India Finsec Ltd. Chairman Speech

Dear Stakeholders,

Our historic success would not have been possible without the unstinted support and cooperation of all stakeholders and on behalf of the Board and on my own behalf I would like to place on record my deep sense of gratitude to each and every one of you. We feel immense pleasure in presenting before you the performance of your Company for the financial year 2017-18.

Non-banking financial companies (NBFCs) have undergone a significant transformation over the past few years. The sector has managed to witness robust credit growth in past few years and has been clear outperformers in last three years on the back of the fading effects of RERA, higher growth in loan books and improvement in spreads between borrowing and lending rates. According to RBI’s recent financial stability report, aggregate balance sheet size of the NBFC sector was Rs 22.1 Lakh Cr.

As per the RBI Bulletin, Non-Banking Finance Companies (NBFCs) have played an important role in the Indian financial system by complementing and competing with banks, and by bringing in efficiency and diversity into financial intermediation. NBFCs have evolved considerably in terms of operations, heterogeneity, asset quality and profitability, and regulatory architecture. Going forward, the growing systemic importance and interconnectedness of this sector calls for regulatory vigil.

During the Financial Year 2017-18, your company recorded consolidated revenue of Rs. 7, 00,52,062 as compared to previous year’s consolidated revenue of Rs. 9,13,46,463 resulted in a consolidated profit of Rs. 1,84,54,443 as compared to previous year’s consolidated profit of Rs. 1,72,64,338 in the financial year 2016-17. With your ongoing support, we are confident that, this figure will continue to increase in near future. Your Company has once again, delivered strong results despite volatile external environment. The Company has developed strong internal systems and processes to withstand market volatility.

The Company is now a matured organization with strong belief in corporate governance and compliances. As we grow, we have strengthened corporate governance and risk management framework. We want to be recognized as a dependable Company striving for growth with a strong governance model. India Finsec Limited has taken various steps towards business growth which includes investment (95.29% holding) in a housing finance company i.e. IFL Housing Finance Limited (Subsidiary of ‘India Finsec Limited’) which will help the company in also expanding its business activities in the line of housing finance. During the year, the Company successfully gets registered with National Housing Board and received its Certificate of Registration from National Housing Bank on December 12, 2017. IFL Housing Finance is a housing finance company that cares about the housing dreams of both formal & informal income spectrum. You aspire for a house and we help you to build your dream castle. National Housing Bank approved, IFL Housing Finance is amongst the first organizations in India to claim disbursal in 3 days.

The government is playing a key role in the development of affordable housing sector in India. Under its watchful eyes, the housing sector has been seeing a healthy growth, with transparency and orderliness. To address the wide unmet housing need of millions of Indians, the subsidiary Company future priorities persists towards creating customer friendly products targeting new customer ensuring access to low-cost and diversified sources of funds and making their dreams come true of owning a house. Government of India has introduced an interest subsidy scheme under Pradhan Mantri Awas Yojna (PMAY) - Housing For All, for purchase/construction/extension/improvement of house to the eligible customers. IFL Housing Finance Limited is an approved lender under Pradhan Mantri Awas Yojna (PMAY) and borrowers who satisfy the eligibility criteria can avail the subsidy after the request being forwarded to the National Housing Bank by the housing finance company and accordingly loan amount and monthly instalment (EMI) will be reduced. Our subsidiary has opened two branches in Jaipur and Karnal and is planning to open more branches all over India.

I also express my thanks to all our Directors for their invaluable contribution through their guidance and encouragement, which have been critical for the success of the Company. I also take this opportunity to thank the National Housing Bank for invigorating the housing finance ecosystem in the Country. I extend my gratitude to The Reserve Bank of India which tends to the needs of the sector with encouraging interventions, making it more lucrative for the customers. Finally, I thank each and every shareholder, large and small, for your support and trust. I assure you that each one of us is committed to build a company that is high on corporate governance, is of great value for society and is a company that you will be proud of.

Yours Sincerely,

Gopal Bansal

Chairman & Managing Director