TTI Enterprise Ltd Management Discussions

In this Management Discussion and Analysis Report, your directors present a comprehensive overview of the companys performance, achievements and prospects for the financial year ended on 31^st March, 2025. This report aims to provide stakeholders with insights into the companys operations, key financial metrics, risk management, opportunities, threats and future outlook.

INDUSTRY OVERVIEW

The NBFC sector in India has undergone a remarkable transformation since its inception, driven by significant growth in segments such as mortgages, consumer finance and MSME finance. This growth is driven by various factors such as a growing middle class, enhanced financial inclusion, digitisation and democratisation of data and positive policy interventions. NBFCs have managed to cater to the diverse needs of borrowers efficiently, considering their vast geographical footprint, understanding of various f inancial requirements of the people and fast turnaround times.

The sector has leveraged digitisation to offer alternative financing options, especially to MSMEs, which face challenges in obtaining loans from banks. In FY24, MSME-related products constituted around 45% of Indias total exports, underscoring their role in establishing the country as a global manufacturing hub. New budgetary measures aim to provide better access to resources to MSMEs. The limits for investment and turnover classification have been increased by 2.5 times and 2 times, respectively. ABCL continues to focus on providing credit support to these MSMEs and being a part of their growth story.

In January 2025, the FIDC submitted a proposal to the Government of India to create a refinance or liquidity facility to boost lending for priority sectors like agriculture and small businesses. The proposal includes raising borrowing limits for priority sector financing and establishing a structured mechanism to ensure smoother and more organised access to funds.

On 25th February 2025, the RBI lowered the risk weights on bank loans to NBFCs and MFIs to stimulate credit flow and lending, reversing an earlier increase in risk weights. This move enhances banks Tier 1 capital ratio and holds the potential to reduce funding costs for NBFCs.

BUSINESS OVERVIEW

The Company has come out of suspension in the said financial year and was also able to do some business in the said financial year. Going forward the company will try to set up a more robust NBFC business and try to maximize the business potential from the same.

FORWARD LOOKING STATEMENTS

Statements in the Management Discussion and Analysis of financial condition and results of operations of the company describing the companys objectives, expectations or

predictions, market and industry trends, strategic initiatives, technological advancements which may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements involves risks, uncertainties, assumptions and expectations of future events. These statements are based on current expectations and projection about future events and financial performance which may not necessarily prove accurate. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. Actual results may differ materially from those expressed in the statement.

BUSINESS PERFORMANCE AND SEGMENT REPORTING

The analysis in this section relates to the financial results for the year ended on 31^st March, 2025. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the Standalone financial statements.

ABOUT THE COMPANY:

TTI Enterprise Limited is a public limited company incorporated on 12 June, 1981 under The Companies Act, 1956. The company is a non-deposit taking Non-Banking Finance Company vide the Reserve Bank of India registration number B.05.02515.

Financial performance & review

(In Rs.)

Particulars	Standalone
	FY 2025	Fy 2024
Revenue From operation	28403349	29776314
Other Income	0	0
Expenses	19285616	26913690
Profit Before Tax	9117733	2862624
Profit After Tax	9104445	2264390
EPS (Basis) (In Rs.)	0.36	0.09
EPS (Diluted) (In Rs.)	0.36	0.09

SEGMENT WISE PERFORMANCE

The Company is into single segment reporting.

OUTLOOK

We remain focused on simplifying finance for our customers while leveraging our digital capabilities to drive profitable growth.

RISK MANAGEMENT

Key factor in determining a companys performance is the companys ability to manage the risks in its business/environment effectively. Many risks exist in a companys

operating environment, and they emerge on a regular basis, Viz Currency Risk, Commodity price Risk, Human Resource Risk. Risk management is embedded in the operating framework of your Company. Your Company believes that managing risks helps in maximizing returns. The risk management framework is reviewed periodically by the Board and the Audit Committee. Like any other industry, the retail industry is also exposed to the risk of competition, government policies, fluctuation of commodity prices, natural factors like change in climate etc.

OPPORTUNITIES AND THREATS:

Opportunities:

NBFCs (Non-Banking Financial Companies] have a plethora of opportunities in the financial sector. One of the key advantages of being an NBFC is the ability to cater to specific market segments and offer a diverse range of financial services without the regulatory constraints faced by traditional banks. Someprominent opportunities include venturing into niche financial services, such as micro finance for underserved communities or specialized lending for particular industries. Consumer finance presents a significant opportunity, driven by the rising middle class and increasing demand for personal loans, credit cards, and other consumer credit products. Additionally, theres immense potential in rural and agricultural finance, supporting rural development and reaching unbacked populations. Opportunities for NBFCs lie in niche financial services, consumer finance, rural and agricultural finance, digital transformation, and fintech partnerships. They can capitalize on the growing demand for housing finance and MSME lending, while also exploring trade finance and infrastructure financing. Embracing green finance and offering credit rating and analytics services can further diversify their portfolio. Leveraging digital technologies to enhance customer experience will be crucial in gaining a competitive edge. By staying innovative, NBFCs can tap _ into underserved markets and meet the evolving financial needs of businesses and individuals.

Threats:

NBFCs face a variety of threats that can impact their financial stability, reputation, and overall operations. Some of the key threats faced by NBFCs include:

• Competition from captive finance companies, small banks, FinTechs and new entrants.

• Inadequate availability of bank finance and an upsurge in borrowing costs.

• Regulatory and compliance related changes in the sector affecting NBFC.

• Sudden change in funding challenges in the availability or cost of funding can impact the liquidity and operations.

RISKS AND CONCERNS:

As with any financial institution, the company faces certain risks that could impact performance. Some of the risks are as follows:

• Credit risk - the potential for borrowers to default on their obligations due to economic downturns or unexpected events.

• Liquidity risk - Ensuring sufficient liquidity to meet obligations and withstand unforeseen liquidity demands.

• Interest rate risks - Vulnerability to fluctuations in interest rates that may affect borrowing costs and interest income.

• Regulatory risk - Adapting to changes in regulatory policies and compliance requirements.

• Information Technology risk - The risk arising as a IT infrastructural failure or data loss/threats causing operational setback and financial losses.

To of mitigate these risks, the Company has framed the risk management policy and the risk management review framework provides complete oversight on various risk management practices and processes to mitigate the risks.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has a well-defined organizational structure, documented policy guidelines, and a defined authority matrix that ensures efficiency of operations, compliance with internal policies and applicable laws and regulations, as well as protection of resources.

The Company believes that a strong internal control system and processes play a critical role in the day-to-day operations of the Company. To this end, the Company has put in place an effective internal control system to synchronize its business processes, operations, financial reporting, fraud control and compliance with extant regulatory guidelines and compliance parameters. Strict internal control and systems are devised as a depiction of the principles of the highest standards of governance.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Financial Statements are prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act, 2013. All Income and Expenditure having a material bearing on the Financial Statements are recognized on accrual basis. The Management has taken utmost care for the integrity and the objectivity of these Financial Statements, as well as for various estimates and Judgments used therein.

Subsidiaries

The Company has no subsidiary as on 31st March, 2025.

Material Developments in Human Resources and Industrial Relations Front:

Company takes pride in the commitment, competence and dedication shown by its employees in all areas of business. Your directors wish to convey their gratitude and place on record their appreciation for all the employees at all levels for their hard work, solidarity, cooperation and dedication during the year. Industrial relations were cordial throughout the year.

Details Of Significant Changes (i.e. Change of 25% or more as compared to the immediately previous financial year) in key financial ratios. The Company has identified the following ratios as key financial ratios:

Ratios	Numerator	Denominator	Year ended 31.03. 2025	Year ended 31.03. 2024	% Change	Rea son for change in ratio more than 25 %
P&L Ratios:
1. Net profit ratio	91,04,4 45	2,84,03, 349	32.05	7.60	24.4 5	-
2. Interest coverage ratio (in times)	7,69,49 7	2,84,03, 349	2.71	1.89	0.82	-
3. Earnings per share	91,04,4 45	2,54,04, 422	0.36	0.09	0.27	-
Balance sheet ratios:
1. Current ratio	6,38,85, 493	1,40,00, 742	4.56	4.74	0.18	-
2. Quick ratio	8,85,49 3	1,40,00, 742	0.06	0.17	0.11	-
3. Return on equity ratio	91,04,4 45	27,68,21,564	0.03	0.01	0.02	-
4. Trade receivables to turnover ratio (No of days)	-	-	-	-	-	-
5. Trade payables to turnover (No of days)	-	-	-	-	-	-
6. Net capital turnover ratio	27,68,2 1,564	2,84,03, 349	9.75	8.99	0.76	-
7. Return on capital employed ratio	9,88,72 30	4,98,84, 751	0.20	0.07	0.13	-
8. Inventory Turnover	6,30,00, 000	2,84,03, 349	2.22	2.12	-0.1	-
9. Debt Equity Ratio	1,02,31, 065	27,68,21, 564	0.04	0.05	0.01	-
10. Operating Profit Margin (%)	2,84,03, 349	2,84,03,3 49	1	0.43	-0.57	-

COMPLIANCE:

The Compliance department of the company ensure strict observance of all statutory and regulatory requirements for the company. The Compliance Department of the Company continues to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by different regulators, the Companys Board of Directors and the Companys Compliance Policy.

By has complying with the provisions of the SEBI Listing Regulations, the Company an optimum combination of executive and non-executive directors with a woman independent director. The Different Committees of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

CAUTIONARY STATEMENT:

Investors and stakeholders are cautioned that the statements in this management discussion and analysis report are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. and Risks and uncertainties that could adversely impact future results include, but are not limited to market conditions, competitive landscape, regulatory changes, technological advancements, currency and interest rate, credit liquidity risks, environmental and social risks, etc. The company undertakes no obligation to update or revise any forward-looking statements to reflect new information, future events, or changes in circumstances, except as required by law. This report should be read in conjunction with the financial statements included herein and the notes thereto.

For, TTI ENTERPRISE LIMITED
VALATH SREENIVASAN RANGANATHAN	SABU THOMAS
DIRECTOR	MANAGING DIRECTOR
DIN:02786224	DIN:08224794
DATE: 29th AUGUST, 2025
PLACE: KOLKATA