Salem Erode Investments Ltd

Refinement Saga

Dear Valued Stakeholders,

On behalf of the Board of Directors, I am delighted to present to you Salem Erode Investment Limited's 91st Annual Report for the Financial Year ended 31st March, 2022 ("FY 2022")

This year has been a remarkable year for all of us, as the company gradually shifted its hardcore focus on operations rather than concentrating on the revenue & profits. The company has been changing its momentum more into exploring new localities, regions and new business horizons. When it comes to widening the reach in the market, we are glad to inform you that in this financial year we have opened 8 new branches thus summing up to a total of 12 branches in the southern part of the country. Moreover, the Company has started focusing more into businesses like gold loans and secured non-convertible debentures on private placement basis for optimizing the revenue generating capacity.

We have emerged into being more resilient and rejuvenated and our confidence has been increasing day by day not only in the business numbers but also the kind of trust & confidence that we are experiencing from our very own valued customers. I am grateful to our clients, team members and other stakeholders for showering and bestowing upon us so much faith and trust to make this day happen.

Last year we were able to steer through the challenges of the unpredictable, challenging, transforming, market conditions, then a shift of the registered office from the state of West Bengal to the state of Tamil Nadu, a sudden change-over from the erstwhile management of the company to the new management and over and above the critical situations caused by covid-19 pandemic.

Nevertheless, being in such a challenging atmosphere, our company managed to excel by sticking to the basics like satisfying our client's needs & aspirations to the best of their interests, focusing on the different possible options which could enhance our growth potentials and by maintaining a strong & healthy operational platform. This fruitful outcome is the result of the strong determination, commitment showed by our team to outperform the company's growth on a larger horizon.

It is a fact that this Financial Year has been a year of opportunities and also something new & unique to learn for the financial sector, amidst ensuing challenges that arose from the pandemic. The Government of India along with other statutory, regulatory bodies has put tremendous effort to restore stability in the economic sector by implementing new supportive measures to gain confidence of millions of customers served by the Indian financial service industry. Now the negative impacts of the pandemic is narrowing day by day, the government and the regulatory bodies has accelerated their focus rigorously on the macro economic growth & stability of the country as a whole.

To tackle the challenges poised by the pandemic, business houses around the globe have started implementing their own tailor-made unique policies and plans to get back into track. Now, it's time for the next phase "to step out and seize the opportunities" that a post pandemic world has to offer.

As per RBI Publication dated 28.12.2021 "NBFCs have a competitive edge in their superior understanding of regional dynamics, well-developed collection systems and personalized services in the drive to expand financial inclusion in India. Lower transaction costs, quick decision making, customer orientation and prompt provision of services have typically differentiated NBFCs from banks. The reach and last mile advantages of NBFCs have empowered them with agility, innovation and a cutting edge in providing formal financial services to under banked and unserved sections of the society." The above said achievement is enacted proof of these words combined with the persistent and dedicated work put forward by your Company as a team that has and will continue to, in the fullness of time, bear its fruits. It is milestones such as these that incite a rigorous resolve to aim higher, better and further, which will always be our mission and promise to our esteemed customers. We aim to serve your needs to your in-depth satisfaction. The joy in helping you realize your dreams has been the premier component in our achievement.

One of the most privileged milestones achieved by your Company in the current year has been the record rate of Rs. 122.45 per share on 24th March, 2022 at BSE Sensex which according to us is a big day as when the Company was acquired by the new management on 17th February, 2020, the market price with the stock exchange merely stood at Re. 0.80 paise. As the Company is in its growth stage we know that there will be tougher days ahead but as the saying goes "We don't grow when things are easy we grow when we face challenges."

Your Company plans to open more branches across India similar to its counterpart and Holding Company "ICL Fincorp Limited" and to step into the latest trend post pandemic of digitalization and of core banking concepts. The Company also aims to go for further public issue in the future after taking necessary permissions of the regulatory bodies.

India's GDP for FY 2021 -22 was 8.7% against the estimated at 8.9% and the outlook for 2022 casts a grey shade with World Bank, Moody's and OECD, all lowering the growth rate for India. Even though the external environment remains ambiguous, the internal spirit and resilience remains unscathed leading to your company delivering an after-tax profit of Rs.71,22,881 /- (Rupees Seventy-One Lakhs Twenty Two Thousand Eight Hundred and Eighty One Only). The allegiance, zeal and determination of our employees has always been precise. Our Government, Reserve Bank of India (RBI) and SEBI's proactive initiatives and policies has a major contribution in brightening the outlook for the future.

The union budget as presented for FY 2022-23 talks all about visions set out in previous budgets and blueprint for a sustained high-growth trajectory of the economy. In the budget, Finance Minister Nirmala Sitaraman has proposed new allotments for almost every sector to cultivate growth in the sub-continent. The alternate minimum tax paid by cooperatives has been lowered to 15% from the previous 18.5% also estimating the growth of credit by Rs.5.4 lakh. In an encapsulated form this year's budget focuses more on providing aid and development opportunities micro-economic level growth to an economy reeling from the stroke of the pandemic for the last 2 years. We have shifted our focus from surviving to rebuilding, emanating an optimistic view for a better future.

We have always considered our employees as one of the key stakeholders of our success and thus we value our employees to its maximum. There has been steady growth in the number of employees of our company. The workforce in the Company has also started increasing and as we plan to open new branches, the workforce will only increase year after year. I extend my sincere thanks and gratitude to each and everyone who made this day successful and will only say "together we can and together we will".

I would like to express my acknowledgement to each and every person who even in these difficult times have been the backbone of strength to us. I would also like to thank our acclaimed stakeholders for their irrevocable support and would also like to have them assured of the adherence to superior quality in corporate governance, customer service and value creation to all our stakeholders.

Last but not the least, I will conclude with the following words