Libord Finance Ltd Management Discussions

Libord Finance Limited is a limited company domiciled and incorporated in India and its shares are publicly traded on the Bombay Stock Exchange Ltd. (BSE). The Company is presently classified as a Non-Banking Financial Company duly registered with the Reserve Bank of India. The Company is engaged into the business of financial services, working capital loans, project finance, syndication of loans, corporate advisory services, financial consultancy etc.

This Management Discussion and Analysis Report contains forward-looking statements which are based on certain assumptions, risks, uncertainties and expectations of future events. The actual results, performance or achievements can differ materially from those projected in any such statements depending on various factors including: the demand supply conditions, change in government regulations, tax regimes, economic development within the country and abroad and such other incidental factors over which, the Company does not have any direct control. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on basis of any subsequent developments, information or events.

This Report is framed in compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)

Regulations, 2015 ("LODR Regulations").

INDUSTRY STRUCTURE AND DEVELOPMENT

Non-Banking Financial Companies play a vital role in the financial sector of our economy along with other financial institutions. They largely extend support to the Micro, Small and Medium Enterprises (MSMEs) which get benefitted due to their strategic operational techniques coupled with lower costs of delivery, lower restrictions on customers etc. Over the years, NBFCs have emerged as an alternate choice and at times the first choice for several customers who need short term/ medium term financing. The NBFCs work under strict regulations of the RBI and reach out to even those sectors which the Banks cannot reach. Non-Banking Finance Companies (NBFCs) are an integral part of the Indian financial ecosystem. NBFCs reach out to millions of individuals and Micro, Small and Medium Enterprises across the country having no or limited access to secured and unsecured credit lines by commercial banks and other development financial institutions. NBFCs integrate such people and firms with the financial mainstream of our economy. NBFCs are able to develop a ground-level understanding of their customers profile and their credit needs and provide innovative and customised products to satisfy their clients needs and so they are a preferred source of credit line compared to traditional banks. They have a niche particularly in the low income/asset segment of individuals and corporates and also among the first-time seekers of credit who have not borrowed from any financial institution in the past. NBFCs thrive well in those areas too where banking and institutional credit financial services have limited ground presence.

OPPORTUNITIES

There are many structural shifts that are reshaping the global economy, including growing fragmentation in trade, rapid technological disruption, ongoing climate change and protracted geopolitical hostilities. The Indian economy and the financial system, however, continue to exhibit resilience, aided by strong macroeconomic fundamentals and a robust financial system. Despite a broad deceleration in bank credit growth, the share of credit to the micro, small and medium enterprises (MSME) sector in total non-food bank credit has been growing steadily and its growth has outpaced that in other sectors during 2024-25 at 17.7 percent, which is extraordinarily strong and indicates a promising prospect for rising output and employment in the nation.

The governments credit guarantee schemes improved flow of credit to the MSME sector, especially vulnerable enterprises, with approximately Rs. 6.28 lakh crore guaranteed under two flagship schemes, viz., the Credit Guarantee Fund for Micro Units (CGFMU) and the Emergency Credit Line Guarantee Scheme (ECLGS). The NPA ratio in both schemes remains contained despite the riskiness of borrowers.

Consumer segment loans grew at a CAGR of 20.4 per cent between March 2021 and March 2025 compared to 14.6 per cent growth in the overall loans. Additionally, capital expenditure is estimated to increase by 10.1% over the revised estimate of 2024-25, which is expected to give boost to the Indian economy this year. Besides, as per the Union Budget 2025-26, the credit guarantee cover has to increase: (i) from five crore rupees to Rs 10 crore for micro and small enterprises, (ii) from Rs 10 crore to Rs 20 crore for start-ups, and (iii) up to Rs 20 crore for exporter MSMEs. Investment and turnover limits for classification of MSMEs are projected to be doubled.

THREATS

The announcement of large tariffs by the US administration in April, 2025 has set in motion a new paradigm in trade and economic policy. Besides, geopolitical risks remain elevated. Against this backdrop, near-term global financial stability risks have increased. Globally, risks associated with elevated public debt and possibilities of further corrections in asset prices remain high.

According to the Financial Stability Report of the RBI (June, 2025), policy uncertainty and unpredictability may continue to influence global growth. International agencies, including the IMF, the OECD and the World Bank, have revised their respective growth projections downwards. The World Economic Outlook (WEO) released by the International Monetary Fund (IMF) in April, 2025 also indicates that a series of new tariff measures by the United States and countermeasures by its trading partners have brought the effective tariff rates to levels not seen in a century. This on its own is a major negative shock to growth.

The unpredictability of the tariff measures has had a negative impact on economic activity and the outlook. Given the complexity and fluidity of the current moment, the IMF has projected that the global growth may drop to 2.8 percent in 2025 and around 3 percent in 2026 (at a reference date of April 4, 2025) which is lower than 3.3 percent projected earlier for both years in the January 2025 WEO Update.

SEGMENT WISE OR PRODUCT-WISE PERFORMANCE

The Company operates in single business segment i.e. NBFC. As the Company is only in one line of business, product wise disclosure of performance is not required to be made.

OUTLOOK

The market turbulence in the month of April was a stark reminder of how existing vulnerabilities in the global financial system are amplified by sudden shocks. Though financial markets have stabilised after this episode, they remain volatile and highly sensitive to economic and geopolitical developments.

There are many structural shifts that are reshaping the global economy, including growing disparity of tariffs in trade, technological disruptions, climate change concerns and prolonged geopolitical hostilities. They make economic forecasts difficult and policy interventions challenging. However, in this global turmoil, the Indian economy continues to be a key driver of global growth. Growth momentum is buoyed by strong domestic growth drivers, sound macroeconomic fundamentals and prudent policies. According to the

April 2025 edition of the IMFs World Economic Outlook, Indias economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers.

The Management of the Company is looking for a steady growth of the Company and aims at maximising the shareholders wealth by way of earning maximum profits at low investment costs. The Company is cautiously optimistic in its outlook for the year 2025-26. The outlook for the business of the Company is also discussed in the Directors Report.

RISKS AND AREAS OF CONCERN

The Company is providing financial, corporate and management consultancy and undertakes wide spectrum of activities and therefore has a well-diversified portfolio of services provided. Currently, there are no risks faced by the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an Internal Control System commensurate with the size and nature of its operations. During the year, controls were tested and no material weakness in design and operation were observed. These have been designed to ensure the orderly and efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets from unauthorised use, the prevention and detection of frauds and errors, ensuring accuracy and completeness of the accounting records, timely preparation of financial information and compliance with applicable statutes.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

A detailed discussion on financial performance with respect to operational performance has been presented in the Directors Report.

HUMAN RESOURCE DEVELOPMENT

The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognises the performance and potential of its employees attracting and retaining the best manpower available by providing high degree of motivation. Your Company believes in trust, transparency & teamwork to improve employees productivity at all levels.

DETAILS OF KEY FINANCIAL RATIOS

The details of the applicable key financial ratios are given in Notes to the Financial Statements.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). The details of accounting treatment are given in Significant Accounting policies at note no. 1 & 2 of the Financial Statements.

Place : Mumbai	By the Order of the Board
Date	: August 13, 2025
Registered Office:
104, M. K. Bhawan,	Dr. (Mrs.) Vandna Dangi	Nawal Agrawal
300, Shahid Bhagat Singh Road,	Managing Director	CFO and Director
Fort, Mumbai- 400001	DIN: 00886496	DIN: 01753155