Suvidhaa Infoserve Ltd Management Discussions

1. Overview

• Economy & Industry Overview

The past year has been defined by a rapidly evolving economic environment in India, where digital transformation and financial inclusion remain central themes. Despite a period of funding caution and valuation corrections, the fintech sector continues to establish itself as a critical driver of innovation across financial services. This steady expansion is underpinned by the increasing adoption of digital-first models, breakthroughs in generative AI, and the need to bring underserved populations into the formal financial system. At the same time, the sector is transitioning from a phase of aggressive expansion to one that emphasizes resilience and sustainability. Profitability, risk management, and regulatory compliance are becoming as important as scale. Within this shift, Retail programs are gaining momentum as strategic tools to deepen customer engagement, strengthen brand equity, and generate incremental revenues. For businesses that serve retail partners and consumers alike, the convergence of digital commerce, loyalty, and financial services is reshaping expectations. Customers now demand not only seamless financial access but also value- added retail services that enhance their everyday lives. This rising demand has put pressure on cost structures but also unlocked new opportunities for companies that can create economically self-sustaining loyalty models backed by diversified revenue streams and innovative funding mechanisms. Suvidhaa, anchored in its retail enablement model, stands at the forefront of this transformation. By equipping retailers and businesses with the ability to offer a wide spectrum of products and services — ranging from financial solutions like insurance, mutual funds, and utility bill payments to retail offerings such as travel bookings and other consumer services — Suvidhaa turns local stores into one-stop destinations for their communities. This dual focus on financial products and retail services not only strengthens customer stickiness but also drives repeat footfalls, empowering merchants to increase earnings while creating long-term value for consumers. By bridging financial inclusion with retail enablement, Suvidhaa is uniquely positioned to capture opportunities in this evolving landscape. Its technology-driven ecosystem ensures small businesses remain competitive while also contributing meaningfully to Indias broader vision of inclusive, sustainable, and digitally empowered economic growth.

• Business Overview

Suvidhaa Infoserve Limited (NSE: Suvidhaa) has evolved into one of Indias foremost retail fintech enablers since its inception in 2007. Built on the vision of making essential services accessible at the neighborhood level, the company has consistently focused on solving everyday challenges for consumers and retailers through innovative, inclusive, and technology-driven solutions. This not only empowers individuals but also contributes meaningfully to Indias financial inclusion journey. Over the years, Suvidhaa has expanded its role beyond financial services to serve as a holistic digital hub for enterprises, SMEs, and their retail network. By leveraging its marketplace technology, small stores can offer their customers a wide spectrum of products and services.This model not only enhances merchant revenues but also drives repeat customer footfalls, creating a sustainable ecosystem for local businesses. At the core of this strategy lies Suvidhaas proprietary S-Commerce? platform — a robust, agile, and scalable system that integrates with over 300 service providers on one side and a widespread franchisee network on the other. With real-time settlement capabilities and secure architecture, the platform enables seamless delivery of services while reinforcing reliability and trust. In addition, Suvidhaa has established a strong foothold in the loyalty, rewards, and engagement ecosystem, recognizing the growing importance of customer stickiness in todays competitive marketplace. Its customizable programs, multilingual interfaces, and diverse rewards catalog allow businesses to transform transactional interactions into longterm brand relationships. Through an omni-channel presence — spanning mobile apps, web platforms, and in-store POS solutions — Suvidhaa delivers a unified, seamless experience that benefits service providers, merchants, and consumers alike. Anchored in retail enablement and digital financial inclusion, Suvidhaa continues to play a pivotal role in organizing Indias vast unorganized retail sector. Its integrated approach ensures that small businesses are empowered with the tools, services, and engagement platforms they need to scale, thrive, and remain competitive in an increasingly digital economy.

2. Opportunities and Threats.

Indias fintech ecosystem continues to present vast opportunities, driven by a surge of investments and rapid adoption of digital-first models.This growth is fueling higher consumer spending in the digital economy and opening new avenues for financial services. Regulators have also played a pivotal role by enabling regulatory sandboxes, innovative distribution frameworks, and progressive product launches, thereby fostering innovation at scale. The India Stack has further accelerated financial inclusion, empowering fintech companies to deliver transformative solutions, particularly across Tier 3 and smaller markets. Additionally, the five-fold increase in Indias digital technology talent pool has positioned the country as a global hub for digital and tech expertise, capable of addressing the worldwide digital skill gap. However, alongside these opportunities lie significant challenges. For the fintech sector, cybersecurity risks and online fraud remain critical concerns, with rising digital adoption expanding the threat landscape. Yet, Suvidhaa is well-positioned to navigate these risks through its assisted service commerce model and advanced technology frameworks, which prioritize security, resilience,

and trust. By leveraging innovation and strong governance, the company continues to mitigate threats while capturing the opportunities offered by a rapidly evolving digital economy.

3. Risks and concerns

• Risk related to Information Technology and Networks:

i) As a technology-driven business, Suvidhaas operations are highly dependent on the performance, security, and resilience of its information technology systems, networks, and related infrastructure. The efficiency and uninterrupted functioning of these systems, both internal and external, are critical to ensuring seamless service delivery to merchants, enterprises, and end customers. Any prolonged disruption, outage, or slowdown could adversely affect our operations, customer experience, and business growth. Moreover, any deviation from the anticipated pace of internet penetration in India may hinder our ability to expand our merchant base and reach new customers effectively. The technology industry, by nature, is marked by rapid innovation and constant evolution, influenced by scientific advancements, emerging business models, regulatory frameworks, and intellectual property laws. These external factors have a direct bearing on the relevance, pricing, and value proposition of both existing offerings and those under development. Sustained growth for the company will therefore require the ability to:

(1) Consistently deliver cutting-edge technology solutions;

(2) Swiftly adapt to superior or evolving technologies; and

(3) Invest in the continuous upskilling of our workforce to maximize human capital potential.

ii) By remaining agile, fostering innovation, and strengthening technological capabilities, Suvidhaa aims to mitigate these risks and maintain its competitive advantage in a rapidly changing digital ecosystem.

• Risk related to the services provided by the Company:

The secure handling and transmission of sensitive customer information, such as payment credentials and authentication details, remains a critical challenge in digital commerce. Suvidhaa relies on advanced encryption and authentication technologies, licensed from third parties, to ensure safe and reliable transactions across multiple payment modes, including credit cards, debit cards, net banking, and other emerging payment solutions. As the company continues to expand its range of payment options, it is also exposed to additional regulatory, compliance, and fraud-related risks. Technological advancements, breakthroughs in cryptography, or unforeseen vulnerabilities could potentially compromise the security algorithms currently in use. Any such breach or compromise could undermine customer trust and may have a material impact on the companys reputation, operations, and financial performance. Accordingly, Suvidhaa places strong emphasis on continuously upgrading its security frameworks, monitoring potential vulnerabilities, and adopting global best practices in information security to mitigate these risks.4.

Internal control systems and their adequacy.

4. Internal control systems and their adequacy

The Company has established a robust framework of internal controls that is commensurate with its size, scale, and operational complexity. These systems are designed to provide reasonable assurance regarding the accuracy and reliability of financial and operational reporting, safeguarding of assets against unauthorized use, adherence to statutory and regulatory requirements, and the proper authorization and recording of transactions. In line with its commitment to governance and transparency, the Company continuously reviews and strengthens its processes to ensure alignment with industry best practices and evolving regulatory standards. Oversight is exercised by the Audit Committee of the Board, which is comprised entirely of Independent Directors. The Committee regularly evaluates the effectiveness of internal controls, reviews the annual audit plan and significant findings, and monitors compliance with accounting standards, corporate policies, and statutory obligations. This multi-layered approach ensures that the Companys control environment remains strong, responsive, and reliable.

5. Discussion on financial performance with respect to operational performance

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013, read with the applicable rules thereunder. The statements are drawn up under the historical cost convention on an accrual basis, except for certain financial instruments that are measured at fair value. During the year under review, the Companys financial performance reflects the impact of its operational strategies, with a continued focus on expanding digital service offerings, strengthening partnerships with banks and enterprises, and enhancing technology platforms. Operational improvements, process efficiencies, and disciplined cost management supported financial stability, while investments in digital capabilities positioned the Company for sustained growth. The alignment of operational initiatives with financial outcomes underscores the Companys ability to drive long-term value creation. The emphasis on customer acquisition, merchant expansion, and loyalty solutions has not only contributed to

topline growth but has also reinforced the resilience of the business model. The Company remains committed to prudent financial management, maintaining compliance with Ind AS requirements, and ensuring that operational performance continues to translate into healthy financial results for stakeholders.

7. Material developments in the Human Resources / Industrial Relations front, including the number of people employed.

We have in place a well-defined Code of Conduct and ensure that ethical business practices are followed at all levels of the organisation. To maintain a constant connection between the organizational goals and employee performance, we have put in place a fair and objective performance management system. As of 31^st March, 2025, we had an employee strength of 17 people.

8. Cautionary Statement

in this document/ discussion relating to future status, events, or circumstances, including but not limited to statements describing the Companys objectives, projections, estimates and expectations maybe forward looking statements within the meaning of applicable laws and regulations. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic developments, improvements in Fintech ecosystem, changes in the Government regulations in India & other incidental factors.