Acme Resources Ltd Management Discussions

Indian Economy - Industry Structure and Development - Overview:

Navigating multiple global challenges, the world economy has entered 2025 with cautious optimism. Post the Covid-19 pandemic, the global economy is steadily recovering with supply-chain disruptions easing and energy and food markets stabilising after the Russia-Ukraine crisis. Monetary tightening by central banks has moderated inflationary pressures, with inflation now moving towards target ranges in most economies.

According to the International Monetary Funds forecast, global GDP growth is expected at 3.3% in 2025 , driven by resilient consumption, services sector recovery and stabilising commodity markets. On its part, your Company and its subsidiaries remain focused on capital preservation, strengthening the Balance Sheet, prudent liquidity management, efficient operating cost control, and collection efficiency.

Reserve Bank of India (RBI) Policy Measures

Non-Banking Financial Companies (NBFCs) continue to play an integral role in Indias financial system by extending credit access to under-served segments. Over the years, NBFCs have increased their share of credit in the financial sector, with the credit-to-GDP ratio steadily rising.

NBFCs cater to diverse asset classes ranging from granular retail loans such as personal loans, vehicle loans, small business loans, gold loans and microfinance to large-ticket wholesale loans including corporate lending, infrastructure finance, real estate and structured credit.

NBFCs have differentiated themselves through unique business models, innovative credit appraisal methods and use of technology to reach unbanked and underbanked customers. They provide last- mile credit delivery while leveraging analytics, digitisation and AI-driven solutions to enhance efficiency and risk management.

Opportunities, Threats, Risks and Concerns:

As an NBFC, your Company is exposed to credit risk, liquidity risk, market risk and interest rate risk. The Company continues to strengthen its underwriting standards, credit appraisal methods and portfolio monitoring systems. Investments in people, processes and advanced technologies have enhanced its risk management capabilities, enabling it to maintain sound asset quality.

Your Company adopts a balanced approach to portfolio management and leverages a rigorous portfolio review mechanism to detect early warning signals and take corrective action. The governance framework ensures that the Board of Directors and its Committees approve risk strategies, delegate credit authorities, and oversee risk monitoring.

At the same time, the Company is exposed to external risks arising from changes in monetary policy, macroeconomic cycles, competitive pressures and volatility in financial markets. The Company has framed a comprehensive risk management policy to mitigate these risks in a proactive manner.

Reducing Credit Losses (NPAs):

Customer engagement, proactive monitoring and early intervention help the Company prevent slippages and reduce credit losses. In cases where loan assets turn into NPAs, the Company has established robust recovery mechanisms which enable it to minimise losses.

Segment-wise or product-wise performance:

During FY 2024-25 , the Company operated in two business segments:

1. NBFC Business (financing activities) - Revenue of ? 591.43 lakhs was reported.

2. Sale / Purchase of Properties - Revenue of ? 202.58 lakhs was reported.

The consolidated revenue from operations stood at ? 794.62 lakhs during FY 2024-25, as against ?706.16 lakhs in FY 2023-24. The Company recorded a Profit / (Loss) after tax of ? 145.27 lakhs in FY 2024-25 compared to a loss of ?12.89 lakhs in FY 2023-24.

Outlook:

The outlook for FY 2025-26 remains cautiously positive. While global uncertainties such as geopolitical tensions and monetary policy tightening may continue to impact growth, Indias domestic economy remains resilient, supported by infrastructure development, government reforms and robust consumption demand.

Your Company intends to selectively expand into infrastructure-related financing and allied opportunities, which are expected to contribute significantly to long-term growth. The Company is confident that with prudent risk management, robust governance and effective capital allocation, it will be able to generate sustainable value for stakeholders in the coming years..

Internal Control Systems and their adequacy:

The Company has in place adequate internal control systems commensurate with its size and business model. These systems ensure that:

• All resources are utilised efficiently and safeguarded against loss,

• Internal policies and statutory compliances are adhered to in both letter and spirit, and

• Financial reporting and management information are reliable and timely.

The internal control systems are continuously reviewed by the Audit Committee and internal auditors to ensure adequacy and effectiveness.

Risk Management:

Risk management is embedded in the operations of the Company. The Board of Directors has constituted a Risk Management Committee comprising three members, a majority being Directors. The Committee monitors and reviews the risk management framework, oversees key risks and recommends mitigation strategies to the Board..

Material Development in Human Resources / Industrial Relations number of people employed:

The Company firmly believes that its employees are the cornerstone of its success. It continues to focus on employee engagement, professional development and creating a performance-driven work culture. The Company recognises the contribution of its human resources and remains committed to nurturing talent and leadership capabilities.

The Company maintained cordial industrial relations during the year.

Financial and Operational Performance:

The standalone financial results for FY 2024-25 are summarised below:

• Total Income: ? 794.62 lakhs (Previous Year: ?706.16 lakhs)

• Profit / (Loss) After Tax: ? 145.27 lakhs (Previous Year: -?12.89 lakhs)

• Revenue from NBFC Segment: ? 591.43 lakhs (Previous Year: ?411.74 lakhs)

The financial statements have been prepared in compliance with the Companies Act, 2013 and Indian GAAP.

Cautionary Statement:

This report contains forward-looking statements that are based on certain assumptions and expectations of future events. Actual performance may differ materially due to various risks, including but not limited to changes in government regulations, economic conditions, dependence on key businesses, competitive pressures, and availability of skilled manpower. The Company does not undertake to update these statements publicly.

Additional Information :-

• During FY 2024-25, the Company has not sanctioned loans to any of its Directors and there are no outstanding loans to Directors as on 31 March 2025.

• None of the employees of the Company are related to any of the Directors.

• Except as disclosed in this MD&A, there have been no material events from the balance sheet date till the date of this Report which would impact the Companys performance.

Circulation of Annual Reports in electronic form :-

Pursuant to the MCA notification, physical copies of the Annual Report are not being circulated. Accordingly, the Annual Report for FY 2024-25 is being sent electronically to Members whose email addresses are registered with the Company. The Annual Report is also available on the Companys website at https://www.acmeresources.in .

During the AGM of 2025, the Company, in coordination with its Registrar & Transfer Agent, will continue to provide facilities for shareholders to register/update their email IDs to ensure seamless receipt of the Annual Report and e-voting credentials