IBL Finance Ltd Management Discussions

GLOBAL ECONOMY

The global economic outlook remains subdued as mounting macroeconomic and geopolitical headwinds continue to exert downward pressure on growth. The International Monetary Fund (IMF), in its latest World Economic Outlook, has revised the global GDP growth forecast for 2025 downward to 2.8%, from its earlier estimate of 3.3%. This revision reflects a confluence of adverse factors, including escalating geopolitical tensions, tighter financial conditions, persistent supply chain disruptions, and the proliferation of trade protectionism most notably through tariffs and retaliatory pricing measures.

Rising trade tensions are expected to significantly constrain global trade activity. The IMF now projects global trade volume growth to decelerate sharply, from 3.8% in 2024 to just 1.7% in 2025. This pronounced slowdown is largely attributed to growing trade policy uncertainty, which is prompting businesses across economies to defer procurement and capital expenditure plans. Concurrently, financial institutions are becoming increasingly cautious, reassessing credit exposures and tightening underwriting standards in response to elevated systemic risks.

Although inflationary pressures have begun to moderate, headline inflation remains elevated, averaging around 4.5%, driven primarily by rising service sector costs and wage growth. These underlying factors continue to weigh on consumption, investment, and overall economic momentum, contributing to a cautious and increasingly fragmented global environment.

The U.S. economy is projected to grow at 1.8% in 2025, tempered by renewed trade tensions and the imposition of tariff measures. In contrast, Chinas growth is expected to decelerate to 4%, reflecting ongoing challenges in export-driven sectors. Meanwhile, Indias economy remains on a strong footing, with GDP growth projected at 6.5% in 2025, supported by resilient domestic consumption and sustained infrastructure investment. this favorable macroeconomic backdrop is expected to drive continued expansion in credit demand and underpin growth across key sectors, including housing, MSMEs, renewable energy, logistics, and manufacturing. To sum up the global economic scenario, the growth trajectory is expected to be moderate in 2025, with advanced economies projected to expand at a slower pace. Advanced economies are projected to grow at a subdued pace of 1.4% in 2025, down from 1.8% in 2024. Emerging Markets and Developing Economies (EMDEs) are expected to grow at 3.7% in 2025, compared to 4.3% in 2024. The outlook through 2025 indicates that central banks will adopt measured monetary policy decisions that will steer interest rates and investment patterns. The heightened uncertainty and tightening of financial conditions are expected to weigh on economic activity in the near term. On the flip side, it is that estimated the global growth prospects could strengthen significantly if economies adopt a more constructive and stable trade policy approach, restoring confidence among investors that would stimulate global economic expansion.

INDIAN ECONOMY

India has demonstrated remarkable resilience amid global headwinds in FY 2024 25, firmly retaining its position as the worlds fifth-largest economy and continuing on a path of robust and inclusive growth. While advanced economies continued to face macroeconomic headwinds ranging from persistent inflation and tight monetary policies to geopolitical tensions and supply chain vulnerabilities, India remained resilient, charting a strong and steady growth trajectory. India recorded GDP growth of 6.5% for FY 2024-25. From an aggregate demand perspective, private final consumption expenditure grew 7.2% in FY 2024-25, driven by a revival in rural demand. On the supply side, real gross value added (GVA) grew by 6.4% in FY 2024-25. The services sector is expected to remain resilient, growing at 7.2%, driven by robust activity in financial services, real estate, professional services, public administration, defense, and other related sectors. The agriculture sector grew 4.6% in FY 2024-25, while the industrial sector grew by 5.9%, supported by strong performance in construction, electricity, gas, water supply, and other utility services.

India on the global trade front:

Indias total exports grew by 6.3% to reach a record US$ 824.9

Billion in FY 2024 25, up from US$ 778.1 Billion in FY 2023 24, as per data released by the RBI for March 2025.

As of March 2025, Indias gross Foreign Direct Investment

(FDI) inflows for FY 2024 25 reached US$ 81 Billion, marking a 13.7% increase from the previous fiscal year.

Indias current account deficit (CAD) in Q3 FY2024- 25 inched up to US$ 11.5 Billion from US$ 10.4 Billion in Q3 FY2023-24, remaining steady at 1.1% of GDP in both quarters. Notably, the deficit was lower than ICRAs projection of 1.4% of GDP for the period.

As of April 4, 2025, Indias foreign exchange reserves stood at

US$ 676.3 Billion, offering an import cover of nearly 11 months and reflecting the strength of the external sector.

INDIAfS RESILIENCE: NAVIGATING GROWTH AMID GLOBAL

UNCERTAINTY

Despite a global economic slowdown amid high interest rates and geopolitical tension, India demonstrated resilience and stands strong as the worlds fifth-largest economy. What cushions India against a moderated global growth outlook and a delayed synchronized recovery in industrial economies amid evolving trade and policy regulations, is the countrys robust domestic consumption-led growth model. Unlike several major global economies that are more dependent on external demand, Indias relatively self-reliant economic structure offers a shield against global headwinds. While economies such as China continue to face pressure from subdued export demand and domestic sectoral imbalances, Indias internal demand dynamics provide greater stability and supports sustained growth momentum. The surge in capital flows from DIIs have helped to reduce the sensitivity of Indian capital markets to foreign capital volatility. The long-term objective under "Viksit Bharat 2047" to transform

India into a self-reliant and prosperous economy by 2047 and the focus on de-regulation and adapting to global shifts from the model of Globalization to "GeoEconomic Fragmentation" entails that India invigorates its domestic manufacturing and strengthens its SME sector. Structural reforms through initiatives such as Smart Advanced Manufacturing and Rapid Transformation Hub

(SAMARTH) Udyog centers, ‘Make in India and ‘Digital India have further fortified domestic manufacturing, making it an attractive arena for foreign investment. The ease of doing business in India got fresh impetus by rationalizing regulatory burdens and promoting a more business friendly environment. Boosting consumption through higher income tax exemption limit and implementing many structural reforms as presented in the Budget FY 2024-25, is expected to augment investments in critical sectors and maintain a stable macroeconomic environment conducive to robust and sustainable growth. According to the Ministry of Statistics and Programme Implementation (MoSPI), the combined (rural and urban) headline inflation stood at 3.16% in April 2025, down from 3.34% in March 2025. In response to the sustained moderation in inflation, the Reserve Bank of India (RBI) implemented three consecutive repo rate cuts in 2025, totaling 100 basis points. The latest reduction occurred on June 6, bringing the repo rate down to 5.50%. REAL GDP GROWTH

Indias economy sustained robust momentum in FY 2024 25, with Real GDP expanding by 6.5% and Nominal GDP registering a growth of 9.8%. This strong performance has been underpinned by a series of structural policy initiatives, including the ‘Make in India campaign, Production-Linked Incentive (PLI) schemes, and targeted support measures for the MSME sector. Further impetus has come from ongoing improvements in logistics infrastructure and the implementation of a more streamlined and efficient tax regime, which have collectively enhanced industrial output and boosted manufacturing competitiveness. These factors are reinforcing the economys resilience and strategically positioning India for sustained, long-term growth - even in the face of prevailing global headwinds.

INFLATION DYNAMICS

Inflation remains a critical macroeconomic variable, influencing the overall economic environment and shaping both consumer spending patterns and monetary policy decisions. In FY 2024 25, India experienced a notable moderation in inflationary pressures, creating a conducive backdrop for economic activity and supporting the expansion of financial services. The inflation trajectory has exhibited a consistent downward trend, with Consumer Price Index (CPI) inflation easing to 3.16% in April 2025, down from 3.34% in March. This marks the first time in six months that CPI inflation has fallen below the 4% threshold. The decline is primarily driven by softening food prices, particularly in the vegetable segment, reflecting improved supply-side conditions.

INDUSTRY OVERVIEW: THE NBFC SECTOR

Non-Banking Financial Companies (NBFCs) have evolved into indispensable pillars of Indias financial ecosystem, playing a critical role in enhancing credit access for a broad spectrum of borrowers - particularly Small and Medium Enterprises (SMEs), women, and first-time homebuyers. By facilitating the transition from informal lending channels to the formal financial system, NBFCs significantly contribute to deepening financial inclusion. Over the years, the sector has witnessed robust growth, emerging as a dynamic force across key verticals such as housing finance, consumer lending, and microfinance. Their widespread geographical reach, nuanced understanding of borrower profiles, agile underwriting processes, and swift turnaround times have positioned NBFCs as nimble, customer-centric lenders. Bolstered by a rising middle class, increasing financial awareness, and supportive regulatory frameworks, NBFCs continue to drive MSME development, promote self-employment, and advance financial empowerment in underserved communities. Over the past decade, the NBFC sector has recorded a healthy compounded annual growth rate (CAGR) of approximately 14%, primarily driven by its expanding role in bridging credit gaps across rural and semi-urban markets. The sectors diverse portfolio including housing, vehicle, personal, and microfinance loans caters specifically to the unique needs of low-income households and small businesses. The rapid adoption of digital technology has further transformed the NBFC landscape. User-friendly mobile apps and digital lending platforms have enhanced operational efficiency, improved customer experience, and broadened outreach. These innovations have significantly strengthened last-mile connectivity, enabling NBFCs to extend financial services to populations historically underserved by traditional banking institutions. By leveraging data-driven underwriting, simplified onboarding processes, and tailored financial products, NBFCs have emerged as key enablers of inclusive and sustainable credit delivery. According to CRISIL Ratings, the NBFC sector is expected to register Assets Under Management (AUM) growth of 15 17% in FY

2024 25 surpassing the decadal average of ~14% and highlighting the sectors underlying resilience. While this represents a moderation from the robust 23% growth recorded in the previous fiscal year, the outlook remains broadly positive. The tempered pace of growth is attributable to three primary factors:

1. Rising Household Indebtedness and Asset Quality Concerns particularly in the microfinance and unsecured lending segments.

2. Tighter Regulatory Oversight with enhanced focus on customer protection, pricing transparency, and compliance with revised norms.

3. Funding Constraints as access to diversified funding sources becomes variable amid a broader slowdown in bank lending. Nevertheless, NBFCs have displayed remarkable adaptability by recalibrating their business models, reinforcing risk management practices, and strengthening operational resilience. As per Reserve Bank of India (RBI) data on sectoral credit deployment, bank credit growth to NBFCs moderated significantly slowing to 6.4% year-on-year in October 2024, from 18.3% a year earlier. Outstanding bank credit to NBFCs stood at 15.36 trillion in October 2024, compared to 14.44 trillion in October 2023, 15.29 trillion in September 2024, and 15.48 trillion in May 2024. This trend reflects NBFCs ongoing diversification of funding sources and reduced dependence on bank borrowings, following the RBIs decision in November 2023 to hike risk weights on NBFC exposures by 25 percentage points in a bid to curb systemic risks.

Despite these headwinds, the sectors financial performance remains robust. As of September 2024, NBFCs reported healthy interest margins of 5.1% and a Return on Assets (RoA) of 2.9%, underscoring their profitability and operational efficiency.

LIQUIDITY AND BORROWING UPDATES

In FY 2024 25, Non-Banking Financial Companies (NBFCs) in India navigated a dynamic funding landscape shaped by evolving regulatory norms and market forces. A pivotal development occurred in November 2023, when the Reserve Bank of India (RBI) raised risk weights on bank exposures to NBFCs by 25 percentage points, citing rising interlinkages within the financial system as a potential source of systemic risk. This regulatory tightening led to a marked deceleration in bank credit growth to the sector, which declined to 6.7% year-on-year (YoY) in December 2024, down sharply from 15% in the corresponding period of the previous year. By March 2025, credit growth had further moderated to 5.7% YoY, compared to 17.6% in October 2023. In parallel, NBFCs increasingly tapped the corporate bond market to diversify their funding base. Corporate bond issuances reached an all-time high of over 10.66 lakh crore in 2024, with NBFCs accounting for a significant share of this surge. This trend reflects the sectors strategic pivot toward long-term, market-based funding sources amid tighter bank credit.

Indias securitization market also witnessed record activity in FY

2024 25, with total transaction volumes reaching approximately

2.35 lakh crore registering a robust 24% year-on-year growth. The uptick was driven by heightened participation from private sector banks and consistent issuance activity by NBFCs. The sector not only sustained momentum in securitization volumes but also expanded into newer asset classes and re-engaged with the market following prior periods of subdued activity.

Vehicle loans constituted the largest share of securitized assets, accounting for 47% of total issuances, followed by mortgage-backed loans at around 22%. Additionally, the market saw broader participation, with the number of active originators rising to 175 in FY 2024 25, up from 165 in the previous fiscal year highlighting a deepening and maturing securitization ecosystem.

NBFC SECTOR OUTLOOK

NBFCs are poised to play an increasingly critical role in driving

Indias economic growth by extending formal credit access to traditionally underserved segments, in alignment with national development goals. As customer expectations evolve and digital-first business models become more prevalent, incumbent NBFCs must rethink their operating strategies, while new entrants must carefully assess market dynamics before entry. With lending activity expected to scale, there is a growing need for stronger risk management practices and more robust governance frameworks across the sector.

According to CRISIL Ratings, NBFCs are projected to achieve year-on-year asset growth of 15 17% in both FY 2024 25 and FY 2025

26. The Reserve Bank of Indias recent move to reduce risk weights on bank lending to NBFCs is expected to improve funding availability. Furthermore, easing liquidity conditions and the possibility of interest rate cuts could support net interest margins and returns on assets, enhancing overall financial performance.

That said, asset quality concerns particularly in the microfinance and unsecured lending segments remain key risks to watch. Nonetheless, the sector is expected to maintain stable asset quality and demonstrate steady earnings growth, reinforcing its role as a vital component of Indias financial system.

MANAGEMENTfS DISCUSSION AND ANALYSIS

The Management has conducted a detailed assessment of the key risks facing both the Company and the NBFC sector at large. The following section provides a concise summary of the potential impacts of these risk factors on the Companys overall performance and strategic direction.

INTERNAL RISK FACTORS ? Brand Positioning Risk:

As a fintech NBFC, building a strong digital brand is critical for market differentiation. However, promotional efforts may not always yield proportional revenue growth. Limited brand recognition could hinder business expansion and weaken competitive positioning.

? Interest Rate Volatility:

Our operations are highly sensitive to interest rate fluctuations. Any mismatch between lending rates and the cost of funds may compress net interest margins, thereby adversely affecting profitability.

? Human Resource Dependence:

The success of our operations is deeply reliant on the talent and commitment of our people. The inability to attract or retain skilled professionals may affect service delivery and innovation. However, IBL maintains a low attrition rate and a robust HR culture promoting employee well-being and engagement.

? Regulatory Risk:

As a Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) regulated entity, any adverse changes in regulatory norms or compliance frameworks may impact business continuity, capital adequacy, and overall profitability.

EXTERNAL RISK FACTORS

? Economic slowdown in India may impact business:

The Companys performance depends on the health of the Indian economy and key industries. Economic slowdown or adverse events such as policy changes, political instability, or natural disasters could negatively impact business, financial performance, and equity share value.

? Political instability may hinder reforms and affect performance:

Since 1991, India has pursued economic liberalization, though government involvement remains significant. Leadership changes and coalition dynamics may influence the pace of reforms, with potential shifts in policies affecting industry, foreign investment, and securities.

? Violence, unrest, or war may disrupt markets and impact business:

Terrorist attacks, war, or civil unrest may impact Indian and global financial markets. Tensions with neighboring countries or adverse events in India could raise investor concerns, affecting business and increasing the perceived risk of investing in Indian companies.

? Natural calamities could have a negative impact on our business:

India has experienced natural calamities such as earthquake, tsunami, floods and drought in the past. The extent and severity of these natural disasters determines impact on our business.

? Factors affecting Indian economy in general:

Our financial performance depends on the Indian economy and securities market growth. Any slowdown or regulatory changes may impact business growth and profitability.

RISK RELATING TO OUR INDUSTRY

? Risk of Bad Debts (Non-Performing Assets):

The risk of Non-Performing Assets (NPAs) is an inherent aspect of the lending business, often arising from a decline in the value of assets against which funds have been advanced. However, the Company has implemented robust asset verification processes to mitigate this risk effectively.

? Interest Rates:

Central banks, such as the Reserve Bank of India (RBI), often raise interest rates to curb inflation. However, frequent or sharp rate hikes can increase borrowing costs, leading to higher default rates and impacting the lending business.

? Risk of Competition

With globalization and continuous flow of private as well as international institution in the finance market the risk of competition in any business, and the finance business is no different. We believe that competition spurs our team to innovate without losing sight of the customer needs, the need for safety of funds deployed and the need to ensure commensurate returns.

IMPACT OF GLOBAL EVENTS ON INDIAN FINANCIAL MARKETS

Global events significantly influence financial markets worldwide, and India is no exception. For instance, the continued weakness of the Indian Rupee in the previous year, largely due to the Eurozone crisis, highlighted the susceptibility of the Indian economy to global uncertainties. Such events often lead to reduced foreign investor confidence, heightened crude oil price volatility, and rising inflation factors that can place additional stress on the domestic financial system. In response, IBL Finance has strengthened its risk management framework and diversified its lending portfolio to mitigate external shocks. The company has enhanced credit assessment using data-driven tools and focused on high-quality, low-risk segments. Additionally, IBL has secured alternative funding through instruments like NCDs and deepened NBFC partnerships to ensure financial resilience.

KEY REGULATORY UPDATES: FY 2024 25

1. Introduction of Key Facts Statement (KFS) (RBI Circular - April 15, 2024)

To enhance transparency and promote informed borrowing decisions, the Reserve Bank of India (RBI) has mandated the introduction of a Key Facts Statement (KFS) for all retail and MSME term loans sanctioned on or after October 1, 2024.

Key provisions of the KFS include:

? Disclosure of the Annual Percentage Rate (APR), amortization schedule, and third-party charges in a simple, comprehensible format.

? Any fees or charges not mentioned in the KFS cannot be levied without the borrowers explicit consent.

? This measure aims to foster greater borrower awareness, prevent hidden charges, and strengthen borrower trust in the lending ecosystem.

2. Fair Practices Code for Charging of Interest (RBI Communication dated April 29, 2024)

The RBI reiterated its commitment to fairness and transparency in lending through an advisory on the Fair Practices Code for Lenders

Charging of Interest. While regulated entities (REs) have the flexibility to determine loan pricing, the RBI emphasized the need to uphold fair practices in interest application and charges.

During supervisory inspections for the period ending March 31, 2023, the RBI identified instances of non-compliance with fair practices by certain lenders. Consequently, REs are advised to:

? Review and update their loan disbursement methods and interest-charging mechanisms.

? Ensure transparency in interest application and fee structures. ? Adopt digital disbursal mechanisms, such as online account transfers, in place of cheques, to enhance operational efficiency and reduce transactional risks.

These measures are expected to reinforce ethical lending practices and enhance borrower protection across the financial services industry.

3. Operational Risk Management & Resilience Framework -

(RBI Circular April 30, 2024)

The RBI issued a "Guidance Note on Operational Risk Management and Operational Resilience", expanding on its 2005 framework. It mandates regulated entities (REs) to adopt a comprehensive risk assessment strategy addressing threats from human error, technology failures, geopolitical events, fraud, business disruptions, and natural calamities. REs are required to implement robust internal controls and proactive risk mitigation measures to strengthen overall operational resilience.

4. Fraud Risk Management for NBFCs and HFCs (Master Directions July 15, 2024)

The RBI introduced Master Directions on Fraud Risk Management for NBFCs and Housing Finance Companies (HFCs), aimed at strengthening early detection, reporting, and prevention of fraud. Key requirements include:

? Formulation of a Board-approved Fraud Risk Management Policy, clearly defining roles of the Board, its Committees, and Senior Management.

? Adherence to principles of natural justice during fraud investigations.

? Implementation of an Early Warning Signals (EWS) framework within six months from the issuance of the directions.

5. Fortnightly Credit Reporting by Credit Institutions (RBI Direction August 8, 2024)

Effective January 1, 2025, all NBFCs (including HFCs) are mandated to report credit information to Credit Information Companies (CICs) on a fortnightly basis on the 15th and the last day of each month.

? Credit Institutions (CIs) must submit data within seven days of the reporting date.

? CICs are required to process this data within five days.

? CICs must also report non-compliant CIs to RBIs Department of Supervision every six months (as of March 31 and September 30).

6. Gold Loan Practices Supervisory Advisory (RBI Advisory

September 30, 2024)

RBI flagged irregularities in gold loan practices among certain supervised entities (SEs) and issued an advisory directing:

? A comprehensive review of gold loan policies, processes, and practices.

? Timely corrective measures to address identified gaps. ? Enhanced oversight of gold loan portfolios, particularly amid rapid growth.

? Stronger controls over outsourced activities and third-party service providers.

7. Credit Reporting Post License/CoR Cancellation (RBI Circular October 10, 2024)

Under the Credit Information Companies (Regulation) Act, 2005 (CICRA), entities whose licenses or Certificates of Registration (CoRs) are cancelled cease to be Credit Institutions. The RBI directed CICs and CIs to develop a mechanism to ensure proper reporting and updating of borrower credit information post cancellation, safeguarding borrower credit history and ensuring data integrity.

8. Prevention of Financial Frauds via Mobile Channels (RBI Notification January 17, 2025)

To counter mobile-based financial frauds, RBI issued guidelines requiring REs to:

? Use the Mobile Number Revocation List (MNRL) from the Digital Intelligence Platform (DIP) by the Department of Telecommunications.

? Implement SOPs for verifying and updating registered mobile numbers, monitor linked accounts for fraud risks, and prevent misuse as money mule accounts.

? Use ‘1600xx series for transactional/service calls and ‘140xx for promotional calls.

? Comply with TRAIs commercial communication guidelines for voice and SMS outreach.

9. Regulatory Capital Treatment of Right-of-Use (ROU) Assets (RBI Circular March 21, 2025)

RBI clarified that Right-of-Use (ROU) assets, recognized under Ind AS 116 Leases, need not be deducted from Owned Fund / CET1

/ Tier 1 Capital, provided the underlying leased asset is tangible. Instead, such ROU assets will carry a 100% risk weight, consistent with the treatment for owned tangible assets. This circular is applicable with immediate effect to all NBFCs (including HFCs) and Asset Reconstruction Companies following Ind AS.

FINANCIAL YEAR 2024-25 AT GLANCE Financial Highlights

Particulars	F.Y. 2024-25	F.Y. 2023-24
Revenue from Operations	1295.72	1412.24
Other Income	10.34	9.55
Total Income	1306.06	1421.78
Less: Total Expenses before Depreciation, Finance Cost and Tax	635.74	1051.05
Profit before Depreciation, Finance Cost and Tax	670.32	370.73
Less: Depreciation	51.70	24.10
Less: Finance Cost	319.20	43.10
Profit before tax	299.42	303.54
Less: Current Tax	75.36	87.10
Less: Current Tax expense relating to prior years	1.42	0.00
Less: Deferred tax Liability (Asset)	(12.91)	(11.91)
Profit after Tax	235.54	228.35
Transfer to Special Reserve as per RBI Act, 1934	47.11	45.67
Profit Carried to Balance Sheet	188.43	182.68

Financial Performance

During the year under review, the revenue from operation of the

Company stood at 1295.72 Lakhs as against that of 1412.24

Lakhs for previous year. Also, the Asset under management (AUM) of the Company stood at 10099.24 Lakhs as against that of

5075.50 Lakhs for previous year.

Profit before Tax for the financial year 2024-25 stood at 299.42 Lakhs as against Profit before Tax for the financial year 2023-24 stood at 303.54 Lakhs. Making the net profit of 235.54 Lakhs for the financial year 2024-25 as against the net profit of 228.35 Lakhs for the financial year 2023- 24. The company has identified external customer experience-related dependencies and built capabilities to eliminate such dependencies. This will enable the company to offer an end-to- end integrated customer journey which will help to improve customer experience and reduce costs and thereby enhancing the profits of the company.

The company has made significant investments in technology infrastructure, machine learning models and data analytics capabilities to strengthen offerings and customer experience. Going forward, our company is planning to continue to develop and invest in sophisticated technology to further strengthen our technology infrastructure.

The Gross Non-Performing Assets ("GNPAs") and Net Non-

Performing Assets ("NNPAs") as recognised stood at 2.54% and

1.99% of loans respectively.

As on March 31, 2025, the Companys Capital Adequacy Ratio

(CAR), stood at 53.53% of the aggregate risk weighted assets on balance sheet and risk adjusted value of the of balance sheet items, which is well above the regulatory minimum of 15%, providing much needed headroom for fund raising for business operations of the Company.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Particulars	F.Y. 2024-25	F.Y. 2023-24	% Change	Reason
Current Ratio	14.36 times	7.10 times	102.36%	Decrease in Current Liabilities
Debt Equity Ratio	0.75 times	0.09 times	762.66%	Increase in total debts
Debt Service Coverage Ratio	0.11 times	4.92 times	-97.68%	Decrease in Debt Service
Interest Service Coverage Ratio	1.96 times	13.36 times	-85.33%	Decrease in Interest Service Coverage
Return on Equity (ROE) %	4.02%	4.06%	-0.99%	Decrease in Return on Equity
Net capital turnover ratio	0.30 times	0.46 times	-35.73%	Increase in Average Working capital
Net profit ratio%	18.18%	16.17%	12.42%	Increase in Net Profit
Return on capital employed %	5.94%	5.86%	2.00%	Increase in Long-term borrowings

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR CAUTIONARY NOTE ADEQUACY

Internal Control system and adequacy Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. Thus, internal control is an integral component of risk management. The Internal control checks and internal audit programs adopted by the Company plays an important role in the risk management feedback loop, in which the information generated in the internal control process is reported back to the Board and Management. The internal control systems are modified continuously to meet the dynamic change. Further the Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company believes in establishing and building a strong performance and competency driven culture amongst its employees with greater sense of accountability and responsibility. The Company has taken various steps for strengthening organizational competency through the involvement and development of employees as well as installing effective systems for improving their productivity and accountability at functional levels. Ongoing in-house and external training is provided to the employees at all levels to update their knowledge and upgrade their skills and abilities. As on March 31, 2025, the Company had total 31 full time employees. The industrial relations have remained harmonious throughout the year.

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.