Credent Global Finance Ltd Management Discussions

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find Management Discussion and Analysis Report forming part of Annual Report.

1. Industry Structure & Developments

The long-term fundamentals of Indian economy continue to be strong due to rising incomes and large investments these growth drivers are expected to sustain over a long period. At the same time, there are some concerns due to uncertain global economic environment and slow recovery in developed markets.

NBFCs are integral part of the countrys financial system complementing the services of commercial banks. The main reason attributed to the growth of NBFCs is the comprehensive revaluation of the banking system. Other factors include high level of customer orientation, lesser pre/post sanctions requirements and higher rates of interest on deposits being offered by NBFCs.

Non-Banking Financial Companies (NBFCs) have emerged as the primary source of financing for a vast section of the population including small and medium-scale enterprises as well as the economically unserved and underserved individuals. They have been able to meet the diverse requirements of borrowers in the most efficient and timely approach considering their wide geographic reach, comprehension of the numerous financial needs of people, and extremely swift turnarounds.

Therefore, non-bank lenders have contributed significantly to the cause of financial inclusion in this process and have also been a key component in fostering the expansion of millions of MSMEs and self-employed people. In addition to the growing role played by non-bank lenders in the consumer financing industry, the expansion of a few key economic sectors, including housing, consumer goods, and transportation, has been boosted. Non-Banking Financial Companies (NBFCs) have contributed towards the development of the countrys infrastructure. The availability of long-term funding by non-bank lenders has helped in the financial closure and growth of many large- scale infrastructural projects. Non-Banking Financial Companies (NBFCs) have played a crucial role in fostering credit expansion across a range of industries, including microfinance loans, personal loans, and auto finance loans.

NBFCs have become increasingly important in recent years as they have played a critical role in providing credit to individuals and businesses that are underserved by traditional banks. This is especially true in rural and semiurban areas, where NBFCs have been able to fill the gap left by banks. One of the key advantages of NBFCs is their ability to be flexible in their lending practices. Unlike banks, which have a rigid set of guidelines for lending, NBFCs can tailor their lending practices to meet the specific needs of their clients. This has made them an attractive option for those who are looking for more personalised financial services. They are financial institutions that provide a wide range of banking services like loans, credit facilities, investments, and other financial products. NBFCs have played a significant role in the Indian economys growth story, especially in the rural and semi-urban areas. They cater to the financial needs of small and medium-sized businesses, entrepreneurs, farmers, and individuals who do not have access to traditional banking services.

In October 2023, the RBI introduced the Scale-Based Regulation (SBR) Directions, marking a pivotal shift in the regulatory landscape for NBFCs. This new framework consolidates various existing regulations into a more streamlined structure, replacing the previous classification of systemically important NBFCs, which was based on an asset threshold of INR 500 Crores. Under the new regulations, NBFCs are categorized into different layers according to their asset size, scale of activity, and risk profile. This approach ensures that regulatory requirements are tailored to the size and complexity of each NBFCs operations, with the top 15 NBFCs now required to list on stock exchanges to enhance transparency and governance.

Given the increasing importance of NBFCs, the RBI, in the last few years, has increased its regulatory oversight over the sector. Multiple guidelines such as (i) vigil over asset-liability management practices, (ii) maintaining liquidity ratios, (iii) increased reporting requirements, and (iv) scale-based regulation, have led to NBFCs adopting practices in line with banks. The regulatory vigil is based on four key cornerstones of: (i) responsible financial innovation, (ii) accountable conduct, (iii) responsible governance, and (iv) centrality of the customer.

2. Opportunities and Threats OPPORTUNITIES

• The players in the NBFC sector still have a lot of scope to cover large market and rural markets are still untapped.

• With the increased desire of individuals to improve their standard of living the NBFC industry is getting to new category of client (individuals) in a big way with large share of business coming from this segment part from corporate clients.

• Increase in Income levels will aid greater penetration of financial products.

• Positive regulatory reforms

• Increase in corporate growth & risk appetite.

• Greater efficiency in debt market operations which will also help greater penetration.

• Increased securitization

• Focus on selling new product/services

THREATS

• If the economic downturn in prolonged it can reduce the financing need of people due to shrinking business opportunities.

• Private banks are also working on the similar business model as the NBFCs do thereby giving a very strong competitions to the NBFCs

• RBI and government restrictions: with more stringent norms governing the functioning of NBFC and certain government restrictions act as a hindrance in smooth functioning of NBFC.

• Inflation could trigger increase in consumer price inflation, which would dampen growth

• Increased competition in both local & overseas markets

• Unfavorable economic development

• Market risk arising from changes in the value of financial instruments as a result of changes in market variables like interest rate and exchange rates.

3. Segment-wise/ Product-wise Performance

Segment reporting is not applicable to the Company. Company is engaged in the business of granting loans and making investments.

The total turnover of the company from its operation for the year under review is INR 9,81,20,000/- thus thereby registering a growth of 29.11% (approx) from last year. i.e., 2023-24.

4. Risks and Concerns

As an NBFC, Credent Global Finance Limited exposed to credit risk, liquidity risk and interest rate risk. The Company has invested in people, processes and technology to mitigate risks posed by external environment and by its borrowers. To mitigate these risks, Company has diversified its revenue steam across multiple verticals. Your Companys risk management system is a comprehensive and integrated framework comprising structured reporting and stringent controls. Through its approach, it strives to identify opportunities that enhance organizational values while managing or mitigating risks that can adversely impact the companys future performance. Within the

organization, every decision taken after weighting the pros and cons of such a decision-making takes note of the risk attributable.

The Company continues to have a conservative provisioning policy which is significantly more stringent than the RBI norms.

5. Internal Control Systems and Their Adequacy

The Companys well defined organization structure, documented policy guidelines, predefined authority levels, and an extensive system of internal controls ensure optimal utilization and protection of resources, IT security, accurate reporting of financial transactions and compliance with applicable laws and regulations. The Internal Control systems are guided to ensure that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are authorized, recorded, and reported correctly. The Company has an exhaustive budgetary control system. Actual performance is reviewed with reference to the budget by the management on an ongoing basis. The Companys internal auditors review business processes and controls. The Audit Committee of the Board then discusses significant findings and corrective measures initiated.

6. Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of your Company are reflected in the Balance Sheet, Profit & Loss Account and other Financial Statements, appearing separately. Highlights are provided below:

Particulars	Standalone		Consolidated
	2025	2024	2025	2024
Revenue from Operations	981.20	695.60	1465.37	1237.00
Other Income	21.67	0.13	349.33	40.29
Total Income	1002.88	695.73	1814.70	1277.29
Profit/(Loss) Before Tax	287.47	309..97	(610.95)	14.40

The financial performance of your Company has been further explained in the Directors Report of your Company for the year 2025, appearing separately.

7. Economic Outlook

The long-term fundamentals of the Indian economy continue to be strong due to rising incomes and large investments. These growth drivers are expected to sustain over a long period of time. At the same time, there are some concerns due to uncertain global economic environment and slow recovery in developed markets.

8. Human Resources

The Company keeps developing its organizational structure consistently over time efforts are made to follow excellent Human Resource practices. Adequate efforts of the staff and management personnel are directed on

imparting continuous training to improve the management practices. The objective of your company is to create a workplace where every person can achieve his or her potential. The employees are encouraged to put in their best. Lots of hard work is put in to ensure that new and innovative ideas are given due consideration to achieve the short and long term objectives of your company. As on 31^st March, 2025, the Company had 15 employees.

The employees are satisfied and having good relationship with management.

9. Significant Changes in Financial Ratios

During the year, the significant changes in the financial ratios of the Company as summarized below:

Financial Ratios	FY 2024-25	FY 2023-24	Change in %	Reason for Change
Debtors turnover Ratio	14.77	51.11	13.61%	Increased due to %age of increase in turnover is more than %age of increase in trade recievable.
Inventory Turnover (RM)	Not Applicable	Not Applicable	-	-
Interest Coverage Ratio	2.71	4.35	37.67%	Decreased due to increase in finance cost.
Current Ratio	2.15	1.59	35%	Decreased due to decrease in current assets.
Debt Equity Ratio	0.19	0.18	6%	Increased due to borrowing taken.
Operating Profit Margin (%)	46.44	57.87	19.77%	Decreased, due to %age of increase in EBIT lesser than %age of increase in revenue from operations.
Net Profit Margin (%)	22.07	30.53	-28%	Decreased due to % of increase in revenue from operations is more than % of increase in profit
Return on Networth (%)	3.31	3.36	1.41%	Decreased due to %age of increase in networth is more than %age of increase in PAT.

10. Cautionary Statement

Certain statements in the Management Discussion and Analysis describing your Companys views about the industry, expectations/predictions, objectives etc. may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied in these statements. Your Companys operations may, inter-alia, be affected by the supply and demand situations, input prices and availability, changes in Government regulations, tax laws, government or court decisions and other factors such as industry relations and economic developments etc. Investors should bear this in mind when considering the above statements.

For and Behalf of Board Credent Global Finance Limited
Aditya Vikram Kanoria	Mohit K Chheda
Managing Director	Director
DIN: 07002410	DIN: 06594845
Dated: 13.08.2025 Place: Mumbai