Easy Fincorp Ltd Management Discussions

Industry Structure and Developments

During FY 2025-26, the Indian economy demonstrated resilience despite persistent global uncertainties arising from geopolitical tensions, inflationary pressures, and fluctuating interest rate scenarios. The domestic financial sector continued to witness steady regulatory reforms aimed at enhancing transparency, governance, and investor protection.

The investment environment remained cautious, with volatility in the equity markets impacting the valuation of financial assets. While fixed income instruments continued to provide relatively stable returns, market-linked investments experienced fluctuations in fair value.

Opportunities and Threats:

The Indian financial sector continues to offer long-term opportunities supported by economic growth, increasing financial inclusion and continued regulatory reforms. However, volatility in capital markets, changing interest rate cycles, inflationary pressures and evolving regulatory requirements continue to pose challenges. The Company continues to adopt a cautious investment approach with emphasis on capital preservation, liquidity and compliance with applicable regulatory requirements.

Business Segment Analysis:

During the year under review, the Company continued to carry on investment activities and derived its income primarily from interest on fixed deposits and other investment-related income. The Company operates in a single business segment, namely investment activities, and operates entirely within India. Accordingly, there are no separate reportable geographical segments.

Outlook:

Management will continue to focus on preserving capital, maintaining adequate liquidity and generating sustainable returns while complying with all applicable regulatory requirements.

Risk Management:

The Company has established an appropriate risk management framework commensurate with the size and nature of its business. The Board of Directors periodically reviews the risks associated with the Companys operations, investments, and regulatory compliance and takes appropriate measures to mitigate such risks. In the opinion of the Board, there are no risks that may threaten the existence of the Company.

Internal Control Systems and Their Adequacy:

The Company has an adequate system of Internal Financial Controls commensurate with the size and nature of its operations. The Internal Audit function is carried out by an independent firm of Chartered Accountants, and the scope of internal audit is approved by the Audit Committee. The Internal Auditor regularly evaluates the effectiveness and adequacy of internal controls, accounting systems, operational procedures and statutory compliance.

The Audit Committee reviews the internal audit findings and monitors implementation of corrective actions, wherever required. The Statutory Auditors have expressed an unmodified opinion on the adequacy and operating effectiveness of the Companys Internal Financial Controls over Financial Reporting and have reported that such controls were adequate and operating effectively in all material respects.

Human Resources / Industrial Relations:

The Company recognises its employees as an important part of its operations and remains committed to maintaining a professional, inclusive and conducive work environment. During the year under review, there were no material developments in relation to Human Resources. The Company continued to focus on a work environment characterised by professional integrity, meritocracy, mutual respect, continuous learning and robust regulatory compliance.

Analytical Ratios:

The details of significant financial ratios together with explanations for material changes are provided in Note No. 22 to the Financial Statements forming part of the Annual Report.

Return on Net Worth:

The Return on Net Worth (Return on Equity) of the Company stood at -72.12% for FY 2025-26 as compared to -43.92% for FY 2024-25, due to continuing loss during the year.

Demat Suspense Account / Unclaimed Suspense Account:

The Company does not have any shares lying in the Demat Suspense Account or Unclaimed Suspense Account. Accordingly, the disclosure under Part F of Schedule V of the SEBI Listing Regulations is not applicable to the Company for the financial year ended 31^st March, 2026.

	On Behalf of the Board of Directors
Place: Kolkata	Easy Fincorp Limited
Date: 18th May, 2026	Sd/-	Sd/-
	Rajendra Dey	AtuI Lakhotia
	Director	Director
	DIN:07011234	DIN:00442901