Optimus Finance Ltd Management Discussions

ANNEXURE-6

Indian economy has grown with better pace with more participation of the domestic players in expanding industries and accelerating service sector.

The Governments initiatives with political stability are giving better fruits enabling us to reach out to various sections of society and business.

Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025.

Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher for even longer interest rates, in the context of escalating trade tensions and increased policy uncertainty. The policy mix should thus be sequenced carefully to achieve price stability and replenish diminished buffers.

(Courtesy ·IMF)

Indias Gross Domestic Product (GDP) growth for the first quarter of the current financial year 2024-25 is expected to have slowed to around 7%, less than the 7.8% growth seen in the March Quarter. Economists expect that the Indian economys growth would have tapered due to a slowdown in government spending on the back of the Lok Sabha polls.

India will retain the tag of being the worlds fastest growing major economy, say experts. Ahead of the GDP data for April June 2024 Quarter, Moodys has revised upwards its GDP growth forecast for India. According to Moodys Ratings Indias GDP will grow at 7.2% in the calendar year 2024 and 6.6% in the 2025 calendar year. The ratings agency sees a strong broad- based growth for the Indian economy. EY has also predicted that Indias real GDP growth for FY25 will range between 7% and 7.2%.

# Reported by IMF/WB/Deloitte

In the recent past, after the NBFCs have undergone a significant transformation to now stood as pivotal part of Indias financial system by contributing in the development of infrastructure, transport and employment generation couples with the changes with the time. NBFCs are already offering the right financial products to consumers and small businesses in a customized manner. The use of technology to optimize business processes also keeps cost overheads to a minimum, enabling credit to be availed at highly competitive interest rates.

Your Company has earned total revenue of ^ 148.72 Lakhs with a net profit of ^ 53.22 Lakhs during the Financial Year 202425.

Your Companys performance during the Financial Year 2024-25 is as follows:

Non-banking finance companies (NBFCs) play a significant role in the financial sector and they have tremendous opportunities in the retail sector.

Non-banking finance companies higher level of customer orientation, fewer pre and post-sanction requirements, simple and speedy tailor-made services and higher rate of return on small savings have assured them a loyal clientele despite higher costs.

Non-banking finance companies have been instrumental in providing funds and small savings avenues to various sectors. These companies constitute an important link between banks and customers in look out for more services. They have become an accepted and integral part of the Indian financial services in view of their complementary as well as competitive role.

Tremendous opportunities are unfolding for NBFCs in the retail lending business consequent to a cultural change sweeping across the country.

• NBFCs act as a perfect substitute for banks for facilitating the poor and underprivileged who could not get access to banks. Thus, banks could be termed as competitors.

• The unorganized money lenders have a strong presence in the rural markets. They pose a big threat to the NBFCs in the rural areas.

• The bargaining power of suppliers/depositors is quite high since they have many alternatives at their disposal to invest their money depending on their risk appetite.

• The service offerings by NBFCs are almost the same. Thus, there is a low level of service differentiation.

• Due to the increased rivalry among the NBFCs, there has been use of aggressive selling & intensive marketing strategies by the companies to gain the market share.

The Company has an adequate internal control system commensurate with its size and the nature of its business in order to achieve efficiency in operation and optimum utilization of resources. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. Internal audits are conducted in the Company on regular basis.

Every business has both Risk and Return and they are inseparable. As a responsible management, the Companys principal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts. Our senior management identifies and monitors the risk on regular basis and evolves process and system to control and minimize it. With regular check and evaluation business risk can be forecasted to the maximum extent and thus corrective measures can be taken in time.

Human resources are valuable assets for any organization. The employees of the Company have extended a very productive cooperation in the efforts of the management to carry the Company to greater heights. The Company is giving emphasis to upgrade the skills of its human resources and continuous training down the line is a normal feature in the Company to upgrade the skills and knowledge of the employees of the Company.

Statement in this Report describing the Companies objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those either expressed or implied.