Lakshmi Finance & Industrial Corporation Ltd Management Discussions

REVIEW OF ECONOMY:

Indias economic performance in F.Y 2024-25 reflects a consistent and robust growth trajectory, with the Nations Gross Domestic Product (GDP) growing by 6.5%, thereby solidifying its status as the fastest-growing major economy. This growth is primarily driven by substantial Government investment in infrastructure, a resurgence in rural demand driven by a thriving kharif crop and the sustained expansion of the services sector, notably in finance and real estate. The Reserve Bank of Indias prudent, accommodative monetary policy, which includes an interest rate reduction, has further spurred both investment and consumption. In addition, a marked improvement in manufacturing output and resilient urban consumption have further invigorated the economic momentum. While global trade uncertainties remain an external risk, Indias intrinsic economic strength, coupled with policy interventions and robust private sector investments is set to underpin continued growth.

The overall performance of the Company is low comparing with previous year performance mainly on account of subdued Stock Market conditions and portfolio investments valuation during the Financial Year 2024-25. The Company will continue to focus its efforts to closely monitor portfolio Investment activity to generate optimum returns by way of capital appreciation and periodic dividend returns.

Total Investments as on March 31, 2025 is Rs. 4,812.13 lakhs excluding Rs. 200 lakhs of Fixed Deposits, Rs. 375 lakhs of Government Bonds and Rs. 50 lakhs of NCDs as against Rs. 4,570.69 lakhs of Investments and ? 150 lakhs of Fixed Deposits and Rs. 400 lakhs in Government Bonds and Rs. 100 lakhs of NCDs as at March 31,2024

The CEO and CFO certification provided in the certification section of the Annual Report discusses the adequacy of our Internal Control systems and procedures.

( in Lakhs)