MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Indian economic overview
Indian economy demonstrated remarkable resilience in the face of global challenges in
2022.
Indias GDP growth accelerated to 6.1% in the January to March 2023 quarter, lifting
the economys uptick in 2022-23 to 7.2% from the 7% estimated earlier, according to the
provisional national income data released by the National Statistical Office (NSO)
A closer examination of the various sectors reveals that this expansion is primarily
fuelled by strong domestic demand and a surge in construction activities. This growth is
further supported by substantial infrastructure investments made by both Central and State
Governments, thereby generating considerable employment opportunities on a large scale.
Several high-frequency indicators, including GST revenues, rail and air transportation,
electronic toll transactions, and E-Way bill volumes, suggest a robust economic
resurgence. This enduring growth trajectory renders India as an attractive location for
investment.
Growth in the dynamic Asia-Pacific region is projected to increase to 4.6 per cent this
year from that of 3.8 per cent recorded in 2022, according to the International Monetary
Fund, which stated that the growth will be largely led by India and China.
Furthermore, India is anticipated to retain its status as the most rapidly expanding
G-20 nation in the subsequent years. Additionally, Indias role as the host of the G20
Summit in 2023 has served to elevate its international stature.
As per the Reserve Bank of India (RBI), retail inflation in India witnessed a decline
to below 6% in March 2023. This decrease was attributed to the stabilisation of commodity
prices and a decrease in food prices. The current demand scenario in India appears
conducive to economic expansion. Despite the nations vigilance towards geopolitical and
geo-economic matters, it commences the new fiscal year fortified by a robust foundation of
macroeconomic stability.
Industry overview
Indian housing industry
In 2022 the nation sustained a solid performance across all sectors throughout the
year, primarily driven by vigorous domestic demand. This positive sentiment and consumer
assurance were also evident in the real estate industry.
Despite facing global economic challenges, such as layoffs by numerous large and small
corporations, the Indian housing market maintained an upward trend throughout the year.
Remarkably, the market remained buoyant and witnessed various novel trends.
The two western regions of India, namely Mumbai Metropolitan Region (MMR) and Pune,
emerged as the leading cities in terms of real estate sales among the top seven cities,
accounting for more than 48% of the total sales. Additionally, the number of new launches
across the top seven cities exceeded 100,000 units.
The significant increase in the supply of new residential properties can be attributed
to the persistent desire for homeownership, as the demand for housing continues to rise
consistently. Consequently, prominent developers have increased their efforts to cater to
the demand for new residential properties.
The Indian housing market is expected to grow positively in the coming years, thereby
opening avenues for expansion and growth for the housing finance companies.
Housing finance industry
The housing loan sector, which comprises approximately 72% of Housing Finance
Companies (HFC) Assets Under Management (AUM), experienced a growth of around 12% in
FY2023. This growth can be attributed to a variety of factors, including enhanced
affordability, increased income stability following the resumption of economic activities,
heightened demand in urban locations due to the return of service sector employees and a
growing preference for homeownership. Moreover, the net interest margins showed a trend of
improvement from Q4 in FY23.
According to CRISIL, the assets under management (AUM) of housing finance companies
have increased by around 12% in FY23 as compared to the 8% growth rate witnessed in FY22.
This growth is attributed to the comparatively faster expansion of 18-20% exhibited by
affordable housing financiers. The growth in developer financing is likely to increase,
with only large and well-capitalised housing finance companies participating in wholesale
financing. Loans against property (LAP) are likely to face challenges in rebounding
significantly due to high pricing and potential risks. However, the fundamental factors
driving housing demand among end-users remain unchanged, despite the impact of rising real
estate prices and interest rates.
Growth drivers
Government initiatives
The Indian government has introduced several policies to encourage affordable housing
initiatives like tax incentives for first-time homebuyers, lower interest rates on home
loans push for green housing, etc. which have also played a significant role in driving
growth in the housing finance sector.
Rapid urbanisation
The escalation in population growth and migration patterns has led to a surge in the
need for housing, resulting in an increase in property prices and the overall value of
residential real estate. Additionally, due to lifestyle transformations, individuals are
increasingly seeking modern and convenient living spaces situated in close proximity to
essential amenities. Consequently, the demand for residential real estate in urban areas
is anticipated to persistently rise. 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 inhabitants.
Increasing per-capita income
The middle class in India is experiencing a steady growth in disposable incomes, which
has fuelled their aspirations for improved living standards. As a result, there is a
burgeoning demand for affordable and mid-income housing projects, catering to the needs of
this upwardly mobile demographic. This surge in demand can be attributed to the desire for
better housing options, aspirations for a more comfortable lifestyle and secure future,
ultimately propelling a upsurge in the real estate market.
Enhanced affordability
The availability of home loans at competitive interest rates, coupled with government
incentives has made it easier for individuals to purchase homes. Additionally, banks and
housing finance companies are increasingly catering to the needs of low and middle-income
groups. As a result, homeownership is increasingly achievable for more people,
contributing to greater financial stability and growth of the housing market.
Growing demand for rental housing
The increasing presence of a young and highly mobile workforce has generated a
significant demand for rental accommodation in urban regions. Consequently, this has
contributed to the development of rental and co-living spaces, further stimulating the
expansion of the housing market.
Technological advancements
The utilisation of innovative construction methodologies, including prefabrication and
modular building techniques, facilitates the reduction of construction duration and
expenses for developers. Consequently, this allows them to expedite project delivery and
address the escalating demand for housing more effectively. Further, the emphasis for
green housing concept for enhancing the ecological balance has opened new vistas for human
habitation.
Company overview
Can Fin Homes Ltd. (CFHL) is a leading housing finance company, established in 1987.
The Company has strong focus on providing affordable and accessible financial solutions to
its customers. With a diverse range of products and services, a wide network of branches,
and a strong commitment to deliver customer satisfaction, the Company is well-positioned
to drive growth and create value for its stakeholders in the years to come.
Can Fin Homes is one among the few deposit accepting institutions, which is licensed to
accept deposits from the Public, apart from its core business of providing housing and
non-housing loans, including mortgage loans, site loans, loans for commercial properties,
loan against rent receivables, top up loans and personal loans.
Can Fin Homes Ltd. has 205 branches spread over 21 States and Union Territories
catering to the different needs of the borrowers across geographies, at competitive
interest rates, both for salaried and self-employed categories. 64% of the branch network
is in the South while the remaining 36% 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.
The AUM consists of 79% housing loans to individuals and 21% of Non-Housing loans,
including Commercial Real Estate (CRE). Most of the borrowers are first time home buyers
with an average age of 32-36 years, who occupy their own homes. The Company reaches out to
the individuals desirous of acquiring homes, in the affordable and mid segments, duly
upholding its twin objectives of encouraging home ownership and enhancing housing stock in
the country.
The average ticket size of the loan portfolio is around Rs.25 lakhs for housing loans
while the same for LAP is about Rs.12 lakhs and top- up is Rs.9 lakhs. Further, the
average incremental disbursement in respect of housing loan is Rs.6,679 crore while the
same in respect of LAP Top-up, Site and other non-housing loans total around Rs.2268
crore.
For maintaining a healthy asset quality, the Company has always preferred to lend to
the Salaried Class. Disbursement to the Salaried class amounted to Rs.6,188 crore
constituting 69% of the total disbursements. The disbursement to the SENP category
amounted to Rs.2759 crore, constituting 31% of the total disbursements. While selecting
the SENP customers, care is taken to look into their recorded financial transactions,
declared income credit, credit score, previous track record of payments to gauge their
financial soundness and credit worthiness.
The share of loans extended to self employed stood at 27% of the loan book, totalling
Rs.8477 crore, indicating the Companys commitment to support this category of borrowers
also to translate their dreams of owning a house, into reality.
Despite increase in the Repo Rates and mobilising funds through debt market in order to
follow the Compliance requirements, the Company managed a healthy cost of funds. These
funds were deployed for onward lending through various schemes so as to ensure that the
AUM growth and spread are maintained at the desired level.
In consonance with the statutory requirements of 60% 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 gives an
edge for the Company to raise the funds from the market at competitive rates, whenever
necessary.
The Board of Directors are eminent personalities from the banking and finance industry,
having vast knowledge and expertise. The Board is supported by a very strong and diverse
Management team having all round skills and competency. The retail team at the branches is
well equipped to source and process quality loans, maintain internal control and provide
excellent 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.
A healthy asset quality increases the profitability, net worth and CRAR, which in turn
improves the Companys growth and promotes its goodwill in the market. Its robust credit
and underwriting practices along with diligent processes to monitor branch operations,
help to mitigate risks. This is evidenced from the Gross NPA level of 0.55% while the book
has grown at around 18%. The CRAR was above 20%, 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.
Strengths
Comfortable asset quality
The Company has a robust onboarding system which takes into consideration, various
parameters like individual risk rating on the basis of credit score, professional
qualifications, financial stability etc. for assessing the credit worthiness of an
individual, facilitating a better selection of customers. This has contributed to
maintaining 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, ultimately leading to a healthier financial performance and reduced credit
risk for the Company.
Strategic borrowing
In the increasing cost scenario, the Company uses Commercial Papers (CPs) as a cost
leverage tool by judiciously using its limits, which remain unchanged over a period of
time. Further, even though the funds raised through issue of Non-convertible Debentures
(NCDs) are at a higher cost for regulatory compliance, the Companys reliance on bank
borrowings and the National Housing Bank (NHB) refinance at lower interest rates, has
resulted in leveraging the cost of funds. It enables the Company to offer more attractive
loan products to customers, increasing its competitiveness in the market. Additionally,
controlling funding costs, positively impact the Companys bottom line, leading to
improved profitability and financial performance. By capitalising on these cost
advantages, the Company is better positioned to grow and maintain a strong presence in the
housing finance sector.
Effective cost management
The Company has demonstrated a commitment to stringent cost control, maintaining a
cost-to-income (CI) ratio of 16-17%.
This disciplined approach to cost management ensures that resources are used
efficiently and enables the Company to focus on maximising productivity across its
operations. This focus on cost efficiency supports a healthy earnings trajectory.
Opportunities
Digitalisation and Fintech partnerships
The Company has initiated steps for introducing a new core banking solution for
integration of digitalisation and collaborations with FinTech enterprises, which gives an
opportunity to augment customer experiences, optimise processes, and stimulate expansion.
By forging alliances with FinTech entities, the Company stands to benefit from enhanced
risk evaluation, cost reduction and the broadening of market penetration. Furthermore,
such partnerships facilitate adherence to regulatory requirements and foster data- driven
decision-making, thereby establishing the Companys enduring prosperity within the housing
finance sector.
Affordable housing segment
The affordable housing sector offers a substantial prospect for the Company to broaden
its footprints and secure a competitive advantage within the housing finance domain. By
concentrating on this segment, the Company is expected to attend to the escalating demand
for reasonably priced residences, accommodate the requirements of the under penetrated
market and partake in the countrys socio-economic advancement. Moreover, this strategy is
congruent with governmental endeavours and inducements, which enables the Company to
obtain the benefits of positive policy actions and prospective fiscal backing.
Challenges
Intense competition
Housing finance companies (HFCs) face significant competition from banks and large
housing finance companies in Tier I and Tier II cities. Therefore, it is crucial for HFCs
to expand their presence in Tier II cities and beyond in order to capitalise on their
pricing power. The Company is concentrating its efforts on Tier II cities primarily
targeting the salaried demographic where a majority of HFCs operate within similar
geographic regions.
Business Segment Overview
The Companys primary focus was on retail housing loans in the various centres of
operations. During FY23, the Companys Loan Book Portfolio stood at Rs.31,563 crore as
against Rs.26,711 crore. In comparison to the previous years total of Rs.8,896 crore, the
loans approvals figure was Rs.9,307 crore. The Disbursements totalled Rs.8,947 crore in
FY23, as compared to Rs.8,279 crore in FY22.
The Companys broad selection of loan products under Housing and Non-Housing category
are suitable for meeting the various needs of a wide spectrum of customers. The Companys
Product Basket 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 classification of loans granted for Commercial Real Estate-Residential
(CRE-RH) as Non-Housing loans, the share of Housing Loans in the portfolio stood at 79% as
against 90% in FY22. However these CRE loans are basically for residential properties and
are mostly self occupied. Including the housing linked CRE loans, the loans against
dwelling units (housing) stood at 91% whereas LAP constitutes 5% and balance 4 % are top
up loans, personal loans and site loans (NHL).
Further the share of outstanding loans between salaried and self employed categories
stood in the ratio of 73:27.
Deposit Schemes
As permitted by the Regulators, the National Housing Bank (NHB) and Reserve Bank of
India (RBI), Can Fin Homes accepts deposits with interest payments either at periodic
intervals (Fixed Deposits) or compounded quarterly and paid at the time of maturity
(Cumulative Deposits). Senior Citizens are entitled to an additional ROI of 0.50% over the
card rates. For Fixed Deposit schemes, the minimum deposit amount is Rs.2 Lakh, with
options for quarterly, half-yearly, and annual interest payments, and Rs.10 Lakh for
monthly interest payments. The minimum deposit amount for the cumulative scheme is
Rs.20,000.
Funding Mix
Can Fin Homes has a prudent funding mix consisting of credit facilities from banks,
refinance from the National Housing Bank, deposits from the general 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, 2023, stood at Rs.29068 crore.
The Company has ensured comfortable liquidity levels with an optimal mix of funding
sources. The efficacy of the cost of funding is regularly assessed, because of which the
Company was able to maintain comfortable spread and NIM.
Ratings |
|
|
|
Borrowings |
CARE |
ICRA |
IND |
Term Loans (Long Term Loan) |
AAA/Stable |
AA+ |
AA+/Stable |
Term Loans (Short Term Loan) |
- |
A1+ |
- |
Commercial Papers (CPs) |
A1+ |
A1+ |
A1+ |
Non-Convertible Debentures (NCDs) |
AAA/Stable |
AA+/Stable |
AA+/Stable |
Public Deposits |
- |
ICRA AA+/Stable |
- |
Risk and concerns
CFHL manages various risks like Credit Risk, Operational Risk, Market Risk and
Liquidity Risk efficiently with the help of standard procedures, systems and guidelines. .
Credit Risk :
Credit Risk is an intrinsic part of any lending activity and arises on account of
payment default of instalments by the borrowers.
Mitigation :
CFHL manages credit risk through stringent credit norms with the help of a proper
Credit Policy. New proposals are evaluated through a comprehensive Credit Risk Assessment
procedure, an in-depth analysis of related subjective and objective information of the
borrowers for determining their creditworthiness with the help of credit assessment
agencies like the Credit Information Bureau of India Limited (CIBIL), Experian, the
Central Registry of Securitization Asset Reconstruction and Security Interest of India
(CERSAI), PERFIOS, field investigation of employment, residence, business, empanelled
valuers and advocates to assess the potential risk of a new customer.
In addition to the above, CFHL periodically reviews the creditworthiness of existing
borrowers through the Credit Risk Monitoring (CRM) mechanism and the Offsite Transaction
Monitoring System (OTMS).
Review of overdue accounts is done continuously to ascertain and plug the loopholes in
the evaluation process, if any.
External Call Centres and Enforcement agencies also assist in the process of
collections.
Market Risk and Interest Rate Risk:
Risks which depend on external factors such as inflation, deflation, demand, supply
dynamics are beyond the control of the Company. The adverse market conditions give scope
for liquidity risk, interest rate risk, funding risk etc.
Mitigation:
A proper funding mix consisting of bank borrowings and market borrowings at fixed and
floating interest rates, for both short and long duration will mitigate the interest rate
risk.
The borrowings as on 31st Mar,2023 are provided below:
|
(Figures in Rs.Cr) |
Particulars |
O/s Amt. |
Deposit |
435.16 |
Banks |
15674.65 |
NHB |
6544.42 |
CP |
1335.74 |
NCD |
5078.11 |
Total |
29068.08 |
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 |
10.07 |
Repo-linked |
43.83 |
Special Rate |
15.25 |
T Bill-linked |
30.86 |
Total |
100.00 |
Liquidity Risk:
Liquidity risk is a risk of not having sufficient funds to meet the financial
commitments. It arises mainly when there is an overdependence on the market borrowings and
the market situation is not conducive.
Mitigation:
The Company is having a sound risk management policy which conducts periodical analysis
of adverse scenarios and stress testing, which gives early warning signals to maintain
liquidity at optimum levels. The Company maintains sufficient on book liquidity in the
form of investments for LCR and SLR purposes and off-book liquidity in the form of undrawn
documented bank limits. Further, the proper funding mix from different avenues considering
the interest rate, tenure and maturity pattern assists in mitigating the risk.
Asset Liability Management
The Asset Liability Committee (ALCO) of the executives in the Registered Office
monitors the mismatch in the Assets and liabilities. The ALCO analyses the cash flows in
different time buckets taking into consideration, the committed outflow with the
anticipated inflows to ascertain mismatches, if any. It also conducts adverse scenario
analysis periodically. All the incremental borrowings, as per the Borrowing Policy are
deliberated in the ALCO meetings before placement of the same for approval.
The Companys financials are frequently reviewed by the Risk Management Committee,
Audit Committee and Board of Directors.
Internal audit
The Internal Audit system is responsible for ensuring that the Companys operations are
conducted in a manner that promotes effectiveness, efficiency, and reliable financial
reporting while also ensuring compliance with relevant laws, regulations and policies.
The Risk Based Internal Audit team (RBIA) has been reinforced to enhance its focus on
evaluating the performance of branches and ensuring compliance with the Companys
policies, while also identifying and addressing any areas of vulnerability and improving
customer service, which is a vital aspect of the Company. The audit reports from various
sources, such as Risk Based Internal Audit (RBIA) inspections, NHB/RBI, Sponsor Bank,
internal and external auditors of branches and standalone "Application audit of IT
systems" by IT auditors as well as special audits to assess the efficiency of
existing internal control systems, are presented to the Audit Committee of the Board for
review.
The Audit Committee and the IT Strategy Committee periodically review the reports on
the efficiency of the internal control systems and IT systems, respectively. The Audit
Committee assesses the performance of the audit department.
The Board of Directors undertakes a comprehensive examination of the Companys risk
profile, compliance with KYC/AML regulations, legal compliance report, ALM at quarterly
intervals and adherence to fair practice code and customer complaints as mandated by
regulatory guidelines.
All policies of the Company are subjected to annual review by the Board and
modifications are done as and when required to strengthen the processes and align with
good market practices while ensuring strict compliance with various laws.
Asset quality
The financial soundness and health of an institution is determined by it Asset Quality,
which is one of the most crucial aspects of its functioning.
At CFHL, the Management spends substantial time, energy and resources to administer the
loan assets. Adequate focus and due diligence is given for reviewing the loan portfolio
which are under default. The factors for the same are reviewed within the context of local
and regional conditions that may influence the Companys performance. The quality of the
appraisal standards, soundness of credit policies, practices, timely identification of
delinquent assets, MIS, type of credit documentation are methodically ascertained at
different levels, for the purpose of taking timely actions.
The strong and sound recovery mechanism of the Company contains NPAs, supported by the
SARFAESI Act. Regular, concerted follow-up both at the branch and central level,
significantly improves collections. More than 85% of the collections are through
electronic mode and the rest through PDCs, salary deductions with the miniscule portion by
way of cash collections. 2% of the loan book which are restructured as per RBI guidelines
are due for regularization during FY 2023-24.
As of March 31, 2023, the Gross NPA stood at Rs.173.84 Crore (0.55%) as against
Rs.170.59 Crore (0.64%) during previous year. The Net NPA was Rs.82.04 Crore (0.26%) as
against Rs.80.71 Crore (0.30%) during the previous year.
Provision for loans
As a compliant housing finance company, Can Fin Homes is required to adhere to the RBI
Master Directions for Housing Finance Companies in 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 Rs.Cr) |
|
FY23 |
FY22 |
Revenue |
2743.13 |
1988.50 |
NII |
1014.55 |
816.15 |
ROAA (Annualised)% |
2.17 |
2.01 |
ROE (Annualised)% |
17.03 |
15.36 |
EBITDA |
2537.35 |
1798.37 |
EBIT |
2524.89 |
1788.56 |
PAT |
621.21 |
471.09 |
EPS (in H) |
46.65 |
35.38 |
Financial ratios
Ratio |
FY23 |
FY22 |
Interest coverage ratio |
1.48 |
1.55 |
Debt equity ratio |
7.97 |
8.04 |
Operating profit margin (%) |
31.56 |
34.30 |
Net profit margin (%) |
22.65 |
23.68 |
Provision Coverage Ratio (%) |
52.29 |
52.69 |
Net Interest Margin
Net interest margin for FY 23 was 3.45% as compared to 3.57% in the previous year.
The NIM has come down on account of increase in the REPO rate during FY 2022-23 and lag
effect in passing on the same to the ultimate borrowers.
CAR &DER
As of March 31, 2023, the Companys Capital Adequacy Ratio was 23.07%, which was much
higher than the regulation requirement of 15%. The Company is permitted to borrow 12 times
its Net Owned Funds under regulatory guidelines. As of March 31, 2023, the leverage ratio
was 7.97, providing enough room for borrowing.
Interest Spread
In FY23, the average yield on loan assets was 8.84% per annum as compared to 8.11% in
FY22. The average cost of funds increased from 5.56% to 6.53% annually. In comparison to
the prior year, the margin on loans above the cost of borrowings for FY23 was 2.31% pa
against 2.55% in FY 22.
Cost to income ratio
The Companys cost to income ratio was 16.93 percent in FY23 as against 18.32 percent
in FY22.
The Cost to Income Ratio was less in FY 2022-23 mainly on account of reduced mobility
and outdoor activity due to COVID 19 restrictions.
Human Capital
The Companys human resource department is responsible for recruitment, training and
management of employees to ensure a high level of proficiency and competence among its
workforce. The Company places a strong emphasis on employee engagement and satisfaction,
regularly conducting surveys and providing career development opportunities.
The Companys unwavering dedication towards its human resources is reflected in its low
attrition rate and high employee retention, fostering a robust and cohesive team that is
steadfast in achieving the Companys objectives and delivering value to its stakeholders.
Several staff welfare measures are implemented to take care of employee interests and
increase productivity.
During FY 2022-23, Company had an attrition rate @ 10.30% while for FY 2021-22, it was
9.73%.
As of March 31, 2023, the total employee strength of the company stood at 976.
IT and security
Ensuring the safety and security of the Companys data is imperative for running the
business soundly. The protection of its core information data and IT infrastructure from
cyber threats is an essential requirement to safeguard the confidentiality of corporate
information at all levels. Specific instructions are outlined in the Companys IT & IT
Security policy, Cyber Security Policy and Cyber Crisis Management plan.
The Business Continuity Plan ensures that crucial business operations continue to run
smoothly in case of any exigencies. Penetration tests and vulnerability assessments are
conducted periodically 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 identified in line with the Accounting Standard on segment reporting,
considering the organization structure as well as the differential risk and returns of
these segments. The Company is primarily engaged in the Housing Finance business and
revenues are mainly generated from this activity.
Related Party Transactions
CFHL maintains an arms length relationship with related parties. The Companys
detailed policy on related party transactions is uploaded in the Companys website for the
information of all the stakeholders. The related party transactions with details are
furnished 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 Company is committed to Corporate Social Responsibility measures. In FY 2022-23,
the CSR activities encompassed the promotion of education, including special education,
construction of class room blocks for Government schools, procurement of tabs, water
filters etc., for Government schools, renovation of anganwadis, Scholarships for under
privileged, Scholarships were awarded for girl child education, and to special,
differently abled students for pursuing higher education. The Companys CSR measures also
give a thrust to healthcare by donating advanced medical equipment and ambulances to
Hospitals. Company has extended its CSR support for the construction of a Fitness cum
sports centre for tribal students. Company has also contributed for nutritional expenses,
procurement of basic Fixed assets for old age homes, orphanages and residential homes for
differently abled people.
In FY 23, the Company funded 116 CSR projects. The CSR expenditure amounted to Rs.11.81
crore, covering 1,32,237 beneficiaries.
Prospects and plans of the Company
The recession in the market has declined and the Indian economy is showing an upward
trend. This has resulted in a positive growth in the housing stock and resumed demand
giving scope for our business augmentation. With determined efforts through various
channels, the Company proposes to showcase a better performance in the current fiscal. In
this regard, necessary steps have been initiated for infusing human capital, knowledge
enhancement, technological support and branch expansion.
The Company will continue to chart the path forward of 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
materialize.
Readers are advised to exercise caution when relying on such forward-looking
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, 2022-23.
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