KEY MANAGEMENT PERSONNEL

We believe that the expertise and industry knowledge of our senior management team has enabled us to accelerate the growth in our business. Although we have a relatively brief operating history, our senior management team has experience in vehicle finance and consumer finance businesses with a track record of successfully growing businesses. Our board of directors has experience across a broad range of disciplines

Our Executive Vice Chairman, Mr. S. Nagarajan, and our Chief Executive Officer, Mr. Sachin Pillai, have worked together in Ashok Leyland Finance Limited, a large non-banking financial company in India which was part of the Hinduja group. In addition, our product and operational leaders also have experience in the finance industry and many of our state and product heads have been associated with the Hinduja group prior to joining us. We believe that the experience of our senior management team has enabled us to experience consistent growth and profitability as well as a robust liquidity and capital position.

We have achieved consistent growth in our business and financial performance. We believe that our knowledge and experience in the vehicle finance industry in India provide us with a competitive advantage. The commercial vehicle financing industry is fragmented, and we believe our ability to further grow our business through our expansive operating network, relationships with OEMs and dealers, and streamlined, stringent credit analysis and underwriting processes have contributed to our growth and historical financial performance.

We derive certain business synergies from ALL. Our relationship with ALL assists us in sourcing customers, expanding our operational network and increasing market penetration. By aligning and rationalizing our operational network with that of ALL, we are able to reduce our administrative costs and expand our operations at a lower operational and capital cost.

ALL is the second largest carrier in the MHCV segment in India and in 2014 and 2015. In addition, we collaborate with our Associate, HLF Services Limited, a subsidiary of ALL, which provides us and ALL certain shared services, primarily including, but not limited to, customer evaluation, distribution and marketing or products including through Business Locations operated by it, collection of overdue amounts and repossession of assets, and back office and administrative support resulting in administrative cost efficiencies.

We are part of the Hinduja group, a diversified, global business group with an established track in various industries, including chemicals, manufacturing, banking and finance, information technology, power, media, real estate, healthcare and trading.

Our AUM comprises loans for a wide range of assets. We mitigate our exposure to the commercial vehicle industry, the performance of which is closely linked with the level of industrial economic activity in the country, by diversifying our AUM across a range of consumption-led asset classes such as two wheelers, three wheelers, and buses and other asset classes. We have also diversified our asset portfolio across a range of customer segments. We strive to maintain a balance between FTBs and SRTOs in our new, used and construction equipment vehicle segments.

We also focus on financing commercial assets, such as commercial vehicles and construction equipment, as we believe that these assets enable income-generation, which results in a quality loan portfolio, in terms of loan repayment (as the asset or activity financed is expected to generate cash flows to service the loan) as well as in terms of recovery (as the asset financed typically forms the security for the loan we disbursed).

We believe that the scale and breadth of our operational network provides us with a competitive advantage. As of March 31, 2018, our operations included 349 branch offices and 1,550 Business Locations spread across 23 States and two Union Territories across India. Out of our total 1,550 Business Locations we have categorized 867 Business Locations as urban, 637 Business Locations as semi-urban and 46 Business Locations as rural based on the classification provided by the Census Organization of India Report. In addition, as of March 31, 2018, we had 80 branches and 101 Business Locations from where we conduct our housing finance activities. We believe that our large operational network and relationship with ALL and a large number of OEMs and dealers creates operational and cost efficiencies, both in terms of sourcing business as well as servicing our customers. We also outsource some of our back-end and administrative operations to our Associate, HLF Services Limited.

We have invested in our technology infrastructure and streamlined our operating processes to develop a large, scalable operational network and enhance our relationships with OEMs, dealers and customers. We have developed an ERP system and a web-enabled platform to track our loan portfolio from origination to closure and monitor our operating performance on a real-time basis. Our IT platform enables all offices in our network to transfer business information to our centralized server in Chennai for analysis, thereby enabling us to provide an integrated approval and documentation process, and continue to improve cost efficiencies and employee productivity as well as reduce operational risks.

We believe that the challenges inherent in developing an effective operational network and establishing relationships with OEMs and dealers across India act as market entry barriers that provide us a competitive advantage.

Our underwriting and credit management processes are specific to each asset class we finance. This enables us to develop a diversified asset portfolio across a range of asset classes and geographic regions. We believe that the industry experience and product knowledge of our senior management team has enabled us to develop processes for appropriate identification and mitigation of risks associated with our business operations. While our senior management is responsible for our credit policy and streamlining our credit management and operational framework, the application of such standardized processes are decentralized, which reduces overall time for credit approval and loan processing.

We have developed a customized credit scorecard based on an analysis of our loan portfolio that applies various metrics to be followed by our credit officers. We continue to expand our loan portfolio in accordance with our loan policy that is reviewed annually by our Board and credit committee. We believe that our customized credit approval process enables us to efficiently process loan transactions, provide improved customer service, and control NPA levels.