Raama Finance Ltd Management Discussions

Your Directors are pleased to present the Management Discussion and Analysis Report of Ramchandra Leasing and Finance Limited for the financial year ended 31 st March, 2026.

The Company continues to operate as a Non-Banking Financial Company (NBFC) having registration No. 01.00109 under Investment and Credit Category (NBFC-ICC) and is classified as a Base Layer, Non-Deposit Taking, Non- Systemically Important NBFC offers short-term unsecured personal loans across India.. The Company continues to focus on prudent credit practices, regulatory compliance, asset quality, liquidity management and sustainable growth.

For FY 2025-26, Indias economy sustained resilient growth with GDP estimated at around 7.4% to 7.7%. The Economic Survey 2025-26 highlights that domestic demand remained a key anchor of growth, with private final consumption expenditure estimated at 61.5% of GDP in FY 2025-26. Services continued to have the largest share of economic activity, while manufacturing and construction remained important contributors.

The policy environment continued to emphasize infrastructure, investment, digitalisation, financial inclusion, manufacturing, sustainability and fiscal consolidation. These themes remain relevant for NBFCs because they influence credit demand, borrower cash flows, funding conditions and portfolio opportunities.

For the Company, the operating environment presents opportunities to expand responsibly while maintaining conservative underwriting, strong collections, adequate liquidity and robust governance.

The NBFC sector continues to play an important role in bridging credit gaps across retail, MSME, commercial and other underserved segments. Growth in consumption, urbanisation, formalisation of businesses, infrastructure investment and digital financial services continues to support credit demand.

At the same time, NBFCs operate in an environment of heightened regulatory expectations, evolving funding conditions, competition from banks and fintech-led lenders, and continuing focus on asset quality. The Company therefore intends to pursue calibrated growth rather than growth at the expense of underwriting discipline.

• Strengthening credit appraisal and borrower due diligence.

• Maintaining disciplined collection and recovery mechanisms.

• Monitoring portfolio concentration, liquidity and interest-rate sensitivity.

• Using technology to improve operating efficiency and customer servicing.

• Continuing to align governance, reporting and risk management with applicable RBI requirements.

• Digital lending and process automation.

• Financial inclusion and formalisation of credit demand.

• MSME and small-business financing.

• Consumer and retail credit growth.

• Infrastructure and allied economic activity.

• Green and sustainability-linked financing as an emerging niche.

• Credit risk and deterioration in asset quality.

• Liquidity and refinancing risk.

• Interest-rate and margin pressure.

• Regulatory and compliance costs.

• Competition from banks, fintech platforms and digitally enabled NBFCs.

• Cybersecurity, data protection, fraud and technology-continuity risks.

• Macroeconomic and geopolitical shocks.

The various master directions and regulatory framework of the Reserve Bank of India (RBI) continues to emphasize proportional regulation, governance, risk management, prudential norms and transparency. The Company continuously monitor and comply with applicable requirements relating to KYC/AML, net owned fund requirements, regulatory reporting, fraud risk management and other applicable directions.

The Companys compliance approach remains focused on timely regulatory filings, effective internal controls, board and committee oversight, and continuous review of changes in law and regulatory directions.

The Union Budget 2026 - 27 and the broader policy environment continue to place emphasis on growth, infrastructure, investment, technology, manufacturing, employment, financial inclusion and fiscal discipline. These priorities may influence credit demand, borrower cash flows and financing opportunities for NBFCs.

Further Union Budget 2026 - 27 proposes to set up a "High Level Committee on Banking for Viksit Bharat", the Union Minister of Finance and Corporate Affairs said that it will comprehensively review the financial sector and align it with Indias next phase of growth, while safeguarding financial stability, inclusion and consumer protection. Indian banking sector today is characterised by strong balance sheets, historic highs in profitability, improved asset quality and coverage exceeding 98% of villages in the country.

The Union Budget proposes to restructure the Power Finance Corporation and Rural Electrification Corporation to achieve scale and improve efficiency in the Public Sector NBFCs. The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption.

The Company will evaluate opportunities arising from these policy priorities while maintaining its focus on prudent underwriting, liquidity and risk management.

The Company maintains internal control systems commensurate with its size, business model and risk profile. The controls are designed to provide reasonable assurance regarding financial reporting, safeguarding of assets, operational efficiency and compliance with applicable laws and regulations.

Management periodically reviews the control environment, while the Statutory Auditors and the Audit Committee provide independent oversight within their respective mandates

Employees remain an important component of the Companys ability to execute its strategy. The Company seeks to support capability development, compliance awareness, operational discipline and a positive workplace culture. Training, performance management and communication remain important tools for maintaining an effective and responsible workforce.

Industrial relations during the year remained cordial. The Company remains committed to professional development, employee engagement and a collaborative working environment.

The Company has registered a turnover of Rs.1206.31 Lakh and made profit before depreciation and tax of Rs.434.51 Lakh. The depreciation provided during the year was Rs.5.80 Lakh and the Net Profit for the year after depreciation and tax was Rs.323.90 Lakh. The above turnover is out of both operational activities.

This report contains statements concerning objectives, expectations, projections and other forward-looking matters. Actual results may differ materially due to changes in economic conditions, interest rates, regulatory requirements, funding availability, asset quality, competition, market conditions and other factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise forward-looking statements except as required by applicable law.