Comfort Fincap Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

The global economy continues to demonstrate resilience despite an increasingly challenging geopolitical and macroeconomic environment. According to the International Monetary Fund (IMF), global growth is projected at 3.1% in 2026 and 3.2% in 2027, remaining below the pre-pandemic historical average. While resilient domestic demand, technological advancements and easing financial conditions in the Middle East, elevated commodity prices and tighter financial conditions are expected to moderate the pace of global expansion.

Inflation and Monetary Conditions

Global headline inflation is projected to increase moderately to 4.4% in 2026 before resuming its downward trajectory in 2027. Higher energy prices, firmer inflation expectations and supply-side pressures are expected to keep inflation elevated in the near term, requiring central banks in several economies to maintain a cautious monetary policy stance while balancing growth and price stability.

Emerging Market Economies

Emerging market and developing economies are expected to remain key contributors to global economic growth, although the impact of rising commodity prices and tighter financial conditions is likely to be more pronounced in these economies. India is projected to remain one of the fastest-growing major economies, supported by strong domestic demand, sustained investment activity and ongoing structural reforms.

Trade and Geopolitical Environment

Global trade and investment flows continue to be influencedby geopolitical tensions, trade fragmentation and evolving policy measures. The ongoing conflict in the Middle East has heightened uncertainty around energy markets and global supply chains, while renewed trade tensions and geopolitical fragmentation continue to reshape international trade patterns. Businesses across sectors are increasingly focusing on supply chain diversification to mitigate these evolving risks.

Risks to the Global Economy

The IMF highlights that downside risks continue to dominate the global outlook. A prolonged geopolitical conflict, renewed trade restrictions, higher commodity prices, tighter financialconditions and slower-than-expected productivity gains from artificial intelligence could adversely affect global growth. Elevated public debt levels and reduced fiscal policy space in several economies further increase macroeconomic vulnerabilities.

Outlook

The medium-term global outlook remains cautiously optimistic, supported by resilient economic fundamentals, continued digital transformation and technological innovation. However, the pace of global growth will depend on the evolution of geopolitical developments, inflation trends, energy prices and the effectiveness of monetary and fiscal policy responses across major economies. Strengthening policy credibility, maintaining financial stability and enhancing international cooperation will remain critical to sustaining long-term economic growth.

[Sources: International Monetary Fund – World Economic Outlook, April 2026: Global Economy in the Shadow of War]

INDIAN ECONOMIC OVERVIEW

India remained one of the fastest-growing major economies during FY 2025 26, with real GDP estimated to grow by 7.4%, supported by resilient domestic consumption, sustained investment activity and continued public capital expenditure. Growth was broad-based across sectors, reflecting improving economic momentum despite global uncertainties.

GDP Growth Trend

The Indian economy has demonstrated sustained resilience, supported by healthy domestic consumption, increasing government investment in infrastructure and a gradual recovery in private capital expenditure. Strong structural fundamentals continue to reinforce confidence in Indias long-term growth trajectory. Continued policy focus on infrastructure development, manufacturing, digitalisation and financial inclusion is expected to further strengthen economic activity and enhance investment opportunities across sectors. Supported by macroeconomic stability, ongoing reforms and rising formalisation of the economy, India remains well positioned to sustain broad-based and inclusive growth over the medium term.

Consumption & Investment

Private consumption continued to be the principal driver of economic growth, supported by stable employment, improving rural demand and rising disposable incomes. Investment activity remained strong, aided by sustained government infrastructure spending and improving private sector participation. The Government continued its emphasis on infrastructure-led growth through higher capital expenditure and measures to encourage private investment.

Inflation & Monetary Policy

Inflation moderated during FY 2025 26 owing to easing food prices and stable supply conditions, creating a supportive macroeconomic environment. This enabled monetary policy to gradually shift towards supporting growth while maintaining price stability. Although inflation risks remain linked to global commodity prices and geopolitical developments, the overall inflation trajectory has remained favourable for economic activity.

Fiscal Position

The Government continued its fiscal consolidation path while maintaining a strong focus on growth-oriented expenditure. Thefiscal with 4.4% in FY 2025 26 (Revised Estimate). Government debt is estimated at 55.6% of GDP, reflecting continued commitment towards fiscal prudence.

Union Budget 2026–27

The Union Budget 2026 27 reinforces infrastructure-led growth with capital expenditure of 12.2 lakh crore and total expenditure of 53.47 lakh crore. The Budget focuses on manufacturing, infrastructure, logistics, MSMEs, technology, semiconductor development and financial sector reforms while maintaining fiscal discipline. It also Infrastructure Risk Guarantee Fund to facilitate greater private investment in infrastructure projects.

[Source: Union Budget 2026–27 (Budget Speech)

MOSPI – First Advance Estimates of National Income 2025–26: MOSPI Press Releases PRS Budget Analysis 2026–27: PRS Budget Analysis]

INDIAN FINANCIAL SERVICES SECTOR

Indias financial services sector continued to exhibit resilience during FY 2025 26, supported by stable economic growth, improving macroeconomic indicators and rapid digital adoption. Growth in retail and commercial credit, healthy capitalisation of financial institutions and improving asset quality contributed to the sectors overall stability. Government initiatives aimed at promoting financial inclusion, strengthening digital payment infrastructure and expanding access to formal credit further enhanced the depth and reach of the financial ecosystem.

The continued expansion of digital infrastructure, including UPI, the Account Aggregator framework and digital lending platforms, has transformed the delivery of financial services by improving accessibility, operational efficiency and customer experience. In addition, policy measures announced in the Union Budget 2026 27 to strengthen capital markets, improve credit availability for MSMEs and promote infrastructure development are expected to provide sustained momentum to the financial sector.

OVERVIEW OF THE NBFC SECTOR

The Non-Banking Financial Company (“NBFCs”) sector continues to play a significant role in complementing the banking system by providing timely and customised credit solutions across retail, MSME and corporate segments. According to CRISIL Ratings, the aggregate Assets Under Management (“AUM”) of private NBFCs are expected to exceed 50 lakh crore in FY 2026 27 (excluding government-owned NBFCs), reflecting the sectors expanding scale and growing contribution to financial intermediation.

During FY 2025 26, the sector is estimated to have recorded credit growth of around 16.7% despite competitive pressures from banks in certain lending segments. The increasing adoption of technology, customer-centric product offerings and faster loan processing continue to strengthen the position of NBFCs in Indias credit ecosystem. Going forward, increasing formalisation of credit, digital transformation and rising demand for specialised financing solutions are expected to support the sectors long-term growth.

DIGITAL LENDING

Digital lending has emerged as one of the key growth drivers for the financial services industry by enabling faster customer on-boarding, paperless documentation and technology-enabled credit assessment. Advancements in e-KYC, API integrations, digital documentation and AI-driven underwriting have significantly improved loan processing efficiency and customer convenience.

The Reserve Bank of Indias digital lending framework has further strengthened transparency, governance and customer protection, encouraging responsible innovation across the lending ecosystem. Growing digital adoption across urban and semi-urban markets is expected to accelerate the expansion of technology-driven lending solutions.

SECURED LENDING AND CAPITAL MARKET FINANCING

Growing participation in Indias capital markets has led to increasing demand for secured lending products that allow investors and promoters to access liquidity without liquidating their investments. Products such as Loan Against Securities, Promoter Funding, Margin Funding and IPO Financing continue to witness steady demand owing to their flexibility, efficient capital utilisation and competitive financing structures.

The rising number of demat accounts, increasing investments in mutual funds and greater retail participation in equity markets are expected to support long-term growth in collateral-backed financing. Simultaneously, continued digitalisation of lending processes is improving turnaround time and enhancing customer experience across these specialised lending segments.

MSME FINANCING

The Micro, Small and Medium Enterprises (“MSME”) sector continues to be one of the key contributors to Indias economic development by promoting entrepreneurship, employment generation and industrial growth. With over 7.47 crore registered enterprises employing approximately 32.82 crore people, the sector contributes around 35.4% of manufacturing output, 48.58% of exports and nearly 31.1% of Indias GDP, as highlighted in the Union Budget 2026 27.

Continued policy support through digital lending initiatives, credit guarantee schemes, Udyam Registration and financial inclusion programmes has improved access to institutional finance for MSMEs. These developments present significant opportunities for NBFCs to expand customised financing solutions and support the evolving credit requirements of the sector.

[Source:

• Reserve Bank of India (RBI) – Financial Stability Report (June 2026), Report on Trend and Progress of Banking in India & Digital Lending Framework

• CRISIL Ratings – NBFC Sector Outlook FY2026–27 (AUM growth, credit growth and industry outlook)]

ABOUT COMFORT FINCAP LIMITED BUSINESS OVERVIEW

Comfort Fincap Limited (“CFL” or the “Company” or “We”) was incorporated on November 12, 1982 under the Companies Act, 1956 as Parasnath Textiles Limited in the State of West Bengal. The Company initially engaged in the textiles business before diversifying into investment and securities-related activities. In September 1998, it obtained registration from the Reserve Bank of India (“RBI”) as a Non-Banking Financial Company (“NBFC”), marking its strategic transition into the Financial Services sector. The Company was subsequently renamed Comfort Fincap Limited with effect from June 2011.

The Company is a non-deposit taking NBFC, registered with the RBI and classifiedas base layer. The Company provides a range of lending solutions, including Loan Against Securities, Promoter Funding, Consumer Durable Loans, Supply Chain Financing and Bill Discounting, catering to individuals, MSMEs, corporates and institutions. By offering flexible, transparent and timely financial solutions, the Company bridges the gap between traditional banking channels and evolving financing requirements.

Over the years, the Company has continued to strengthen its market presence through steady business growth and a focused lending strategy. A successful capital infusion during FY 2024-25 & 2025-26 further enhanced its financial strength, enabling expansion of its lending portfolio and supporting its long-term growth objectives.

PRODUCTS & SERVICES

The Company continued to strengthen its lending businessbyexpandingitsrangeoffinancialproducts to meet the changing needs of its customers. Post the financial year, the Company introduced a new lending product, further enhancing its product portfolio and broadening its customer reach. This reflects the Companys delivering relevant and flexible financial solutions, while strengthening its retail market penetration and supporting sustainable long-term growth.

Our offerings are now designed to address both Short-Term and Long-Term financing requirements, ranging from working capital support and business loans to specialized lending solutions tailored to diverse customer needs. By combining flexibility, customer-centricity and a strong understanding of market dynamics, we strive to be a trusted financial partner in supporting our clients growth and business aspirations. The key offerings include:

Loan Against Securities

The Company also offers Loan Against Securities (LAS), enabling customers to unlock liquidity against their investment portfolios without having to liquidate their investments. The product is structured around two core offerings, Loan Against Shares and Loan Against Mutual Funds, covering a broad universe of approved securities across Main Board and SME listed scrips, as well as eligible mutual fund schemes, categorised based on risk and eligibility.

Going forward, the Company is adopting a dual channel strategy, supported by increased digitization and technology enabled processes, to expand the reach and accessibility of its LAS offering. The DIY/Retail channel is designed for individual investors seeking smaller ticket, self service credit lines, supported by quick and seamless digital on boarding. The Assisted On boarding (AOB) channel caters to larger ticket requirements through a network of DSAs, IFAs and NBFC partners, enabling the Company to serve corporates and high net worth customers with larger securities backed credit requirements.

Promoter Funding

The Company offers Promoter Funding solutions to promoters of eligible companies, enabling them to raise funds by pledging their equity shareholding without diluting ownership or management control. This facility provides timely access to capital while allowing promoters to continue participating in the future growth and value appreciation of their businesses.

Promoter Funding is designed to support a wide range of business requirements, including business expansion, working capital, acquisitions, refinancing and other strategic funding needs. Leveraging its expertise in the capital markets, the Company offers customised financing solutions supported by prudent risk assessment and a structured credit evaluation process.

The Company offers Consumer Durable Loans to enable customers to purchase essential consumer products, through convenient financing solutions. The facility is designed to provide timely access to credit, allowing customers to meet their purchase requirements without placing an immediate burden on their finances.

The product features a simplified application process, minimal documentation and flexible repayment options, making credit more accessible and convenient. By offering quick loan processing and affordable repayment structures, the Company aims to support customers in fulfilling their consumer financing needs while promoting responsible credit access.

Mobile Financing

During the year, the Company launched its Digital Consumer Durable Loan (Mobile Financing), strengthening its digital lending portfolio and offering customers a seamless financing experience through simplified documentation, instant credit assessment and quick loan approvals.

Going forward, the Company aims to expand the offering beyond mobile phones to include laptops, tablets and wearable devices, while strengthening its presence through partnerships with online marketplaces and organised retail chains. Supported by a

Supply Chain Financing

The Company offers Supply Chain Financing (“SCF”) solutions to support the working capital requirements of businesses by improving liquidity across the supply chain. The facility is designed to benefit both buyers and suppliers by facilitating timely access to finance, enabling suppliers to receive early payments while allowing buyers to optimise their working capital cycle through extended payment terms. This helps strengthen business relationships, improve cash flow management and enhance overall supply chain efficiency.

Under its Supply Chain Financing portfolio, the

Company offers Bill Discounting:

The Companys Bill Discounting facility enables businesses to unlock the value of their trade receivables by obtaining funds against eligible invoices before their due date. This provides immediate liquidity to support day-to-day operations, supplier payments and business expansion without waiting for customer payments.

“The Companys Supply Chain Financing solutions facilitate efficient cash flow management, enabling businesses to maintain operational continuity and build resilient supply chain partnerships.”

Technology-Enabled Lending Platform

The Company continues to strengthen its digital capabilities to deliver a faster, simpler and more efficient lending experience across the customer lifecycle. By leveraging technology-driven processes, the Company aims to enhance operational efficiency, improve credit evaluation and provide customers with seamless access to its lending solutions.

The Companys technology platform supports key stages of the lending process, including customer acquisition, digital onboarding, credit underwriting, loan sanctioning, disbursement and servicing.

The lending journey is supported by API-based integrations for KYC and Video KYC verification, PAN authentication, banking and credit bureau checks, GST and Udyam verification, automated rule-based credit assessment, e-NACH mandate registration and digital fund disbursement, enabling a streamlined and largely paperless customer experience.

The Companys operating model is built around real-time processing, enabling faster loan approvals and disbursements while maintaining robust credit and compliance standards. Advanced credit evaluation models, automated decision-making workflows and digital customer servicing help improve turnaround times, enhance customer convenience and support the Companys scalable and technology-driven growth strategy.

Swot Analysis

The Companys business is influenced by evolving market conditions, changing customer needs and developments in the financial services sector. A continuous focus on prudent lending, operational efficiency and customer-centric solutions has supported its growth and resilience.

The following SWOT analysis outlines the key internal strengths and weaknesses, along with the external opportunities and threats that may influence the Companys future performance and strategic direction.

Strengths

Well-Balanced Lending Portfolio

The Company offers a wide range of lending solutions across secured and specialised credit segments, enabling it to cater to the financing needs of individuals, MSMEs, corporate and institutional clients. This diversified product portfolio supports balanced business growth and reduces dependence on a single line of business.

Digital-First Business Model

The Company continues to invest in digital processes to simplify customer on-boarding, strengthen credit assessment and improve operational efficiency. These initiatives support faster loan processing and enhance the overall customer experience.

Robust Risk Governance

A disciplined credit appraisal process, supported by prudent underwriting standards and collateral-based lending, enables the Company to effectively manage credit risk and maintain the quality of its lending portfolio.

Flexible Customer Solutions

By offering customised financing structures and responsive service delivery, the Company is able to address diverse customer requirements and foster long-term business relationships across multiple segments.

Strong Industry Experience

The Companys experienced leadership team and understanding of financial markets enable it to respond effectively to evolving industry trends, identify growth opportunities and execute its business strategy with discipline.

Weakness

Dependence on External Funding

As an NBFC, the Companys lending operations are dependent on the availability of funds from banks, financial institutions and capital markets. Changes in funding availability or borrowing costs may influence business growth and profitability.

Limited Scale Compared to Larger Peers

The Company operates in a highly competitive industry alongside larger banks and established NBFCs with wider distribution networks and greater financial resources. This may impact the Companys ability to scale operations at the same pace as larger market participants.

Sensitivity to Capital Market Movements

The Companys secured lending portfolio includes loans backed by financial securities. Significant fluctuations in market prices may affect collateral values and require timely monitoring and appropriate risk mitigation measures.

Opportunities

Expansion of Digital Lending Solutions

The introduction of digital lending products and technology-enabled customer journeys provides significant opportunities to improve operational efficiency, expand customer reach and strengthen the Companys digital presence.

Increasing Demand for Structured Credit

Growing demand for specialised financing solutions among individuals, MSMEs and businesses presents opportunities to expand the Companys product offerings and lending portfolio.

Untapped Growth Markets

The Company sees significant potential to strengthen its presence in Tier II and Tier III cities, where increasing financial awareness and digital adoption are driving demand for organised credit solutions.

Product Diversification

The continuous introduction of innovative lending products and value-added financing solutions provides opportunities to deepen customer relationships, diversify income streams and strengthen market positioning.

Threats

Regulatory Developments

Changes in the regulatory framework governing NBFCs may impact business operations, compliance requirements and product offerings, requiring timely adaptation to evolving regulations.

Economic Uncertainty

Macroeconomic factors such as inflation, interest rate movements and slower economic growth may influence credit demand, repayment behaviour and overall business performance.

Financial Market Volatility

Volatility in equity and debt markets may affect the value of securities offered as collateral, necessitating proactive portfolio monitoring and effective risk mitigation measures.

Competitive Pressure

Increasing competition from traditional banks, fintech startups, and global financial players can erode market share, compress margins, and impact overall profitability.

Financial Performance

The summary of Audited Financial Performance (Standalone and Consolidated) of the Company, for the financial year ended March 31, 2026 is summarized as under:

(Rs. in Lakh, Except EPS)

	STANDALONE		CONSOLIDATED
PARTICULARS	2025-2026	2024-2025	2025-2026	2024-2025
Revenue from Operations	1610.75	1331.09	1610.75	1331.09
Other Income	4.99	-18.27	4.99	-18.27
Total Revenue	1615.74	1312.82	1615.74	1312.82
Less: Total Expenditure	632.99	624.62	632.99	624.62
Profit before Tax	982.75	688.20	982.75	688.20
Less: Current Tax Expenses	264.15	217.92	264.15	217.92
Less: Deferred Tax	-31.02	-23.66	-31.02	-23.66
Less: Tax of earlier years	0.62	-15.91	0.62	-15.91
Profit for the year	749.00	509.85	749.00	509.85
Earnings Per Share (EPS)* - Basic	0.86	0.85	0.86	0.85
Earnings Per Share (EPS)* - Diluted	0.86	0.82	0.86	0.82

During the year under review, the Companys total revenue from operations on standalone basis has been increased to Rs. 1,610.75 lakh as compared to Rs. 1,331.09 lakh in the previous financial year. The net profit changed to Rs. 749.00 lakh as compared to Rs. 509.85 lakh in the previous financial year.

The Companys total revenue from operations on consolidated basis has been increased to Rs. 1,610.75 lakh as compared to Rs. 1,331.09 lakh in the previous financial year. The net profit changed to Rs. 749.00 lakh as compared to Rs. 509.85 lakh in the previous financial year.

“The management remains focused on enhancing the companys revenue by actively identifying and pursuing new lending and investment opportunities, expanding product offerings, deepening customer reach particularly in underserved segments and leveraging technology to drive operational efficiency and sustainable ” growth.

Internal Control System and Its Adequacy

The Company has established an adequate internal control framework commensurate with the nature, size and complexity of its business. The internal control systems are designed to safeguard the Companys assets, ensure the accuracy and reliability of financial reporting, promote operational efficiency laws, regulations and internal policies. The framework also facilitates effective risk management and supports sound corporate governance practices.

The internal audit function is carried out by M/s. AHSP & Co. LLP, Chartered Accountants, Internal Auditors of the Company. The Internal Auditors conduct periodic reviews of key business processes and internal financial risk-oriented audit plan. Their observations and recommendations are placed before the Audit Committee, which periodically reviews the adequacy and effectiveness of the internal control systems and monitors the implementation of corrective actions, wherever required.

The Company has established well-defined policies, standard operating procedures and delegated authority levels to strengthen its internal control environment. With the continued expansion of its digital lending operations, the Company has enhanced controls over digital on-boarding, credit evaluation and loan processing to ensure secure and efficient operations. It also maintains a robust compliance framework in line with the requirements of the RBI, the Securities and Exchange Board of India (“SEBI”) and other applicable regulatory authorities.

The Company remains committed to continuously strengthening its internal control and compliance framework through periodic reviews, process improvements and the adoption of appropriate technology. These initiatives support effective governance, enhance operational resilience and provide a strong foundation for sustainable business growth.

Human Resources (HR)

The Company recognises that its employees are integral to its long-term growth and business success. It remains committed to building a capable, motivated and future-ready workforce that supports its evolving business objectives and customer-centric approach. As the Company continues to strengthen its lending portfolio and digital capabilities, emphasis is placed on developing a workforce that is adaptable, performance-driven and aligned with the Companys values. As on March 31, 2026, the Company had 13 employees on its payroll.

The Company fosters a work environment founded on collaboration, integrity, mutual respect and continuous learning. Its human resource practices focus on attracting and retaining competent professionals, enhancing employee capabilities and creating opportunities for career progression. Regular learning and development initiatives are undertaken to equip employees with the necessary technical, regulatory and functional knowledge, enabling them to effectively respond to the changing business environment and evolving customer expectations.

“Empowered people create enduring value, driving sustainable growth through knowledge, commitment and innovation.”

The Company believes that a culture of accountability and meritocracy is essential for sustained success. Its performance management framework encourages excellence by recognising individual contributions, promoting innovation and aligning employee objectives with the Companys strategic priorities. The Nomination and Remuneration Committee periodically reviews remuneration policies, leadership development and succession planning for senior management to ensure the continued availability of capable leadership and alignment with the Companys long-term vision.

The Company is committed to providing a safe, inclusive and equitable workplace where employees are treated with dignity and respect. Equal opportunities are provided without discrimination, and ethical conduct, transparency and teamwork continue to form the foundation of the organisational culture. The Company also remains focused on employee well-being by fostering an open work environment that encourages communication, engagement and collaboration across all levels of the organisation.

The Company continued to comply with all applicable labour laws and employment-related regulations and maintains cordial industrial relations across the organisation. During the year under review, no material disputes affecting the operations of the Company were reported.

Risks & Concerns

Risk management forms an integral part of the Companys governance framework and business strategy. As an NBFC, the Company operates in an environment influenced by economic conditions, regulatory developments, capital market movements and technological advancements. The Company follows a structured risk management framework to identify, assess, monitor and mitigate risks while maintaining financial stability and supporting sustainable business growth.

The Board of Directors, through the Risk Management Committee, oversees the Companys risk management framework and periodically reviews the key risks affecting the business. The Committee is responsible for reviewing the

Companys risk management policy, monitoring the effectiveness of risk mitigation measures, evaluating emerging risks and recommending appropriate actions to strengthen the overall risk management framework.

The Companys risk management framework encompasses the following key areas:

Credit Risk: Managed through prudent credit appraisal, borrower evaluation, collateral assessment and continuous monitoring of the lending portfolio.

Liquidity and Market Risk: Managed through regular monitoring of liquidity positions, funding requirements and exposure to changes in interest rates and capital market conditions.

Operational Risk: Mitigated through well-defined internal controls, standard operating procedures, periodic internal audits and continuous process improvements.

Regulatory and Compliance Risk: Managed through a robust compliance framework to ensure adherence to the requirements prescribed by the RBI, the SEBI and other applicable regulatory authorities.

Technology and Information Security Risk: As the Company expands its digital lending initiatives, it continues to strengthen technology infrastructure, information security practices and digital controls to support secure and efficient business operations.

To address these challenges, the Company has instituted a comprehensive Risk Management Framework that encompasses:

Risk Identification: Systematic recognition of potential internal and external risks that could affect the achievement of business objectives;

Risk Assessment: Evaluating the probability and potential impact of identified risks;

Risk Mitigation: Developing strategic and operational measures to minimize the likelihood or consequences of risks;

Monitoring & Reporting: Continuously measuring the effectiveness of implemented controls and safeguards, and updating them in response to changes in the business or regulatory environment.

Future Outlook and Strategies

Indias financial services sector continues tooffersignificantgrowth opportunities, supported by increasing credit demand, rapid digital adoption, favourable demographics and continued policy initiatives aimed at enhancing financial inclusion. As an NBFC, the Company remains well positioned to capitalise on these opportunities by leveraging its customer-centric approach, diversified lending portfolio and disciplined risk management framework.

Looking ahead, the Company intends to strengthen its presence across existing and emerging lending segments while continuing to diversify its product portfolio. Particular emphasis will be placed on scaling its digital lending initiatives, including Digital Consumer Durable Loans and Digital Loan Against Shares and Mutual Funds, with the objective of enhancing customer convenience, improving operational efficiency and expanding its market reach. The Company also plans to strengthen its presence in Tier II and Tier III markets through technology-enabled distribution channels and strategic business partnerships.

The Company will continue to focus on maintaining high standards of credit quality through prudent underwriting, effective risk management and robust internal controls. Investments in technology, process automation and digital infrastructure are expected to support faster customer on-boarding, streamlined loan processing and improved service delivery, while strengthening operational resilience.

Going forward, the Company remains committed to creating sustainable value by maintaining financial discipline, enhancing customer relationships, introducing innovative financial solutions and adapting to the evolving regulatory and business environment. With a strong governance framework and a clear strategic direction, the Company is confident of pursuing long-term, sustainable growth while delivering value to its stakeholders.

Disclosure of Accounting Treatment

The Company has complied with the prescribed accounting treatment while preparation of financial statements as per Indian Accounting Standard (Ind AS), thus no disclosure is required to be made thereunder.

Cautionary Statement

This Management Discussion and Analysis contains certain statements relating to the Companys future business prospects, objectives, estimates, expectations and projections that may constitute “forward-looking statements” within the meaning of applicable laws and regulations. These statements are based on assumptions and expectations that the Company believes to be reasonable at the time of preparation. However, actual results may differ materially due to various factors, including changes in economic conditions, regulatory developments, interest rate movements, market conditions, government policies, taxation, geopolitical events, natural calamities, pandemics and other risks beyond the Companys control.

The financial statements have been prepared in accordance with the applicable accounting standards and statutory requirements, based on prudent estimates and judgements of the management. Readers are advised to read this Management Discussion and Analysis together with the Audited Financial Statements and the notes forming part of the Annual Report. The Company undertakes no obligation to publicly revise or update any forward-looking statements to reflect subsequent events or circumstances, except as required under applicable laws.