petition dated January 04, 2024 in the Honble High Court of Calcutta against the rejection order of appellate authority and the matter is subjudice.

OUTLOOK

Earnings of the Company particularly depend on the performance of the Companies where your Company has invested funds in equities and lent money. During the year, some of the said companies have not fared well for various reasons explained above. The Stock market was also very volatile and wide fluctuations have been witnessed in the Stock prices. The Government at the Centre is taking various measures to ensure more liquidity in the market at a lower cost which is expected to help the Company directly and indirectly. Revival of economic growth for which the government is striving hard should boost the demand growth and also the stock market. The companies in which your Company has invested and lent funds should derive benets from the measures taken by the Government and your Company will be a beneciary of the same.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a system of Internal Control commensurate with its size. The Internal Auditors, an independent rm of chartered Accountant, regularly review the operations and conduct a risk based audit with a view to not only test adherence to laid down policies and procedure but also to suggest improvements in processes and systems. Their audit program is agreed upon by the Audit Committee. Internal Audit observations and recommendations are reported to the Audit Committee, which monitors the implementation of such recommendations and also reviews the adequacy of Internal Control System at regular intervals and provides guidance for improvement.

The Risk Management Committee formed by the Board of Directors of the Company also has a policy by which it periodically reviews the various risks to which the Company is exposed to and ensures proper record maintenance and proper legal compliances for exercising effective Internal Controls. The Audit Committee of the Board provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

This section is covered in the Boards Report under the section of Financial Results and Operations.

FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAIL EXPLANATIONS:-

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

There is no material development on the Human Resources front. The Company maintains harmonious relationship with its employees. The Company is having 2 persons employed currently.

CAUTIONARY STATEMENT

Statements in the Management Discussion & Analysis Report in regard to projections, estimates and expectations have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Market information contained in this Report has been based on information gathered from various published and unpublished reports, and their accuracy, reliability and completeness cannot be assured.