We are enclosing herewith annual report for the year 2025-26

2025-26 CONTENTS Gold Loan Business in India and Strategic Entry by Capital : 2 TrustLimitedIndustry Overviewand Structural Strength Messagefrom Chairman andManaging Director : 7 Corporate snapshot : 12 BoardofDirectors andLeadershipTeam : 17 Corporate Information : 20 ManagementdiscussionandAnalysisReport : 22 Directors’Report : 55 Annual Reporton CSRActivities forthe year2025-26 77 Secretarial AuditReport : 81 ReportonCorporate Governance 85 Corporate Governance Certificate : 113 Notice ofAGM : 115 AuditReport andFinancial Statements : 142 Forward-lookingstatements In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make, contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe wehave Gold Loan Business in India and Strategic Entry by Capital Trust Limited Industry Overview andStructural Strength Gold loans represent one of the most structurally robust and culturally aligned credit products in India’s financial ecosystem. The country’s households are estimated to hold more than 25,000 tonnes of gold, much of which remains idle in the form of jewellery. This vast stock of underutilized assets provides a natural and highly liquid collateral base for lending institutions. Unlike other forms of secured lending, gold loans benefit from deep emotional trust, universal acceptance, and ease of valuation, making them particularly suitable for rural and semi-urban markets. The product has historically served as a reliable source of liquidity during periods of financial stress, agricultural cycles, or business cash flow mismatches,thereby embeddingitselfas anessential financialtool across incomesegments. GrowthMomentum andMarket Expansion The gold loan market in India has witnessed strong and sustained growth over the past few years, emerging as one of the fastest-growing segments within retail credit. This expansion has been driven by a combination of macroeconomic and structural factors, including rising gold prices, increased demand for secured lending products, and tightening credit conditions in unsecured segments. As illustrated above, the industry has nearly doubled in size over a short period, reflecting both increased borrower acceptance and lender focus. Importantly, gold loans have gained prominence not only in rural markets but also among urban borrowers seeking short-term liquidity without undergoing extensive credit evaluation processes. This growth trajectory underscores a broader shift within the financial sector towardcollateral-backed lending,which offers greaterstability and lowercreditrisk. ImpactofGoldPrices onLendingDynamics The upward movement in gold prices has played a pivotal role in strengthening the gold loan ecosystem. As gold prices increase, the value of collateral rises proportionately, enabling borrowers to access higher loan amounts against the same quantity of gold. This dynamic not only enhances borrower capacity but also supports portfolio growth for lenders. Additionally, gold’s status as a safe-haven asset during periods of economic uncertainty further reinforces its attractivenessascollateral.Consequently,thegoldloansegmenttendstoexhibitcounter-cyclical resilience, often expanding during times when other credit segments experience stress. This inherent stability makes gold loans a strategically important asset class for lenders seeking to balanceriskandgrowth. Source:Goldprice,Kshitij Operational Model and Efficiency ofGold Loans The operational framework of gold loans is inherently simple and efficient, contributing significantly to their scalability. The process begins with the borrower pledging gold ornaments, followed by purity assessment and valuation, which determines the eligible loan amountbased on prescribed loan-to-value norms. Once sanctioned, disbursement is typically immediate, reflecting minimal documentation requirements and the secured nature of the product. Repayment structures are flexible, allowing for bullet payments, interest servicing, or EMIs, depending on borrower preference. In the event of default, lenders are permitted to auction the pledged gold through a transparent process, ensuring recovery while safeguarding borrower rights. This streamlined lifecycle enables faster turnaround times, lower operating costs, and reduced credit risk, making gold loans operationally superior to manyotherretail lendingproducts. Technology TransformationandEmerging Ecosystem The gold loan industry is undergoing a significant transformation driven by technology and fintech integration. Traditionally reliant on branch-led operations, the segment is increasingly adopting digital tools to enhance efficiency and customer experience. Digital onboarding through Aadhaar-based e-KYC, mobile applications for loan servicing, and integrated payment systems for collections are becoming standard practices. Furthermore, emerging innovations such as AI-assisted valuation, data-driven credit monitoring, and digital locker concepts are redefining operational models. Fintech partnerships are enabling lenders to expand their reach without proportionate increases in physical infrastructure, thereby improving scalability and cost efficiency. This convergence of traditional collateral-based lending with modern technology is creating a hybrid model that combines trust with convenience. CapitalTrust Limited–Strategic Entry andPositioning Capital Trust Limited’s entry into the gold loan segment represents a well-calibrated strategic initiative aimed at strengthening its secured lending portfolio while deepening customer engagement across its core geographies. Building on its strong presence in rural and semi-urban India, the Company has introduced Capital Trust Gold Loan as a digitally enabled, branch-led offering designed to provide immediate liquidity to customers while maintaininghigh standards of transparency,security, and service.Launched inOctober2025, this product leverages the Company’s extensive physical network and established borrower relationshipsto deliver aseamlessand reliablegold financingsolution. The rationale for entering the gold loan segment is anchored in the Company’s broader objective of achieving a balanced portfolio mix between secured and unsecured lending. Gold loans, being fully collateralized, offer lower credit risk and enhanced recovery visibility compared to traditional unsecured MSME loans. This strategic shift is expected to improve asset quality, reduce credit costs, and create a more stable and predictable earnings profile. At the same time, the product aligns closely with the financial needs of the Company’s existing customer base, many of whom possess gold assets but require timely access to funds forbusiness expansion, consumption needs, orunforeseen emergencies. Capital Trust Gold Loan has been positioned as a trusted, fast, and customer-centric financing solution, emphasizing both value and convenience. The offering is designed to deliver the highest possible value against pledged gold, supported by competitive interest rates and a transparent pricing structure with no hidden charges. The Company has deliberately simplified the borrowing process by minimizing documentation requirements and ensuring quick turnaround times, thereby making the product accessible even to customers with limited formal credit histories. This ease of access is particularly relevant in underserved markets, where speed and simplicity are [Showing first 8,000 characters — download PDF for full document]