Pyxis Finvest Ltd Management Discussions

[Pursuant to Regulation 34(2)(e) r/w Schedule V(B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015)]

Industry Structure and Developments

NBFCs have emerged as the crucial source of finance for a large segment of the population, including SMEs and economically unserved and underserved people. They have managed to cater to the diverse needs of the borrowers in the fastest and most efficient manner, considering their vast geographical scope, understanding of the various financial requirements of the people and extremely fast turnaround times. Nonbank money lenders have played an important role in the financial inclusion process by supporting the growth of millions of MSMEs and independently employing people.

The sector has grown significantly, with a number of players with heterogeneous business models starting operations. The last few years have seen a transformation in the Indian financial services landscape. The increasing penetration of neo-banking, digital authentication, rise of UPI and mobile phone usage as well as mobile internet has resulted in the modularization of financial services, particularly credit.

Opportunities and Threat

There are various opportunities available to your Company in the Indian markets. However, the Company is currently small in size and is looking for various new opportunities suitable for its size and the manpower available with it.

Segment-wise or Product-wise Performance

The Company currently has two Segments

1. Giving loans.

2. Trading in securities

Outlook

Board of the Company is examining various possible business options available with them.

Operational Risks: NBFCs have grown increasingly interconnected with banks, which can amplify systemic risks, particularly during periods of financial stress. This interconnectedness manifests both directly (e.g., through debt instruments, shares, or other contractual relationships) and indirectly (e.g., through common exposures to sectors, markets, or instruments). One major issue is the concentration and contagion risks associated with being large net borrowers, particularly with high exposure to banks.

Many NBFCs maintain multiple borrowing relationships with banks, which can create contagion risks within the financial system due to high leverage. Over-reliance on bank credit and concentrated funding sources may also result in funding challenges during stress events, highlighting the need for NBFCs to diversify their funding sources.

Technology-related risks: The increasing reliance on digital mediums and partnerships with FinTechs has heightened technology-related risks, including cybersecurity threats and operational disruptions. To manage these risks effectively, your Company need to implement robust risk mitigation measures that go beyond regulatory minimum requirements. Addressing these concerns is essential for the sustainable growth and stability of your Company.

Internal control System and their adequacy

Company at present has adequate internal control procedures, which is commensurate with the present business volume and its requirements. Internal controls are being monitored, reviewed and upgraded on an ongoing basis and on from time to time depending upon situation.

Financial performance with respect to operational performance

Your Companys Present performance vis-a-vis the financial performance for the previous year as given below in tabular format.

Human resources / Industrial Relations front

The Board is keen to have a fully equipped Human Resource Department, once the business activity is resumed/started in a normal way. During the year under review, since, there were no business activities and manpower utilization was meagre, there was no such department.

Details of significant changes in key financial ratios

Details of changes in Return on Net Worth

The return on net worth has gone down from 8.33% to 1.70%

Disclosure of Accounting Treatment:

Detailed disclosure of accounting treatment during the year 2024-25 has been made in Notes to accounts of the financials.

Caution: The views expressed above are based on available information, assessments and judgment of the Board. They are subject to alterations. The Companys actual performance may differ due to national or international ramifications, government regulations, policies, Tax Laws, and other unforeseen factors over which the Company may not have any control.