Can Fin Homes Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Economy overview Indian Economic Overview

The Indian government has been successful in maintaining favourable domestic economic policy and giving structural changes the top priority. This has strengthened the nations economy in the face of global economic challenges.

The Indian economy remained resilient with robust 7.6% growth rate of GDP in FY24, with Current Account Deficit (CAD) being just 1.9% of GDP and is expected to lower in FY25.¹ With the financial market having a valuation of $50 bn in 2021, it is expected to grow up to $150 bn by 2025. Indian FinTechs were the second most funded startups in 2022.²

Predictions show that a closer look at various sectors reveal a double-digit growth rate in the construction sector (10.7%), followed by the manufacturing sector (8.5%). Indias emphasis on using technology to accumulate and diffuse tacit knowledge, building high-end manufacturing capacity and improving competitiveness through exports formed the three necessary catalysts that boosted its growth trajectory and improved its economic fundamentals over the years.

Higher revenues from tax collections and plugging loopholes have contributed to meeting the fiscal deficit gap and adding more resources for the government to spend on capex.

In addition, digitisation has led to efficiencies such as faster settlements in the equity cash segment and mutual fund redemption, among others, helping investors accrue an annual average benefit of around INR 35 billion.

This persistent growth momentum has positioned India as an attractive investment destination. Further, India is expected to sustain its status as the fastest-growing major economy in the coming years. Indias presidency of the G20 Summit in 2023 has also bolstered the countrys international stature. Risks are evenly distributed and CPI inflation is eased to average of 5.1% in January 2024, corresponding to 5.6% in December 2023.³

Outlook

The governments increased emphasis on digital infrastructure will help Indias digital economy grow multi folds in the upcoming decade. As its capabilities were enhanced, India started creating newer and more complex products and solutions for its large consumer market. This worked as a testing ground but also soon presented opportunities to scale up.

Government took up various initiatives and policies, building infrastructure and ensuring security and responsiveness. This also contributed towards fostering innovation. Solutions from technology-led know-how resulted in greater financial inclusion (through innovative modes of digital payments such as unified payments interface [UPI]), formalisation of credit (with account aggregator networks) and plugging revenue leakages (using online tax platforms and FASTag), among others.

The economys corporate sector credit-to-GDP ratio remains below its historical trend, indicating that the corporate sector has plenty of room to increase its debt burden. The corporate sectors solid debt profile has also been critical in driving macroeconomic stability. Rising disposable income and easy availability of credit in the wake of a stable inflation trajectory will augur well for future economic growth.

Industry overview Housing finance industry

The Indian financial sector has been exhibiting an increasing trend in terms of development and maturity. The amount of outstanding mortgage loans has increased by a healthy percentage over the years. There have been certain drivers for this, such as rising disposable income, increasing demand and new competitors joining the market.

The housing sector is also perceived to grow in the upcoming years. This is due to increased demands for homes, which is the result of changing lifestyles, societal perspectives, and the expansion of labour mobility. The borrowers are mostly young people, who aspire to have independent homes. The government is also promoting programmes to provide loans at cheaper rates, and interest concessions under the Pradhan Mantri Awas Yojana scheme will contribute further in the demand for housing.

The net interest margins showed improvement from Q4 of FY 2023 to Q1 of the next fiscal year. Moreover, the net interest margins showed a trend of improvement from Q4 in FY23.

Indian housing industry

The real estate market is a key driver of the countrys economy. It has undergone rapid changes and growth over the last few years. Fuelled by increasing urbanisation and rising incomes, the housing sector has become a significant contributor to Indias economic landscape. With a surge in demand for homes, major builders have made strategic adjustments to pricing, fostering expectations of a positive trajectory for house prices in the coming years.

Going forward, optimism prevails for FY2025, as the sector is poised to rebound from the challenges encountered in FY2024. Analysts anticipate a more favourable market environment, citing the presence of pent-up equity seeking housing opportunities.

The depth of capital in Asian markets, including India, is diversifying, with real estate emerging as a favoured sector for increased allocations. Indias position as one of the fastest-growing economies globally, driven by private consumption and capital formation, makes the real estate sector an attractive investment option. Investors are exploring opportunities across various real estate segments, such as office spaces, logistics, private credit, residential properties and data centres.

Considering a long-term and secure investment by financial experts, the future of the real estate sector appears promising. A report by Concorde outlines a robust Compound Annual Growth Rate (CAGR) of 9.2% for the real estate sector from 2023 to 2028. The year FY25 is expected to mark the next phase in the evolution of real estate, driven by factors such as continued urbanisation, growth in the rental market and steady appreciation in property prices.

Growth drivers Technological advancements

Developers resort to innovative construction methods, including prefabrication and modular building technique to reduce construction duration and expenses. Consequently, this allows them to expedite project delivery and address the escalating demand for housing more effectively. The new concept of green housing has helped restore ecological balance and improve the quality of life.

Enhanced affordability

People can buy new houses easily with the availability of home loans at market competitive interest rates and to government incentives. Additionally, banks and housing finance companies are increasingly trying to meet the needs of lower and middle-income groups. As a result of which, home ownership is increasingly achievable for more people, contributing to better financial stability and growth in the housing sector.

Growing demand for rental housing

Demand for rental accommodations in urban areas are increasing due to the presence of a young and highly mobile middle-class workforce. Consequently, this has contributed to the development of rental and co-living spaces, further stimulating the expansion of the housing market.

Government initiatives

Several policies have been introduced by the Indian Government to encourage affordable housing initiatives, like tax incentives for first time house buyers, low interest rates on home loans push for green housing which played a vital role in driving growth in the housing finance sector. In addition, concession on stamp duty rates by several states have also positively affected housing initiatives.

Rapid urbanisation

The rise in population and migration patterns has led to an increase in demand for houses. This has caused an increase in prices of property and overall increase in the value of residential real estate. Moreover, due to lifestyle transformations, individuals are increasingly looking for modern and convenient living spaces, situated in close proximity to essential amenities. Henceforth, the demand for residential real estate in urban areas is expected to rise persistently. Furthermore, the innovation in the residential real estate sector can also be impacted by urbanisation, with builders and developers adopting new technologies, design principles and construction techniques to cater to the evolving requirements of city dwellers.

Increasing per-capita income

The middle-income section in India is experiencing a rapid and steady growth in disposable incomes, which has ignited their aspiration for better living standards. This resulted in a sudden demand for affordable and mid-income housing projects, to meet the need of the rising mobile demographics. This rise in demand can be attributed to the desire for better housing options, aspirations for a more comfortable lifestyle and secure future. This fuelled a sudden rise in the real estate market.

Company overview

Can Fin Homes Ltd (CFHL) is a leading, Canara Bank-sponsored housing finance company with a strong focus to provide financial solutions that are reasonable and achievable for their customers. They have a wide variety of products and services; a diverse fleet of branches and a strong will power to provide value to their customers. The Company is quite well positioned to drive growth and create value for their stakeholders in the years to come.

The Company was established in 1987. It is a provider of housing and non-housing loans. It is now headquartered in Bengaluru, Karnataka. CFHL offers loans such as rural housing loans, loans under urban housing (LUH), mortgage loans (ML), personal loans (PL) and loans for commercial properties (LCP). It also provides a range of depository schemes including fixed deposit, cumulative deposit schemes, fixed deposit schemes for senior citizens, cumulative deposit schemes for senior citizens, Can Fin trust fixed deposit schemes and Can Fin trust cumulative deposit schemes.

the Company is having a Pan India presence across 21 states with 219 branches with 15 clusters. It was listed in 1991. The conscious focus is to spread deeper into their known territory in Southern India while expanding to potential centres in other parts of the country. They cater to the needs of both salaried and self-employed categories, offering loans at competitive rates. 62% of the branch network is in the South while the remaining 38% of the branches are located in the northern, western and eastern part of India. The share of southern branches is about 71% of the loan book portfolio.

14 new branches opened in FY24.

Asset under management (AUM)

The AUM consists of 88% housing loans including CRE and 12% of non-housing loans including Commercial Real Estate (CRE). Most of Can Fins borrowers are middle-aged individuals buying their first home as personal residence. The Company reaches out to these individuals in the affordable and mid segments, ensuring fulfilment of the dual objectives of encouraging home ownership and housing stock in the country.

The average ticket size of the loan portfolio is Rs.14.75 lakh for housing loans while the same for LAP is about Rs.8.68 lakh and top- up is Rs.7.76 lakh. Further, the average incremental disbursement in respect of housing loan is Rs.25 lakh while the same in respect of LAP Top-up, Site and other non-housing loans total around Rs.8 lakh.

Optimal asset quality

The Company wishes to maintain a well-balanced asset quality, so it prefers lending to the salaried class. However, during the last 5 years, it has been increasing its exposure to self-employed and non-professional (SENP) category. During the FY 2024, disbursement to the salaried class is 67% of the total disbursements, amounting to Rs.5476 Cr. The disbursement to the Self-employed non-professional (SENP) category amounted to Rs.2701 Cr, constituting 33% of the total. Special care is taken to look into the recorded financial transactions, declared income credit, credit score, previous track record of payments while selecting SENP customers to properly gauge their financial stability and credit worthiness.

The share of loans extended to self-employed stood at 28% of the loan book, totalling Rs.9806 Cr. This reflects the Companys dedication to support this category of borrowers and to convert their dreams of owning a house into reality.

Growth prospects

Although mobilising funds through the debt market to meet the Compliance requirements has been a challenge and the interest rate trajectory has been firm, the Company still managed to maintain a decent amount of fund on books. These funds were then used for upcoming lending through various schemes, ensuring that the growth and spread on AUM is maintained at the projected level.

In accordance with the statutory requirements of LCR and the Boards instructions to maintain it higher than the regulatory limits, the Company has maintained a higher on book liquidity. Further, the Company also maintains undrawn documented bank facility to take care of its liquidity requirements for the next four to six months. This provides a positive edge for the Company to raise the funds from the market at competitive rates, whenever necessary.

A well-maintained asset quality increases the profitability, net worth and CRAR, which helps to improve the Companys overall growth and spreads its goodwill in the market. Its extensive credit and underwriting practices along with meticulous processes to monitor branch operations, help to reduce risks. This is evident from the Gross NPA level, while the book has grown substantially. The CRAR was above 24.61%, against the statutory requirement of 15%. Technological improvisation has been initiated to improve productivity and TAT both at the branches and Central Processing Centre, which facilitates the judicious use of man-power.

The Board

The Board of Directors are renowned personalities from the banking and finance industry, having vast knowledge and expertise. The Board is supported by a very robust and diverse Management team having prominent skills and competency. The retail team at the branches is well equipped to generate and process quality loans, maintain internal control and provide top-notch customer service. The Company has a good governance framework and strong fundamentals along with effective operational procedures. Constant efforts are made to improve the TAT for the satisfaction of customers.

Core competencies Efficient cost management

The Company has exhibited a commitment to rigorous but effective cost control, thereby maintaining a cost-to- income (CI) ratio of 16-17%. This structured approach to cost management ensures that resources are used efficiently and helps the Company to focus on maximising productivity and utility across its operations. This focus on cost efficiency ultimately leads to a positive growth curve.

Borrowing strategy

To deal with increasing costs, the Company uses Commercial Papers (CPs) as a cost leveraging tool by efficiently utilising its limits, which remains constant for a long period of time. Additionally, even though the funds raised through issue of Non-convertible Debentures (NCDs) are at an increased costs for regulatory compliance, the Companys dependence on bank borrowings and the National Housing Bank (NHB) refinance at lower interest rates, has resulted in reducing the cost of funds.

It ensures that the Company can offer more attractive loan products to customers, increasing its competitiveness in the market. Additionally, controlling funding costs has positively impacted the Companys bottom line, leading to increased profitability and financial performance. By working on these cost advantages, the Company is better positioned to grow and maintain a strong presence in the housing finance sector.

Impeccable asset quality

The Company has a large onboarding system that takes into account multiple parameters such as individual risk rating based on credit score, professional qualifications and financial soundness among others. These help in better credit assessment of an individual, thereby helping in better customer selection.

This has led to maintenance of lower non-performing assets (NPAs) compared to its competitors. The Companys strategic focus on the salaried demographic has resulted in a more stable and reliable customer base. This ensures a better financial performance and reduced credit risk for the Company.

Opportunities Government Initiatives

The housing sector is one of Indias fastest growing sectors. A large population base, rising disposable income and rapid urbanisation is leading to the growth of this sector. In the federal structure of the Indian polity, the matters pertaining to housing and urban development have been assigned to the state governments by the Constitution of India. However, the central government is responsible for the formulation and implementation of the social housing schemes. There are several schemes implemented by the government for rural, urban and EWS housing. Examples include the DDA Housing Scheme, Pradhan Mantri Awas Yojana etc.

Digitalisation and fintech partnerships

The Company has taken steps to introduce new core banking solutions by integrating modern digitalisation techniques and collaborating with FinTech companies. This provides them with opportunities to enhance customer experience, optimise processes and promote expansion.

Alliances with FinTech companies help in better risk evaluation, cost reduction and market penetration. These partnerships also help in adhering to regulatory requirements in order to enable better data driven decision making. This enhances the Companys developing prosperity within its sector.

Affordable housing segment

The affordable housing sector offers a generous prospect for the Company to widen its territory and establish a competitive advantage within the housing finance sector. By focusing on this segment, the Company is expected to attend to the rising demand for reasonably priced residences, cater to the requirements of the underpenetrated market and take part in the countrys socio-economic advancement. Moreover, this strategy is at par with governmental endeavours and inducements, which helps the Company to obtain the benefits of positive policy actions and prospective fiscal backing.

Challenges Availability of funds

The availability of funds is the primary challenge faced by all HFCs. Since the borrowing capacity of people have increased due to budget proposals, but the lending capacity remains the same, it requires long term finance. This develops an uncatered gap in the market.

Risk of default

As HFCs face a shortage of funds, any faults by the customers will result in the blockage of the same. This will have a direct impact on the lending capacity of the companies. HFCs are not in a position to absorb such a shock.

However, HFCs have had much lower default rates when compared to banks and other finance companies.

Rate war

These days the finance companies have entered an era of rate war. Many players have started checking the possibility of reducing their interest rates in order to maintain competitiveness in the market place and attract the customers. The ability to receive long term funding at cheap rates is an important competitive advantage.

Intense competition

The Housing finance companies (HFCs) are facing intense competition from banks and larger housing finance companies in Tier I and Tier II cities. Therefore, it is crucial for them to expand their presence in Tier II cities and beyond in order to take advantage of their pricing power.

The Company is focusing its efforts on Tier II cities, primarily targeting the salaried demographic where a majority of HFCs operate within similar geographic regions.

Insightful overview of the business

The primary focus of the Company was on retail housing loans in their various centres of operations. During FY24, the Companys loan book portfolio stood at Rs.34,999 Cr compared to Rs.31,563 Cr, as at March 2023. In comparison to the previous years data of Rs.9307 Cr, the loan approval amount came up to Rs.8783Cr. The Disbursements totalled Rs.8177 Cr in FY24, as compared to Rs.8947 Cr in FY23.

The Companys diverse selection of loan products under the Housing and non-Housing category are suitable for meeting the needs of a wide variety of customers. The Companys product mix includes Individual Housing Loans, Site Loans, Composite Loans (Purchase of Site and Construction), Personal Loans, Mortgage Loans, Loans against Rent Receivables (LRR), Loans for Commercial Properties (LCP), etc.

Lending mix

With the wide categorisation of loans granted to Commercial Real Estate-Residential (CRE-RH) as Non-Housing loans, the share of Housing Loans in the portfolio stood at 78% in FY24, compared to 79% in FY23. Although the CRE loans are primarily for residential properties and are mostly occupied. Summing up all the housing linked CRE loans, the loans against housing units stood at 88%, whereas LAP constitutes 5% and remaining 7% are top-up loans, personal loans and site loans (NHL).

In addition, the share of outstanding loans between salaried and self-employed categories stood in the ratio of 72:28.

Funding mix

The Company has a judicious funding mix consisting of credit facilities from banks, underwritings from the National Housing Bank, deposits from the common public and borrowings from the markets by the issue of Commercial Papers (CPs) and Nonconvertible debentures. The borrowings of the Company as of March 31,2024, stood at Rs.31,863Cr.

Deposit schemes

As licensed by the regulators, the National Housing Bank (NHB) and the Reserve Bank of India (RBI), the Company accepts deposits with interest payments at periodic intervals (Fixed Deposits) or compounded quarterly and paid at the time of maturity (Cumulative Deposits).

Senior citizens are eligible for an additional ROI of 0.50% over the card rates. For Fixed Deposit schemes, the minimum deposit amount is Rs.2,00,000 with options available for quarterly, half-yearly and annual interest payments and Rs.10,00,000 for monthly interest payments. The minimum deposit amount for the cumulative scheme is Rs.20,000 Cr.

The Company has maintained a decent amount of liquidity levels with a generous mix of funding sources. The effectiveness of the cost of funding is regularly checked, which results in the Company able to maintain comfortable spread and NIM.

Ratings

Rating given by the Agencies - Position as on 31/03/2024

Borrowings	CARE	ICRA	IND
Term Loans (Long Term Loan)	AAA/Stable	AAA/Stable
Term Loans (Short Term Loan)		A1 +
Commercial Papers (CPs)	A1 +	A1 +
Non-Convertible Debentures (NCDs)	AAA/Stable	AAA/Stable	AA+/Stable
Public Deposits		AAA/Stable

Risks and concerns

CFHL manages various challenges like credit, operational, market and liquidity related risks efficiently. They do this with the help of standard procedures, systems and guidelines.

Credit risk

This type of risk is an inherent part of any lending activity and it emerges as a result of payment defaults in the instalments by the customers/borrowers.

Mitigation

The Company manages credit risks through rigorous credit norms. It is done with the help of a proper Credit Policy. Alternate solutions are evaluated through a detailed Credit Risk Assessment process, a thorough analysis of related objective and subjective information of their customers for determining their credit worthiness.

It accomplishes this with the help of credit assessment agencies like CIBIL, Experian, the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), PERFIOS among others. It also conducts field investigation of employment, residence, business, enlisted valuers and advocates to determine the potential risk of new customers.

Market risk and interest rate risk

There are certain risks that depend on external factors like inflation, deflation and demand and supply dynamics which are not in the Companys control. The unfavourable market conditions give rise to liquidity risk, interest rate risk, funding risks and more.

Mitigation

The Company should maintain a proper funding mix comprising market borrowings and bank borrowings at fixed and floating interest rates. This is done for both short and long term and will help reduce interest rate risks.

The borrowings as on 31^st Mar,2024 are provided below:

Particulars	O/S amount (in crores)
Banks	18,723.06
Deposits	217.81
NHB	5,244.04
NCD	5,555.91
CP	2,122.12
Total	31,862.94

On the lending side, all loans are floating with annual repricing which takes care of the NIM and spread, duly mitigating the yield risk.

Linked Rates	%
MCLR	48
Repo-linked	22
Special rate	15
T bill linked	15
Total	100

Liquidity risk

It is a type of risk wherein a Company does not possess enough funds to meet its financial obligations. It mostly occurs when the Company is over dependent on market loans and the market condition is disadvantageous.

Mitigation

The Company should possess a stable and reliable risk management policy. This includes periodic analysis of critical scenarios and stress testing, which gives timely warning signals to maintain liquidity at optimum levels.

The Company maintains an optimum on book liquidity in the form of investments of LCR and SLR purposes and off book liquidity in the form of undrawn documented bank limits. In addition, the appropriate funding mix from different segments considering the interest rate, tenure and maturity pattern helps in mitigating the risk.

Asset liability management

The Company has an Asset Liability Committee (ALCO) of the executives in the Registered Office who check the mismatch in assets and liabilities. ALCO analyses the cash flow in different time stamps, taking into consideration, the dedicated outflow with the anticipated inflows to figure out mismatches, if any. It also conducts critical scenario analysis in a timely manner. All the incremental borrowings, as per the Borrowing Policy are debated in ALCO meetings before placing them for approval.

The Companys financials are timely reviewed by the Risk Management Committee, Audit Committee and Board of Directors.

Internal Audit

The Internal Audit system is responsible for confirming whether the Companys operations are being conducted in a proficient manner. It also checks whether it ensures reliable financial reporting, in addition to compliance with relevant laws, regulations and policies.

The Risk Based Internal Audit team (RBIA) has been augmented to enhance its focus on analysing the performance of branches and ensuring compliance with the Companys policies. It also identifies areas of vulnerability and improves customer service, which is a vital aspect of the Company.

The audit reports from various sources, such as RBIA inspections, NHB/RBI, Sponsor Bank, internal and external auditors of branches and standalone "Application audit of IT systems" by IT and special audits to compute the efficiency of existing internal control systems, are presented to the Audit Committee of the Board for review.

Periodic reviews of the reports are done by the Audit Committee and the IT Strategy Committee to check the efficiency of the internal control systems and IT systems, respectively. The committee also computes the performance of the audit department.

Asset quality

The financial stability and growth of any institution is determined by their asset quality, which represents one of their most crucial aspects for functioning.

At CFHL, the Management spends a generous amount of time, energy and resources to understand the loan assets. Sufficient focus is given for reviewing the loan portfolio which are under default. The reasons leading to the same are reviewed within the context of local and regional conditions that may shift the Companys performance. The quality of the appraisal standards, stability of credit policies, practices, timely identification of misconducting assets, MIS, type of credit documentation are methodically reviewed at different levels, for the purpose of taking timely actions.

The effective recovery technique of the Company contains NPAs, supported by the SARFAESI Act. Regular follow-ups at both the branch and central levels significantly improve collections. A majority of the collections are through electronic mode and the rest through PDCs, salary deductions with the limited portion by way of cash collections. 2% of the loan book which are restructured as per RBI guidelines are regularised during FY 2023-24.

Provision for loans

Can Fin Homes, being a housing financial Company, is required to stick to the RBI Master Directions for Housing Finance Companies with respect of Asset Classification and Income Recognition (IRAC).

Provisions are calculated both as per the Expected Credit Loss Model (ECL) and IRAC norms and the provisions are maintained in compliance with the above directions.

Financial performance

		(Figures in cr.)
Particulars	FY24	FY23
Revenue	3524.69	2743.13
NII	1258.49	1014.55
ROAA(Annualised)%	2.28%	2.17%
ROE(Annualised)%	17.28%	17.03%
EBITDA	3201.63	2537.35
EBIT	3188.92	2524.89
PAT	750.70	621.21
EPS (in rupees)	56.38	46.65

Financial ratios

Particulars	FY24	FY23
Debt to equity ratio	7.34	7.97
Operating profit margin (%)	29.40%	31.56 %
Net profit margin (%)	21.30%	22.65 %
Provision coverage ratio (%)	48.67%	52.29 %

Human capital

The human resource department of the Company is responsible for recruitment, training and management of employees to secure a high level of proficiency and competence among its workforce. The Company lays a strong emphasis on employee engagement and satisfaction, regularly conducting surveys and providing career development opportunities.

The Companys strong dedication towards its human resources is reflected in its significantly low attrition rate and high employee retention. This fosters a large and cohesive team that is steady in achieving the Companys objectives and delivering value to its stakeholders. Several staff welfare measures are also implemented to take care of employee interests and increase productivity.

As of March 31, 2024, the Company had a total strength of 1055 employees.

IT and security

The Company has to ensure the safety and security of its data for running the business successfully. The protection of its core information data and IT infrastructure from cyber threats is a fundamental requirement to protect the confidentiality of corporate information at all levels. Specific instructions are available in the Companys IT and IT Security policy, Cyber Security Policy and Cyber Crisis Management plan.

The Company has a Business Continuity Plan that ensures that critical business operations continue to run smoothly in case of any emergencies. Penetration and vulnerability tests are conducted on a timely basis for enhancing the control measures.

A core banking platform (Integrated Business Suite) links the operations of every branch with the Registered Office. However, the Company has initiated the process to adopt a new core banking end-to-end solutions with all prevailing market facilities for optimum use of technology and man-power.

Segment wise reporting

Segment has been described in accordance with the Accounting Standard on segment reporting, taking into account the organisation structure as well as the differential risk and returns of these segments. The Company is basically engaged in the Housing Finance business and revenues are mainly generated from this activity.

Related party transactions

The Company maintains generous relationship with their related parties. Its detailed policy on related party transactions is available in their website for the stakeholders. The related party transactions with all the details are provided in the Note forming part of the accounts. All related party transactions are approved by the Audit Committee or Board or members at a general meeting, as applicable.

Corporate social responsibility

The Companys CSR measures improve healthcare by donating advanced medical equipment and ambulances to Hospitals. Additionally, it provides education and class room blocks to Government schools. It also awards scholarships to female and differently abled students to help them pursue higher education.

The Company has delivered its CSR support for the construction of a fitness cum sports centre for tribal students. It has also contributed for nutritional expenses, procurement of basic Fixed assets for old age homes, orphanages and residential homes for differently abled people.

Prospects and plans of the Company

Since the Indian economy showcased a positive trend, there has been an increase in economic activity. This has promoted a positive growth in the housing stock and increased the demand creating room for our business augmentation.

With strong efforts through various networks, the Company wishes to showcase a better performance in the current year. They have also initiated necessary steps to collaborate human capital, knowledge enhancement, technological support and branch expansion.

Can Fin Homes will continue to chart the path forward for achieving the twin objective of providing the housing finance and increasing the housing stock. It will also cater to the interests of the stakeholders with an improved performance.

Cautionary statement

This document contains projections regarding anticipated future events, financial performance and operational outcomes for Can Fin Homes. These projections are inherently forward-looking and necessitate the Company to make certain assumptions, which are subject to inherent risks and uncertainties. There exists a substantial risk that these assumptions, predictions and other forward-looking statements may not accurately materialise. Readers are advised to exercise caution when relying on such forwardlooking statements, as various factors could cause the actual future results and events to deviate from those expressed in these projections. Consequently, this document is subject to the disclaimer and is entirely qualified by the assumptions, qualifications and risk factors mentioned in the managements discussion and analysis section of Can Fin Homes Annual Report, 2023-24.

For and on behalf of the Board of Directors
	Sd/-
	Shri K Satyanarayana Raju
Place: Bengaluru	Chairman
Date: June 06, 2024	(DIN: 08607009)