Money Masters Leasing & Finance Ltd Management Discussions

Annexure III to Boards Report

A. Indian NBFCs:

Money Masters Leasing & Finance Limited, or the Company) is a Non-deposit-taking Non-Banking Financial Company (NBFC-AFC) registered with the Reserve Bank of India (RBI). It is classified as an NBFC- Asset Finance Companies (NBFC-AFC) with the RBI. It is engaged in the business of lending, and acceptance of deposits. The Company has maintained a diversified financing portfolio, focused mainly on hire-purchase loans for vehicles, auto rickshaws, equipment, and small-ticket assets, thereby contributing to financial inclusion.

B. Industry Overview

The NBFC sector continues to play a vital role in the Indian financial system by complementing the banking sector and serving segments often under-served by banks.

• As of March 2024, the NBFC sectors retail AUM (Assets under Management) was estimated at approximately ^47 lakh crore. This AUM is expected to grow at a faster pace of 13-15% in FY 2025, compared to the earlier projection of 12-14%.

• Growth is being driven by robust demand in the unsecured lending segment (personal loans, consumption loans, and MSME financing) and a recovery in vehicle/equipment financing.

• NBFCs continue to benefit from their strong customer connect, faster processing, and ability to customize products as compared to banks.

Growth Drivers for NBFCs:

Demand for loans by MSMEs, who often face difficulties in accessing credit from traditional banks due to stringent eligibility criteria.

Rapid adoption of digital lending platforms, enabling quicker loan disbursement and improved customer experience.

Government push for infrastructure, rural development, and mobility, driving demand for asset financing.

While NBFCs have witnessed robust growth, the sector also faces challenges such as rising borrowing costs, competition from banks and fintechs, and regulatory changes.

C. Performance Review:

The Company is engaged in the business of Hire-purchase finance. The net receipts from Operations during the year under review were Rs. 214.13 lakhs as against Rs. 207.38 lakhs in the previous year. The Profit after tax is Rs. 51.19 lakhs as against Rs. 50.84 lakhs in the previous year.

D. Risk Factors:

The Company is exposed to a variety of risks, which are actively monitored and managed:

• Financial Risks: Fluctuations in interest rates, liquidity availability, and market volatility.

• Credit Risk: Delinquencies in the borrower portfolio, particularly in economically weaker segments.

• Liquidity Risk: Smaller NBFCs often face funding challenges due to limited refinancing avenues and higher borrowing costs.

• Regulatory Risks: Frequent policy changes by RBI relating to capital adequacy, provisioning norms, and governance.

• Macroeconomic Risks: Rising interest rates and inflationary pressures can affect repayment capacity of borrowers.

E. Opportunities and Threats:

Opportunities:

• Rising demand for two wheeler and four wheeler electric vehicle and equipment financing in semiurban and rural areas.

• Digital transformation enabling better customer acquisition, faster loan disbursements, and efficient collections.

• Partnerships and co-lending opportunities with banks and fintech companies.

Threats:

• Intensifying competition from banks, large NBFCs, and fintech players.

• Rising cost of funds amidst tightening liquidity conditions.

• Possible deterioration in asset quality in case of economic slowdown or rural distress.

F. Outlook:

The medium-to-long-term outlook for the NBFC sector remains positive, supported by:

• Indias strong GDP growth and higher credit penetration.

• Governments focus on infrastructure and rural development.

• Increasing shift of borrowers towards NBFCs for faster, customized financing solutions.

The Company expects steady growth in AUM in FY 2025-26, driven by its core hire-purchase financing activities. With improving collections and cautious underwriting, the Company is well positioned to sustain profitability while maintaining asset quality.

G. Segment Wise or Product Wise Performance:

The Company operates in a single business segment, i.e., Leasing and Finance, with a primary focus on Hire Purchase activity. The financing portfolio largely comprises:

• Auto rickshaws,

• Computers,

• Small equipment, and

• Other productive assets.

H. Internal Control System and their Adequacy:

Your Company has adequate internal control system commensurate with the size and nature of its business. The Company is in process of finalizing the internal auditor. .

I. Discussion and Financial performance with respect to operational performance:

The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss Account and other financial statements appearing separately. Please refer the Directors Report for highlights.

J. Material Developments in Human Resources/ Industrial Relations Front:

During FY 2024-25, the Company successfully completed the postal ballot process for migration of its listing from BSE SME Platform to the Main Board of BSE, with requisite shareholder approval.

The Company continues to recognize the contribution of its employees and strives to provide a cordial, safe, and growth-oriented work environment. Employee productivity and relations during the year remained satisfactory and harmonious.

The company recognizes the importance of key role played by the people and maintains a cordial and harmonious relationship with its employees. The productivity of staff of the Company has been satisfactory.

Cautionary Statement:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, and expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to economic conditions, regulatory changes, tax laws, and other unforeseen circumstances.

	On behalf of Board of Directors
	Money Masters Leasing and Finance Limited
	Hozef Darukhanawala
	Managing Director
Place: Mumbai	DIN:00177029
Date: 29th August, 2025