Aye Finance Ltd IPO

The company is subject to the risk of non-payment or default by our borrowers which may adversely affect its business, results of operations and financial condition. The company's Gross NPA ratio has increased from 2.49% as of March 31, 2023 to 4.21% as of March 31, 2025, and was 4.85% as of September 30, 2025.

The company's operations depend on the accuracy and completeness of information provided by its customers and certain third party service providers and our reliance on any erroneous or misleading information may affect the company's judgement of their creditworthiness, as well as the value of and title to the collateral.

If the company is unable to control the level of Gross Non-Performing Assets / Stage 3 Assets / Net NPAs in our portfolio effectively, or if the company is unable to maintain adequate provisioning coverage, or if there is any change in regulatorily mandated provisioning requirements, the company's financial condition and results of operations may be adversely affected.

In the six months ended September 30, 2025 and September 30, 2024 and Fiscals 2025, 2024 and 2023, unsecured loans comprised 37.97%, 41.47%, 39.68%, 37.91% and 30.26% of the company's total assets under management, respectively. If the company is unable to recover such receivables in a timely manner or at all, the company's business, results of operations, cash flows and financial condition may be adversely affected.

The company has experienced negative cash flows from operating activities in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company's ability to operate its business and implement the company's growth plans, thereby affecting its financial condition.

The company's business is vulnerable to interest rate risk. In the six months ended September 30, 2025 and September 30, 2024 and in Fiscals 2025, 2024 and 2023, the company's interest income accounted for 85.03%, 89.29%, 88.10%, 88.52% and 88.05% of its total income, respectively. Volatility in interest rates could have an adverse effect on the company's net interest income and net interest margin, thereby affecting its results of operations and cash flows.

The company requires substantial capital for its business and any disruption in the company's sources of capital could have an adverse effect on its business, results of operations, cash flows and financial condition.

The company may not be able to sustain or manage its growth or execute the company's growth strategy. If the company fails to increase the company's operational efficiency, the company may have higher operating costs and lower profitability and cash flows or operate its business effectively.

The company is subject to various covenants and obligations under its financing arrangements. Inability to meet the company's obligations could adversely affect its business, results of operations, cash flows and financial condition.

The company may faces asset-liability mismatches, which could affect its liquidity and consequently, may adversely affect the company's operations and profitability.