HDB Financial Services Limited Unlisted Shares

Annual Report Summary

Reimagining Opportunities: Annual Report 2021-2022 details the financial and operational performance of HDB Financial Services Limited (HDBFS). It also highlights the company's Corporate Social Responsibility (CSR) initiatives.

Financial Performance:

• Total Revenue: Increased from ₹10,944.78 crore in 2020-21 to ₹11,306.29 crore in 2021-22.
• Profit before Tax: Rose significantly from ₹500.71 crore in 2020-21 to ₹1,347.56 crore in 2021-22.
• Profit after Tax: Increased from ₹391.47 crore in 2020-21 to ₹1,011.40 crore in 2021-22.
• Assets under Management (AUM): Slightly decreased from ₹61,561 crore to ₹61,444 crore.
• The Board recommended a dividend of ₹1.00 per equity share (10%) for the financial year ending March 31, 2022. This entails a total payout of ₹79.04 crore, subject to shareholder approval on June 23, 2022.
• Capital Adequacy: Capital adequacy as at March 31, 2022 under Ind-AS stood at 20.22%, which is well above the minimum regulatory norms for non-deposit accepting NBFCs.
• Credit Ratings: CARE and CRISIL reaffirmed the highest ratings for various HDBFS facilities. These ratings indicate a high degree of safety concerning timely payment of interest and principal.

Corporate Social Responsibility (CSR):

• Expenditure: The Company spent ₹25.83 crore on CSR in FY22, impacting over 600,000 families.
• Transport Aarogyam Kendras: HDBFS introduced Transport Aarogyam Kendras to provide physiotherapy, counseling, and treatment for truck drivers, setting up centers in Delhi, Namakkal, and Kalamboli. Over 24,000 truckers received services through these Kendras and 20 physio camps.
• Healthcare Initiatives: HDBFS collaborated with healthcare agencies to improve public health, including upgrading a tribal-rural hospital in Mysore, introducing a Clinic on Wheels in Thiruvallur and Sonebhadra, subsidizing cataract surgeries and dialysis sessions, screening women for anemia, and developing sanitation blocks in schools and communities.
• Environmental Sustainability: The company restored 26 waterbodies, implemented 670 water harvesting structures, and developed 11 farm ponds. It also diverted 39,000 tons of waste from landfills and planted 80,000 trees under the Mission Million Trees initiative.
• Literacy & Livelihoods: The Youth Training and Development Program trained 3,300 youth in various sectors, with 85% securing jobs. Additionally, artisans and farmers received training to start nano and micro enterprises, and financial literacy sessions were conducted.
• Honoring The Real Heroes: The Company celebrated Republic Day with Indian Army Soldiers and honored martyrs' families and wounded soldiers.
• Acts of Simple Kindness (ASK): 15,000 HDBians across 23 states participated in ASK'22, distributing essential items and conducting community activities.

Key Operational Highlights:

• Loan Disbursements: ₹29,033 crore during the year.
• Assets Under Management (AUM): ₹61,444 crore as of March 31, 2022.
• The company focused on diversifying its product offerings and expanding distribution through digital infrastructure.
• Digital Lending Journey: Digital offerings have been launched for commercial and retail segments including, Digital Login, e-NACH & e-Sign, and Credit Report.

Other Key Information:

• The Board of Directors includes Mr. Arijit Basu (Chairman), Mr. G Ramesh (Managing Director & CEO), and several independent directors.
• The notice for the 15th Annual General Meeting (AGM) is included, outlining ordinary and special business to be transacted, including the approval of financial statements, dividend declaration, director appointments, and resolutions related to auditor appointments and executive re-appointment. The AGM is to be held via video conferencing on June 23, 2022.
• The Report mentions compliance with secretarial standards, ESOS details, related party transactions, and corporate governance norms.

Risk Management:

• HDBFS is exposed to credit, operational, liquidity, technology and reputational risks. The risk management framework is overseen by the Board of Directors and addresses these risks.

Notice of AGM

• The 15th AGM is scheduled for June 23, 2022, at 12 p.m. via Video Conferencing. Items for approval include financial statements, dividend declaration, and re-appointment of Mr. G. Ramesh as Managing Director and Chief Executive Officer. Remote e-voting facilities are provided to members. Procedures for registration of email addresses and voting are detailed.

The document is signed by Mr. Arijit Basu (Chairman) and Mr. G. Ramesh (Managing Director & CEO). The location is Mumbai, and the date is May 18, 2022.