Everlon Financials Ltd Management Discussions

Overview:

Our Company is a Non Deposit-taking Non-Banking Financial Company (NBFC).. This Management Discussion and Analysis Report has to be read in conjunction with the Companys financial statements, The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and as per Indian Accounting Standards (Ind AS) and as per the directions issued by Reserve Bank of India for Non Banking Financial Companies from time to time, wherever applicable. The financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present the Companys state of affairs and profits for the year. The following discussion may include forward looking statements which may involve risks and uncertainties inherent to Companys growth strategy, change in regulatory norms etc..

A. Industry Outlook:-

There are multiple challenges emanating from elevated inflation, tight monetary and financial conditions, escalating geopolitical tensions, rising geo-economics fragmentation, high public debt burdens and financial stability risks.

Amidst global challenges, The Indian economy exhibited robust growth in 2024-25, underpinned by strong investment activity. Manufacturing and services sectors were the key drivers on the supply side. The growth outlook remains buoyant, given the governments sustained focus on capital expenditure while maintaining fiscal consolidation. The Indian economy boasted an impressive growth rate of about 7.5% in the FY 2024-25.

NBFCs will play a larger role in supporting the socio economic structure of the Indian economy. The opportunity for credit penetration remains very high in India. The NBFCs can set a new benchmark by tying up with fintechs and introducing new business models with personalized offerings. NBFCs cater to a variety of sectors including renewable energy, vehicles, home, and MSMEs etc.

RBI has been continually strengthening the supervisory framework for NBFCs in order to ensure sound and healthy functioning and avoid excessive risk taking.

The uncertainties and volatility in the financial market are a continuing threat to the organizations performance.

The future of NBFCs in India looks promising, with expected growth driven by various factors like digital transformation, innovative products, and a robust regulatory framework. The sector is expected to grow at a CAGR of about 15 % every year.

C. Segment:-

The company is a non deposit-taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. EFL is engaged in the business of funding Solar plants, investment activities, and now proposes to provide loans or advances to the MSME sector.

D. Risk and Concerns:-

NBFC and its efficient working is not as easy as it seems. Despite the opportunities provided to the NBFCs, they face a lot of challenges. NBFC have been facing a lot of problems such as Refinancing etc. absence of statutory tools for recovery of loans, and intense competition from banks etc.

E. Internal Control Systems:-

The Company believes in the system of internal controls and has provided for proper checks and control at various operational levels.

Internal checks and controls covering operations of the Company are in place and are constantly being improved upon. The company has well defined procedures to execute financial transactions. Internal audit is being conducted by an independent firm of Chartered Accountants. Presently the Internal Control System is commensurate to the size and operations of the company.