Acme Resources Ltd Management Discussions

A. GLOBAL ECONOMY OVERVIEW

During FY 2025 26, the global economy continued to experience a mixed growth environment amid ongoing geopolitical uncertainties, evolving trade dynamics, and moderating inflation. While inflationary pressures eased in several major economies, economic growth remained uneven across regions. Central banks adopted a cautious approach towards monetary policy in response to changing economic conditions. Although global financial markets showed signs of stability, uncertainties relating to geopolitical developments and external economic factors persisted. The overall global economic environment remained stable but continued to warrant a cautious outlook.

B. INDIAN ECONOMY OVERVIEW

During FY 2025 26, the Indian economy continued to demonstrate resilience and remained one of the fastest-growing major economies in the world. According to the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), Indias real Gross Domestic Product (GDP) grew by 7.7% during FY 2025 26, compared to 7.1% in the previous financial year. The growth was supported by strong domestic consumption, sustained government expenditure on infrastructure, healthy investment activity, and steady performance across key sectors of the economy.

The financial sector remained stable, supported by adequate liquidity, a well-capitalised banking system, and continued credit growth. Inflation remained broadly under control during the year, contributing to a stable macroeconomic environment. Despite global geopolitical and economic uncertainties, Indias economic fundamentals remained robust, supported by prudent fiscal and monetary policies. Going forward, continued emphasis on infrastructure development, digitalisation, financial inclusion, and structural reforms is expected to support sustainable economic growth and create opportunities for the financial services sector.

C. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Non-Banking Financial Company (NBFC) sector continues to be an integral part of Indias financial system by complementing the banking sector and extending credit to segments that are underserved or have limited access to formal financing. NBFCs play a significant role in supporting retail customers, micro, small and medium enterprises (MSMEs), and other businesses by offering flexible and customer-centric financial solutions.

During FY 2025 26, the sector witnessed steady growth, supported by resilient domestic economic activity, improving credit demand, and increased focus on financial inclusion. The Reserve Bank of India (RBI) continued its emphasis on strengthening the regulatory framework through the Scale-Based Regulation (SBR) framework, with greater focus on governance standards, risk management practices, capital adequacy, liquidity management, and customer protection. These measures are aimed at enhancing the resilience and long-term sustainability of the NBFC sector.

The increasing adoption of digital technologies has also contributed to improved operational efficiency, faster loan processing, and enhanced customer experience across the financial services industry. At the same time, the sector continues to operate in a competitive environment with participation from banks, fintech companies, housing finance companies, and other financial institutions.

Despite challenges arising from evolving regulatory requirements, interest rate movements, and changing market conditions, the outlook for the NBFC sector remains positive. Supported by favourable economic fundamentals, government initiatives promoting financial inclusion, and growing demand for credit, the sector is expected to continue contributing significantly to Indias economic growth while maintaining a strong focus on prudent lending practices, sound governance, and regulatory compliance.

D. OPPORTUNITIES AND THREATS

OPPORTUNITIES:

The Indian financial services sector continues to offer significant growth opportunities for NBFCs, supported by sustained economic growth, increasing urbanisation, rising disposable incomes, and growing demand for retail and business credit. Government initiatives promoting financial inclusion, digital payments, and formalisation of the economy have further expanded access to financial services and created opportunities for NBFCs to cater to a wider customer base.

The increasing adoption of digital technologies has enabled NBFCs to improve operational efficiency, enhance customer experience, and strengthen credit assessment and monitoring processes. Continued investment in infrastructure, growth of the MSME sector, and increasing demand for customised financial products are expected to provide further opportunities for sustainable business growth. By maintaining prudent lending practices, strengthening customer relationships, and ensuring regulatory compliance, the Company is well positioned to capitalise on emerging opportunities in the financial services sector.

THREATS:

The NBFC industry operates in a dynamic and evolving business environment and is exposed to various internal and external risks. Changes in the regulatory framework issued by the Reserve Bank of India, increasing compliance requirements, fluctuations in interest rates, and changes in monetary policy may impact the cost of funds and profitability. The Company also faces competition from banks, other NBFCs, fintech companies, and digital lending platforms, which may affect market share and margins.

Further, adverse macroeconomic conditions, geopolitical uncertainties, inflationary pressures, and changes in customer repayment capacity may lead to increased credit risk and asset quality concerns. Liquidity constraints, cybersecurity risks, technological disruptions, and operational risks also remain important considerations for the sector. The Company continues to strengthen its risk management framework, internal controls, governance practices, and regulatory compliance mechanisms to mitigate these risks and ensure sustainable long-term growth.

E. BUSINESS OVERVIEW:

SEGMENT WISE PERFORMANCE

S. No.	Segment	Revenue (INR Lakhs)
		FY 2025-26	FY 2024-25
1.	NBFC Business	464.73	591. 43
2.	Sale of Property	117	202.58
3.	Others	84.31	0.61

The Company reported a total revenue of Rs. 666.04 Lakhs for the FY ended on 31^st March 2026 as compared to a total revenue of Rs. 794.01 Lakhs for the FY ended on 31^st March 2025.

Further, the Company reported a loss of Rs. 267.13 Lakhs for the FY ended on 31st March 2026 as compared to a profit of Rs. 171.89 Lakhs for the FY ended 31st March 2025.

F. OUTLOOK:

The outlook for the Indian economy and the NBFC sector remains positive, supported by stable macroeconomic fundamentals, continued government focus on infrastructure development, increasing digitalisation, and sustained demand for credit across retail and business segments. The Reserve Bank of India is expected to continue strengthening the regulatory framework to promote financial stability, sound governance, and responsible lending practices. These measures are expected to enhance the resilience of the financial services sector and support long-term sustainable growth.

The Company remains focused on pursuing growth opportunities while maintaining a prudent and disciplined approach to its business operations. It will continue to emphasise responsible lending, effective risk management, strong internal controls, regulatory compliance, and efficient capital management. The Company also intends to leverage technology to improve operational efficiency, strengthen customer service, and enhance its overall business processes.

While uncertainties arising from global economic conditions, interest rate movements, regulatory changes, and competitive pressures may continue to influence the operating environment, the Companys sound governance framework and risk management practices position it to respond effectively to these challenges. Going forward, the Company will continue to focus on sustainable growth, maintaining asset quality, preserving financial stability, and creating long-term value for its stakeholders through prudent business practices and a customer-centric approach.

G. RISKS AND CONCERNS:

The Company recognises that effective risk management is essential for achieving its strategic objectives and ensuring long-term sustainability. As a Non-Banking Financial Company (NBFC), the Company is exposed to various risks, including: credit risk liquidity risk market risk operational risk compliance risk and information technology-related risks

The Company has established an appropriate risk management framework to identify, assess, monitor, and mitigate these risks in a timely and effective manner.

The Board of Directors provides overall oversight of the risk management framework and periodically reviews the Companys risk profile, internal control systems, and compliance with applicable regulatory requirements. The management continuously monitors changes in the business and regulatory environment and takes appropriate measures to strengthen risk mitigation strategies.

The Company remains committed to continuously enhancing its risk management framework in line with evolving regulatory expectations and industry best practices, thereby supporting sustainable growth and maintaining the confidence of its stakeholders.

H. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established an adequate system of internal controls commensurate with the size, nature, and complexity of its business operations. The internal control framework is designed to ensure the orderly and efficient conduct of business, safeguard the Companys assets, ensure the accuracy and reliability of financial and operational information, and promote compliance with applicable laws, regulations, and internal policies.

The Board of Directors periodically reviews the adequacy and effectiveness of the Companys internal control systems. The Company also ensures compliance with the applicable regulatory requirements prescribed by the Reserve Bank of India (RBI) and other statutory authorities. The management is committed to continuously strengthening the internal control framework in line with evolving business requirements and regulatory expectations to support efficient operations and sustainable growth.

Based on the periodic assessments carried out during the year, the management is of the opinion that the Companys internal control systems are adequate and operating effectively.

I. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company believes that its employees are its most valuable asset and recognises the importance of maintaining a skilled, motivated, and committed workforce. The Company continues to focus on providing a professional work environment that encourages employee engagement, learning, ethical conduct, and overall development.

During the financial year, the Company maintained cordial and harmonious industrial relations across all levels of the organisation. There were no significant industrial disputes or disruptions affecting the Companys operations. The Company continued to strengthen its human resource practices through effective performance management, employee welfare initiatives, and adherence to applicable labour laws and regulatory requirements.

J. FINANCIAL RATIOS:

The Financial Ratios for the year ended 31^st March 2026 are as follows:

S. No. Key Ratios	Units	FY 2025-26
1. Debtors Turnover	Times	7	.23
2. Inventory Turnover	Times	1	.02
3. Interest Coverage	Times	6	.71
4. Current	Times	1	.51
5. Debt Equity	Times	0	.03
6. Operating Profit Margin	%	3	9.97
7. Net Profit Margin	%	3	8.50

K. CAUTIONARY STATEMENT

The statements made in this report describing the Companys objectives, estimations, expectations, projections, outlooks, constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ from such expectations, projections, among others, whether express or implied. The statements are based on certain assumptions and future events over which the Company has no direct control. The Company assumes no responsibility to publicly amend, modify and revise any of the statements based on any subsequent developments, information or events.