Focus Business Solution Ltd Management Discussions

MANAGEMENT DISCUSSION & ANALYSIS REPORT

Your directors take pleasure in presenting the Management Discussion and Analysis Report for the year ended March 31, 2026.

STRUCTURE OF THE INDUSTRY, DEVELOPMENTS AND SWOT ANALYSIS:

Company Overview and Structural Framework Corporate Structure

Focus Business Solution Limited, a public limited company listed on the SME Platform of BSE since July 13, 2021, was originally incorporated as Focus Business Solution Private Limited on November 10, 2006, in Gujarat. The Company transitioned to its current status as a listed entity in line with its vision of expanding operational capabilities and enhancing governance standards.

Under the continued guidance and leadership of its founders, Mr. Mohamedamin Mohammad Nathani and Mr. Mohamedyaseen Muhammadbhai Nathani, the Company has grown steadily over the past two decades, establishing a strong foothold in the debt collection industry. Their strategic direction, combined with the support of an experienced senior management team, has enabled the Company to achieve several milestones in collections and client servicing.

With over 20 years of experience in the debt recovery domain, Focus Business Solution Limited is now on a trajectory to achieve its long-term vision of PAN India coverage, catering to leading banks, NBFCs, and financial institutions across multiple regions.

Operational Structure

Focus Business Solution Limited provides end-to-end debt collection and recovery solutions through a multi-channel delivery model. The Companys operational framework is designed to address the requirements of financial institutions while maintaining efficiency, regulatory compliance, data confidentiality and sensitivity towards customers.

The Companys service portfolio includes:

• Tele-calling and contact centre-based collection services;

• Field visits and field collection services;

• IVR-based collection solutions;

• Voice blast services;

• E-mail blast and digital communication services;

• Field investigation and verification services; and

• Legal and other allied recovery services.

These services are supported by technology-enabled processes and integrated operational systems aimed at improving productivity, monitoring collection activities and providing timely reporting to clients.

Compliance and Governance Mechanism

The Company recognizes compliance, ethical conduct and customer sensitivity as essential elements of sustainable operations. The Company follows applicable regulatory requirements, including the guidelines and directions issued by the Reserve Bank of India ("RBI"), together with the contractual requirements and codes of conduct prescribed by its ₍ banking and financial institution clients.

The Company has established Standard Operating Procedures ("SOPs") covering collection processes, employee and collection-agent conduct, documentation, customer interaction, confidentiality and reporting.

The Companys internal control and monitoring framework is supported by periodic internal audits and operational reviews. Employees and collection personnel are provided regular training and guidance with respect to:

• Code of Conduct;

• Fair Practices Code;

• Applicable RBI guidelines and regulatory requirements;

• Client-specific protocols;

• Data protection and confidentiality requirements; and

• Appropriate and respectful customer communication practices.

The Company remains committed to continuously strengthening its compliance framework in line with evolving regulatory expectations and industry practices.

Technology Integration in Structure

Technology continues to play an important role in the Companys operating model. The Company has developed a hybrid service model combining technology-enabled tele-calling with field-based collection and investigation activities. During FY 2025-26, the Company continued to focus on improving process efficiency, customer communication, monitoring mechanisms and operational reporting through greater use of digital tools and technology-enabled processes.

The increasing adoption of data analytics, automation, artificial intelligence and digital communication across the financial services industry is creating opportunities for collection agencies to improve customer segmentation, prioritization of cases, contact strategies and recovery outcomes. The Company intends to progressively leverage suitable technologies while maintaining appropriate controls relating to regulatory compliance, data security and customer privacy.

Overall, the Company has developed a resilient and scalable operating structure supported by experienced personnel, technology-enabled processes, governance mechanisms and a diversified service offering. These capabilities provide a foundation for expanding the Companys geographical footprint and strengthening long-term relationships with financial institutions.

We have staff strength of around 1439 covering all branches which included 99 staff on our payroll and 1340 staff hired on contractual basis and each of our staff is fully trained and all types of assignment like recovery, collection, field investigation and other allied services.

THE GLOBAL ECONOMY:

The global economy continued to operate in an environment characterized by geopolitical uncertainty, evolving trade conditions, moderating inflation and differing monetary-policy trajectories across major economies. While inflationary pressures have eased from earlier peaks in several economies, growth remains exposed to geopolitical developments, trade disruptions, financial-market volatility and changes in global interest rates.

The financial services industry continues to undergo structural transformation, driven by digitalization, increased regulatory oversight, changing customer expectations and greater emphasis on responsible lending and recovery practices.

For the debt collection and recovery industry, these developments create both opportunities and challenges. Changes in borrower behaviour, credit cycles and levels of indebtedness influence the demand for professional collection services. At the same time, financial institutions are increasingly seeking technology-enabled, compliant and customer- sensitive recovery solutions.

Against this backdrop, the Company continues to focus on operational efficiency, regulatory compliance, technology adoption and maintaining high standards of client servicing.

THE GLOBAL OUTLOOK:

The global debt collection industry is expected to continue evolving in response to changing credit conditions, consumer behaviour, regulatory requirements and technological advancements.

Technology is expected to remain a key driver of industry transformation. Artificial intelligence, machine learning, data analytics, automation and omni-channel communication are increasingly being used to improve customer segmentation, case prioritization, contact strategies and operational productivity.

At the same time, responsible and ethical recovery practices are becoming increasingly important. Collection agencies are expected to balance recovery objectives with customer protection, privacy, transparency and regulatory compliance.

The Company believes that the increasing emphasis of financial institutions on professional, compliant and technology- enabled collection processes provides opportunities for organized players with established operational capabilities and strong governance systems.

INDIAN ECONOMY AT GLANCE:

The Indian economy remained on a strong growth trajectory during FY 2025-26. According to the Economic Survey 2025-26, Indias real GDP growth for FY 2025-26 was estimated at 7.4%, reflecting continued resilience in domestic economic activity. The Survey also highlighted Indias strong medium-term growth potential despite continuing global uncertainties.

The continued expansion of Indias financial services ecosystem, increasing formalization of credit, digitalization of financial transactions and growing penetration of banking and NBFC services are supporting demand for efficient collection and recovery mechanisms.

The financial sector is also experiencing increased adoption of digital technologies, data-driven processes and automated customer engagement. These developments are expected to create opportunities for specialized service providers capable of delivering scalable and compliant recovery solutions.

The RBI continues to emphasize responsible lending, customer protection and appropriate conduct in recovery activities. Recovery agents and service providers operating in this ecosystem therefore need to maintain appropriate processes, supervision, training and compliance mechanisms.

Against this background, the Indian debt collection and recovery industry is expected to remain an important component of the financial ecosystem.

DEBT COLLECTION INDUSTRY 2026:

In 2026, Indias debt collection industry is undergoing significant transformation, driven by economic pressures, regulatory reforms, and technological advancements.

Economic and Credit Environment

Indias continued economic expansion and increasing formalization of financial services have supported the growth of bank and NBFC lending. As credit portfolios expand, financial institutions require effective mechanisms to manage delinquent accounts and improve collection efficiency.

The debt collection industry therefore continues to play an important role in supporting financial institutions in managing overdue accounts, improving recoveries and maintaining portfolio quality.

Technological Advancements:

Technology is rapidly changing the operating model of the collection industry. Financial institutions and collection service providers are increasingly adopting:

• Artificial Intelligence ("AI") and Machine Learning ("ML");

• Data analytics and customer segmentation;

• Automated case allocation and prioritization;

• Digital communication channels;

• SMS, e-mail and messaging-based engagement;

• IVR and voice-based solutions;

• Centralized monitoring and reporting systems; and

• Technology-enabled field-force management.

These developments can improve operational efficiency and enable more targeted and customer-sensitive collection strategies.

The Company continues to evaluate and adopt appropriate technology solutions to improve productivity, monitoring and service quality.

Regulatory Reforms

The regulatory environment surrounding debt collection continues to emphasize fair, transparent and responsible customer treatment. The RBIs regulatory framework places importance on appropriate conduct by regulated entities and their recovery agents, including responsible engagement with borrowers.

The Company considers regulatory compliance to be an integral part of its operating model and continues to strengthen its SOPs, training programs, monitoring mechanisms and internal controls.

Outlook

The Indian debt collection industry is expected to witness continued evolution, supported by growth in the financial services sector, increasing credit penetration, digital transformation and demand for specialized recovery services.

However, the industry will also need to address challenges relating to regulatory compliance, customer sensitivity, data privacy, cybersecurity, changing borrower behaviour and technological disruption.

The Company believes that organizations combining domain expertise, technology, trained manpower, compliance discipline and customer-centric practices will be better positioned to capitalize on the opportunities emerging in the sector.

SWOT ANALYSIS Strengths

• More than two decades of experience in the debt collection and recovery domain.

• Established relationships with banks, NBFCs and financial institutions.

• Multi-channel collection capabilities covering tele-calling, field operations and digital communication.

• Experienced management and operational personnel.

• Technology-enabled collection and monitoring processes.

• Focus on regulatory compliance and customer-sensitive recovery practices.

• Ability to provide multiple allied services under an integrated operating model.

Weaknesses

• Dependence on the business volumes and collection requirements of financial institution clients.

• Labour-intensive nature of certain field collection activities.

• Dependence on availability and retention of trained personnel across different locations.

Opportunities

• Expansion of Indias formal credit and financial services ecosystem.

• Increasing demand for professional and organized debt collection services.

• Greater adoption of digital and technology-enabled recovery solutions.

• Increasing outsourcing of collection and allied services by financial institutions.

• Expansion of the Companys geographical footprint.

• Opportunities arising from AI, data analytics and automation in collection operations.

Threats

• Changes in regulatory requirements governing recovery activities.

• Intense competition within the collection and financial services outsourcing industry.

• Changes in economic conditions and borrower repayment capacity.

• Changes in client strategies, internal collection capabilities or outsourcing arrangements.

SEGMENT-WISE OR PRODUCTS-WISE PERFORMANCE:

During the year 2025-26, following are the segment wise performance of the Company.

Total Revenue from Services rendered	Rs. 2415.89 Lakhs
Net Profit after Tax from Services rendered	Rs. 87.14 lakhs

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has adequate internal control systems including suitable monitoring procedures commensurate with its size and the nature of the business. The Internal Auditors and Companys Internal Audit Department conduct regular audits to ensure adequacy of internal control system, adherence to management instruction and compliance with laws

and regulations of the country as well as to suggest improvements. The statutory auditors while conducting the statutory audit, review and evaluate the internal controls and their observations are discussed with the Audit committee of the Board.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the period 2025-26, the movement in the Total Income and net profit after tax are as follows:

Particular	FY 2025-26	FY 2024-25
Total Revenue	Rs. 2415.89 Lakhs	Rs. 2395.90 Lakhs
Net Profit after Tax	Rs. 87.14 lakhs	Rs. 74.08 lakhs

HUMAN RESOURCES

One of the key pillars of the Companys business is its people. The Company considers human resources as one of the vital and important factors for sustained growth, business success and creating value for Stakeholders. Company has maintained cordial and harmonious relations with all Employees.

The total numbers of Employees on pay roll were 99 as on 31st March, 2026.

CAUTIONARY STATEMENT

Certain statements made in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, predictions and expectations may be forward looking statements, within the meaning of applicable securities law and regulations and actual results may differ materially from those expressed or implied. Significant factors that make differences to Companys operations include competition, change in Government policies and regulations, tax regimes and economic development within India. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events or otherwise.

For and on behalf of the Board

Focus Business Solution Limited

Mr. Mohamedyaseen Muhammadbhai Nathani

Managing Director & Chairman

DIN:02759578

Date: 02^nd September, 2026

Place: Surat