Manba Finance Ltd Management Discussions

1. Economic Overview

1.1 Global Economy

The global economy remained resilient in FY2025–26 despite heightened geopolitical tensions, evolving trade policies, commodity price volatility and rapid technological advancements, particularly in artificial intelligence. According to the International Monetary Fund (IMF), global

GDP growth is projected at 3.1% in 2026, compared with approximately 3.4% during 2024 25, while global headline inflation is expected to moderate to 4.4%. Although easing inflation and improving supply chains supported economic activity across several regions, growth remained uneven amid divergent monetary policies, varying consumer demand and persistent geopolitical uncertainties.

GDP Growth Rate

	2025	2026 (Projections)	2027 (Projections)
World	3.4%	3.1%	3.2%
Advanced Economies	1.9%	1.8%	1.7%
United States	2.1%	2.3%	2.1%
Euro Area	1.4	1.1	1.2
Emerging Markets and Developing Economies	4.4%	3.9%	4.2%
Emerging and Developing Asia	5.5%	4.9%	4.8%
China	5.0	4.4	4.0
India	7.6	6.5	6.5

(Source: World Economic Outlook by IMF, April 2026)

Outlook

The IMF projects global economic growth to remain broadly stable at 3.2% in 2027, while inflation to continue easing over the medium term, albeit amid persistent uncertainty. The global outlook remains exposed to risks arising from geopolitical conflicts, trade fragmentation, commodity market disruptions and financial market volatility. At the same time, accelerating adoption of artificial intelligence, digital technologies and continued investments in innovation are expected to support productivity and long-term growth. Sustained policy coordination to preserve macroeconomic stability, strengthen fiscal resilience and foster sustainable investment will remain critical to supporting global economic expansion.

1.2 India

India continued to be one of the worlds fastest-growing major economies in FY2025 26, recording GDP growth of 7.7% despite a challenging global environment marked by geopolitical tensions, trade uncertainties and energy market volatility. The economy demonstrated remarkable resilience, supported by strong domestic demand, policy continuity, healthy macroeconomic fundamentals and sustained public investment. While growth moderated from the previous year, it remained well ahead of most major economies, reflecting the strength of Indias structural growth drivers and increasing resilience to external shocks.

The services sector remained the primary engine of growth, benefiting from its global competitiveness and expanding digital ecosystem, while manufacturing gained further momentum, supported by government initiatives, rising domestic demand and a strengthening export base. Continued investments in infrastructure, improving formalisation and a favourable demographic profile further reinforced Indias long-term growth trajectory.

Indian Economy GDP Growth Rate

Financial Year	(%)
FY 2021-22	8.7%
FY 2022-23	7.0%
FY 2023-24	8.2%
FY 2024-25	6.5%
FY 2025-26	7.7%

(Source: https://www.pib.gov.in/PressReleasePage aspx?PRID=2132688 https://indianexpress.com/article/business/india-gdp-growth-2025-26-mospi-rbi-forecast-10725705/)

Outlook

Indias economic outlook remains favourable, underpinned by resilient domestic consumption, sustained public capital expenditure and continued policy support. Easing isexpected energy prices, improving supply chains and moderating inflation are expected to strengthen business sentiment and support investment activity. While global geopolitical developments and trade uncertainties remain key risks,

India s strong macroeconomic fundamentals, expanding manufacturing ecosystem and ongoing structural reforms position the economy for sustained long-term growth.

2. Industry Review

2.1 NBFC Sector

Indias Non-Banking Financial Company (NBFC) sector continued to demonstrate resilience in FY2025–26, reinforcing its position as a key driver of credit intermediation and financial inclusion. The industry witnessed healthy growth, supported by robust demand across retail and commercial lending segments, prudent risk management and increasing digital adoption.

According to CareEdge Ratings, bank funding emerged as a key source of liquidity during the year, with outstanding bank credit to NBFCs exceeding Rs.20.65 lakh crore in March

2026, representing 9.7% of total bank credit. Credit growth accelerated to 26.3% year-on-year, reflecting increased lending by banks, particularly to well-managed mid-sized NBFCs, and a gradual shift by NBFCs towards more cost-effective funding sources.

Robust Momentum Continues in NBFC Credit Growth (y-o-y, %)

Sector	Mar-24 (%)	Mar-25 (%)	Mar-26 (%)
NBFCs	17.5%	5.7%	26.3%
Commercial Real Estate	24.5%	14.0%	20.5%
Trade	19.5%	18.5%	17.0%

Source: RBI, CareEdge

Asset quality remained a strategic priority, with NBFCs strengthening credit appraisal, collection mechanisms and portfolio monitoring practices to enhance resilience. The sector also maintained healthy capitalisation levels, diversified funding sources and adequate liquidity buffers, enabling stable financial performance despite evolving macroeconomic conditions.

Technology continued to reshape the industry, with NBFCs investing in digital platforms, advanced analytics and artificial intelligence to streamline customer onboarding, strengthen credit assessment, improve collections and enhance customer experience. The growing adoption of mobile-based repayments and integrated digital ecosystems further accelerated operational efficiency and expanded access to financial services.

Growth Drivers for the Indian NBFC Industry Robust Retail Credit Demand

Growing consumer aspirations, rising disposable incomes, increasing urbanisation and expanding entrepreneurial activity continue to drive demand for retail and business financing. Strong traction across vehicle finance, gold loans, MSME lending and personal loans is expected to support sustained industry growth.

Financial Inclusion and Undeserved Markets

Indias relatively low credit penetration presents a significant long-term opportunity for NBFCs. By extending formal credit to undeserved individuals, small businesses and rural and semi-urban markets, NBFCs continue to play a pivotal role in advancing financial inclusion and expanding the country s credit ecosystem.

Digital Transformation

Technology-led innovation is transforming the NBFC landscape. Investments in digital onboarding, AI-enabled underwriting, data analytics and automated servicing are enhancing customer experience, improving operational efficiency and enabling scalable, cost-effective growth.

The increasing adoption of digital payment platforms and alternative data sources is further strengthening credit accessibility and risk assessment.

Strengthened Risk Management

The industry has adopted a more disciplined approach to growth, with greater emphasis on prudent underwriting, technology-driven credit evaluation and proactive portfolio monitoring. Enhanced risk management practices are supporting improved asset quality, stronger operational resilience and sustainable long-term growth.

Outlook

According to industry estimates, NBFC assets under management (AUM), excluding government-owned NBFCs, are expected to grow by 18 19%, surpassing Rs.50 lakh crore by FY2026–27.

NBFC sector to grow at 18–19% over the next two years

Financial Year	NBFC AUM (in Rs. L Cr)	Growth (%)
FY15	10	16%
FY16	12	20%
FY17	14	20%
FY18	17	17%
FY19	19	13%
FY20	19	4%
FY21	21	2%
FY22	22	9%
FY23	26	20%
FY24	32	23%
FY25	38	18%
FY26P	44	\u2014
FY27P	53	\u2014

Vehicle finance and housing finance are expected to remain the largest asset classes, each contributing around 22% of industry AUM, while Loan Against Property (LAP) and secured MSME lending together account for nearly 15%. As the sector shifts towards a more balanced growth trajectory, NBFCs are increasingly prioritising secured lending, disciplined underwriting and portfolio quality, leading to a moderation in unsecured credit expansion.

The sectors long-term outlook remains robust, supported by rising retail credit demand, expanding financial inclusion, increasing vehicle ownership and deeper digital adoption. Improving access to diversified funding sources, a stable regulatory environment and continued investments in technology are expected to enhance operational resilience and strengthen risk management capabilities. Well-capitalised NBFCs with diversified portfolios, prudent governance and technology-led business models are expected to be best positioned to capture the next phase of sustainable growth in India s evolving financial ecosystem.

2.2 Vehicle Financing

Indias automobile industry achieved a strong milestone in FY2025–26, with all major vehicle segments recording their highest annual sales in seven years, signalling a broad-based recovery supported by favourable macroeconomic conditions, policy measures and improved consumer sentiment.

Total domestic vehicle sales increased by 10.4% YoY to 28.3 million units, driven by robust demand across passenger vehicles, two-wheelers, three-wheelers and commercial vehicles. Growth accelerated significantly during the second half of the year, aided by lower financing costs, repo rate cuts, income tax relief and sustained infrastructure spending.

India s vehicle financing sector continues to demonstrate strong growth, supported by rising vehicle ownership, improving affordability and increasing credit penetration.

The Indian vehicle financing market continued its growth trajectory in FY2025–26, reaching an estimated Rs.2.65 lakh crore, compared with approximately Rs.2.4 lakh crore in FY2024–25, driven by strong vehicle demand and deeper penetration of retail credit.

NBFC sector to grow at 18–19% over the next two years

Financial Year	Vehicle Finance AUM (in Rs. Trillion)	Growth (%)
FY19	4.3	20%
FY20	4.5	6%
FY21	4.7	5%
FY22	4.9	4%
FY23	5.7	16%
FY24	7.0	22%
FY25	8.1	17%
FY26P	9.4	\u2014
FY27P	11.0	\u2014

(Source: https://www.thehindubusinessline.com/companies/ automobile-dealers-summit-to-tackle-auto-lending-ev-finance-dealer-funding/article71203885.ece)

The industry is expected to maintain healthy momentum, with assets under management (AUM) projected to grow at a 16 17% CAGR over the next two years, reaching nearly Rs.11 trillion by March 2027. Growth is being driven by a recovery in vehicle demand, improving rural incomes, favourable GST-led affordability and sustained consumer spending. Passenger vehicle financing remains the primary growth engine, supported by robust retail demand and an improving financing environment. Commercial vehicle financing is also expected to witness steady growth, aided by higher infrastructure spending, stronger freight movement and sustained demand for used commercial vehicles.

A notable structural trend is the rapid expansion of used vehicle financing, which continues to outpace new vehicle lending. Rising customer acceptance, greater formalisation of the used vehicle market and favourable risk-adjusted returns have positioned used vehicle financing as a key long-term growth driver for lenders.

Outlook

The outlook for India s vehicle financing sector remains positive, underpinned by favourable demographics, rising vehicle ownership, digitalisation of lending and improving access to credit. Continued investments in digital lending platforms, AI-driven underwriting and data analytics are expected to enhance customer experience and expand financing penetration across urban and rural markets.

In addition, government support for electric mobility and increasing demand from Tier-II and Tier-III cities are expected to create new opportunities, supporting sustained long-term growth for the sector.

2.3 Two-wheeler Industry

Indias automobile industry achieved a strong milestone in FY2025–26, with all major vehicle segments recording their highest annual sales in seven years, signalling a broad-based recovery supported by favourable macroeconomic conditions, policy measures and improved consumer sentiment. Total domestic vehicle sales increased by 10.4% YoY to 28.3 million units, driven by robust demand across passenger vehicles, two-wheelers, three-wheelers and commercial vehicles. Growth accelerated significantly during the second half of the year, aided by lower financing costs, repo rate cuts, income tax relief and sustained infrastructure spending.

Two-wheelers recorded a sharp 19.3% growth, with total sales climbing to 19,76,128 units from 16,56,939 units in March 2025. Within the category, scooters outperformed motorcycles, growing 29.8% to 7,61,422 units, while motorcycle sales rose 12.9% to 11,68,514 units. The strong monthly performance capped a healthy year for the industry, reflecting broad-based demand across urban and rural markets.

(Source: https://www.newindianexpress.com/business/2026/Apr/14/two-wheelers-drive-indias-auto-market-surge-sales-jump-nearly-20-in-march)

Outlook

Looking ahead, the sector is expected to sustain its growth trajectory, supported by rising disposable incomes, improving rural prosperity, expanding financing penetration, continued premiumisation and increasing adoption of electric two-wheelers. Manufacturers are also expected to benefit from a strong product pipeline and deeper market penetration across Tier II and Tier III cities.

Electric Two-Wheeler Industry

Indias electric two-wheeler market continued its growth trajectory in FY2025–26, with registrations increasing 22% YoY to 1.40 million units. While the pace of growth moderated compared to previous years, the segment witnessed higher market penetration, with EVs accounting for approximately 6.5% of total two-wheeler sales, up from 5.8% in FY2024–25. The transition reflects increasing consumer acceptance, wider product availability across price points and improving product quality. (Source: https://www.autocarpro.in/news/india-e2w-registrations-rise-22-to-14-million-units-in-fy26-penetration-at-65-131923) The industry is entering a more mature, demand-driven phase, supported by narrowing price differentials between electric and internal combustion engine (ICE) vehicles, expanding charging infrastructure and growing participation from established automotive manufacturers. Traditional OEMs further strengthened their leadership during the year, collectively accounting for more than half of the electric two-wheeler market. Although demand subsidies for electric two-wheelers are being phased out, increasing localisation, production scale and manufacturing efficiencies are expected to improve cost competitiveness and support sustained adoption. Growing demand from urban and semi-urban markets, coupled with expanding charging infrastructure and the entry of established OEMs, is expected to drive the next phase of growth for the sector.

2.3 Three-wheeler Industry

Indias three-wheeler industry continued its growth trajectory in FY2025–26, supported by steady demand for passenger mobility and last-mile connectivity. In March 2026, retail sales increased 10.5% YoY to approximately 109,800 units, driven by strong performance from leading OEMs and sustained demand for passenger auto-rickshaws.

The segment benefited from increasing urban mobility requirements, growth in shared transportation and continued adoption of three-wheelers for commercial and logistics applications. While demand for electric three-wheelers remained mixed across regions, the overall market maintained stable growth, reflecting resilient underlying demand.

Outlook

The outlook for Indias three-wheeler industry remains positive, supported by expanding urbanisation, increasing last-mile connectivity requirements and rising demand for affordable mobility solutions. Continued adoption of electric three-wheelers, improving financing availability and government initiatives promoting clean mobility are expected to support long-term growth, although competitive intensity and evolving regulatory requirements will continue to shape the sector.

Electric Three-Wheeler Industry

India s electric three-wheeler (e-3W) segment continued to lead the countrys EV transition in FY2025–26, with registrations rising 19% YoY to a record 830,819 units.

Electric three-wheelers accounted for approximately 61% of total three-wheeler sales, up from 57% in FY2024–25, underscoring the segment s rapid electrification.

Growth was driven by robust demand across both passenger and cargo applications, supported by favourable economics, expanding charging infrastructure and increasing acceptance of electric mobility for last-mile transportation. Rising urbanisation, growth in e-commerce and last-mile logistics, expanding financing availability and ongoing investments by established OEMs are expected to sustain the segment s leadership in Indias electric mobility ecosystem over the long term.

Source: (https://www.autocarpro.in/analysis-sales/mahindra-bajaj-and-tvs-power-electric-3w-sales-past-800000-for-the-first-time-in-fy2026-131960)

2.4 Used Car Industry

India s used vehicle market continues to expand rapidly, driven by increasing affordability, rising consumer preference for value-driven purchases and improved access to organised retail platforms. According to the Autocar India–Spinny Mobility Intelligence Report 2026, the market is estimated to be 1.39 times larger than the new passenger vehicle market and is growing at 11–13% annually, while the organised used vehicle segment is expanding at over 20%, reflecting increasing formalisation.

First-time buyers account for nearly 80–82% of used vehicle purchases, with consumers increasingly opting for higher-segment vehicles offering better features at attractive price points. SUVs remain the most preferred body style, highlighting the ongoing premiumisation trend within the pre-owned vehicle market.

Vehicle financing has emerged as a key growth catalyst, with financed transactions accounting for nearly 60% of sales on organised platforms. Improved credit availability and digital financing solutions are expanding market accessibility and enabling customers to purchase higher-value vehicles.

Outlook

The outlook for Indias used vehicle market remains robust, supported by rising vehicle ownership aspirations, growing financing penetration and continued formalisation of the pre-owned vehicle ecosystem. Increasing digitalisation, organised retail platforms and enhanced transparency in vehicle evaluation are expected to strengthen consumer confidence and sustain long-term growth.

While electric vehicle resale values continue to evolve due to battery health considerations, advancements in battery diagnostics and standardised valuation practices are expected to support the gradual development of the pre-owned EV market.

Source: https://www.autocarindia.com/industry/autocar-india-and-spinny-reveal-used-car-study-2026-440057

2.5 Small and Medium Enterprises (SME) Industry

Micro, Small and Medium Enterprises (MSMEs) remain a cornerstone of Indias economy, contributing over 31% to GDP, 48.6% of exports and generating livelihoods for approximately 328 million people. The sector continues to play a pivotal role in driving entrepreneurship, employment generation and inclusive economic development, particularly across rural and semi-urban India.

The Government has significantly accelerated the formalisation of the sector through the Udyam Registration Portal and Udyam Assist Platform, bringing over 79 million enterprises into the formal economy as of March 2026. This has expanded access to institutional credit, government incentives and formal market opportunities, strengthening the sectors long-term growth potential.

Access to finance remains a key priority, with initiatives such as the Credit Guarantee Scheme (CGTMSE), the Self-Reliant India (SRI) Fund and enhanced guarantee coverage supporting greater credit flow to MSMEs. Complementing these efforts, digital platforms such as GeM, TReDS and SAMADHAAN are improving market access, facilitating faster payments and enhancing ease of doing business.

Outlook

The outlook for Indias MSME sector remains highly positive, supported by continued policy reforms, increasing formalisation, expanding digital adoption and improving access to institutional finance. Rising entrepreneurial activity, growing participation in domestic and global value chains, and sustained government support are expected to strengthen the sector s contribution to economic growth. As credit penetration deepens and digital ecosystems mature, MSMEs are well positioned to drive employment, manufacturing growth and inclusive development across the country.

Source: (https://www.pib.gov.in/PressReleasePage. aspx?PRID=2260904®=3&lang=1)

2.6 Personal Loan Industry

The personal loan segment continues to be a key driver of Indias retail credit market, accounting for 39% of total retail credit demand in FY2025–26. Demand grew by 16% YoY, while loan origination volumes increased 33% and origination value rose 46%, reflecting higher average ticket sizes and robust credit disbursement.

Growth has been supported by expanding digital lending platforms, improved customer acquisition and increasing consumer preference for unsecured credit. Although the share of new-to-credit (NTC) borrowers remained stable at around 15% of retail originations, lenders increasingly focused on higher-quality, score-based borrowers through tighter underwriting standards, helping maintain stable asset quality despite rapid portfolio expansion.

NBFCs continued to lead market growth, recording 25% YoY expansion, while private sector banks registered 16% growth and remained key contributors to overall portfolio quality. The market also witnessed increasing digital adoption, with loan demand becoming more platform-driven and characterised by faster customer acquisition and higher repeat borrowing.

Personal Loans - Portfolio Snapshot

Portfolio	Mar-25	Dec-25	Mar-26
Outstanding (L Cr)	14.6	15.9	16.5
YoY growth %		11.6%	12.9%
QoQ growth %		3.5%	3.7%
Active Loans (Lakh)	1,139.3	1,303.2	1,224.4
YoY growth %		13.5%	7.5%
QoQ growth %		5.6%	-6.0%
PAR 31-90	2.0%	1.5%	1.6%
PAR 91-180	1.1%	1.0%	0.8%
PAR 180+	4.7%	5.4%	5.3%

Source: CRIF Report – How India Lends

Outlook

The outlook for the personal loan market remains positive, supported by rising consumer spending, increasing digital penetration and greater access to formal credit. However, sustained high growth, increasing exposure to near-prime borrowers and intense competition from NBFCs and fintech lenders warrant continued focus on prudent underwriting and portfolio risk management. Overall, improving credit analytics and disciplined lending practices are expected to support healthy long-term growth while preserving asset quality.

3. Company Overview

At Manba Finance, we are committed to providing customised financial solutions that empower individuals and businesses to achieve their aspirations. Our diversified portfolio of lending products is designed to address evolving financial needs across different stages of life and enterprise.

We recognise that every customer s journey is unique.

Backed by a customer-centric approach, efficient processes and a commitment to service excellence, we strive to deliver accessible, convenient and reliable financing solutions that support sustainable growth and help build a more secure financial future.

Our Offerings

The Company provides a comprehensive suite of customised retail lending solutions designed to address the diverse financing needs of individuals and small businesses.

• Two-Wheeler Loans: Financing for new and pre-owned two-wheelers, including electric vehicles.

• Three-Wheeler Loans: Financing for new and electric three-wheelers.

• Pre-Owned Car Loans: Flexible financing solutions enabling customers to purchase pre-owned vehicles.

• Personal Loans: Quick and convenient unsecured loans for personal financial requirements.

• Manba Vyapar Loans: Working capital and business finance solutions for micro, small and medium enterprises (MSMEs), including kirana stores, medical shops, tailors, carpenters, small manufacturers and other small businesses.

SWOT Analysis

Strengths

• Diversified retail lending portfolio spanning two-wheelers, three-wheelers, electric vehicles, used cars, MSME and personal loans.

• Wide distribution network with over 1,250 dealer partners across multiple states.

• Technology-driven lending platform enabling faster loan origination and enhanced customer experience.

• Predominantly secured loan book supporting strong asset quality and controlled credit risk.

• Diversified funding base through established relationships with banks and financial institutions.

• Experienced leadership team with proven execution capabilities and deep sector expertise.

Weaknesses

• Business operations remain concentrated in select geographies, limiting regional diversification.

• Smaller scale relative to leading banks and large NBFCs.

• Customer acquisition remains significantly dependent on dealer and channel partner networks.

• Exposure to economically sensitive borrower segments, including MSMEs and self-employed customers.

Opportunities

• Increasing demand for vehicle financing across semi-urban and rural markets.

• Accelerating adoption of electric mobility, creating significant financing opportunities for EVs.

• Expansion into new geographies and underserved customer segments.

• Growing digital adoption to enhance operational efficiency, customer engagement and underwriting capabilities.

• Supportive government initiatives promoting financial inclusion, entrepreneurship and sustainable mobility.

Threats

• Intensifying competition from banks, NBFCs, fintechs and captive finance companies.

• Evolving regulatory framework governing the NBFC sector.

• Macroeconomic volatility, including inflation, interest rate fluctuations and slower economic growth.

• Potential asset quality pressures arising from adverse economic conditions.

• Rapid technological advancements requiring continuous investment in digital capabilities and innovation.

4. Financial Review

During FY2025–26, the Company delivered a strong financial performance, supported by sustained portfolio expansion, disciplined underwriting and robust operational execution. Continued focus on prudent risk management, diversified funding, operational efficiency and customer-centric lending enabled healthy growth in assets under management, profitability and overall financial resilience, while reinforcing the Companys foundation for sustainable long-term growth.

(INR Mn)

Particulars	FY 2025	FY 2026
AUM	13,315	17,127
Total Revenue	2,510	3,302
PAT	378	454
Operating Expenses	931	1,168

Details of key financial ratios

Ratios	FY 2025	FY 2026
Return on Assets (ROA)	2.58%	2.63%
Return on Equity (ROE)	10.25%	11.65%
Capital Adequacy Ratio	29.81%	24.46%
Provision Coverage Ratio	24.00%	26.00%
Gross NPA	3.23%	3.33%
Net NPA	2.45%	2.46%

5. Risk Management

The Company has established a robust enterprise risk management framework to identify, assess, monitor and mitigate risks that could impact its strategic objectives and business performance. The Risk Management Committee, under the oversight of the Board, periodically reviews the Companys risk profile, evaluates the effectiveness of mitigation measures and ensures timely implementation of corrective actions. This proactive approach strengthens business resilience, supports informed decision-making and enables sustainable long-term growth.

Risk	Description	Mitigation
Credit risk	Risk of financial loss arising from a customer\u2019s or counterparty\u2019s inability to meet contractual obligations.	Robust credit underwriting framework with clear segregation of sourcing, credit, operations and collections functions. Comprehensive credit appraisal processes and exposure limits are aligned with regulatory guidelines.
Liquidity risk	Risk of being unable to meet financial obligations as they fall due.	Board-approved Asset Liability Management (ALM) framework, overseen by the Asset Liability Committee (ALCO), supported by regular cash flow forecasting, prudent liquidity buffers and diversified funding sources.
Market risk	Risk arising from changes in market conditions affecting business performance and financial outcomes.	Continuous monitoring of macroeconomic and industry trends, supported by a diversified product portfolio, agile business strategy and customer-centric approach.
Interest rate risk	Risk of adverse impact on earnings due to fluctuations in market interest rates.	Regular interest rate sensitivity analysis, prudent borrowing and investment policies, and periodic review of lending and funding strategies to optimise margins.
Operational risk	Risk of losses arising from process failures, system disruptions, human error or external events.	Comprehensive internal control framework comprising segregation of duties, access controls, approval mechanisms, reconciliation processes, employee training and periodic internal audits. The Audit Committee regularly reviews control effectiveness and implementation of corrective actions.

6. Human Resources

Our people remain central to our growth journey. As the business expands, we continue to attract, develop and retain talent aligned with our customer-centric values and entrepreneurial culture. We leverage technology-enabled HR processes to strengthen talent acquisition, learning and workforce management, while fostering an inclusive workplace that promotes collaboration, innovation and continuous development. Through performance-driven recognition, transparent communication and employee well-being initiatives, we remain committed to building a motivated and future-ready workforce.

7. Technology

Technology continues to be a key driver of business efficiency, scalability and customer experience. Our integrated, in-house technology platform supports the entire lending lifecycle—from customer onboarding and loan origination to disbursement, collections, foreclosure and loan closure. Powered by proprietary Loan Origination (LOS), Loan Management (LMS) and Loan Accounting (LAS) systems, the platform enables seamless processing, sub-minute loan approvals and efficient portfolio management. Integration with multiple payment gateways, virtual banking infrastructure and digital communication channels, together with a technology-enabled collections framework, enhances operational efficiency, strengthens controls and delivers a superior customer experience.

8. Internal Control

We have established an adequate internal control mechanism to safeguard all our assets and ensure operational excellence. The mechanism also meticulously records all transaction details and ensures regulatory compliance. We have multiple policy frameworks to ensure adequate controls on business processes.

Further, Risk and Control dashboards have been defined and are periodically updated for all important operational processes. At periodic intervals, the management team and statutory auditors ensure that the defined controls are operative. Reputed audit firms also ensure that all transactions are correctly authorised and reported in accordance with the relevant regulatory framework. The reports are reviewed by the Audit Committee of the Board. Wherever necessary, internal control systems are strengthened, and corrective actions are initiated.

9. Cautionary Statement

Certain statements in the Management Discussion and Analysis describing the Companys objectives, and predictions may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India, volatility in interest rates, new regulations and Government policies that may impact the Company s business as well as its ability to implement the strategy. The Company does not undertake to update these statements.

Disclosures in terms of Sub-Section 12 of Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 for the Financial Year ended March 31, 2026

(i) The ratio of the remuneration of each director to the median remuneration of the employees of the Company for fiscal -

Sr. No Name of Director	Ratio
1. Mr. Manish K. Shah	112.52
2. Mrs. Nikita M. Shah	56.26
3. Mr. Monil M. Shah	42.19
4 Mr. Jay K. Mota	23.22

(ii) The percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer, Company Secretary or Manager, if any, in the fiscal -

Sr. No Name of Director/KMP	% increase / (decrease) in Remuneration
1. Chief Financial Officer	12.02
2. Company Secretary and Compliance Officer	9.52

(iii) The percentage increase in the median remuneration of employees in the fiscal - 18.00%

(iv) The number of permanent employees on the rolls of Company – 1802

(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last fiscal and its comparison with the percentile increase in the managerial remuneration and justification there are any exceptional circumstances for increase in the managerial remuneration - Average remuneration increase for Non-Managerial Personnel of the company during the Financial Year was 3.30 % and the average remuneration increase for the said Managerial Personnel of the company was 1.08%.

(vi) Affirmation that the remuneration is as per the remuneration policy of the Company - The remuneration is as per theRemuneration Policy of the Company.

For Manba Finance Limited

Sd/-

Manish K. Shah

Managing Director

DIN: 00979854