Laxmi India Finance Ltd

Dear Shareholders, despite macro-economic challenges such as the pandemic-induced contraction, international geopolitical conflicts, and monetary tightening & inflationary pressures, the Indian economy has shown signs of a broad-based recovery across various sectors. The resilience of our economy, along with strong fundamentals, has placed it in a favorable positioncompared to other emerging market economies. We are also reaping the benefits of increased formalization, improved ?Financial inclusion, and enhanced proliferation of digital technologies. In this recovering economy, I am delighted to bring to you an update that we achieved our best-ever disbursals, collections, We are making progress towards our long-term vision of building an ecosystem model, with our new businessesstartingtomakesigni?ficant contributions.

In FY 2022-23, the global economy witnessed several challenges and phases of volatility with escalating geopolitical tensions and disruptions in the supply chains leading to high levels of inflation. However, amidst the climate of uncertainties, the Indian economy has demonstrated remarkable resilience and effectively positioned itself to regain its pre pandemic growth trajectory. The balance sheet clean-up efforts in banking and non-banking sectors have resulted in well-capitalized . In addition,the government's focus on strengthening transport, communication, digital, and logistics infrastructure has provided a robust foundation for sustained economic growth.

The world around us is transforming at a rapid pace. Technology is reshaping industries, customer expectations are changing, and new challenges and opportunities are emerging remain committed to staying relevant by adopting and leveraging new age technologies.

Industry Review

Improvement in economic activity, revival of construction/mining were positives for the industry. Sale of commercial vehicles, passenger vehicles and two-wheelers registered double digit growth in FY 23. Rate increase during the year impacted the

NBFCs. The progressive reforms introduced by the government for SME sector have been fruitful which is reflected in the business activity and improved credit uptake by enterprises across all the segments.

Vehicle Finance

The light commercial vehicle segment witnessed a growth of 35% in FY 23, driven by an increase in private consumption, replacement demand, and growth in agriculture and allied sectors. The small commercial vehicle segment grew by 14% in FY 23 due to an increase in freight demand for essential goods and last-mile transportation needs. The heavy commercial vehicle segment displayed FY 23 and 50% in FY 23. The passenger vehicle (car and MUV) segment also performed well, with an 11% growth in Q4 FY 23 and an all-time high sale, achieving 27% growth in FY 23. This growth was led by strong underlying demand, easing of semiconductor supply, and improved sales of utility vehicles due to a shift in customer preferences. The two-wheeler industry grew by 7% in Q4 FY 23 and 17% in FY 23, with improved demand sentiments compared to the previous year. The construction equipment segment grew by 21% in Q4 FY 23 and 26% in FY 23, supported by an overall improvement in the macroeconomic environment, a strong revival in construction activities, and a focus on projects. The tractor industry grew by 19% in Q4 FY 23 and 12% in FY 23, supported by strong demand during the festive season, favorable monsoon conditions, and stable

Loan Against Property

The Loan Against Property industry portfolio stands at over 8 lakh crore with NBFCs and HFCs having the highest market share of 44%, followed by private banks. The MSME LAP segment is expected to grow by 9-11% in fiscal 2024, driven by improved economic conditions and the normalization of business activities.

Other Businessesandprofitability.

Disbursement growth in the consumer loan space is expected to be around 15-20%, with NBFCs increasing their market share by 100 bps in FY 24. This growth will be aided by an increase in Tier-2 Financing, small ticket loans, and a focus on young borrowers, where NBFCs have a sharper focus. We remain committed to driving growth, leveraging digital innovation, and delivering exceptional customer experiences. Our strong performance in the face of challenges reflects the resilience and - adaptability of our business model.

PERFORMANCE IN STANDPOINT:-

The stressed NBFC scenario had a minor impact on the gold loan players in the market. The high cost of borrowing in the market led to a marginal increase in interest rates, which got passed on to the customer, thus increasing the cost to the customer. Brief highlights of your company during the year are detailed as follows, our Assets under Management grew by 29.19% to 686.77 Crore in F.Y. 2022-23, driven by horizontal and . In this dynamic scenario, we vertical growth. Our revenue from the operation has grown by 31.58% - to 128.36 Crores by the end of F.Y. 2022-23. LIFPL has first time crossed an annual disbursement to 343.31 crores. Our Net worth has grown at

19.87%, bringing it to 152.75 Crores, backed by a marquee of equity infusion by promoters & promoter group companies and increased profitability. Your company during the year has achieved its best numbers on the asset quality front with GNPA and NNPA (own books) of 0.57% & 0.31%, respectively.

Our strong focus on CSR continued during the year, with all the programs approved by the Board effectively implemented as we fully utilised our budget. We also participated in the efforts of the Government in providing support to the community. Our employees are the greatest strength of LIFPL. As always, they have worked with extraordinary commitment during the last year, and I thank each one of them and their families for the contribution.I would also like to thank the Board for their constant guidance and support. Further, I would specially like to thank RBI, bankers, and business partners for their continued support for our company over the years. I express my deepest gratitude to all of you for your continued trust, support & patronage as we strive to transform LIFPL to be one of the most relevant NBFC in India.