Easy Fincorp Ltd Management Discussions

• Industry Structure and Developments

During FY 2024-25, the Indian investment landscape was marked by market volatility, influenced by global economic uncertainty, fluctuating interest rates, and geopolitical developments. While overall investor sentiment remained cautious, select opportunities emerged in fixed-income securities and structured investments, driven by stable domestic growth and improved regulatory clarity.

The investment sector continued to experience increased oversight with emphasis on transparency, compliance, and risk management. Companies engaged in leasing, hire-purchase, and financial intermediation adopted a prudent and selective approach to capital deployment, prioritizing liquidity and portfolio stability.

• OPPORTUNITIES AND THREATS:

The investment environment in India continues to offer selective opportunities, supported by stable domestic economic growth and a favorable regulatory landscape. The adoption of digital tools also presents an opportunity to enhance operational efficiency and risk management. The rising burden of regulatory compliance and a low-yield environment further add to the operational pressures, potentially affecting profitability in the absence of significant investment activity. The Company remains focused on navigating these challenges through prudent financial management and a cautious approach to capital deployment.

• BUSINESS SEGMENT ANALYSIS:

During the period under review, the Companys activities were mainly restricted to investing its surplus funds in fixed deposits and securities. The Company is engaged in a single business segment & is operating within a single geographical area in India.

• OUTLOOK:

Your Company is engaged in investment activities and other financial services during the year under review. The Company carries shares and securities in its books. Any change in the fair value of financial instruments is adjusted/reflected in other Comprehensive Income.

• RISK MANAGEMENT:

Considering the size and operations of the Company, the Board of Directors, as a policy, review continuously the element of risk, which in their opinion, may threaten the existence of the Company. The Board also takes steps to minimize the risks, if any perceived by them.

• INTERNAL FINANCIAL CONTROLS:

The Company has an adequate Internal Control System, commensurate with the size, scale and complexity of its operations. The scope of the Internal Audit function is well defined in the engagement letter of the internal auditor duly approved by the Audit Committee. To maintain its objectivity and Independence, the Internal Auditor reports to the Audit Committee. The Internal Auditor evaluates the adequacy of the internal control system in the Company based on the statement of operation procedure, instruction manuals, accounting policy, and procedure.

• Discussion on financial performance with respect to operational performance:

T otal Income	The total income of the Company has decreased in comparison to the previous year due decline in the interest income earned on the fixed deposit.
Operating Expenses	Operating & Administrative expenses have marginally decreased in comparison to the previous year.
Operating Loss	Due to a decrease in operating expenses, the operating losses declined during the year by 5.90% from the previous year.
Net Loss	Net Loss of the Company has declined during the year due to a decline in operating expenses.

• Human Resources:

We believe that our people are our most valuable asset, and our Human Resources function is dedicated to fostering employee engagement, building capabilities, nurturing talent, and supporting continuous training and individual development. The Company remains committed to creating a workplace where every individual is treated with respect and dignity, and to cultivating a professional environment that empowers employees to perform at their best.

• ANALYTICAL RATIOS:

All the financial ratios have been provided in Note No. 21 of the Financial Statement & page no. 60 of this Annual Report.