Housing & Urban Development Corporation Ltd Directors Report

<dhhead>DIRECTORS’ REPORT</dhhead>

Dear Members,

Your directors are pleased to present the 55th Annual Report on the business and operations of the Company along with Audited Standalone and Consolidated Financial Statements for the year ended 31st March, 2025.

1. FINANCIAL PERFORMANCE AND HIGHLIGHTS

The financial highlights of your Company for the Financial Year 2024-25 are briefly mentioned below to give an overview of accomplishments on all fronts:

(Rs. in Crore)

Particulars	2024-25	2023-24
Revenue from Operations	10311.29	7784.29
Other Income	37.09	163.81
Total Income	10348.38	7948.10
Finance cost	6747.45	4960.82
Impairment on Financial instruments	(410.50)	(208.09)
. OtherExpensesincludingEmployeeBenefit Exp	374.77	351.93
Total expenditure	6711.72	5104.66
Profit before tax	3636.66	2843.44
Less:
Current Tax	637.00	510.50
Deferred tax	292.90	215.68
Adjustment of tax of earlier years (Net)	(2.38)	0.52
Profit after tax	2709.14	2116.74
Other Comprehensive Income	(164.80)	19.78
Total Comprehensive Income	2544.34	2136.52
Balance Surplus of previous year	215.14	5.09
Amount available for Appropriation	2759.48	2141.61
Less: Appropriation
Transfer to Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 and u/s 29C of	550.00	550.00
NHB Act, 1987
Transfer to Reserve Fund u/s 45IC of RBI Act, 1934	542.00	-
Transfer to Debenture Redemption Reserve	239.58	239.58
Transfer to Reserve for Bad & Doubtful Debt	135.00	120.00
Interim Dividend	620.59	300.29
Transfer to Impairment Reserve	102.96	173.44
Other Comprehensive Income (Net) on account of Hedge Accounting	(161.63)	12.65
Net surplus after appropriations	730.98	745.65
Proposedfinal	210.20	530.51
Surplus available after final dividend	520.78	215.14
EPS (Basic/Diluted) (in Rs.)	13.53	10.57

During the period, your Company has performed very well by witnessing a growth of 27.90% in Profit Before Tax (PBT). Your Company has seen a growth of 8.16% in its Net Worth that has reached Rs. 17,969.79 Crore in Financial Year 2024-25 from Rs. 16,614.30 Crore in Financial Year 2023-24.

Consolidated Financial Statements

Pursuant to Section 129(3) of the Companies Act, 2013, the Company has prepared Consolidated Financial Statement (CFS) in respect of only one Associate Company namely, M/s Shristi Urban Infrastructure Development Limited and an appropriate disclosure stating the reasons relating to non-consolidation of accounts of other three companies have been given in the CFS.

A Statement containing salient features of Financial Statements of Joint Venture and Associate Companies, has been given in the prescribed format "AOC 1" and is annexed as part of the Consolidated Financial Statements. There are no material changes and commitments, occurred subsequent to the close of Financial Year of the Company and the date of this Board’s report, affecting the financial position of the Company and its state of affairs. Pursuant to Section 136 of the Companies Act, 2013, the Audited Financial Statements and all other documents required to be attached with the Financial Statements are available on the Company’s website at www.hudco.org.in and are also available for inspection till the date of the ensuing Annual General Meeting during business hours on all working days at the Registered Office of the Company.

2. DIVIDEND

Your Company is consistently rewarding its shareholders by way of dividend payment. The Board of Directors of your Company had earlier approved payment of 1st Interim Dividend @20.50 %, i.e., Rs. 2.05 per equity share having Face Value of Rs. 10/- each totalling to Rs. 410.39 Crore on the Paid-up Equity Share Capital of the Company in January, 2025 and the same has since been paid and 2^nd Interim Dividend @10.50 %, i.e., Rs. 1.05 per equity share having Face Value of Rs. 10/- each totalling to Rs. 210.20 Crore on the Paid-up Equity Share Capital of the Company in March, 2025 and the same has since been paid. Further, the Board of Directors, has also recommended payment of Final Dividend @ 10.50 %, i.e. Rs. 1.05 per Equity Share having Face Value of Rs. 10/- each for the Financial Year 2024-25, subject to approval of the Shareholders at the ensuing 55th Annual General Meeting.

In compliance with regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has formulated ‘Dividend Distribution Policy and the same is available on Company’s website at https://www.hudco.org.in//writereaddata/DDP.pdf As per guidelines issued by Department of Investment and Public Asset Management (DIPAM), Government of India, the Company is required to pay a minimum Annual Dividend of 30% of Profit after whichever is higher, subject to maximum limit prescribed by RBI. However, Financial sector CPSES like NBFCs may pay minimum annual dividend of 30% of PAT subject to the limit, if any, under any extant legal provisions. After analysis of various financial parameters (including CRAR, Net NPA etc.), Cash Flow Position and available distributable profits, the Board of Directors have paid/recommended Total Dividend of Rs. 4.15 per Share (41.50%)

3. SHARE CAPITAL

As on 31st March, 2025, the authorized share capital of the Company was Rs. 2,500 Crore with issued, subscribed and paid-up equity share capital of Rs. 2,001.90 Crore. The paid-up share capital comprises promoter’s shareholding of 75.00% held by the President of India through the Ministry of Housing and Urban Affairs (MoHUA) - 54.27% and Ministry of Rural Development (MoRD) - 20.73% and the balance 25.00% is held by the Public. There is no change in the authorized, issued, subscribed and paid-up equity share capital of the Company during the year. The Company hasnotissuedanyshareswithdifferentialvoting right/ Sweat Equity Shares during the year under report.

Listing of securities and payment of listing fee

The securities of the Company are listed at BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) and the annual listing fee for the Financial Year 2025-26 has been paid to the Stock Exchanges.

Transfer of unclaimed Dividend and Shares to Investor Education & Protection Fund Amounts transferred to IEPF

In compliance of the provisions of Section 125 of the Companies Act, 2013 as well as Rule made thereon and read with Regulation 61A of Securities and Exchange Board of India (LODR) (Fifth Amendment) Regulations, 2021, the dividend amounts and amounts of principal and interest thereon in respect of debt securities, which remain unpaid/unclaimed for a period of seven years, are transferred to the Investor Education & Protection Fund (IEPF) of the Central Government. Accordingly, during the Financial Year 2024-25, an amount of Rs. 92,323/- pertaining to unclaimed final dividend for the Financial Year 2016-17 has been transferred to Investor Education and Protection Fund.

Equity Shares transferred to IEPF

In terms of Section 124(6) of the Companies Act, 2013 and IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as well as in accordance with the circulars/notifications issued by the MCA from time to time, the shares in respect of which the dividend has not been paid or claimed for a consecutive period of seven years or more, is required to be transferred to Investor Education and Protection Fund (IEPF) Authority account.

Accordingly, during the Financial Year 2024-25, 19378 equity shares pertaining to final dividend for the Financial Year 2016-17 were transferred to the Demat Account of the IEPF Authority opened with NSDL. Details of the shareholders whose unclaimed/shares were transferred to the IEPF Account is available on the website at the following link: https://www.hudco.org.in//writereaddata/shares-transferred-to-IEPF-authority-16-17.pdf Members may check their details on the aforesaid web-link.

Claim from IEPF Account

Any person, whose shares or unclaimed dividend etc. has been transferred to the IEPF, may claim the shares under provision to sub-section (6) of section 124 or apply for refund under clause (a) of sub-section (3) of section 125 or under proviso to sub-section (3) of section 125, as the case may be, to the Authority by making an online application in Form IEPF-5.

4. MEMORANDUM OF UNDERSTANDING (MoU)

An annual MoU with the Ministry of Housing and Urban Affairs (MoHUA), serves as the framework for measuring your company’sperformanceacrossagreedfinancialand non-financialparameters, against annual targets set by the Department of Public Enterprises (DPE). We are proud to share that your company was awarded ‘Excellent’ MoU Rating by the DPE for its performance in Financial Year 2023 24 - a testament to its continued commitment to excellence and impact. During Financial Year 2024-25, your Company demonstrated an outstanding performance across both operational and financial metrics, exceeding its own performance benchmarks. This reflects the Company’s strong and financial discipline. There are 12 MoU parameters and 6 compliance parameters in the annual MoU signed with MoHUA for Financial Year 2024-25. The actual achievements in respect of key parameters are as presented in the following table: MoU 2024:25: Actual achievement of key performance parameters

Sl. No. MoU Parameter	MoU Target	Actual achievement
1. Loan disbursed to Total Funds Available	100%	99.99%
2. Overdue Loans to Total loans (net)	2.46%	2.02%
3. Net NPA / Total loans (net)	0.35%	0.25%
4. Cost of raising funds through bonds as compared to similarly rated CPSEs (Margin over Reuters)	(-) 5.93 bps	(-) 6.6 bps
5. Acceptance/ Rejection of invoices of Goods & Services through TReDS Portal within specified time
5.(i) On-boarding of CPSE on all operating TReDs portals	Onboarding on all operating TReDS portals.	Onboarded on all 4 TReDS portals: RXIL; M1 Exchange; Invoice Mart; and C2 treds.
5.(ii) Integration of CPSE’s enterprise resource planning (ERP) or vendor invoice management (VIM) system with GeM portal	Successful completion of integration.	Integration of HUDCO’s ERP with GeM portal completed.
5.(iii) Timely payment to MSE vendors within 45 days from the appointed day	Submission of Self-Certified TReDS Reports on timely payment to DPE for all four quarters	Self-Certified TReDs Reports submitted to DPE

The Company continues its tradition of excellence, with internal evaluations indicating another year of ‘Excellent’ MoU Rating for Financial Year 2024-25 from the Department of Public Enterprises (DPE), subject to their final evaluation.

5. LENDING ACTIVITIES

HUDCO, the premier techno-financing institution under the Ministry of Housing and Urban Affairs, Government of India, has successfully completed another year marked by excellence and challenges, with immense satisfaction in its service to the nation. Demonstrating strong performance on both operational and financial fronts, HUDCO has consistently contributed to nation-building by financing infrastructure and housing projects across the country.

In the Financial Year 2024-25, HUDCO, through its prudent business policies and proactive management, has achieved sanctions amounting to Rs. 1,27,952.49 Crore and disbursements of Rs. 40,037.51 Crore, compared to the previous year’s sanctions and disbursements of Rs. 82,386.55 Crore and Rs. 17,987.03 Crore, respectively.

HUDCO, in its remarkable 55-years journey since its inception in 1970, has cumulatively sanctioned 17,441 housing and urban infrastructure projects, with a total loan amount of Rs. 4,38,706.11 Crore and disbursements totalling Rs. 2,59,812.55 Crore. Additionally, the Company has sanctioned financial assistance for over 201.78 Lakh housing across both rural and urban areas of the Country, of which 188.71 Lakh units (93.52%) fall under the EWS/LIG categories.

Housing Operations

Under the Housing sector, during the year under review, HUDCO has sanctioned 3 projects with loan assistance of Rs. 5,621.35 Crore, facilitating the construction of 41,754 dwelling units. During the year, loan amount of Rs. 820.37 Crore was disbursed.

Urban Infrastructure Lending

Under the Urban Infrastructure portfolio, HUDCO sanctioned 76 projects with total loan assistance of Rs. 1,22,331.14 Crore, spanning various sectors such as Water Supply, Transport Nagar, Social Infrastructure, Commercial Infrastructure, Road & Transport, Power, and others. Additionally, an amount of Rs. 39,217.14 Crore was disbursed during the year towards various schemes.

In the Financial Year 2024-25, major projects sanctioned are as under:

Housing – HUDCO sanctioned a loan of Rs. 4,451.35 Crore during the year to Andhra Pradesh Township and Infrastructure Development Corporation (APTIDCO) for the construction of 41,502 Dwelling Units (DUs) under the Affordable Housing in Partnership (AHP) vertical of Pradhan Mantri Awas Yojana (Urban) Phase 1.0, the Government of India’s flagship scheme for "Housing for All".

Core Infrastructure – HUDCO is actively involvedintheGovernmentofIndia’sprestigiousflagshipprogram, the Jal

Jeevan Mission. In the Financial Year 2024-25, HUDCO provided additional financial assistance of Rs. 1,576.78 Crore to the Rajasthan Water Supply and Sewerage Corporation (RWSSC) for the balance state share of projects already covered under Phase I and Phase II of Jal Jeevan Mission. The aim of the project is to provide Functional Household Tap Connection (FHTC) to every rural household, ensuring Har Ghar Nal Se Jal (HGNSJ) by 2027, with a service level of 55 litres per capita per day (lpcd). The project cost will be shared equally between the Government of Rajasthan and the Government of India at a 50:50 ratio. In order to instill the ‘sense of ownership’ among the community/ user groups for better implementation and long-term operation & maintenance of the scheme as well as bringing in transparency, Gram Panchayat/ Village Water and Sanitation Committee (VWSC)/ Paani Samiti are implementing the in-village piped water supply infrastructure and related source development. HUDCO has disbursed the loan amount of Rs. 1290.00 Crore in this project during the year. HUDCO has sanctioned a scheme with a loan amount of Rs. 4500 Crore to the Eastern Rajasthan Canal Project Corporation Limited (ERCPCL) for Construction work of Ramgarh Barrages, Mahalpur Barrages under Navnera-Galwa-Bisalpur-Isarda (NGBI) Link Project to meet out the drinking water needs of the various districts of Eastern Rajasthan. This project is being developed for meeting the drinking water demand in the State of Rajasthan in line with Jal Jeevan Mission objectives. WRD, Govt. of Rajasthan has planned this project for diversion of surplus water of Parvati, Kul, Kalisindh and Mez rivers by utilizing the existing / under construction infrastructures to meet out the projected drinking water need of the area as well Industrial water requirement for the area.

Roads & Transport sector – HUDCO has sanctioned a scheme with a Loan amount of Rs. 27000.00 Crore to Bangalore Development Authority (BDA) for Land acquisition and Construction of Bangalore Business Corridor - Peripheral Ring Road (PRR) project at Bengaluru. The projectis trafficcongestion, large-scaleinfrastructureinitiativeaimedateasing supporting urban expansion, and boosting economic development in and around the city.

Further, HUDCO has sanctioned a scheme with a Loan amount of Rs. 11000.00 Crore to Andhra Pradesh Capital

Region Development Authority (APCRDA) for construction of housing, office components in Amaravathi new Capital city of the state of Andhra Pradesh.

HUDCO has sanctioned three major projects in Maharashtra State under the "Sudharit Hybrid Annuity Model". The projects are for Construction, Development, Maintenance and operations of road packages in Sambhaji Nagar Region (Loan amount of Rs. 3,423.00 Crore), in Konkan Region (Loan amount of Rs. 2,603.36 Crore) and in Nagpur Region (Loan amount of Rs. 2,371.00 Crore) of Maharashtra.

Power sector – HUDCO has sanctioned a scheme with a Loan amount of Rs. 4,238.68 Crore to Maharashtra State Power Generation Company Limited (MahaGenco) for Feeder-level Solarisation Power Projects under Mukhya Mantri Saur Krishi Vahini Yojana (MSKVY) 2.0 in various Districts of Maharashtra which is providing reliable daytime electricity to farmers by setting up decentralized solar power plants near agricultural feeders.

HUDCO has sanctioned a scheme with a Loan amount of Rs. 1,073.75 Crore to Chenab Valley Power Project Limited (CVPPL) for Development of 1000 MW (4 x 250 MW) Pakal Dul Hydro Electric (H.E) Project on the River Marusudar in District Kishtwar, Jammu & Kashmir, which is in line with Governmental schemes and initiatives promoting implementation of renewable projects.

HUDCO has sanctioned major projects in Andhra Pradesh State (i) Erection of new substations and other system improvement works in transmission networks across the State of Andhra Pradesh by APTRANSCO with a loan amount of Rs. 1,542.00 Crore and (ii) Augmentation of Power transformers, replacement of aged/obsolete equipment & strengthening /improvement works in transmission network across the state of Andhra Pradesh with a loan amount of Rs. 800.88 Crore by APTRANSCO and (iii) Installation of Distribution Transformer in three Districts of Andhra Pradesh with a loan amount of Rs. 351.45 Crore by AP Central Power Distribution Corporation Ltd.

HUDCO has sanctioned a scheme with an amount of Rs. 1,551.32 Crore to Karnataka Power Company Ltd. (KPCL) for Establishment of Flue Gas Desulphurization plant for Units 1 & 2 (2x500 MW) and Unit 3 (1x700MW) of Bellary Thermal Power Station at Kudithini, Bellary District, Karnataka.

Further, HUDCO has sanctioned a scheme with an amount of Rs. 571 Crore to Transmission Corporation of Telangana for Erection/ upgradation/ Augmentation of Electrical sub-stations in the state of Telangana.

Commercial Infrastructure – HUDCO has sanctioned a project of Rs. 1,000 Crore to the Telangana State Industrial Infrastructure Corporation for land acquisition and the development of industrial parks and National Investment and Manufacturing Zones (NIMZ) in Telangana. During the year, an amount of Rs. 380 Crore was disbursed. The project focuses on economic diversification and industrial growth, attracting domestic and foreign investment, promoting sustainable and inclusive development, and making a strategic contribution to the ‘Make in India’ initiative, among other objectives.

HUDCO has sanctioned a project loan of Rs. 500 Crore to India International Convention and Exhibition Centre Limited (IICC) for the Convention-cum-Exhibition Centre at Dwarka, Delhi and disbursed Rs. 150 Crore during the year. This project is a flagship infrastructure initiative by the Government of India international trade, supporting government events and diplomacy, and aligning with the ‘Make in India’ and ‘Digital India’ initiatives, among other objectives.

Sectorial overview and government initiative:

Support to Economically Weaker Sections – HUDCO has made dedicated efforts to reach the underserved and support the flagship programmes of the Government of India. The organization continues to address the of the weaker sections of society by providing financial assistance/loans to the Economically Weaker Sections (EWS) and Low-Income Groups (LIG) at comparatively lower interest rates. Additionally, the Company has sanctioned financial assistance for more than 201.78 Lakh housing units across both rural and urban areas in the country, with 188.71 Lakh (93.52%) of these units allocated to the EWS/LIG categories.

HUDCO’s Support for projects in the North-Eastern Region – During the year, HUDCO has supported projects in the North-Eastern Region, and sanctioned and disbursed a scheme with loan amount of Rs. 55.00 Crore to Tripura State Electricity Corporation (TSECL) for implementation of power project under centrally sponsored schemes -DDUGJY, IPDS, Saubhagya Schemes in Tripura.

Further, HUDCO has sanctioned a scheme with an amount of Rs. 13.5 Crore to Public Works Dept. of Nagaland for Construction of District Office Complex at Mokokchung and a scheme with an amount of Rs. 1.16 Crore to CAWD of Nagaland for Construction of Office Complex at Phek and has disbursed a total amount of Rs. 1.66 Crore to Govt. of Nagaland.

HUDCO’s role in Government of India scheme(s) – Pradhan Mantri Awas Yojana

HUDCO is committed to supporting the Ministry of Housing and Urban Affairs (MoHUA) in the implementation of PMAY-U 2.0, which was launched on September 17, 2024. PMAY-U 2.0 aims to provide financial assistance to One Crore urban poor and middle-class families (EWS/LIG/MIG categories) to construct, purchase, or rent affordable houses in urban areas over five years, starting from September 1, 2024.

HUDCO has been entrusted by MoHUA for desk and/or site scrutiny in respect of Affordable Housing in Partnership vertical and also designated as one of the Central Nodal Agency under (AHP)andBeneficiary the Interest Subsidy Scheme (ISS) vertical. Further, for meeting fund requirement of State/ULB/Beneficiary share, HUDCO also offersviability gap funding/ loan assistance to meet the requirement beyond the grant available from the Government of India, Consultancy support to implementing agencies for preparation of Detailed Project Report and for Capacity Building Workshops.

The Ministry of Housing and Urban Affairs (MoHUA), in collaboration with the Housing and Urban Development Corporation Limited (HUDCO), organized a National Workshop on Pradhan Mantri Awas Yojana Urban (PMAY-U) 2.0 at the India Habitat Centre, New Delhi. The workshop brought together the Principal Secretaries and Secretaries of different States/UTs, PMAY-U Mission Directors of States/UTs. The event was inaugurated by Shri Minister of Housing and Urban Affairs and Power, who reiterated the government’s commitment to ‘Housing for All’. HUDCO has played an important role in successful implementation of earlier phase of PMAY(U). Under PMAY(U), as on 31.03.2025, HUDCO has funded 16 Nos. of MoU signed between HUDCO & MoHUA for ISS schemes in the 5 states Chhattisgarh, Uttarakhand, Andhra Pradesh, Telangana & Kerala with total loan assistance of Rs. 18,398 Crore covering 9,98,321 dwelling units, out of which an amount of Rs. 13,141 Crore has been disbursed. Further, in respect of PMAY(U)-CLSS, HUDCO, as CNA, has released cumulative gross CLSS subsidy of Rs. 2666.84 Crore to 1,13,137 beneficiaries of EWS/LIG/MIG category throughout the country. As part of Desk-cum-site scrutiny, cumulatively up to 31^st March, 2025, HUDCO has carried out site and/or desk scrutiny of 630 projects for construction of 12,96,268 Dwelling Units (DU) in 450 town/cities under 34 States/UTs of India with project cost of Rs. 60,46,757 Crore having central share of Rs. 19,15,978 Crore. The above 630 projects undertaken include 62 AHP, 545 BLC (New Construction/ Enhancement) and 23 ISSR projects. While under PMAY(G), HUDCO has sanctioned and disbursed the loan assistance of Rs. 4,273 Crore covering 7,93,407 dwelling units in the 2 states Andhra Pradesh & Uttar Pradesh.

Consultancy Initiatives

As one of its core activities, HUDCO has provided consultancy support for numerous projects across India encompassing urban & regional planning, architecture, environmental engineering, construction and project management with focus green and environmentally sustainable solutions. HUDCO’s Pan-India presence with its Regional Offices covering all state capitals, enhances its consultancy outreach. Notable consultancy interventions include: y Development of tourism infrastructure in heritage cities such as Somnath, Varanasi, Bodhgaya, Fatehpur Sikri, Ajanta Caves, Mahabalipuram, Kanyakumari, Haridwar, Thirunallur, Sarnath & Dholavira; y Pilgrim & Cultural Centre at Solophok, Namchi, Sikkim; y HAL Residential Township at Bengaluru, Karnataka; y Dharohar Bhawan Office of the Archaeological Survey of India at Tilak Marg, New Delhi y Development Plans for multiple towns in various States as well as ‘Slum Free City Plan of Action’ and ‘Housing for All Plan of Action’ under the Govt. of India Programmes. y Project Feasibility Reports and Detailed Project Reports for Solid Waste Management and Drainage for various IAF Airfield Stations and BSUP projects. y Design & Execution of Municipal Solid Waste Management facilities at Tura and Shillong, Meghalaya. y DPR for Storm Water Drainage System for various Industrial Sectors of Noida. y Third Party Appraisal/ Evaluation of Government of India Schemes/Programmes under the umbrella category of Environment Protection and Integrated Management Plans of various Wetlands across the country under ‘National Plan for Conservation of Aquatic Eco-systems’.

HUDCO has been recipient of various national and international award for its consultancy assignments.

Consultancy Initiatives during 2024-25

Consultancy Services has been an important contributor towards the overall image and brand building of HUDCO and has assisted in providing value addition to the overall services offered Services Wing, has extended a distinct thrust to the fee-based consultancy remaining responsive to its client’s diverse requirements and establishing HUDCO as a nationally recognized premier techno financial institution. The nation-wide Offices of HUDCO, reaching out through its presence in all State capitals, help in enhancing the networkofRegional versatility and outreach of HUDCO’s consultancy works.

The consultancy offered by HUDCO is based on the ethos of balancing growth with sensitive & sustainable development concerns. HUDCO has taken responsible initiatives to facilitate and create liveable cities through pragmatic solutions that reflect the local culture and concerns while providing integrated sustainable solutions towards planning and design challenges in the urban sector. The multi-disciplinary team of professionals in consultancy operations has evolved through 55 years of committed experience and a rich legacy of pioneering projects executed by HUDCO utilising its inherent strengths.

HUDCO has been continuing work on prestigious assignments having long gestation periods. HUDCO is providing Comprehensive Architectural Consultancy for Affordable Housing namely Shehjar Apartments situated at Bemina in Srinagar. Five towers have been completed and occupied since last year and further works are under way. has taken up consultancy for preparation of Detailed Project Reports covering urban HUDCO’sRegionalOffice, and redevelopment aspects for Kota Development Authority, Kota Nagar infrastructuredevelopment,beautification Nigam (North and South). HUDCO has office spaces in prime locations in Delhi and other state capitals. Designs have been prepared for the renovation and modernization of the offices i.e. HUDCO House, Lodhi Road, New Delhi, HUDCO Bhawan, India Habitat Centre, Lodhi Road, New Delhi and Regional Office Bhubaneshwar. Planning and design are underway for expansion of the HUDCO Regional Offices at Ahmedabad, Jammu and Kolkata.

In the area of Urban and Regional Planning, HUDCO has been assigned the prestigious assignment of "Preparation of LUMR (Land Use Map & Register) & LUDCP (Land Use & Development Control Plan) for Bidhannagar Municipal Corporation, a city in West Bengal popularly known as Salt Lake City of Kolkata. HUDCO is also engaged in preparing the "Integrated Master Plan for Rajgir Regional Planning Area (RRPA) and Nalanda Mahavihara World Heritage Site in the State of Bihar", on the GIS platform. HUDCO has finalisedthe Existing Land Use (ELU) of the entire RRPA extending over 400 sq. km as well as Situational Analysis and is finalising the Draft Development Plan for RRPA. HUDCO has also been engaged in undertaking consultancy projects related to environmental engineering such as water supply, sewerage, drainage and solid waste management and is now opening up to new areas of civil engineering / urban infrastructure. HUDCO is empanelled with Ministry of Environment Forest & Climate Change (MoEF&CC) as an Institution for Independent Appraisal of Integrated Management Plans (IMP) under the National Plan for Conservation of Aquatic Ecosystems (NPCA)- a centrally sponsored scheme. Under NCPA, HUDCO has completed appraisal of 25 IMPs in total, of which, during the Financial Year 2024-25, HUDCO has completed appraisal of IMPs for eight Wetlands across India, namely; Renuka Wetland (Himachal Pradesh), Yabik Nikpu lake and Yabik Takar lake (Arunachal Pradesh), Seuya Lake, Yingchong Lake, Vinsemya Lake, Yingthroi Lake and Tapi Lake Wetlands in Nagaland. HUDCO is also empanelled with the Finance (G&T) Department, Govt. of Rajasthan as a consultancy organization, and has been awarded three consultancy projects, for preparation of Detailed Project Reports (DPRs.) for Development and Beautification alongwith Comprehensive Sewerage and Drainage Plans for the cities of Sojat, Mount Abu and Jaitaran (Rajasthan) by the respective Municipal Councils. The works on these projects are in progress.

During Financial Year 2024-25, HUDCO has empanelled more than 400 consultants in nineteen categories including new areas of Public Transport and Highway Engineering, Mass Transit Systems, Development for solar parks/ Renewable Energy Power Parks, Assets monetization, etc. to augment and diversify its consultancy services.

HUDCO - National Association of Students of Architecture (NASA) Design Trophy

Aligning with its overarching institutional objective of raising awareness about design as an effectiveelement for positive change, HUDCO, as in the past years is associated with the National Association of Students of Architecture (NASA) for HUDCO-NASA Design Trophy 2025 with the theme ‘Designing Affordable and Sustainable Rental Housing using

Innovative Technology’. The primary goal is to engage students to devise an effective rental housing solution that involves affordability, spatial flexibility, and sustainability, innovation in construction, and technological advancements. The aim of this theme is to facilitate students and young professionals to explore innovative and sustainable rental housing solutions keeping in mind the concept of ‘For the Youth, by the Youth’. The winning entries for the Trophy are brought out as e-publications for wide dissemination.

6. FINANCIAL REVIEW (i) Accounting Policies

During the year under report, there are no changes/modifications in the existing accounting policies.

(ii) Income from Operations and Profitability

Your Company has reported Total Income for the Financial Year 2024-25 at Rs. 10348.38 Crore (Previous Year-Rs.7948.10 Crore) inclusive of Other Income of Rs. 37.09 Crore (Previous Year-Rs. 163.81 Crore). While the Profit Before Tax (PBT) for the Financial Year was Rs.3636.66 Crore (Previous Year-Rs. 2843.44 Crore) and Profit after Tax (PAT) was Rs.2709.14 Crore (Previous Year-Rs. 2116.74 Crore). Total Comprehensive Income for the Financial Year was reported as Rs. 2544.34 Crore (Previous Year-Rs. 2136.52 Crore).

(iii) Non-Performing Assets

Your Company commands a pristine Asset Quality, with one of lowest level of NPAs. There are dedicated departments for ensuring recovery, monitoring of projects and Stressed Asset Management. The delays, defaults and their recoverability is closely monitored with regard to the entire Loan Portfolio, which enables identification of early warning signals like delayed repayments, underlying causes and timely initiation of resolution/recovery actions, wherever required. On occurrence of default in the borrower’s account, necessary steps which may involve action(s) including, but not limited to, follow-up with the borrower for regularization of account(s) through letters/e-mails, convening meetings, Special Mention Account (SMA) reporting to RBI, credit information reporting to Central Repository of Information on Large Credits (CRILC), CIBIL etc. are initiated in time bound manner.

HUDCO is continuously focusing on resolving the stressed assets through various frameworks including Legal/ RBI and Insolvency and Bankruptcy Code (IBC) 2016. Stressed Asset Management Department along with Corporate Law Wing regularly undertakes joint review with each Regional Office with regard to the NPAs, the legal status of recovery proceedings and possibility of resolution through various available modes and the status of the same is periodically informed to the Committee for Review of NPAs (a Board level Committee) and Board of Directors.

As a result of diligent efforts and strategic approach in managing Stressed Assets portfolio, at the end of the Financial Year ended 31st March, 2025, your company reported Gross NPA of Rs. 2,090.64 Crore, which constitutes 1.67% of total loan portfolio. The Net NPA as on 31st March 2025 stood at Rs. 304.36 Crore, constituting 0.25% to net loan outstanding, as against MoU target of 0.35%. During the year 2024-25, an amount of Rs. 659.54 Crore was recovered from the accounts (Project loans) which were in NPA as on 31.03.2024 including complete resolution of six NPA Accounts with Principal Outstanding of Rs.358.02 Crore through IBC/ OTS/DRT. A total impairment provision of Rs.1811.19 Crore as per the ECL Approach, including Rs.1786.28 Crore towards the provision against NPA (Stage - III) loans was made by the Company, exhibiting adequate provision coverage ratio of 85.44%.

(iv) Resource Mobilization its borrowing portfolio to meet its operational requirements During theyear,theCompanyconstantlydiversified and optimize cost of funds. During the Financial Year 2024-25, the Company mobilized its borrowings from diversified resources aggregating to Rs.51,133.39 Crore from domestic and international markets, which included Rs. 14,768.50 Crore mobilized through issue of Unsecured, Taxable, Bonds, Rs.10,067.00 Crore by way of rupee term loans from banks, Rs.4555.68 Crore by way of short-term loan from banks, Rs.15563.34 Crore through FCNR(B) and Rs.6178.87 Crore through ECB route. The Company’s borrowing is planned taking into consideration ALM gaps, interest mismatches and the prevailing market conditions.

Further, for maintaining adequate liquidity and meeting interim operational/ contingency requirements, credit lines of Rs.13,899 Crores were available as on 31st March, 2025 from various scheduled commercial banks. The said facilities, for short-term funding, were available with the Company, without any commitment charges towards unutilized amounts.

As a part of prudent policy, the short-term resources are suitably replaced at an opportune time with longer tenor alternate resources depending upon prevalent market conditions, internal liquidity position and actual operational requirements. The Company also reviews the fund position on daily basis and parks surplus funds, if any, in fixed deposits with scheduled commercial banks as per the board approved policy with an objective of reducing the negative carry to the extent possible. As per RBI prescribed Liquidity Coverage Ratio (LCR) framework, NBFC shall maintain an adequate level of unencumbered HQLA that can be converted into cash to meet its liquidity needs for a 30 calendar-day time horizon under a significantly severe liquidity stress scenario, as specified in guidelines. The Company has been complying with the said directions by maintaining sufficient liquidity buffer in the form of HQLA, as prescribed.

As on 31 HUDCO has a diversified st March,2025, HUDCO’s overall borrowings stood at Rs.1,07,280.61 Crores, which comprised of long/Mid-term borrowings of Rs.1,02,724.93 Crores, including foreign currency borrowings to the tune of Rs. 22,626.93 Crores and short-term borrowings of Rs.4555.68 Crores. Further, as on 31st March, 2025, the long-term borrowings to Net worth, stood at 5.72 times, as against

4.05 times as on 31^st March, 2024:

The composition of outstanding borrowings as on 31st March, 2025 is as under:

(v) Domestic and International Credit Rating Domestic

During the Financial Year 2024-25, the Company’s long-term domestic borrowing programme was awarded the highest credit rating of ‘IND AAA/Stable’, ‘[ICRA] AAA (Stable)’ and ‘CARE AAA [Triple A]; Stable’ by M/s India Ratings & Research (IRRPL), M/s ICRA and M/s CARE Ratings, respectively. The Company also got its short-term borrowing programme rated, obtaining the highest rating of "IND A1+’, ‘[ICRA] A1+’’ and ‘CARE A1+ [A OnePlus]’, by the above-mentioned Credit Rating Agencies.

International

As on 31st March, 2025, HUDCO for its International Borrowing Programme continued to enjoy International Credit Rating of ‘BBB-’ with Stable outlook and ‘Baa3’ with Stable outlook, respectively, from FITCH and Moody’s, International Credit Rating Agencies. HUDCO has also been assigned ‘BBB+’ with stable outlook by Japan Credit Rating Agency(JCR). Both the assigned ratings are of investment grade and are at the Sovereign ceiling and equivalent as that of our Country.

(vi) Cost of Borrowings

The overall weighted average cost of resources raised during the year was 6.75% p.a. and for borrowings outstanding as on 31st March, 2025 is 7.29% p.a. (7.63% p.a. as on 31st March, 2024). The weighted average incremental cost of borrowing through taxable bonds/ debentures, worked out to 6.60 bps lower than the Reuters Benchmark Yield of ‘AAA’ Rated CPSEs of equivalent tenor prevailing at different points of time when the borrowings were made during the course of the year, thereby enabling achievement of Excellent category MoU target for cost of borrowings.

During Financial Year 2024-25, the Company, through international market, raised ECB borrowings denominated in JPY 109 billion equivalent to USD 732.18 million at a cost of (TONA +0.634% avg margin) with 5.73% being the overall average cost of the borrowings (including hedged cost). The company also raised FCNR(B) borrowings to the tune of USD 1830 million equivalent to Rs. 15,563.34 Crores, at an average cost of 6.06%.

As a result, the Company was able to deliver debt financing for various Housing & Infrastructure projects, spread across the Country, at competitive rates. The Company was able to achieve this feat through constant monitoring of the markets, proper timing of its borrowings and appropriate selection of instruments.

HUDCO has hedged its foreign currency borrowings through the derivatives using Currency Interest Rate Swap (CIRS) and Options structures. Further, HUDCO has adopted Hedge accounting under IND AS 109 for its FCNR and ECB exposures from the initial date of foreign currency borrowings.

(vii) Redemption of debt securities and repayment of loans (excluding the borrowings availed and repaid during the same Financial Year)

The Directors are pleased to report that during the year under review, the Company successfully redeemed bonds/ debentures and discharged its other debt obligationsamountingtoRs.10,241.15Croresinanefficient manner, without a single instance of delay or default in debt servicing. These included Bonds/ debentures valued at Rs.1000 Crore, Term Loans from Banks and financial institutions worth Rs.9,230.40 Crore, foreign currency loans availed from Multilateral Agencies aggregating to Rs.10.75 Crore. The Company is set to honour scheduled obligations towards redemption of Bonds and other long term debt obligations amounting to around Rs.27,401.44 Crore during the next fiscal.

The Company’s internal generations are adequate to meet the repayment/ redemption obligations. Surplus funds, if any, after meeting the repayment obligations are invested prudently in the form of fixed deposits with banks. The Company continues to maintain its impeccable track record of servicing its debt in time and there has never been a single instance of default.

(viii) Unclaimed amount under HUDCO Bonds

An amount of Rs. 18,00,28,821 (inclusive of interest amount of Rs. 9,84,03,821) in respect of 3755 bondholders has remained unpaid as on 31st March 2025 as the same has not yet been claimed by the bondholders. The details of amount remaining unclaimed are as under:

Financial	Principal				Interest		Total Amount
Year	Amount (Rs.)	No. of holders	No. of NCDs	Amount (Rs.)	No. of holders	No. of NCDs	(Rs.)
2024-25	8,16,25,000	306	79150	9,84,03,821	3449	1144226	18,00,28,821
2023-24	7,49,67,000	276	72492	9,73,85,869	3335	1191090	17,23,52,869
2022-23	3,95,10,000	141	37035	9,42,19,791	3351	1124904	13,37,29,791

In respect of the above unclaimed Bonds, the bond holder(s) have been requested from time to time through email/ letter etc. for submission of requisite documents for claiming the amount of Principal/ Interest, as may be due in their respective case(s).

In respect of Bonds, the company in terms of SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendments) Regulations 2021 dated 7th September, 2021, is presently transferring principal and/or interest, or both (if any) which remains unclaimed for 7 years from the date of payment to Investor Education and Protection Fund (IEPF) constituted in terms of Section 125 of the Companies Act, 2013.

During the Financial year 2024-25, an amount of Rs. 77,04,953/- has been transferred to IEPF on account of Bonds, as per the provisions of SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendments) Regulations 2021 dated 7^th September, 2021.

(ix) Dematerialization of Bonds

During the Financial Year 2024-25, HUDCO has issued Unsecured, Taxable Bonds/ Debentures in dematerialized form only. With this, all Taxable Bonds/ Debentures, issued by the Company and outstanding as on 31st March, 2025 are in dematerialized form only. The Company has made necessary arrangement with NSDL and CDSL for issue of bonds in dematerialized form. The Company has also appointed Registrar & Transfer Agents (RTA) for maintaining the continuous electronic connectivity with NSDL/CDSL and investors.

Investors can deal in these Bonds/ Debentures as per the provisions of Depository Act, 1996, as amended and such deals are cleared & settled in recognised Stock Exchanges subject to conditions specified by SEBI.

(x) HUDCO Public Deposit Scheme

HUDCO had discontinued accepting / renewing Public Deposit under the Public Deposit Scheme w.e.f. 1st July, 2019, no fresh deposits were accepted/renewed by HUDCO thereafter. Deposits of Rs.0.04 Crore were matured/ paid to 4 depositors in the Financial Year 2024-25. Accordingly, the outstanding amount under HUDCO Public Deposit Scheme was NIL as on 31st March, 2025 except Unclaimed amount under HUDCO Public Deposit

Scheme.

(xi) Unclaimed amount under HUDCO Public Deposit Scheme

During the Financial Year 2024-25, an amount of Rs. NIL remained unclaimed for more than seven years from the date of maturity and was transferred to the ‘Investor Education and Protection Fund’ (IEPF), as per the provisions of the Companies Act, 2013 and rules made thereunder.

As on 31st March, 2025, deposit(s) amounting to Rs. 1,83,631/- (inclusive of Principal and Interest) from 9 depositors remains unclaimed.

(xii) Deployment of Resources at the close of the year

At the close of the Financial Year 2024-25, the total resources of your Company stood at Rs. 1,28,497.39 Crore. Out of this, Equity Share Capital amounted to Rs. 2,001.90 Crore, Reserves & Surplus stood at Rs. 15,967.89 Crore, Loans from Financial Institutions, Commercial Banks, Multilateral Institutions, Public Deposits and Market Borrowings through Bonds and Commercial Paper accounted for Rs. 1,07,296.76 Crore, Deferred Tax Liabilities (Net) amounted to Rs.1,465.93 Crore and Other Liabilities & Provisions stood at Rs. 1,764.91 Crore. These funds were deployed as Long/Short Term Loan & Advances of Rs. 1,24,340.71 Crore, Fixed Assets (net of depreciation) of Rs. 103.93 Crore (including Capital Work-in-Progress, Intangible Assets under development and Intangible Assets), Investments of Rs. 1,319.62 Crore, Cash & Bank Balances of Rs. 64.54 Crore and Other Assets of Rs. 2,668.59 Crore.

7. RISK MANAGEMENT IN HUDCO

In compliance with the directions given by the Reserve Bank of India (RBI), HUDCO has in place Comprehensive Risk Management Policy and Risk Register cum Early Warning Signals through which it reviews and assesses significant risks on a regular basis to ensure that there is a robust system of risk control and mitigation. Major risks identified for your Company, being in lending operations, are credit risk, operational risk, liquidity risk, market risk, interest rate risk and foreign currency risk etc.

In compliance with the SEBI (LODR) Regulations, 2015, your Company has in place a Board Level Committee i.e. ‘Risk Management Committee’ (RMC). The Chairperson of RMC is member of the Board of Directors. The RMC ensures with the organisation’s objectives. The Committee also ensures the thatrisksareeffectively development and oversight of the organisation’spolicyandframeworkandprovidesgovernanceforeffectiveRisk Management. The RMC reviews various recommendations of the two sub-committees namely: -

Assets & Liabilities Management Committee (ALCO); and

Credit & Operational Risk Management Sub-Committee (CORMSC)

Assets & Liabilities Management Committee (ALCO) reviews the market risk & liquidity risk and ensures management of assets and liabilities mismatches through liquidity gap analysis, interest rate sensitivity analysis. The Assets- Liabilities mismatch, if any, are being managed through the committed bank lines, within the permissible limits. During the year, 17 meetings of ALCO were held.

Credit & Operational Risk Management Sub Committee (CORMSC): The CORMSC periodically monitors credit and operational risks in the Company. The sub-committee oversees and ensures that the credit policies are put in place and monitors the credit risk by reviewing asset quality & asset classification as well as reviews the migration of loan assets.

The sub-committee also monitors and ensures mitigation of internal and external operational risks including Information Technology & Cyber Security risk, Employee Risk, Compliance Risk, Fraud Risk, Legal Risk, Reputational Risk, etc. This is achieved by strengthening internal control systems, establishing policies & procedures, and providing adequate training to employees. During the year, 06 meetings of the erstwhile sub committees i.e. CRMC & ORMC were held.

With the prudent policies and professional approach of the management, HUDCO has been successful in mitigating various risks, briefly described as under: -a) Operational Risk: To manage the operational risks both internal as well as external, associated with the operations of the Company like Information Technology & Cyber Security Risk, Employee Risk, Compliance Risk, Fraud Risk, Legal Risk, Reputational Risk etc., your Company has established a strong reporting and monitoring mechanism. The Company has implemented a comprehensive Risk Register through which all operational risks are measured and categorised as high, moderate or low and necessary steps are taken to manage these risks. b) Credit Risk: To manage credit risks associated with business, your Company has in place a strong and effective credit appraisal mechanism containing comprehensive appraisal techniques/ guidelines etc. ensuring timely repayments of principal & interest amount. c) Liquidity Risk: For management of liquidity risk, your Company has effective Asset Liability Management System. The liquidity risk is being monitored with the help of liquidity gap analysis. Further, the funds are mobilized at competitive rates through various strategies viz. bonds, term loans, ECB, etc., and the mismatch in the assets and liabilities, if any, are managed through committed bank lines. In order to mitigate the liquidity risk, there is mix of strategies including forward looking resource mobilisation based on project disbursements and maturing obligations d) Market Risk: The various market risks arising from fluctuations in interest rates and foreign currency exchange rates are periodically reviewed by the Company. The interest rate risk is being monitored with the help of interest rate sensitivity analysis under the Asset Liability Management System. Further, based on cost of funds and market scenario, the lending rates are determined. e) Foreign Currency Risk: The Company has a Foreign Currency Risk Management Policy for mitigation of risks associated with foreign currency fluctuations. To cover the risks associated with exchange rate and interest rate, your Company has entered into hedging transactions. As on 31st March, 2025, the total foreign currency liabilities are USD 1837.75 million (INR 15717.74 Crore) and JPY 124 billion (INR 6178.87 Crore) and 99.79 % of the foreign currency exchange rate risk is covered through hedging instruments.

8. JOINT VENTURE, ASSOCIATE AND SUBSIDIARY COMPANY

As on 31st March, 2025, HUDCO has three Joint Venture(s) Companies, namely, Pragati Social Infrastructure & Development Limited (PSIDL), Shristi Urban Infrastructure Development Limited (SUIDL), Signa Infrastructure India Limited (SIIL) and Associate namely Ind Bank Housing Limited (IBHL). Further HUDCO does not have any subsidiary. HUDCO had invested Rs. 2.14 Crore in the Joint Venture Companies {PSIDL Rs. 0.13 Crore (26%), SUIDL Rs. 2.00 Crore (40%) and SIIL Rs. 0.01 Crore (26%)}. HUDCO has decided to exit from joint venture companies by invoking the exit clauses, as the performance of these joint ventures was not found to be satisfactory. The Company is in the process of exiting from these joint ventures, for which necessary steps are being taken. The investment in respect of PSIDL and SIIL is being shown as Re. 1/- in HUDCO books while accounts of SUIDL are being consolidated with HUDCO accounts. Presently, HUDCO is valuing its stake in IBHL at Re. 1/- only, since there is very limited trading in the stock market. Reserve Bank of India vide letterdated10 of Registration (CoR) granted th October2023 has informed that Certificate by National Housing Bank to IBHL has been cancelled vide order dated 21st September, 2023 hence, IBHL is no longer an HFC. In the case of IBHL, an associate company, HUDCO has investment of Rs. 2.50 Crore which constitutes 25% of paid-up capital in IBHL.

9. INTERNAL FINANCIAL CONTROL POLICY AND INTERNAL AUDIT

Your Company has an adequate and effective Internal Financial Control (IFC) system in place for ensuring the orderly and efficient conduct of its business. This includes adherence with the laid down policies and procedures, safeguarding of the assets of the Company, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and the timely preparation of reliable financial information commensurate with the operations of the Company.

The IFC system is aligned with the Company’s ERP System and incorporates well-defined Risk Control Matrices and Process Flow Charts that depict the process to initiate, authorize, process, record and report transactions, and prevent or detect errors. Risk Control Matrices have been defined based on risk and control framework covering all major business processes. Internal Audit periodically carries out the Control Testing of these matrices to validate its effectiveness. Further, the flowcharts contribute to better clarity and strengthen the overall control environment.

Internal Audit

Your company has a separate Internal Audit Department and head Internal Audit directly reports to the Chairman & Managing Director. In order to strengthen and streamline all the auditable activities, Internal Audit Department of your Company has implemented Risk Based Internal Audit framework in line with the RBI’s guidelines on Risk Based Internal Audit System. During the year under review, Risk Based Internal Audit of Corporate Office and all the Regional Offices was conducted. put up for consideration of the Audit Committee. Necessary action as Thesignificant per the directions of the Audit Committee is taken by the Internal Audit Department. Internal audit plays pivotal role in adherence to the policies, guidelines and procedures.

10. INFORMATION TECHNOLOGY

The ERP system was initiated with the goal of streamlining our business operations, centralizing inter-departmental data and ensuring accurate reporting. The ERP integrates critical business processes broadly includes Lending, Finance, Procurement, Borrowings and Human Resource modules. The implemented ERP system is playing a vital role in driving operational efficiency and transparency across the company.

11. HUMAN SETTLEMENT MANAGEMENT INSTITUTE

Human Settlement Management Institute (HSMI) of HUDCO is involved in both Research & Training activities in urban sector. HSMI provides a forum for interaction for administrators, professionals, researchers, and others engaged with the issues of human settlement development.

Training Activities

From 1985 to date, HUDCO’s HSMI has benefitted57,068 officials through 1835 training programmes and continues to provide training support to professionals. Till March 2025, HSMI also provided training to 1330 overseas professionals through 56 ITEC (Indian Technical & Economic Cooperation) courses sponsored by the Ministry of External Affairs, Government of India.

Capacity Building and Training conducted in Financial Year: 2024-25

For HUDCO and other CPSEs officers

In the Financial Year 2024-25, HUDCO’s HSMI conducted 7 Webinars, 2 Hybrid, and 3 Offline Training Programmes and imparted training to 1456 officers, officers . as well as officers from other CPSEs

Webinars

The seven webinars were conducted on themes like Cyber Hygiene and Security, Reservation in Services for SC/ST/ OBC/Ex. SM/PwD, Ethics and Governance, Investment, Pension and Retirement Benefits, HR systems and procedures, Procurement through GeM, and Systems and Procedures of the Operation wing of HUDCO.

Hybrid Training Programmes

Two Hybrid training programmes were conducted on "CKYC" and "RBI Regulations and Compliances" for HUDCO officers from the Corporate Office and Regional Offices across the country. The Hybrid training programmes were also attended by officers from other CPSEs such as IREDA, REC, and IIFCL.

Offline Training Programmes

A 2-week Induction Programme was organized to familiarize newly appointed trainee officers about HUDCO and its Operations. Furthermore, as part of capacity-building initiative for HUDCO officers in the emerging sector, two training programmes were organized on "Demystifying the Power Sector with Special Focus on Financing" and "Insights into Financing Power Projects and Energy Transition in India."

For International Participants under ITEC

HUDCO’s HSMI also conducted 3 ITEC training courses sponsored by the Ministry of External Affairs, Government of India, on "Towards Sustainable Mobility in Developing Urban Context", "Low Carbon Urban Infrastructure and Financing" and "Right to Adequate Housing in the context of Habitat III New Urban Agenda Policy, Planning and Practices". The ITEC courses were conducted for 72 overseas professionals from 33 countries. The courses showcased various Government of India programmes, projects, and initiatives taken up across the country such as Metro, Social Housing under Pradhan Mantri Awas Yojana (PMAY) and low-carbon urban infrastructure development.

Publications

HUDCO’s HSMI comes out with a bi-annual ISSN magazine "Shelter", on themes relevant to the housing and urban development sector. Shelter features a wide range of articles that provide in-depth insights into creating sustainable, inclusive and resilient urban environments.

The April 2024 issue centered on ‘COP28’ and was unveiled at the HUDCO Annual Day function and the October 2024 issue focusing on "Engaging Youth to Create a Better Urban Future" was unveiled during the World Habitat Day function.

Compendium on the ‘Best Practices Awards:

HUDCO’s HSMI also takes out a compendium on the ‘Best Practices Awards’ annually to document the prize-winning entries. The compendium is a celebration and recognition of the innovative efforts of ULBs, NGOs, and other parastatal agencies in the urban development sector. The compendium facilitates the dissemination of best practices in areas such as Urban Governance, Housing, Urban Poverty and Infrastructure, Urban Transport, Disaster Preparedness & Mitigation, etc., and serves as a repository of best practices for urban practitioners.

The compendium on Best Practices Award for the award cycle 2023-24 was released by the Hon’ble Cabinet Minister of State, MoHUA, Shri Tokhan Sahu, during the World Habitat Day function observed on 9^th October 2024.

12. HUMAN RESOURCES

HUDCO believes that the success of any Company is majorly attributable to its people. Your Company is proud of its human resource as it’s the most important asset and its sole differentiating factor of competitive advantage, driving desired business outcomes. The christening of HUDCO as a ‘NAVRATNA’ company is the result of substantial efforts made to align human resources over the years, to achieve this goal.

Your Company provides attractive compensation, best in class benefits superannuation benefits including post-retiral medical facilities and rewards (both monetary and non-monetary). Your Company has embraced technology and digitalization and put in place enabling Systems like HRMS and e-office for providing superior employee experience. Employee development and Employee Engagement is attached utmost priority at HUDCO. Your Company undertakes regular training interventions for the employee development and also various employee engagement initiatives.

As on 31st March, 2025, HUDCO has a workforce of 619 employees which includes 190 women employees which constitutes 30.69% of its total strength. Women representation is spread across various hierarchical levels. Furthermore, to strengthen workforce in the light of separations on account of superannuation, and keeping with the professional needs of the organization in the context of company becoming an IFC and resultant projected growth, HUDCO has recruited professionals at both Lateral and Trainee Officer level.

Succession Planning:

HUDCO’s succession planning Policy ensures that the Company is prepared with a plan to support operations and service continuity when the Key Persons and Senior Management Personnel leave their position. The Succession Planning Policy also ensures, systematic and long-term development of internal candidates in the leadership band, also keeping in view the potential available in the Managerial Band and to replace whenever the need arises due to death, disability, retirement and other unforeseen occurrences.

With a view to focus on HUDCO’s diverse nature of business, arising out of its various techno-financial and operational spheres, the Succession Planning Process covers the Pivotal (key) roles within the targeted levels, besides the Leadership positions.

13. VIGILANCE

Role of Vigilance Department in Enhancing Trust and Accountability

Corporate Vigilance Department is working as per the mandate of Central Vigilance Commission (CVC) which primarily aims at Preventive & Corrective vigilance by listing improvements in the existing policies of various functional departments such as Operations (loan sanctions and releases), HR, Administration, Finance etc.

In addition to regular periodic reporting and compliance of institutions such as CVC, MoHUA etc., review of OTS cases, review of tenders/contracts awarded, monitoring of rotational transfer (as per sensitive posts guidelines), field inspection of Regional Offices etc. are also carried out on periodic basis byVigilance Wing.

Vigilance Awareness Week was observed by the

Corporation from 28^th October to 3^rd November, 2024 in the Head Office as well as at all the Regional During the week, various programmes were organized Corporate Office and at the premises of 21 Regional

include training on relevant subjects to enhance capacity building of Organization. The programmes were theme centric, declared by the CVC i.e. "Culture of Integrity for Nation’s Prosperity" ( lR;fu"Bk dh laL—fr

jk"V? dh lef) )

14. OFFICIAL LANGUAGE

During the year, your Company took various initiatives Vigilance Awareness Week to promote the progressive use of official language in HUDCO’s official work. For the implementation of Official Language policies, "Hindi Pakhwada" was organized located across the country. The "Hindi duringSeptember,2024at HUDCOCorporate Offices andtheRegional Pakhwada" began on 14th September, 2024 at Bharat Mandapam, New Delhi with the celebration of Hindi Diwas and the 4th All India Official Language Conference. During Hindi Pakhwada, various competitions, workshops, poetry conventions and seminars were organized at HUDCO Corporate Office as well in the Regional Offices. During the period, on 12th November, 2024 the Joint Director (Implementation), as a representative of the Official Language, Department, Ministry of HomeAffairs,Government of India, carried out Rajbhasha inspection of HUDCO Corporate Office wherein HUDCO was well appreciated for the efforts made by HUDCO for maintaining library & Hindi Training Computer Lab, publishing in-house Magazines and Rajbhasha Exhibition etc. In addition to this the third Sub-Committee for the Parliamentary Official Language Committee carried out Rajbhasha Inspection at the HUDCO Office Corporate ^st November, 2024. is also relevant to mention that the Parliamentary Committee praised HUDCO’s Questionnaire and the coordination during the above inspection.

15. COMPLIANCES OF VARIOUS ACTS/ GUIDELINES

HUDCO has been complying with all the directives and guidelines issued by the Government of India regarding reservation for SC/ST/OBC/PwD/ Ex-Servicemen/ EWs.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

An Internal Complaints Committee to examine the cases related to sexual harassment is in place in HUDCO. This Committee is headed by aseniorwomenofficer of the Company for redressal of complaints, harassment as per Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Sexual harassment, in any form, is a misconduct under HUDCO (Conduct, Discipline and Appeal) Rules. During the year under review, details of complaints are as follows:

Number of Sexual Harassment Complaints received	Nil
Number of complaints disposed of	Nil
Number of cases pending for more than 90 days	Nil

Disclosure under Maternity Benefit Act, 1961

During the year under review, the Company was complied with the provisions of Maternity Benefit Act, 1961 including Maternity leave provisions, Salary and benefits and other related employee entitlements.

Public Grievance Redressal Mechanism of HUDCO

HUDCO has an appropriate Grievance Redressal Mechanism System and a procedure for receiving, registering and disposing of complaints and grievances in each of its offices. HUDCO is attending grievances received via email / letters, and Centralized Public Grievance Redress and Monitoring System (CPGRAMS) Portal. Complaints can also be lodged in the Government of India Portal for Public Grievances. HUDCO Website is linked to this external link www.pgportal. gov.in by Department of Administrative Reforms & Public Grievances. The first level officeris Customer Relation Officer designated in each of its Regional Offices.After the first level channel, the petitioner may escalate the grievance to Regional Head at second level, if the satisfactory response is not received from the channel as per first level. Your Company has Grievance Redressal Officer to examine public issues and provide an impartial resolution, if the query has not been resolved to the desired satisfaction as per second level, the complaint may be escalated to the Grievance Redressal Officer at Corporate Office. Grievances are also escalated at Director (Corporate Planning) level at CorporateOffice who is designated as Appellate Authority. In case the public they may appeal to the Officer-in-Charge of the RegionalOffice of DNBS of the of HUDCO, at pan India basis, is available at HUDCO website www.hudco.org.in.

Implementation of Micro, Small & Medium Enterprises (MSME) Policy

The Government of India, Ministry of Micro, Small & Medium Enterprises (MSME), has advised Central Ministry / Department CPSEs that 25% of overall annual procurement, be procured through MSMEs, 4% of overall procurement through MSEs, owned SC/ST and 3% of overall procurement from MSME women entrepreneurs. During the Financial Year 2024-25, HUDCO has made total procurement of Rs. 24.1714 Crore.

In compliance of the Public Procurement Policy for Micro and Small Enterprises, issued by the Government of India vide Micro and Small Enterprise (MSEs) Order, 2012, during the Financial Year 2024-25, HUDCO has made procurement amounting to Rs. 15.3616 Crore from MSMEs, constituting 63.55% of its total annual procurement inclusive of 4.25% from MSEs owned by SC/ST entrepreneurs amounting to Rs. 1.0280 Crore and 6.06% from Women Entrepreneurs constituting Rs. 1.4653 Crore. HUDCO has also made all payments due to MSMEs within the stipulated period, i.e., within 45 days and there has been no delay.

Right to Information Act

RTI Act is implemented in all the areas of functioning of HUDCO. The various offices /CAPIO’s of HUDCO have been sensitized about the RTI Act and in bringing about transparency in their day to day functioning in order to achieve maximum efficiency.

All measures are undertaken to adhere to various requirements / timelines prescribed in the RTI Act. Directions contained in Section 4(1)(b) of the RTI Act regarding suo-moto disclosure of information affecting larger Public Interests on HUDCO’s website is also adhered to strictly so that public have to resort to use this Act, to a minimum. Further, HUDCO has secured 99% score in Transparency Audit for the year 2023-24, and a 100% score for the year 2024-25, conducted by a Third-Party on the panel of Central Information Commission.

Environment, Social and Governance (ESG) Policy

In order to positively impact the environment, customers, employees, and the community at large, the Board approved Environment, Social & Governance (ESG) Policy framework of the Company during the Financial Year 2024-25, which is in line with HUDCO’s Vision and Mission statements that recognize the importance of sustainable development and responsible corporate citizenship. The ESG Policy framework articulates the Company’s commitment to ESG and long-term value creation for internal and external stakeholders including customers, employees, investors, regulators, business partners and community members. HUDCO envisions becoming a leading catalyst in providing housing and for sustainable urban development in India, with its commitment focused on Environmental Sustainability by financing and supporting projects that mitigate climate change, enhance resource efficiency, and preserve natural ecosystems; Social Responsibility to promote social inclusion and equitable development by prioritizing financing for sustainable affordable housing & infrastructure projects; and Governance Excellence through transparency and ethical conduct. The Policy defines key focus areas in each of these three segments.

16. DIRECTORS’ RESPONSIBILITY STATEMENT

As per requirements of Section 134(5) of the Companies Act, 2013, your Directors confirm that: a) in preparation of the Annual Accounts, the applicable Accounting Standards have been followed and no material departures have been made from the same; b) such Accounting Policies have been selected and applied them consistently and made judgments and estimates that are reasonable and prudent to give a true and fair view of the State of Affairs of the Company at the end of the Financial Year and of the Profit of the Company for the Financial Year under review; c) proper and sufficient care has been taken for the with provisions of Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities d) the Annual Accounts have been prepared on a ‘going concern’ basis; e) the Company has laid down Internal Financial Controls to be followed and such Internal Financial Controls are adequate and were operating effectively; and f) proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.

17. MANAGEMENT DISCUSSIONS & ANALYSIS REPORT

The Management Discussions & Analysis Report, stipulated in terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE guidelines, for the year ended 31st March, 2025, is annexed and forms part to the Directors’ Report.

18. CORPORATE GOVERNANCE

The Corporate Governance Report as stipulated under Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE guidelines, together with a certificate from M/s VAP & Associates, Company Secretaries in Practice, on compliance with the Corporate Governance norms is annexed and forms part to the Directors’

Report.

19. BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

In compliance with Regulation 34 of the SEBI (LODR) Regulations, 2015, Mehta & Mehta, Company Secretaries, have conducted Reasonable Assurance Audit for Financial Year 2024-25. The Business Responsibility & Sustainability Report and Reasonable Assurance Report for BRSR Core are annexed and forms part to the Directors’ Report.

20. DIRECTORS AND KEY MANAGERIAL PERSONNEL

During the year under report, following changes took place in the composition of the Board of Directors:

Appointment of Part-time Official (Government) Director

MoHUA, Government of India vide order dated 27th September, 2024 has conveyed the appointment of Shri Solomon Arokiaraj, I.A.S., then Joint Secretary, Infrastructure Policy & Planning, Department of Economic Affairs, GoI as Part-time OfficialDirector in place of Shri Kuldip Narayan on the Board of HUDCO, with immediate orders.

In compliance with the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board, upon the recommendation of Nomination & Remuneration Committee, appointed Shri Solomon Arokiaraj, as Part-time Official Director (Additional Director) (liable to retire by rotation) w.e.f. 29^th October, 2024, till the date of the ensuing Annual General Meeting of the Company.

Declarations of Independence by Non-official(Independent)Directors

During the year, pursuant to the provisions of Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI (LODR) Regulations, 2015, all the Non-official (Independent) Directors, have given their declarations as to their Independence. Based on the confirmation received from Directors, none of them are disqualified for being appointed/ re-appointed as directors in terms of Section 164 of the Companies Act, 2013 and other applicable laws, if any and are not related to each other.

Rotation of Director in the ensuing Annual General meeting

As per requirements of Section 152 of the Companies Act, 2013 [including any statutory modification(s) or re-enactment(s) thereof, for time being in force, read with the applicable rules, as amended] and Articles of Association of the Company, Shri M. Nagaraj (DIN: 05184848), Director (Corporate Planning) being longest in office among the Directors since his last appointment, is liable to retire by rotation and being eligible, offers himself for re-appointment at the ensuing Annual General Meeting. The Board recommends re-appointment of Shri M. Nagaraj, as Director (Corporate Planning) for approval of the members at the ensuing Annual General Meeting on the same terms & conditions as approved by the President of India.

Cessation of Directors

Shri D. Guhan ceased to be Director (Finance) and Chief Financial Officer w.e.f. 31.05.2024 consequent upon superannuation.

Shri Kuldip Narayan ceased to be Part-time OfficialDirectorw.e.f.27 th September, 2024 pursuant to Government Order. Further, Dr. Ravindra Kumar Ray, Dr. Siyaram Singh and Smt. Sabitha Bojan ceased to be Part-time Non-official (Independent) Director(s) with effect from 21st November, 2024 on completion of their term as per terms and conditions of their appointment.

After closure of the Financial Year

Appointment of Part-time Non-official (Independent) Directors

MoHUA, GoI, vide separate orders dated 7th April, 2025 has re-appointed Smt. Sabitha Bojan (DIN: 09398364) and appointedShriKantilalChaturbhaiPatel(DIN:06610367)asNon-Official (Independent) Directors on the Board of the Company for a period of one year from the date of issue of the orders or until further orders, whichever is earlier. In compliance with the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board, upon recommendation of Nomination & Remuneration Committee, reappointed Smt. Sabitha Bojan and appointed Shri Kantilal Chaturbhai Patel as Non-Official (Independent) Directors (Additional Director) (not liable to retire by rotation) on the Board of the Company w.e.f. 28th April, 2025 till the date of the next Annual General Meeting of the Company. Further, MoHUA, GoI, vide order dated 15th May, 2025 has re-appointed Dr. Ravindra Kumar Ray (DIN: 09394495) as Non- Official Director on the Board of the Company for a period of one year from the date of issue of the orders or until further orders, whichever is earlier.

In compliance with the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board, upon recommendation of Nomination & Remuneration Committee, reappointed Dr. Ravindra Kumar Ray as Non-Official (Independent) Director (Additional Director) (not liable to retire by rotation) on the Board of the Company w.e.f. 29th May, 2025 till the date of the next Annual General Meeting of the Company.

KEY MANAGERIAL PERSONNEL

The details of Key Managerial Personnel including changes occurred during the year and thereafter are as under:

Sl. No. Name of Key Managerial Personnel	Designation
1. Shri Sanjay Kulshrestha	Chairman & Managing Director
2. Shri Muniappa Nagaraj	Director (Corporate Planning)
3. Shri Daljeet Singh Khatri	Director (Finance) (from 14.08.2024) and Chief Financial Officer (from 25.09.2024)
4. Shri Vikas Goyal	Company Secretary & ComplianceOfficer
5. Shri D. Guhan	Director (Finance) and Chief Financial Officer(up to 31.05.2024)
6. Smt. Reva Sethi	Executive Director (Finance) & Chief Financial Officer (from 28.06.2024 to 25.09.2024)
7. Shri L.V.S. Sudhakar Babu	Key Managerial Personnel (from 22.01.2025)

The Board placed on the record its appreciation for the valuable services rendered by Shri Kuldip Narayan, as Part-time Official Director during his tenure and Dr. Ravindra Kumar Ray, Dr. Siyaram Singh and Smt. Sabitha Bojan as Non-official (Independent) Directors during their tenure with the Company and extends warm welcome to Shri Solomon Arokiaraj as Part-time Official Director and Shri KantilalChaturbhai Patel, Smt. Sabitha Bojan and Dr. Ravindra Kumar Ray, Non-official (Independent) Directors on the Board of the Company.

21. SECRETARIAL AUDITORS & AUDIT REPORT

In compliance of the provisions of Section 204 of the Companies Act, 2013, and Regulation 24A of SEBI (LODR) Regulation 2015, VAP & Associates, Company Secretaries, Secretarial Auditors have conducted Secretarial Audit for Financial Year 2024-25 and have in their report confirms that the Company has complied with the provisions of the Act, Rules, Regulations and Guidelines applicable to the Company and there were no qualifications,reservations, or adverse remarks except certain observations, which are self-explanatory. The Secretarial Audit Report is annexed and forms part to the Directors’ Report.

22. AUDITORS & AUDITORS REPORT

As per section 139(5) of the Companies Act, 2013, the Statutory Auditors of your Company are required to be appointed by Comptroller and Auditor General of India (CAG). In compliance of same, M/s S A R C & Associates, (Regd. no. DE2063), Chartered Accountants, New Delhi has been appointed as Statutory Auditors of your Company for the Financial Year 2024-25 by the CAG.

M/s S A R C & Associates, Chartered Accountants (FRN - 006085N), New Delhi, the Statutory Auditors had conducted the audit of the Financial Statements (both Standalone and Consolidated) for the Financial Year 2024-25 and submitted their report thereon. The comments of the Statutory Auditors on the Financial Statements along with Management reply thereon are annexed and forms part of the report. Notes on Financial Statement referred to in the Auditors Report are self-explanatory.

Comments of Comptroller and Auditor General of India (CAG)

CAG vide their letter dated 20th August, 2025 has given ‘NIL comments’ on the Statuatory Auditors report (both standalone and consolidated) and audited financial statements (both standalone and consolidated) for the Financial Year 2024-25 under Section 143 of the Companies Act, 2013 and the same have been annexed and forms part of this report.

23. STATUTORY DISCLOSURES

(i) Corporate Social Responsibility Committee

In accordance with the provisions of the Companies Act 2013, HUDCO Board of Directors has constituted the Corporate Social Responsibility Committee of the Board. As on 31st March 2025, the Committee comprised Shri M. Nagaraj, Director (Corporate Planning) as Chairman of the Committee, Shri Sanjeet, Govt. Nominee Director and Shri Daljeet Singh Khatri, Director (Finance) as members.

The CSR Policy and other information on CSR is available on HUDCO Website at: http://www.hudco.org.in The ‘Annual Report on CSR activities for Financial Year 2024-25’, indicating details of expenditure which was proposed to be incurred and expenditure incurred on CSR activities during the Financial Year, along with the reasons for not spending the entire allocated amount for CSR activities and other information, is attached to the Directors’ report.

During the Financial Year 2024-25, an amount of Rs. 49.34 Crore (including Rs. 6.99 Lakh surplus amount) was to be incurred on CSR activities, of which 60% was required to be spent on CSR projects related to Health and Nutrition,’ the annual theme identified by DPE for the year. During the Financial Year, the Company has spent a total amount of Rs. 52.72 Crore (including administrative expenses of Rs. 1.99 Crore and Rs. 26.17 Crore against the ongoing projects approved during the Financial Year 2023-24 & 2022-23). Against the statutory obligation for Financial Year 2024-25, the unspent amount i.e. Rs. 22.79 Crore (including Rs. 5.36 Crore disbursed to implementing agencies wherein submission of utilization certificates is pending), was transferred to the ‘Unspent CSR Account Financial Year 2024-25’ opened with a scheduled bank and shall be utilized in accordance with CSR Amendment Rules, 2021 under Companies Act, 2013 as in few proposals the implementing agencies are in process of completion of formalities for execution of the works like finalization of tender etc. and in other cases the same is to be utilized based on the physical progress achieved in the projects. Furthermore, out of the total amount spent during Financial Year 2024-25 as indicated above, Rs. 33.58 Crore (63% of total CSR Expenditure for Financial Year 2024-25) has been spent on the projects related to ‘Health and Nutrition’, the annual theme identified by DPE for the year. Under its CSR activities, HUDCO has supported different proposals as brought out hereunder: y Zoom Ophthalmic Operating Microscope (NDYAG Laser Diode Laser Machine) for Mandya Institute of Medical Sciences, Mandya, Karnataka. y Improving Nutrition & Health of the Govt. School Children through Giftmilk Programme in Chhattisgarh. y Procurement & Installation of Cardiopulmonary Bypass machine to AIIMS, Manglagiri, Andhra Pradesh. y Distribution of Aids & Assistive Devices to Senior Citizens & Persons with Disabilities (Divyangjan) in various states by Artificial Limbs Manufacturing Corporation of India (ALIMCO). y TB elimination campaign under Pradhan Mantri TB Mukta Bharat Abhiyan by holding Nikshay Shivir; Awareness campaign through broadcast media. y Procurement of Component Equipment for blood banks in Petlad town, Anand District and Rescue van for the Disaster Management Unit of IRCS of Gujarat. y Installation of Drinking Water Coolers along with 3 stage UV filtration in Govt. Schools, Govt. Hospitals, and Railway Stations at various locations across the country. y CAR T-Cell Therapy for 9 or more cancer patients by TATA Memorial Hospital, Mumbai. y Medical Equipment’s for Hospitals of Ahmedabad Municipal Corporation, through AMC Medical Education Trust, Gujarat. y 4K Laparoscopic set for the Department of Urology and Laser for Retina Surgery for the Department of Ophthalmology of Guwahati Medical College and Hospital, Assam. y Purchase of Kitchen Equipment and 3 Electric Food Distribution Vehicles by Akshay Patra to carry meals from its Centralized Kitchens to various Govt. & Govt. Aided Schools in Rangareddy, Vikarabad, Sangareddy & Medak Districts of Telangana. y Various activities under Swachhta Hi Seva 2024 Campaign. y Procurement of 4 Garbage Trucks for solid waste management awareness and door-to-door waste collection by Gangtok Municipal Corporation, Sikkim. y Purchase of kitchen equipment and support towards feeding a nutritional meal for visitors in Kumbh Mela 2025 at Prayagraj, Uttar Pradesh. y Purchase of medical equipment for Fakhruddin Ali Ahmed Medical College & Hospital, Barpeta, Assam. y Strengthening of ambulance services by providing 6 nos. of ambulances to the Health Department, Zila Parishad, Nandurbar, Maharashtra.

Further, out of the total amount spent during Financial Year 2024-25 as indicated above, an amount of Rs. 2.33 Crore was also transferred to ‘PM CARES FUND’ being the unspent CSR fund due to closure/curtailment of the ongoing proposals of Financial Year 2022-23.

(ii) Board and its Committees

The details as to the composition of the Board and its various Committees, scope & terms of reference, number of meetings held and attended by directors/members during the year along with other particulars are annexed in the Corporate Governance Report, forming part to this report.

(iii) Particulars of Loans, Guarantee, or Investments

The necessary disclosures with respect to Loan made, Guarantee given or Securities provided by the Company in its ordinary course of business have not been given, since, provisions of Section 186 of the Companies Act, 2013, are not applicable to your Company, being a NBFC (IFC) registered with Reserve Bank of India. The detail with respect to Investments made by the Company forms part of the Financial Statements for the Financial Year 2024-25.

During the Financial Year, all the existing Related Party Transactions were on an arm’s length basis and were in the ordinary courseofbusiness.Therearenomateriallysignificantrelated party transaction(s) made by with the interest of the Company. Further, there was no contract or theCompany,whichmayhaveaconflict arrangement entered into by the Company as listed under Section 188 of the Companies Act, 2013.

(iv) Annual Return

Pursuant to Section 92(3) and Section 134(3)(a) of the Companies Act, 2013, the Annual Return as at 31st March, 2025 available on the website of the Company on the following link: https://hudco.org.in//Site/FormTemplete/frmTemp1PLargeTC1C_P.aspx?MnId=463&ParentID=391 (v) HUDCO being a Government Company, the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company in terms of notification no. G.S.R.463(E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government of India; (vi) HUDCO, being a Government Company is exempted from the provisions of Section 197 of the Companies Act, 2013 and Rules made there under relating to managerial remuneration, hence, no disclosure is required to be made; (vii) As per the statutory provisions, a listed Company is required to disclose in its Board’s Report, a statement indicating the manner in which formal annual evaluation of the performance of the Board, its committees and individual Directors has been made and the criteria for performance evaluation of its Independent Directors, as laid down by the Nomination & Remuneration Committee. The Ministry of Corporate Affairs, Government of India vide notificationdated th June, 2015 has, inter-alia, exempted Government companies from the above requirement, in case the Directors are evaluated by the Ministry or Department of the Central Government which is administratively in charge of the Company, as per its own evaluation methodology. Further, MCA vide notification dated July 5, 2017, also prescribed that the provisions relating to review of performance of Independent Directors and evaluation mechanism prescribed in Schedule IV of the Companies Act, 2013, is not applicable to Government companies.

Accordingly, HUDCO, being a government Company, is exempted in terms of the above notifications, as the evaluation of performance of all members of the Board of the Company is being done by the Administrative Ministry i.e., the Ministry of Housing and Urban Affairs, GoI. As per requirements of the SEBI (LODR) Regulations, 2015, the performance of the Board as a whole and non-independent directors including the Chairman & Managing Director were evaluated by the Independent Directors in a separate meeting held on 29.10.2024. The meeting was attended by all Independent Directors except Dr. Ravindra Kumar Ray.

(viii) The Company is compliant with the applicable Secretarial Standards issued by Institute of Company Secretaries of India (ICSI); (ix) In compliance of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and DPE

Guidelines on CorporateGovernance,based affirmationreceived from Board Members and Seniorthe

Management Personnel, declaration regarding compliance of Code of Conduct made by the Chairman & Managing Director is annexed and forms part of the Directors’ Report. A copy of the Code is available on the website of the Company at www.hudco.org.in;

(x) In compliance with Regulation 25(10) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has obtained Directors and Officers Liability Insurance Policy, ensuring adequate insurance coverage, covering all the directors of the Company including Independent Directors, Key Managerial Personnel, and Senior Officers against the risk of financial loss including the expenses pertaining to defence cost and legal representation expenses arising in the normal course of business. (xi) Energy Conservation, Technology Absorption and Foreign Exchange Earning & Outgo.

Energy Conservation and Technology Absorption

As HUDCO does not own any manufacturing unit/facility, there are no specific application relating to conservation of energy and technology absorption. However, HUDCO, being an energy conscious organization has taken various initiatives in the direction of energy conservation on a continuous basis.

Foreign Exchange Earnings and Outgo

During the FinancialYear2024-25,foreignexchangeinflowswas Rs. 0.00 Crore (previous year Rs. ‘NIL’) and foreign currency outflow was Rs. 134.86 Crore (previous year Rs. 12.84 Crore); (xii) There is no change in the nature of business of the Company during the year; passed by the Regulators or Courts or Tribunals impacting the going (xiii) Thereare no significant concern status and operations of your Company in future;

(xiv) The Central Government has not prescribed the maintenance of cost records for the products/services of the Company under the Companies (Cost Records and Audit) Amendment Rules, 2014 prescribed by the Central Government under Section 148 of the Companies Act, 2013. Accordingly, cost accounts and records are not required to be maintained by the Company; (xv) HUDCO has not made any application under the Insolvency and Bankruptcy Code, 2016 (31 of 2016), directly on standalone basis during the year; (xvi) The Company has not entered into one-time settlement with Bank or Financial Institutions during the year, hence, details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institution is not given; (xvii) During the year under review, the Statutory Auditors, have not reported any case of fraud against the Company by its officers or employees under Section 143(12) of the CompaniesAct, 2013;

(xviii)Compliance Function

As per the requirements of RBI Circular dated April 11, 2022, HUDCO has an independent Compliance Function headed by Chief Compliance Officer for ensuring effective monitoring and supervision of compliances in accordance with the statutory and regulatory requirements.

The Company has a robust system in place for monitoring of compliances with the statutory and regulatory requirements. Structured approach is being followed for identification, assessment and mitigation of compliance risk. With the constant monitoring and active coordination with the concerned departments, compliance culture has been developed for ensuring adherence to applicable laws and regulations. The Compliance Department acts as a nodal department for monitoring of compliances with regulatory requirements and handling RBI Inspections.

24. FUTURE OUTLOOK - MEDIUM AND LONG-TERM STRATEGIES

HUDCO: Powering Viksit Bharat 2047 Through Strategic Infrastructure Finance

India is committed to achieving its "Viksit Bharat 2047" vision, transforming into a developed nation and a $30 trillion economy. The Government of India’s extensive infrastructure capital expenditure plan, encompassing numerous flagship programs, is central to this ambition. HUDCO, having secured NBFC-IFC status and setting an ambitious target to provide over Rs.3 Lakh Crore in infrastructure financing by 2030, is strategically positioned to be a primary catalyst in this infrastructure-led transformation. HUDCO’s long-term affordable financing, innovative funding solutions, technical advisory, capacity building, and commitment to sustainable development will be instrumental in realizing India’s future.

HUDCO’s Key Contributions to National Development:

HUDCO will be instrumental in the PMAY 2.0 initiative to build 1 Crore homes for urban poor and middle-class September 1, 2024. This ambitious program involves a Rs.10 Lakh Crore familiesoverthe nextfive years,effective investment, including a Rs. 2.30 Lakh Crore government subsidy. HUDCO willprovidelong-termaffordableproject financing, prepare DPRs., offer consultancy for design and execution, and channel Central Government subsidies directly to beneficiaries.

In the coming years, HUDCO is poised to play a transformative role in expanding India’s urban mobility by financing and supporting the development of advanced Mass Rapid Transit Systems (MRTS), including new metro corridors, Regional Rapid Transit Systems, and electric bus networks-ensuring sustainable, Indian cities grow and modernize. The Government of India’s commitment to urban transit is clearly demonstrated by the achievement of over 1,000 km of operational metro rail spanning 23 cities by 2025, making India the world’s third-largest metro network. With a substantial allocation of Rs. 34,807 Crore in Financial Year 2025-26 for new metro corridors, RRTS lines, and electric bus integration, HUDCO is expected to extend long-term, low-cost financing and refinance support to state metro corporations and urban transport agencies, playing a crucial role in ensuring timely completion of these transformative projects across India.

HUDCO will be assisting to drive India’s mission of ‘Har Ghar Nal Se Jal’ to provide rural tap water access by 2028, leveraging its position as an NBFC-IFC to deliver affordable financing and solutions for water infrastructure. With the Government of India allocating Rs. 67,000 Crore to the Jal Jeevan Mission in Financial Year 2025-26 the highest-ever annual outlay-HUDCO will play a pivotal role by supporting advanced, climate-resilient water supply projects and empowering local implementation, thereby securing safe, reliable drinking water for every rural household, advancing nationwide health and prosperity, and strengthening India’s development trajectory.

With India investing over Rs. 20,000 Crore in solar parks and rooftop solar, Rs. 600 Crore in the National Green Hydrogen Mission (Financial Year 2025-26), Rs. 4,000 Crore in EV infrastructure, and Rs. 2,600 Crore in PM-KUSUM for agricultural solarization, HUDCO is positioned to accelerate India’s green energy and carbon net zero targets. By hydrogen, electric mobility, transmission upgrades, and decentralized providinglong-term,affordablefinancing renewable energy-including support for 500GW renewable power by 2030, 5MMTPA green hydrogen production, 72,000 EV charging stations, and widespread deployment of solar pumps-HUDCO will enable large-scale clean energy adoption and infrastructure modernization. This catalytic role will power sustainable growth, climate leadership, and inclusive prosperity as India advances toward a resilient, low-carbon future.

HUDCO continues its vital role in urban revitalization and cleanliness. The AMRUT program, with a Rs. 10,000 Crore allocation in Financial Year 2025-26, underscores commitment to urban water, sanitation, and infrastructure. The Smart Cities Mission is in its completion phase with over 99% of its Rs. 47,652 Crore central outlay released. HUDCO will support further lending and technical assistance in AMRUT and operational Smart City projects, and directly partner with state/city corporations for co-development. Furthermore, HUDCO will be critical for the new Urban Challenge Fund (UCF), launched in Financial Year 2025-26 with a Rs. 10,000 Crore allocation under MoHUA, by providing financing, technical advisory, capacity building, and innovative funding solutions. Swachh Bharat Mission (Urban) 2.0 has also seen increased support, with annual allocations of Rs. 5,000 Crore in Financial Year 2025-26.

With the Government of India allocating Rs. 7,350 Crore for ports, shipping, and waterways, and Rs. 5,000 Crore for civil aviation infrastructure in Financial Year 2025-26, HUDCO’s financial expertise will be vital in mobilizing long-term, critical connectivity projects-strengthening India’s logistics affordablefundingandoffering and transport networks, enhancing economic competitiveness, and playing a key role in the nation’s rise as a global economic powerhouse.

HUDCO will be fundamentally shaping India’s future as a key enabler of the Viksit Bharat vision, driving progress in clean energy, universal sanitation, public health, and carbon-zero growth. By channeling long-term, innovative financing into affordable housing, urban mobility, and reliable water infrastructure, HUDCO will be making sustainable cities and inclusive rural prosperity a reality. Its pivotal support for renewable energy, comprehensive sanitation, and resilient health infrastructure accelerates India’s carbon-neutral journey, boosts quality of life, and delivers the foundations for a healthy, climate-smart, and globally competitive nation equipped for the challenges and opportunities of the 21st century.

BUSINESS DEVELOPMENT

India’s vision to become a developed nation by 2047 (‘Viksit Bharat’) calls for holistic development encompassing economic growth, social progress and sustainability. In this context, infrastructure plays a pivotal role and the Government of India has recognized the same and has significantly increased capital expenditure on infrastructure with a record allocation of Rs. 11.11 lakh Crore in the Union Budget for Financial Year 2024 25 representing a 5x increase over the last decade. It is estimated that infrastructure investments worth Rs. 150 lakh Crore will be required to achieve the target of a USD 7 trillion economy by 2030 with the significant investments coming from private . In this evolving landscape, HUDCO’s role is increasingly critical in supporting long-term infrastructure development. Backed by a stable & high-performing portfolio, HUDCO is now actively exploring new business avenues and product growth. While the current lending portfolio is largely dominated by government-backed offerings exposures, HUDCO’s strong financial foundation demonstrated by an industry’s one of the best Provisional Coverage Ratio (PCR) of 87% and a Capital to Risk-Weighted Asset Ratio (CRAR) of 57% as of Financial Year 2024 places it in an excellent position to expand into private and public-private sector infrastructure financing.A balanced portfolio mix and optimized risk-based pricing strategy may also improve overall Net Interest Margin (NIM).

Recognizing the strategic potential of this opportunity, the Board of Directors accorded in-principle approval on 7^th February 2025 to explore infrastructure financing in the private and public-private partnership (PPP) projects focusing on Real Estate, Roads, Energy Transition, Seaports and Airports sectors. HUDCO has also initiated the development of key policy frameworks for loan processing including guidelines for entity and project appraisal, rating modules and project monitoring mechanisms. In a major step forward, HUDCO signed a Memorandum of Understanding (MoU) with Vadhavan Port Project Limited (VPPL) for the development of an all-weather greenfield deep-draft major port at Vadhavan, in Palghar district of Maharashtra. The Vadhavan Port project, with an estimated cost of Rs. 76,220 Crore is one of the largest infrastructures planned in the country. Under the MoU, HUDCO is expected to provide financial assistance of up to Rs. 25,000 Crore which is approximately one-third of the total project cost. This partnership showcases HUDCO’s readiness to play a leading role in large-scale infrastructure development. It also demonstrates the organization’s capacity to leverage its financial strengths and policy-driven approach in catalyzing growth through public-private collaboration.

25. STATUTORY AND OTHER INFORMATION REQUIREMENT

The particulars of annexure(s) forming part of the Directors’ Report are as under:

Particulars	Annexure
Management Discussion & Analysis Report	1
Corporate Governance Report	2
Business Responsibility & Sustainability Report along with BRSR Core Assurance Report	3
Secretarial Audit Report	4
Annual Report on CSR Activities	5
Declaration of the Code of Conduct	6
Management Reply to comments of Statutory Auditors on financial statements	7
Comments of the Comptroller and Auditor General of India	8

26. ACKNOWLEDGEMENT

The Board of Directors of your Company acknowledges its deep sense of appreciation for the continuous support, guidance and cooperation extended by the Government of India, especially the Ministry of Housing and Urban Affairs, Ministry of Rural Development, Ministry of Finance, Reserve Bank of India, National Housing Bank, Ministry of Corporate Affairs, Department of Public Enterprises, Regulatory/Statutory Authorities and various other departments of the Central/State Governments, Stock Exchanges, Depositories, Credit Rating Agencies, Registrar & Transfer Agents, Debenture Trustee(s) and other agencies.

The Board of Directors also conveys its gratitude for the unstinting support and cooperation given by the shareholders, bondholders, public deposit holders, Bankers, Financial Institutions, Housing Boards, Development Authorities, Municipal/Local Bodies and other stakeholders associated with the Company. The Board of Directors also acknowledges the valuable suggestions and guidance extended by Comptroller & Auditor General of India, Statutory Auditors, Secretarial Auditors, and other professionals associated with the Company. The Board of Directors also takes this opportunity to acknowledge and appreciate the hard work and efforts put in by HUDCO employees at all levels towards achievement of the all-round growth of the Company.

For and on behalf of the Board of Directors

Sd/-

Sanjay Kulshrestha

Chairman & Managing Director

(DIN: 06428038)

Place : New Delhi

Date : 22nd August, 2025