edelweiss financial services ltd share price Management discussions

Macro-Economic Review and Outlook

Indias growing prominence as a formidable player in the global economy is becoming evident as the search for new leadership unfolds in the global arena. With its visionary foreign policy and unwavering dedication to aiding nations facing crises, India has established itself as a trusted and highly regarded global partner. By making use of its thriving tech industry, favourable demographic factors, and proactive strategies to attract foreign investment, India has embraced the opportunity and displayed its competence to thrive on the global stage. Assuming the presidency of the G20 in 2023, India seized a unique opportunity to strengthen its position in the global economic order and emerge as a significant soft power. With its growing influence, Indias G20 Presidency becomes a showcase of its emerging global standing, reflecting an independent foreign policy fuelled by its economic prowess. This platform is expected to bolster relationships, forge new partnerships, and contribute to the international community, as India sets forth an ambitious, people-centric agenda to tackle global challenges and foster sustainable economic development, ultimately paving the way for its prominent role in the global economy.

In the backdrop of the events that unfolded in 2022, the global economy remained in a state of flux, impacting every country as they navigated the unpredictable external factors. Despite this, the Indian economy continued to shine and show resilience amid global financial gloom. The International Monetary Fund (IMF) has forecasted that Indias GDP will grow by an impressive 5.9% in 2023 (Source: IMF, April 2023 World Economic Outlook). India has been designated as a pivotal player in the global economic recovery and the expectation is for India and China to contribute around half of the global growth this year. This recognition underscores Indias significant impact on the world economy and highlights its potential to drive and shape the process of global recovery. Several factors have contributed to the stable growth of the Indian economy, including sustained government capital expenditure, deleveraging of the corporate sector, lower non-performing assets in the banking sector, and moderation in commodity prices. Furthermore, high-frequency indicators such as GST collections, PMI manufacturing, bank credit growth, air passenger traffic, and services PMI have all shown robust performance in last few quarters. The government has also made significant strides in digitisation, with the

Unified Payments Interface (UPI) being a prime example of technology boosting financial inclusion in India and its allies. As an example, the integration of Indias UPI with Singapores PayNow would enable faster remittances between the two countries at a competitive rate.

The Union Budget 2023-24 sketched the roadmap to Amrit Kaal, or India@100 and outlined the action agenda for fuelling Indias growth story and catapulting it into a developed nation by 2047. There was a paradigm shift in overall macroeconomic priorities, transitioning from COVID-19 recovery to scaling new heights. The thrust of the Budget was on infrastructure development through higher capital expenditure, which stood at 10 lakh crore (up 33% from the previous year), laying the foundation for achieving the ambition of a $5 trillion economy by 2026 and improving prosperity for the populace. Strong infrastructure has always been a cornerstone of any developed economy, and this increased spending will provide great impetus to other critical areas such as education and skill development, urban development, the green economy, job creation, and improving global competitiveness.

Recognising the higher logistics costs in India compared to global peers, the government has planned transportation infrastructure projects to address this issue. The Railways received significant funding, and efforts were made to revive coastal shipping and airports, as well as promote electric mobility. The Make in India agenda was supported through reductions in import duties and tax incentives. Urban infrastructure development was prioritised, and steps were taken towards a greener economy with a focus on energy transition and carbon neutrality. The government also emphasised the importance of skilled manpower and research and development, with the establishment of centres of excellence and skill development initiatives. Tax reforms aimed to simplify compliance and enhance the ease of doing business. The Budget underscored self-reliance, digital advancements, sustainable choices, and economic stability, all contributing to inclusive development and the goal of achieving a $7 trillion economy by 2030.

However, there are certain risks that could potentially impact its growth trajectory, such as elevated inflation and challenges from balance of payment. Inflation has

RBIs upper tolerance band of 2-6% in past few quarters and the core inflation rate has remained sticky. Major central banks globally too have also reaffirmed their hawkish stance on inflation. On the external demand has impacted Indias exports, while imports continue to outpace export growth, putting pressure on the trade deficit. Indias significant dependence on imported energy is a challenge that shows up on the balance of payments side. Oil prices in 2023 are expected to be volatile, with Chinas reopening playing a significant role in determining the extent of this volatility. Moreover, there are additional concerns regarding the emerging trend of de-globalisation and the fading of post-pandemic pent-up demand, which pose significant challenges for the economy. The process of economic balkanisation particularly affects countries like India, heavily reliant on exports as a crucial driver of economic progress. This could result in a deceleration of growth in specific sectors and contribute to an overall moderation in the expansion of the economy. Furthermore, as the impact of the pandemicfront,aslowdowninglobal gradually diminishes, the initial surge of pent-up demand that emerged during the peak of the crisis may gradually diminish, leading to a slowdown in certain sectors and further contributing to a moderation in overall economic growth. Despite these challenges, Indias strong fundamentals, combined with the governments reform-oriented approach, continue to provide a foundation for the countrys economic growth. The expansion of public digital platforms and the governments commitment to boosting manufacturing output through measures such as the PM Gati Shakti, National Logistics Policy, and the PLI scheme will further support economic growth. The road ahead may be difficult, but India is well-positioned to navigate the challenges and emerge as a key player in the global economic landscape.

Industry Structure and Developments

Edelweiss is one of Indias leading diversified financial services companies, providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals. Edelweiss products and services span multiple asset classes and consumer segments across domestic and global geographies. Its businesses include Asset Management, Asset Reconstruction, NBFC, Housing Finance, General Insurance and Life Insurance.

Asset MAnAgeMent

The asset management industry in India comprises of mutual funds and alternative investment funds (AIFs).

The Indian mutual fund industry is poised for continued growth in the coming years due to several key factors. With a strong track record of performance and a diverse range of investment options, it is well-positioned to meet the needs of various investors. As awareness about the benefits of mutual funds continues to increase, more and more people are expected to join the industry, further fuelling its growth. The rising affluence of the Indian middle class, coupled with the growing availability of online investment platforms, has opened doors for a wider audience to participate in mutual funds. Additionally, the introduction of new investment products and services has enhanced the industrys appeal and relevance. Given these factors, the Indian mutual fund industry is set to experience significant expansion, catering to the investment requirements of the expanding middle class and playing a vital role in the overall financial development of the country. In FY23, Mutual Funds AUM recorded a robust growth to stand at 39.42 trillion as on March 31, 2023, compared to 37.57 trillion as on March 31, 2022. (Source: AMFI reports).

Alternative assets funds are gaining popularity in India as investors seek diverse income-generating opportunities beyond traditional portfolios. These funds focus on assets like real estate, private equity, and hedge funds, deviating from conventional investments. Factors driving the demand for alternative assets funds in India include lower returns on traditional debt products, the desire for diversification and risk reduction among offshore institutional investors like pension funds and insurance companies, and the pursuit of higher returns by high-net-worth individuals (HNIs) and family offices. India offers various types of alternative assets funds, including real estate funds, private equity funds, and hedge funds. These funds have the potential for higher returns compared to traditional debt products, although performance varies based on the fund type and investment strategy. Alternative Funds in the structured credit, special situations, real estate credit, private equity and infrastructure yield space in India saw inflows of ~$33 billion during the year and their AUM stands at ~$76 billion at the end of this year in India.

Since the middle of the previous decade, RBI and the Government have made dedicated efforts in terms of calibrated policy measures like strengthening the regulatory and supervisory framework, implementation of 4Rs approach of Recognition, Resolution, Recapitalisation and Reforms to clean and strengthen the balance sheet of the banking system. These continuous efforts over the years have culminated in the enhancement of risk absorption capacity and a healthier banking system balance sheet in terms of asset quality over the years. The gross NPA of the banking system is estimated to have come down to 5.7% from the high of 10.2% in the last 5 years. While retail lending had shown growth during the last 3 years, FY23 saw resurgence of corporate lending by the banking system.

The major developments in the financial sector having an impact on asset reconstruction companies (ARCs) include: National Asset Reconstruction Company Limited (NARCL) has commenced its full-fledged operations.

The RBI on October 11, 2022, issued a circular, amending the extant regulatory framework for Asset Reconstruction Companies

(‘ARCs), introducing corporate governance norms in line with those applicable to Banks / NBFCs. Other changes include some of the operational guidelines. Majority of these changes were suggested by committee of directors instituted by Reserve Bank of India to review working of ARCs in September 2021.

RBI on February 20, 2023 issued a circular on implementation of Indian Accounting Standards (Ind AS) with regard to recognition, computation and treatment of unrealised management fee while calculating the Capital Adequacy Ratio and the amount available for payment of dividend. The unrealised management fee shall be adjusted against net owned fund while calculating the Capital Adequacy Ratio and the amount available for payment of dividend.

During FY23, the top six ARCs in India acquired loans at an acquisition price (SRs issued) of 20.8K crore with an investment of 4.7K crore and had an Assets Under Management (AUM) of 96.4K crore as on March 31, 2023. Their recoveries were 19K crore with redemptions of 14.7K crore during the year.

nBFc industRy

The outlook for Non-Banking Financial Companies (NBFCs) remains promising. The MSME sector is a major contributor to the socio-economic development of the country, contributing approximately 30% to Indias GDP and is crucial in terms of employment generation, exports, and lending opportunities. Various government initiatives ensure technology upgradation, move towards non-cash transactions, ease of compliance and easy and affordable access to credit to MSMEs. Securitisation volumes of NBFCs and HFCs is estimated at ~61,000 crore in Q4FY23, indicating an increase in funding requirements to meet the growing credit demand, as per a credit rating agency report.

Growth will be driven by strong demand for credit, particularly in the retail and small and medium enterprises (SME) segments. The asset quality of NBFCs is expected to remain stable, supported by a gradual economic recovery and improving business sentiment. Additionally, the regulatory environment for NBFCs is expected to be stable, with the government taking measures to address the liquidity concerns faced by the sector in the past.

NBFCs with strong risk management practices and digital capabilities are likely to outperform their peers. These companies will be better equipped to manage their portfolio risks and cater to the evolving needs of their customers.

Overall, the outlook for NBFCs in India is positive, with AUM growth expected to remain strong in FY23-24. Companies that prioritise risk management, digitalisation, and customer-centricity are likely to succeed in the competitive landscape. With a stable regulatory environment and improving economic conditions, NBFCs are well-positioned to contribute to the growth of Indias financial sector.

Housing FinAnce

While the overall outlook for Housing Finance Companies (HFCs) is positive, it is important to recognise the challenges that lie ahead. One of the key challenges is the potential increase in interest rates, which has the potential to dampen the demand for home loans. Furthermore, the COVID-19 pandemic and the subsequent economic slowdown have already presented significant challenges for HFCs by affecting the credit quality of borrowers. Additionally, increasing competition from banks and other lenders has put pressure on HFCs to lower their lending rates, thus impacting their profitability. Despite these challenges, HFCs with sound business strategies, strong balance sheets, and diversified loan portfolios may be better equipped to navigate these obstacles. Furthermore, HFCs with robust credit risk management practices and diversified their loan portfolios across various sectors and geographies can mitigate the impact of borrower defaults and minimise their overall credit risk. Moreover, there are potential growth opportunities in the form of increasing demand for affordable housing projects in India. With various government initiatives and incentives to promote affordable housing, HFCs can tap into this market and expand their lending activities in this segment. By effectively capitalising on these opportunities and diversifying their loan portfolios, HFCs can position themselves for long-term success and sustainable growth.

geneRAl insuRAnce

The General Insurance Industry (GI) growth rebounded in FY23 to 16% YoY compared to Covid-impact years of FY22 (11%) and FY21 (5%). In fact, this is highest growth for the industry in the last 5 years. While Standalone Health Insurers continued their impressive growth trajectory although moderated from last year, it is Private GI players that changed trajectories growing at ~20% growth YoY against 12% last year (FY22). Amongst product segments, Health continued to lead the charge, but Motor too had a good year growth at 15% in FY23 compared to 4% in FY22. (Source: IRDAI). Apart from growth, the last year marked a significant change in regulatory stance with primary focus on enhancing ‘ease of business for the Industry. The enablers address key challenge areas for the Industry ; ‘Use & File guidelines gave the power of product approval and launch to Insurers thus provided speed, flexibility and control of product launch calendar, new ‘usage-based guidelines allowed insurers to introduce innovative telematics-based motor insurance products, corporate agency partner numbers were increased from 3 to 9 in each category further opening up the bancassurance channel, in particular and another guideline improving access to private equity capital. The year ended with the most anticipated announcement of all – providing operations flexibility through a single limit on expenses and removing any further sub-limits, on commissions.

Another regulation that is expected to have a far-reaching impact is the mandating of KYC for all non-life insurance products which is likely to improve the contractability and hopefully, engagement with customers over the medium to long term. The focus on technology driving innovation continued with the regulator enabling a longer experimentation period for sandbox products. Thus, the last year has been a period of robust growth and landmark changes for the non-life insurance industry paving the way for strong sustainable growth in the future. In the coming years, we will see a transition to a ‘Risk Based Capital regime along with adoption of the ‘IFRS accounting standards.

liFe insuRAnce

The life insurance sector has witnessed a remarkable surge in traditional business, especially guaranteed products. This aided in better margins for the life insurance companies as they continue to meet customers expectations with their traditional participating and non-participating offerings. The industry witnessed an increase in demand of non-Ulip, high-ticket policies of over5 lakhs in March 2023, as the new tax regime came into effect from April 1, 2023.

Going forward too, the life insurance sector in India is expected to grow at a healthy pace in the coming years. The growth of the sector is being driven by a number of factors, including a growing population, increasing awareness about the importance of life insurance, rising disposable incomes, and government initiatives.

The Indian life insurance sector is the second largest in the world in terms of the number of policies in force. The sector is dominated by public sector insurers, which account for over 60% of the market share. The private sector insurers are growing rapidly and are expected to account for a larger share of the market in the coming years.

The life insurance sector is expected to benefit from the governments initiatives to promote financial inclusion. The sector is also expected to benefit from the growth of the Indian economy.

Edelweiss Outlook & Strategy

edelWeiss outlooK

As we set our sights on the future, we confidently stride towards the challenges and opportunities that await in the dynamic business landscape that India offers. Bolstered by a robust balance sheet, an expansive portfolio of diverse products and services, and an exceptional team of passionate professionals, we stand firmly prepared. FY23 marked a transformative resurgence in profitability, fuelling our commitment to maintain momentum and drive future success. The Company is also focussed on innovation and will keep investing in meaning full ways to stay ahead of the curve. With these strengths and capabilities, the Company is poised to emerge stronger from the challenges and capitalise on new growth opportunities in the future.

oPPoRtunities

Some key trends and factors that are likely to act as catalyst for growth and present significant opportunities for our organisation are as below:

India is seeing a rise in disposable income levels, which provides a significant opportunity for the financial services sector to offer new and innovative investment products and services. With more disposable income, consumers are looking for investment options beyond traditional savings accounts and fixed deposits, and the financial services sector can capitalise on this trend by offering investment products like mutual funds, stocks, bonds, and other financial instruments.

The Indian government has launched several initiatives aimed at increasing financial inclusion and penetration of financial services in the country. For example, the Pradhan Mantri Jan Dhan Yojana was launched to ensure that every household has access to a bank account, and the Atal Pension Yojana was launched to provide pension benefits to the unorganised sector. These initiatives have created a large market for financial services, and players in the sector can capitalise on this opportunity by developing products and services that cater to the needs of these customers.

Rising digital adoption

With the rapid adoption of digital technologies in India, the financial services sector has a significant opportunity to provide innovative and customised services to customers. Mobile banking and payment services, online investment platforms, and robo-advisory services are examples of digital financial services that have gained popularity in recent years. The financial services sector can leverage digital technologies to provide convenient and cost-effective financial services to customers, especially those in rural and remote areas.

Demographic dividend

India has a young population, and as this population ages, there will be an increasing demand for retirement and pension products. The financial services sector can capitalise on this opportunity by developing innovative and customised retirement and pension products that cater to the needs of this demographic. With the rise of nuclear families and increasing healthcare costs, retirement and pension products that provide healthcare benefits can also gain popularity.

tHReAts

Some external factors that may hinder or pose challenges are as below:

Cybersecurity risks

As digital adoption increases in the financial services sector, there is also an increasing risk of cyberattacks and data breaches. These cybersecurity risks can result in financial losses, damage to reputation, and loss of customer trust. The financial services sector needs to invest in robust cybersecurity measures to protect against these risks.

Regulatory changes

Changes in regulations or policies can have a significant impact on the financial services sector, making it difficult for players to adapt quickly. For example, changes in tax policies, capital adequacy requirements, or customer protection regulations can impact the profitability and viability of financial services products and services.

Global competition

As the Indian financial services market continues to evolve, there is a growing concern regarding the entrance of international players, posing a significant competitive threat to domestic entities. These global players may have more resources, technology, and expertise, and hence may be better equipped to provide innovative financial services to customers. Domestic players need to continuously innovate and upgrade their products and services to stay competitive in this dynamic market.

Macroeconomic challenges

India is subject to various external and internal factors that can lead to economic challenges, which can impact the financial services sector. External factors such as changes in global trade policies, fluctuation in commodity prices, and changes in global interest rates can affect the Indian economy, and hence the financial services sector. Internal factors such as inflation, government policies, and domestic market conditions can also impact the sector.

tHe WAy FoRWARd

In FY23, we made significant progress made on key priorities. The demerger of Nuvama Wealth Management has been completed, with the final phase concluding in May 2023, and the subsequent listing expected between July and August 2023. The reduction of wholesale loan assets is on track, with a 40% reduction achieved and a projected 50% reduction for the next fiscal year. Focus on optimising debt have resulted in a substantial decrease in gross debt, and liquidity management remains a priority. Management focus on the growth of the Asset Management and Insurance businesses continues to payoff and these businesses are starting to break-out into a highly profitable cycle within the short to medium term timeframe.

Our strategy for the next 18 months will be focussed on creating value, strengthening our balance sheet, increasing our retail presence, and pivoting towards an investment company model. This will involve deploying resources in alternative investments and building out the platform, focus on equity assets under management in mutual funds, and implementing cost efficiencies in the insurance sector to drive profitability. On the lending book, we are committed to expanding our retail footprint via an asset-light model and have focussed on building out co-lending partnerships. In line with our long-term strategy, the wholesale book reduction on the back of strong recoveries and investor interest in asset Sell downs will be a key focus area for FY24. This in turn, will substantially reduce our balance sheet - debt will reduce and we will remain conservative by maintaining comfortable liquidity levels. We will continue to adhere to our win-win-win philosophy, seeking opportunities to unlock value when opportune for all stakeholders. The shift towards becoming an investment company is in line with our ongoing architectural changes, as we continue to unbundle and create more independent businesses within our organisation.

Performance Highlights

Against the backdrop of a dynamically-evolving macroeconomic landscape, our businesses achieved commendable success in FY23. Building upon the momentum gained in the preceding year, our core businesses have consistently delivered robust performance throughout this fiscal period. Our success in navigating the challenging business environment is primarily attributed to our strong and well-capitalised balance sheet, which acted as a sturdy shield against short-term disruptions, enabling our businesses to perform well. We have experienced significant growth in our asset management and insurance businesses throughout the year. In our Mutual Fund business, our Assets Under Management (AUM) surged by 24%

YoY, reaching 105K crore, while our Equity AUM grew by 16% YoY, amounting to 22.7K crore. Our Alternatives platform has consistently performed strongly, with a remarkable YoY AUM growth of 52% and fee-paying AUM growth of 32%. Additionally, our General Insurance business achieved an exceptional 53% growth in Gross Direct Premium Income (GDPI), securing the highest growth rate in the industry. In the Life Insurance business, we achieved a significant milestone by attaining Embedded Value (EV) break-even one year ahead of target, along with recording the highest-ever Claim Settlement Ratio of 99.2%. These achievements reflect the establishment of a high-quality franchise.

Our profit after tax (PAT) from our non-insurance operations showed an impressive 51% YoY growth, reaching 610 crore. Consolidated EFSL PAT (pre-MI) for FY23 stood at 406 crore as against 212 crore in FY22.

Total Income was up 18% YoY to 8,633 crore driven by strong performance across all business lines. Insurance businesses continued to grow with a net premium of 1,928 crore for

FY23 (1,644 crore for FY22), marking a healthy growth of 17%. The YoY reduction in our credit book due to wholesale credit resolution and our move to asset-light models for retail credit reduced interest income by 3.3% to 2,946 crore.

FY23 expenses are higher by 16.8% (8,380 crore vs 7,174 crore for FY22). The increase in operating expenses is mainly attributable to the return of pre-pandemic business activity and some one time restructuring expenses. Fair value gains in FY23 arising from our stake in Nuvama (now demerged) was largely offset by the impairment charge taken basis a management overlay.

We continued to strengthen and deleverage the balance sheet during the year. Effective balance sheet size (Debt plus Net Worth) at the end of FY23 was

27,765 crore compared to 30,057 crore at the end of

FY22, down by ~7.6%.

Borrowing costs reduced significantly and stood at 2,574 crore for FY23 compared to 2,984 crore in FY22, down by

13.7%. Debt as on March 31, 2023, was lower at 19,263 crore compared to 21,599 crore at the end of the previous year. During the year, we continued to maintain adequate level of available liquidity of around 15% of our borrowings in view of the volatile environment though it resulted in a negative carry as in the previous year.

Total Net Worth stood at 8,502 crore as on March 31, 2023, including the amount of equity convertible instruments (CCDs) vis-?-vis 8,457 crore as on March 31, 2022.

The Diluted EPS for FY23 stood at 3.83 compared to 2.11 for FY22. Book Value per share was 72 at the end of FY23. The Board of

Directors have recommended a Final Dividend of 1.25 per equity share. Total Dividend for the year stands at 1.50 per equity share

. liQuidity And AlM PRoFile

We ensure that an adequate liquidity cushion is maintained at all times to take care of all maturing liabilities with a focus on optimum revenue generation from liquid assets.

At the end of FY23, we maintained available liquidity of 2,900 crore. This included overnight liquid assets of 2,300 crore, high-quality liquid assets of over 500 crore which can be liquidated within a short span (if the need arises), and undrawn committed bank credit lines of 100 crore. Over the years, we have demonstrated a strong track record of fund raising from both retail and institutional lenders. With the help of public issues and our retail borrowing programmes, we have increased the proportion of funding through retail sources from 34% to 42% in the past one year. On the asset side, we continue to focus on and reorient our balance sheet towards retail growth. As wholesale recoveries remain slightly slower than anticipated, we have optimised the tenor and focussed on medium to long-term borrowings. Long-term borrowings now stand at 59% of the total debt.

All these steps have ensured that we maintain a positive ALM gap across all time buckets.

AnAlysis oF signiFicAnt cHAnges in FinAnciAl RAtios

As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 below is the additional information in respect of the financial parameters that are applicable to our company.

The Debt Equity Ratio as on March 31, 2023 stood at 2.77 times compared to 2.99 times as on March 31, 2022. Including the amount of equity convertible instruments (CCDs) in our networth and excluding the liquid treasury assets that we hold for liquidity management; the Net Gearing Ratio improves to 1.9 times as on

March 2023 compared to 2.3 times as on March 2022.

The Profit before Tax Margin for FY23 was 4.5% compared to being 3.1% in FY22, marking a growth of 45%.

The Profit after Tax Margin for FY23 stood at 4.7% compared to 2.9% for FY22, up by 62%.

Other parameters, namely Debtors Turnover, Inventory Turnover, Interest Coverage Ratio, and Current Ratio, are not applicable to our Company.

2. Details of any changes in Return on Net Worth as compared to the previous financial year:

Return on Net Worth, i.e. Return on Equity (RoE), post MI on consolidated basis for FY23 stood at 5.1% compared to 2.9% for FY22 with a healthy growth of 80%.

Business-Wise Analysis of Profitability

We are a diversified Company with eight key businesses as under:

The distribution of earnings among these businesses for the year FY23:

Business	Quarter ended March 2023	year ended March 2023
Alternatives Asset Management	43	159
Mutual Fund	0	18
Asset Reconstruction	93	318
NBFC	37	139
Housing Finance	3	16
General Insurance	(26)	(125)
Life Insurance	(43)	(199)
EFSL share in Nuvama	37	132
BMU & Corporate	28	(53)
(Less) Minority shareholders PAT	23	61
eFsl consolidated PAt (Post Mi)	149	344
eFsl ex-insurance PAt (Post Mi)	208	610

Business Performance

Brief highlights of business-wise performance for FY23 are as follows:

AlteRnAtives

AUM of the alternative asset funds have grown at a CAGR of ~31% since last 5 years to 46,500 crore. We continue to be a leading alternative asset manager in the country offering a dominant yield focussed alternatives platform. During the year, we have raised 14,000 crore capital in third series of our flagship special situations fund strategy and second series of our infrastructure yield fund strategy. Both funds are seeing robust response domestic investors.

We are the only Indian Alternatives Investment Manager to launch a diversified Energy InvIT focussing on providing growth with predictable yields, with an initial AUM of over 2,300 crore. During the year, we have signed an agreement to acquire 100% equity stake in L&T Infrastructure Development Projects, comprising 8 roads spanning ~4,900 lane-kms and 1 power transmission asset covering ~960 kms.

Given the strength and depth of our investment teams, the total realisation (including capital and income) is 8,500 crore across strategies in FY23. We are well-positioned for continued growth in the future. We have a strong track record, a deep understanding of the Indian market, and a team of experienced investment professionals. With the increasing demand for alternative assets, we are well-placed to capture a significant share of this growing market.

MutuAl Fund

At Edelweiss AMC, we offer a wide range of investment products for investors to choose from, including equity funds, debt funds, balanced funds, and liquid funds. We take pride in our strong team of investment professionals who have a proven track record of success. As a well-managed company with a strong performance history, we provide investors with a reliable and experienced asset management option.

Several key factors have contributed to our success. Firstly, our investment team possesses a deep understanding of the Indian market, allowing us to identify undervalued investment opportunities. This expertise enables us to make informed investment decisions on behalf of our investors. Secondly, our focus on long-term investment strategies ensures that we generate consistent returns over time, providing stability and growth for our investors portfolios. Lastly, our commitment to delivering exceptional customer service has helped us build a strong reputation among investors who value personalised and attentive support.

As a result of these factors, we have established ourselves as a trusted and reputable asset management company. Edelweiss Mutual Fund business is the 12^th largest in the country and the fastest growing among the top 15 mutual fund houses in the industry. We manage an AUM of 105K crore as on March 2023 under 60 schemes, a growth of 23% over the AUM of 85K crore a year ago. We saw inflows of ~ 22K crore in FY23 compared to inflows of ~76K crore for the industry. We have improved our ranking to 12 in

FY23 from 13 in FY22 and caters to 8,78,000 unique investors, compared to 7,30,000 at the end of FY22.

Asset ReconstRuction

EARC is the largest ARC in the country which manages stressed assets with AUM of 37.1K crore. EARC adopts multi-pronged strategy for resolution of stressed assets with primary focus to ‘Revive or ‘Reconstruct operating assets with last-mile funding needs. Based on asset-specificcomplexities,settlement/enforcement of security interest/resolution through IBC are also adopted with an aim to optimise stakeholder benefits.

Our acquisitions continue to target operating assets that can be revived. During the year, we invested 1,470 crore. During the year, 320 crore have been invested in the retail segment which now constitutes 16% of EARC investment. EARC has been able to maintain its market leadership with ~39% of the market share. We have partnered with over 71 banks/NBFCs backed by our expertise on resolution of stressed assets. EARC has been able to recover more than 7,500 crore in FY23 and a total of 42,900 crore since inception. nBFc

The NBFC industry continued to navigate the unprecedented impact of the global pandemic. FY23 was a year of remarkable resilience for the industry - with every sector witnessing different growth trajectories. Overall, the year signalled a positive momentum with consistent upswing in credit demand. Over the last few years, most NBFCs have focussed on strengthening their balance sheets and now are eyeing growth which is expected to be achieved through co-lending partnerships.

For our MSME portfolio, our vision is to establish ourselves as the foremost and dependable financial partner, accompanying them throughout their entire growth trajectory. During the year, we have heavily invested in building our core capabilities around origination and underwriting of loans to micro and small enterprises, largely Priority Sector Loans (PSL). We have continued to focus on our strategic initiative of being asset-light by signing two bank partnerships during the current financial year towards co-lending PSL loans to micro and small Indian entrepreneurs. We continue to build scale in co-lending as we build a unique asset-light model. We aim to make lending to this segment more efficient through digitalisation. We have invested on our proprietary Digital Lending Platform (DLP), a low code and agile platform, as a seamless loan origination system. The technology stack uses a host of micro-services to improve processing efficiency and Dynamic Business Rule Engine (BRE) for automated decision-making. The scorecard and parameterised approach helped us originate high credit quality customers. We are also leveraging our data analytics for retention of existing customers and acquisition of new customers, risk modelling using statistical scorecards, credit risk analysis using latest bureau information and better collections using bounce prediction model and repayment behaviour analysis.

In the Wholesale credit segment, we remain committed to reducing our Wholesale Book.

As part of our key priorities, we have made good progress on scaling down of the wholesale book in FY23. During the financial year, we have reduced the book through recoveries from the borrowers and sell-down of portfolio to external investors. Residential real estate market witnessed strong revival, driven by strong demand (affordability improved and inventory levels coming down) and supply consolidation in the last couple of years. We continue to actively evaluate sell-down opportunities with potential investors going forward also.

Wholesale loan assets reduced by ~40% over the past year to 5,700 crore and we expect further reduction by ~47% in FY24.

Liquidity released with reduction of the book will be redeployed in other growth areas as we go along.

RetAil MoRtgAge FinAnce

Retail mortgage finance, housed in NIDO Home Finance (formerly known as Edelweiss Housing Finance Limited), consists of mid-ticket and affordable-housing loans, construction-finance loans, and loans-against-property. We have pivoted towards an asset-light business model, and this has manifested itself in the diverse co-lending partnerships that we have built with prominent banks such as State Bank of India, UCO Bank, Bank of Baroda and Standard Chartered Bank. Under the auspices of these co-lending tie-ups, we are offering both, Home Loan and LAP products at attractive and beneficial rates to customers. Originations under this arrangement helps HFC to build a strong ALM matched liabilities-mix. Another dimension of our asset-light business model is the manner in which we have diversified our liabilities-mix through sell-downs in the form of direct assignment and securitisation transactions. In FY22-23, we were able to securitise a pool size of 862 crore via multiple transactions with around 10 banks, NBFCs and insurance companies. On the back of disbursals of ~ 1,000 crore, NIDO Home Finance ended FY22-23 with an AUM of ~ 4,115 crore, and a loan book of 3,070 crore. During this period, we delivered a profit after tax of 16.1 crore. As on March 31, 2023, the Networth stood at 794 crore and the CAPAD at 32.10%.

Underlying portfolio quality manifested itself in a GPNA of 1.95% as on March 31, 2023 (1.99% on March 31, 2022), and collection efficiency that was consistently above 98% through the financial year. The AUM mix remains biased towards granular, retail home loans, and new origination will also continue to focus on affordable-housing, and informal income customer segments. As on date, the Company is serving around 20,000 customers, with nine of out ten customers have a loan ticket size less than 30 lakhs.

We continue to invest in developing future-fit capabilities such as data sciences which we have used for driving multiple use-cases associated with portfolio management, and now with use-cases also associated with customer value management (CVM) and process efficiency. liFe insuRAnce

Over the last 12 years, we have written a story of innovation, resilience, and growth. FY23 has been a significant milestone for us.

Surpassing 500 crore Individual APE, we have now secured the 16^th position in the industry. We have also achieved an earlier-than-planned Embedded Value break-even and maintained a remarkable Claim Settlement Ratio of 99.20%, placing us among the top quartile in the sector. With the strong foundation of an expanding Indian economy, we are well-prepared for the next phase of our growth journey.

Our remarkable growth journey has been driven by a strong CAGR of 44% and a doubling of our business in the past five years. In the latest financial year, we achieved a solid 20% YoY growth in our Individual APE, consistently maintaining high customer satisfaction scores. Aligning with our long-term strategy, we have expanded our distribution network to encompass 109 branches and over 69,000 personal finance advisors. Over the past three years, we have prioritised enhancing the customer and distributor experience, focussing on personalisation, capital efficiency, and digital solutions. We have shifted towards a solution-led advisory approach, empowered our distributors with digital tools, improved our onboarding process, and established a robust data foundation for future initiatives.

During FY23, we made significant strides and have plans to introduce relevant enablers at various intervals in FY24. Our success can be attributed to several key factors. Firstly, our workforce has grown significantly, and we have implemented programmes to develop leadership and foster a positive work culture. Secondly, investments in technology have enhanced our efficiency and automation across various functions, resulting in faster policy issuance times. Thirdly, we have introduced innovative products to the market, driving a significant portion of our new business growth. Fourthly, our brand strength has improved, with high awareness and consideration among customers. Fifthly, strategic partnerships with distribution partners have played a vital role in driving our growth. Lastly, our community initiatives, such as the unique organ donation relay marathon and employee volunteering programmes, have helped build brand goodwill. With robust risk management, governance, and a culture of innovation, we continue to deliver value to our stakeholders.

AWARds And AccolAdes

Edelweiss Tokio Life continued to make its mark, having received multiple industry recognitions. For a second consecutive year, we have been recertified as a Great Place To Work and improved its scores across 5 parameters of Pride, Respect,

Camaraderie, Credibility, and Fairness. We have also been recognised among the Top 30 Indias Best Workplaces in BFSI 2022 and ranked #51 among Indias Best Companies to Work For in 2022.

Some other noteworthy accolades received by us in FY23 were:

01 ‘excellence in customer experience at The Economic Times CX Summit - Excellence in CX 2022

03 gold for PR in ‘successful use of csR at the Global ACEF Awards for Customer Engagement

02 ‘Fraud investigation team of the year at 5^th Annual Anti-Fraud Conclave Awards of

Achromic Point

04 Silver for BTL Efforts in ‘Successful Use of CSR at the Global ACEF Awards for Customer Engagement geneRAl insuRAnce

It has been an eventful year for us. After completing our successful first five years as Edelweiss GI, we embarked on a new phase as Zuno General Insurance. We entered the industry five years ago, recognising the opportunity to reimagine insurance by making it easy, friendly, and transparent. With our new independent identity, we embody a challenger brand that is passionate about transforming the insurance industry. The name "Zuno" represents our zeal, focus, and commitment to providing customers with a seamless and intuitive insurance experience powered by technology.

We have continued to experience strong growth, with a remarkable 53% increase in Gross Domestic Premium Income (GDPI) in FY23, the highest among general insurance players. Our Gross Written Premium reached 552 crore, driven by significant growth in our focus segments, Motor and Health, which grew by approximately 52% and 56%, respectively, surpassing industry averages. We formed collaborations with industry leaders such as LG, TATA, Maruti, Art Housing Finance, Orange Retail Finance, Repco

Home Finance, and others. We also partnered with new-age digital players, offering customised niche bite-size insurance products on platforms like Cleartrip and Ola.

Customer Experience

Our Net Promoter Score (NPS) increased from 51 to 58 at an organisational level. The NPS from key customer touchpoints, the Contact Centre, and Motor Claims, reached impressive levels of 82 and 54, respectively. We ensured uninterrupted access to customers by transitioning our Contact Centre operations to a 24x7 model. We also introduced emergency cashless facilities for customers in hospitals outside our network. Motor Claims average repair time reduced to 13 calendar days, and we settled one claim in just 16 minutes. We implemented a 30-minute pre-authorisation timeline for treatment initiation and a 1-hour final authorisation turnaround for individual customers, enabling quick discharges.

Innovation

We launched Indias first telematics-integrated insurance app, encouraging safe driving behaviour. We piloted Switch 2.0, a subscription model with pricing based on usage and driving behaviour. Additionally, we developed Digital OPD, providing comprehensive health products covering wellness and outpatient services.

Digital Platform

We introduced Jarvis, our internally developed Motor Pricing engine. We digitally serviced 42% of motor claims through our motor survey app. AI voice-based bots were deployed to facilitate hassle-free garage intimations, accounting for approximately 52% of all garage intimations.

We were the first insurers to integrate with Ayushman Bharat Digital Mission (ABDM), a government-led initiative aimed at establishing a unified health infrastructure, enhancing customer experience and our operations.

Our efforts have been recognised with numerous awards across multiple industry forums, receiving a total of 15 awards this year. As we embrace our new identity and renewed energy, we are committed to advancing further and achieving more milestones by leveraging technology to drive innovation, enhance customer experience, and ensure efficient delivery platforms.

Governance

At the core of everything we do is a strong commitment to governance, which encompasses not only compliance but also ethics and values. For us, governance means trust, legitimacy, accountability, competence, and respect for the law. We believe that these values are essential to building a culture of transparency, authenticity, and fairness that is critical to the success of our organisation. Our Board plays a crucial role in ensuring that these high governance standards are upheld at every level of our organisation. Through its unwavering focus on ethics, integrity, transparency, and fairness, our Board has established a robust framework for conduct, behaviour, and process oversight.

To foster a culture of good governance throughout our organisation, we have established clear rules for individual and entity-level behaviour and conduct, covering issues such as conflict of interest, insider trading, and handling sensitive information. We are also leveraging technology to refine our practices and facilitate smooth functioning while working from home, ensuring that we continue to maintain the highest standards of compliance.

At the end of the day, our commitment to governance is a reflection of our unwavering dedication to our stakeholders - our customers, employees, shareholders, and the communities in which we operate. By upholding these values, we are able to build trust, maintain legitimacy, and hold ourselves accountable to the highest standards of excellence in everything we do.

Risk Management

Risk management is a fundamental aspect of Edelweiss, deeply ingrained in our operations. Our commitment to effective risk management practices has proven invaluable in navigating through challenging and uncertain times. At the core of our risk management approach is the implementation of a robust Enterprise Risk Management (ERM) framework, which enables us to strategically benchmark our risk practices and ensure comprehensive risk mitigation across our business entities. To further formalise this process, we have developed an in-house "Eleven-risk framework" that guides us in the continuous assessment, avoidance, management, and mitigation of risks across all our business verticals.

Over the course of the year, we have undertaken several initiatives targeting the eleven key risk areas identified within our framework. In terms of regulatory risk, we have leveraged analytics to identify early warning signs, enabling us to proactively implement mitigation measures. This has proven crucial in adapting to evolving regulatory landscapes and ensuring compliance with the latest requirements.

We continue to focus on operational and process risks. Each of our business units review their critical and non-critical processes and underlying standard operating procedures (SOPs). This allows us to enhance efficiency, streamline operations, and minimise potential disruptions. By identifying process vulnerabilities and implementing appropriate controls, we ensure overall operational resilience. Addressing credit risk has been a key focus for us, leading to the establishment of a comprehensive framework for asset quality review. Through this framework, we diligently monitor our credit exposure, assess asset quality, and manage potential credit losses. Addressing credit risk has been a key focus for us and we have in place a fairly comprehensive framework for asset quality review. Through this framework, we diligently monitor our credit exposure, assess asset quality, and manage potential credit losses.

Recognising the significance of reputational risk, we have incorporated it into our business strategies. We have adopted an effective crisis management approach to safeguard our reputation, swiftly addressing any adverse incidents or challenges that may arise. By maintaining transparent communication and timely responses to all stakeholders, we aim to build and preserve trust in our brand and services.

In an increasingly digital landscape, technology risk has become a critical concern for businesses. At Edelweiss, we have made significant progress in fortifying our IT security measures to address emerging risks associated with evolving technologies and cyber threats. By continually enhancing our technology infrastructure and implementing robust security measures, we aim to mitigate the potential risks arising from the rapidly changing technology ecosystem.

To ensure a comprehensive risk governance structure, Edelweiss has established a dedicated Risk Committee at the Board level.

This committee plays a crucial role in overseeing and guiding our risk management efforts. Additionally, our key subsidiaries also maintain their own risk committees, enabling focussed risk management within each business entity. We have further strengthened risk management practices through the establishment of Investment Committees and Credit Committees. These entities provide a multidimensional perspective to risk assessment, avoidance, management, and mitigation, ensuring that risks are addressed comprehensively across the organisation.

At Edelweiss, we recognise that effective risk management is essential for maintaining the trust of our stakeholders, driving sustainable growth, and safeguarding the interests of our clients and investors. By continually evolving our risk management practices and frameworks, we remain committed to upholding the highest standards of risk management excellence in the dynamic and evolving financial landscape.

Internal Control Systems and Their Adequacy

inteRnAl FinAnciAl contRols

The internal controls at Edelweiss are well established and robust which are commensurate with the nature of its businesses, size

& scale and complexity of its operations to ensure orderly and efficient conduct of business. These controls have been designed to ensure assurance with regards to maintaining proper accounting controls, substantiation of financial statements and adherence to Ind AS requirements, safeguarding of resources, prevention and detection of frauds and errors, ensuring operating effectiveness, reliability of financial reporting, compliance with applicable regulations and relevant matters under the requirements of the

Companies Act 2013.

The internal control framework of Edelweiss continues to follow the assurance practices like the COSO framework, assurance on process efficiency and reliability of internal controls being aligned to risks identified in Risk Control Self-Assessment (RCSA), etc. to strengthen the overall system.

indePendent Audit And AssuRAnce

The internal auditors of Edelweiss follow standards on internal audit, along with guidelines issued by the regulators and ensure compliance with section 138 of the Companies Act 2013, read with Rule 13 of the Companies (Accounts) Rules, 2014, as amended and notified from time to time. The Internal Audit function operates under the supervision of the Audit Committee of the Board.

The internal audits are carried out by an external professionals who provide independent view and assurance by assessing the adequacy and effectiveness of internal controls, compliance to internal and external guidelines, and risk management practices across the Company.

Technology

stRong tecHnology BAcKBone

The pandemic demonstrated the importance of resiliency and adaptability in technology infrastructure, and Edelweiss was able to reap the benefits of ensuring business continuity during the pandemic with employees working from home.

With the post-COVID situation, technological infrastructure sustainability was crucial as employees returned to the office, and the efforts put into the resiliency of the infrastructure paid off as they were visible in the new Hybrid

Technology resiliency

The key pillars of our technology resiliency have been: increased Public cloud Adoption and optimisation

Edelweiss continued to expand the breadth of cloud offerings and capabilities, accelerating growth across all business segments as new applications and platforms were launched on Cloud. All this while, the expense of the increasing footprint on the cloud was tightly controlled.

Multi-cloud Approach

Edelweiss has adopted multi-cloud strategies, which involve using multiple public cloud providers to increase flexibility and avoid vendor lock-in.

intelligent Automation & Modernisation

Usage of low code software development tools has not only helped automation of multiple processes but also helped bring in agility making it part of our core technology culture.

Key initiatives

This year, we have focussed on the unbundling of all business entities, wherein infrastructure and technology services were segregated such that each of our businesses are self-sufficient and focussed on achieving their strategic goals operating platforms. We invested in the upgradation of some of our enterprise systems, notably Financial Reporting and Employee

Management systems that enhanced efficiency, controls and long-term scalability.

Information Security & IT Governance

EFSL has successfully completed the requirements and is now ISO 27701:2019 certified. Implementing privacy standards proves our commitment to privacy and assures our clients that secure systems and procedures are in place at various stages of our businesses. It will also immensely help in meeting and exceeding some of the current and future privacy regulatory requirements.

Also in our effort to create a secure Digital environment, we have been continuously striving to improve our Cyber posture and as a result we have improved our Cyber maturity score by 30% in the past year and are above par the industry maturity benchmark now. There have been no cyber incidents which have impacted our operations or ability to serve clients.

Human Resources

Our people practices prioritise providing resources and support for both immediate and future success, as our employees remain our most valuable asset in delivering value to all stakeholders. We rely on our guiding principles, culture, and values to navigate through current and future and are confident that our committed employees will continue to drive future success.

Talent

Through our comprehensive and integrated people practices, we aim to cultivate an agile and adaptable work environment that fosters collaboration, progress, and success. Our goal is to attract and retain top-quality talent by providing opportunities for growth, recognition, and development.

We understand that engaged and happy employees are vital to our success, and we celebrate their contributions, ownership, and passion through a range of recognition initiatives. At the heart of our people practices is work design. It plays a critical role in our ability to be agile and adaptable, and we focus on designing flexible, agile work processes and structures. As part of our reskilling and upskilling endeavours, learning plans are designed for various technology trainings, which help us understand the existing skill set available and the skills required for upcoming projects.

We provide multiple opportunities for employees to come together, from one-on-one conversations with leaders to larger forums and townhalls with senior leadership. We also believe that having fun and enjoying our work is essential to building a positive and engaged culture. We celebrate successes, milestones, and festivities through team events, social gatherings, and other activities that promote camaraderie and a sense of community.

As part of our commitment to our employees success, we place a strong emphasis on performance management. Our performance management approach is designed to support and develop employees by helping them to achieve their potential through meaningful goals, check-ins, and mid-year reflections.

Workplace

Our workplace is designed to foster collaboration across distributed teams and facilitate flexibility at work, whether at the office or in a hybrid model. We continue to prioritise employee safety by implementing safety measures and procedures in our workplace, providing safety training, and regularly monitoring our safety performance.

Our open-door policy ensures that employees can approach their managers and leaders with any concerns or suggestions they may have. We believe in providing equal opportunities for all employees, regardless of their gender, race, religion, sexual orientation, or any other personal characteristic. Our inclusive policies, such as parental policies and flexible work arrangements, ensure that employees can balance their personal and professional responsibilities. We have a zero-tolerance policy towards any kind of discrimination, harassment or bullying and have established robust internal procedures in line with the POSH regulations (Prevention of Sexual Harassment at Workplace Act) to address any such complaints. We conduct mandatory e-learning sessions across all employees to sensitise them on POSH. We also have a human rights policy in place that outlines our commitment to respecting and upholding the human rights of all employees, including the right to fair treatment, freedom from discrimination, and freedom from exploitation. Our commitment to diversity, equity, and inclusion goes beyond policies and is reflected in our day-to-day practices around inclusive behaviour, our values ensure everyone feels included and heard.

Well-being

Our approach to employee well-being is comprehensive, including physical, mental, emotional, and social wellness through access to resources and platforms. We offer a variety of employee benefits, including paid time off, parental leave, and wellness benefits, to support employee well-being. Towards our ongoing efforts to improve our programmes and we have included additional benefits in our Mediclaim coverage for employees. We prioritise the health and well-being of our employees and their families. To this end, support is provided through our central incident room, which is available 24/7 to handle emergency situations and provide accurate information on emergency protocols. Our commitment to employee well-being extends beyond insurance coverage and emergency response; we offer a range of solutions and employee outreach programmes to ensure our employees have the support they need to thrive both personally and professionally. We recognise that happy and healthy employees are essential to our success, and we are committed to providing a supportive and caring work environment.

Leadership

Leadership in the hybrid workforce demands new strategies, and virtual leadership has proven indispensable in fostering strong relationships, building trust, and promoting active engagement with team members. In todays interconnected world, effective communication is vital, and our leaders have relied on technology to facilitate the timely sharing of information related to plans, decisions, and achievements.

Our businesses continue to nurture top talent at all levels and have designed tiered development opportunities that cater to employees across levels. These programmes are a testament to our commitment to talent development and currently cover 4% of our workforce. Our senior leaders are at the forefront of fostering innovative and forward-thinking leadership that drives our organisation forward.

Our team of 8,820 employees, with women comprising a significant 25% of the workforce, is a key asset as we embark on our journey to build the Edelweiss of the future.

Edelweiss Brand

Edelweiss is a brand that believes in the possibilities of ideas and the power of values to protect them. The Companys name is shared with a rare white alpine flower that best represents this tenet. Just as the flowers deep ‘felt-like covering protects it from the elements, Edelweiss has a steadfast dedication to the principles of Being Unlimited, which has helped it not only weather the storms but also emerge stronger. Its efforts to simplify its business structure and refine its individual brands demonstrate a deep commitment to providing the best possible service to its customers. Furthermore, the brands numerous public service initiatives demonstrate a profound sense of responsibility and care towards the communities it operates in, earning it the respect and admiration of its stakeholders.

Customer Experience

Edelweiss has always stood out from its competitors by placing an unwavering focus on customer-centricity. The Company is dedicated to providing its customers with easy access to services and developing innovative solutions that are specifically tailored to their unique needs. This commitment to the customer experience is evident in the way Edelweiss blends cutting-edge technology with personalised service to build strong, long-lasting relationships with its customers.

Through its use of technology, Edelweiss is able to enhance process efficiencies and overall customer satisfaction, ensuring that its customers receive the highest level of service and support. This focus on the customer has been a driving force behind the Companys remarkable growth and success, even during challenging times. Edelweiss has built a strong and loyal customer base that trusts the Company to provide innovative solutions and exceptional service, no matter what challenges may arise.

Cautionary Statement

Statements made in this Annual Report may contain certain words or phrases that are forward-looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Limited or any of its subsidiaries and associates ("Edelweiss"). Actual results may vary from such statements contained in this report due to various risks and uncertainties.

These risks and uncertainties include the effect of economic and political conditions in India and outside India, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the businesses of Edelweiss as well as the ability to implement its strategy. The information contained herein is as of the date referenced and Edelweiss does not undertake any obligation to update these statements. Edelweiss has obtained all market or industry data and other information from sources believed to be reliable or through its internal estimates unless otherwise stated, although its accuracy or completeness cannot be guaranteed. Some part of the report relating to business-wise financial performance, balance sheet, asset books of Edelweiss and industry data herein is reclassified/regrouped based on Management estimates and may not directly correspond to published data. The numbers have also been rounded off or approximated in the interest of easier understanding. Prior period or other figures have been regrouped/reclassified/re-casted wherever necessary. FY18, FY19, FY20, FY21 and FY22 Numbers are as per IndAS whereas the rest are as per IGAAP. All information in this presentation has been prepared solely by the Company and has not been independently verified by anyone else.