Dear Shareholders,
Greetings! I hope you and your families are in the best of health and
good cheer!
Another year has passed and it is appropriate that I update you on
where your Company stands today and a glimpse into your Company's journey to the
future.
The Environment:
Global and domestic economic environments have a direct bearing on the
relevant financial given your company's aspirations to expand in the financial
Taking off from the unstable environment of the previous year, the
global economy exhibited steady yet uneven growth across regions during the year 2024 and
early part of 2025. While global manufacturing sector saw a slowdown due to various
factors, the services sector performed relatively better supporting growth in many
economies. It was clearly a year where the services sector outperformed the manufacturing
sector. Financial markets remained volatile with central banks of different countries
adopting varying polices to hold inflation and ensure stability.
In this global context, India displayed steady economic growth. As per
the national accounts, India's real GDP is estimated first to grow by 6.4 per cent in
the year 2025-26. Fiscal discipline and strong external balance supported by a services
trade surplus and healthy remittance growth contributed to macroeconomic stability.
Together, these factors provided a solid foundation for sustained growth amid external
uncertainties.
With respect to the financial services sector in India, the environment
has generally been stable. With the recent interest rate cuts the
Reserve Bank of India has given a big thumbs up for growth and is
likely to continue its impetus for growth which bodes very well for the financial services
sector.
The recent RBI policy actions supporting NBFC operations related to
liquidity measures, regulatory framework and oversight, and, specific support to
Affordable housing Finance augurs well for the sector.
The way forward:
As you are aware, the Company had applied to the Reserve Bank of India
(RBI) for being registered as a Non-Banking Finance Company to enable it to enter the
financial services sector. Your Company's entry into the financial services sector
has been planned by way of a merger by absorption of
Hinduja Leyland Finance Limited (HLFL) into the Company. You would be
pleased to note that while the RBI has communicated to the Company that such registration
is not required at this moment of the merger process and will be provided on approval of
the merger by the relevant authorities, it has also advised HLFL to obtain a No Objection
Certificate (NOC) from the RBI for the merger. HLFL has already made an application for
the same and is awaiting response from then RBI.
Corporate Governance:
The Company has over the decades of operations maintained highest
standards of governance and conducted business with integrity and fairness. This
philosophy in no small measure has contributed also to the creation of stakeholder value.
Corporate governance for the Company goes well beyond meeting mandatory compliance
requirements. Transparency in dealings and good governance have become a culture in the
organization.
Conclusion
My sincere appreciation for your continued support to the Company and
look forward to such progressive support in the years to come. I would also like to thank
the Directors who have been providing guidance to the Company, the Management which is
rigorously pursuing the plans of the Company, Employees and Associates of the company.
Also, my gratitude to our Bankers, Auditors, and Advisors for their continuous help and
guidance during the year to help maintaining the highest standards of corporate
governance, which is accorded the top priority at the Hinduja Group.
I conclude by wishing you all good health and happiness.
Sudhanshu Tripathi
Chairman