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LIC Housing Finance Ltd

BSE Code : 500253 | NSE Symbol : LICHSGFIN | ISIN:INE115A01026| SECTOR : Finance |

NSE BSE
 
SMC up arrow

469.70

6.85 (1.48%) Volume 1092164

26-Sep-2023 10:24:59

Prev. Close

462.85

Open Price

463.00

Bid Price (QTY)

469.45(227)

Offer Price (QTY)

469.70(156)

 

Today’s High/Low 470.95 - 462.85

52 wk High/Low 470.95 - 315.10

Key Stats

MARKET CAP (RS CR) 25451.42
P/E 7.74
BOOK VALUE (RS) 492.6757953
DIV (%) 425
MARKET LOT 1
EPS (TTM) 59.8
PRICE/BOOK 0.939157158549372
DIV YIELD.(%) 1.84
FACE VALUE (RS) 2
DELIVERABLES (%) 26.06
4

News & Announcements

22-Sep-2023

LIC Housing Finance Ltd - LIC Housing Finance Limited - Loss of Share Certificates

18-Sep-2023

LIC Housing Finance Ltd - LIC Housing Finance Limited - Loss of Share Certificates

12-Sep-2023

LIC Housing Finance Ltd - LIC Housing Finance Limited - Loss of Share Certificates

11-Sep-2023

LIC Housing Finance Ltd - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

08-Aug-2023

LIC Housing Finance AGM scheduled

04-Aug-2023

LIC Housing Finance appoints MD cum CEO

31-Jul-2023

LIC Housing Finance MD cum CEO resigns

20-Jul-2023

LIC Housing Finance to announce Quarterly Result

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AAVAS Financiers Ltd 541988 AAVAS
Apex Capital and Finance Ltd 541133
Aptus Value Housing Finance India Ltd 543335 APTUS
Awas Ayogen Vittnigam Ltd 526975
Can Fin Homes Ltd 511196 CANFINHOME
Coral India Finance & Housing Ltd 531556 CORALFINAC
GIC Housing Finance Ltd 511676 GICHSGFIN
GRUH Finance Ltd(Merged) 511288 GRUH
Happy Home Profin Ltd (Wound-up) 531451
Home First Finance Company India Ltd 543259 HOMEFIRST
Housing & Urban Development Corporation Ltd 540530 HUDCO
Housing Development Finance CorporationLtd(Merged) 500010 HDFC
Ind Bank Housing Ltd 523465
India Home Loans Ltd 530979
Indiabulls Housing Finance Ltd 535789 IBULHSGFIN
International Housing Finance Corporation Ltd 530781
Kamakshi Housing Finance Ltd 530399
Madhur Housing Finance Ltd (Merged) 531383
Manraj Housing Finance Ltd 530537
Mehta Housing Finance Ltd 511740
Oriental Housing Development Finance Corp Ltd 511752
Piramal Capital & Housing Finance Ltd 511072 DHFL
PNB Housing Finance Ltd 540173 PNBHOUSING
Reliance Home Finance Ltd 540709 RHFL
Repco Home Finance Ltd 535322 REPCOHOME
Sahara Housing Fina Corporation Ltd 511533
SBFC Finance Ltd 543959 SBFC
SBI Home Finance Ltd 500379 SBIHOMEFIN
SRG Housing Finance Ltd 534680 SRGHFL
Star Housing Finance Ltd 539017

Share Holding

Category No. of shares Percentage
Total Foreign 97099237 17.65
Total Institutions 137738580 25.04
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 6484452 1.18
Total Promoters 248842495 45.24
Total Public & others 59898236 10.90
Total 550063000 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About LIC Housing Finance Ltd

LIC Housing Finance Ltd (LICHFL) is one of the largest housing finance companies in India with a key objective of providing long term finance to individuals for the purchase or construction of house/flat for residential purposes in India. LICHFL also provides finance on existing property for business/personal needs and also gives loans to professionals for purchase/construction of Clinics/Nursing Homes/ Diagnostic Centers/ Office Space and also for purchase of equipment. The Company also provides finance to builders and developers engaged in the business of construction of houses or flats for residential purpose and to be sold by them. The Company has 9 regional offices, 24 Back Offices and 282 Marketing Offices across India. It has set up an overseas representative office in Dubai and Kuwait to cater to the non-resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait, Qatar and Saudi Arabia. LICHFL Asset management Company is the Investment Manager of LICHFL Urban Development Fund, a Venture Capital Fund with focus on mid income housing and Income yielding micro infrastructure assets. The LICHFL Urban Development Fund is sponsored by LIC Housing Finance Limited and co-sponsored by LIC of India. LICHFL Trustee Company Private Limited currently provides Trusteeship services to LICHFL Urban Development Fund managed by LICHFL Asset Management Company Limited. LICHFL Care Homes Limited was established to set up and operate assisted community living centres for Senior Citizens. It has established Care Homes under two Projects in Bengaluru and another one in Bhubaneswar is nearing Completion. LICHFL Care Homes Limited is also developing a Senior Living project at Vasind in collaboration with TATA value Homes Limited. LIC Housing Finance Ltd was incorporated on June 19 1989. The company was promoted by LIC of India and went public in the year 1994. The company is recognized by National Housing Bank and listed on the National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE) and its shares are traded only in Demat format. The GDR's are listed on the Luxembourg Stock Exchange. In the period of 2001, the company launched their new scheme called Griha Vikas. In the year 2002, the company signed a deed of assignment to take over individual housing loan portfolio of Citibank. In the year 2003, they unveiled a new project for elderly people called LICHFL Care Homes. The company launched their maiden GDR issue in the year 2004. Also, they introduced flexi-fixed scheme offering fixed rate of interest for first five years and variable thereafter. In October 2005, the company started offering of 'New Griha Laxmi' housing loans against the security of certain approved financial assets like Bank Fixed Deposits, National Savings Certificates and Life Insurance Policies. In the year 2006, the company introduced new Griha Jestha for senior citizens for buying unit of LICHFL Care Homes Ltd. In May 2007, the company launched maiden Fixed Deposit Scheme. In October 31, 2007, the company incorporated LICHFL Financial Services Ltd for undertaking non fund based activities like marketing of housing loans, insurance products, credit card, mutual fund, personal loan etc. In February 2008, they launched reverse mortage for senior citizens above 60 years of age. In February 14, 2008, the company incorporated LICHFL Asset Management Company Private Limited for undertaking the business of managing, advising, administering venture funds, unit trust, investment trust in India as well as abroad. In March 5, 2008, the company incorporated LICHFL Trustee Company Private Limited for undertaking the business of trustees of venture capital trust, funds - in India and offshore fund. In March 12, 2008, they launched a new venture capital fund for realty projects. During the year 2009-10, the company was awarded the 'Second Best Home Loan Provider' award by Outlook Profit. During the year 2010-11, the company launched a unique interest rate scheme namely 'MINI 5' to cater to housing finance needs of the priority sector population residing in Tier II and Tier III cities. On 6 September 2010, LIC Housing Finance announced that it is applying for a license with the Pension Fund Regulatory Development Authority (PFRDA) to act as Aggregator under the National Pension System (NPS) - Lite. The Board of Directors of LIC Housing Finance at its meeting held on 27 October 2010 approved subdivision of Equity shares of the Company of Rs. 10/- each into 5 equity shares of Rs. 2/- each. In 2011, LIC Housing Finance crossed Rs 50000 crore loan portfolio milestone. On 21 March 2012, LIC Housing Finance completed allotment of 3 crore equity shares to LIC of India, the promoter of the company, on preferential allotment basis at issue price of Rs 270 per share. In 2013, the company crossed Rs 1000 crore profit and Rs 75000 crore assets mark. In 2015, the company crossed Rs 1 lakh crore loan portfolio mark. The Board of Directors of LIC Housing Finance at its meeting held on 15 December 2015 approved the proposal to acquire upto 19.3% in the paid up Equity Share Capital of LIC Nomura Mutual Fund Asset Management Company Limited from Nomura Asset Management Strategic Investment Pte Ltd for a consideration not exceeding Rs 27.36 crore and upto 19.3% in the paid up Equity Share Capital of LIC Nomura Mutual Fund Trustee Company Private Ltd. for a consideration not exceeding Rs 1.52 lakh. In 2017, LIC Housing Finance crossed Rs 1.5 lakh crore assets mark. In year 2020-21, the Company infused three tranches of Tier 2 capital through a capital infusion of Rs. 1,800 crore. During the year 2021-22, opening of 2 new offices were initiated and 2565 of new Marketing Intermediaries were recruited to further strengthen the distribution network. As on March 31, 2022, the Company has 4 Subsidiaries namely, LICHFL Care Homes Limited, LICHFL Asset Management Company Limited, LICHFL Trustee Company Private Limited and LICHFL Financial Services Limited. In 2022-23, the Company opened 50 new Area Offices pan-India and expanded to 23 States and 4 Union Territories, along with a representative office in Dubai, UAE. The number of branches increased to 314. During the FY 2022-23, the Company completed a project at Bangalore in two Phases and Jeevan Anand Project at Bhubaneswar. It launched a new Alternative Investment Fund (AIF) namely LICHFL Housing & Infrastructure Fund (LHIF), with a total corpus of Rs 1000 crore including Green Shoe Option (GSO) of Rs 250 crore. The Company registered a New Fund with SEBI - LICHFL Real Estate Debt Opportunities Fund - I on 30th March, 2021 under AIF Category II of SEBI Alternate Investment Fund Regulations 2012 (AIF). In 2023, LIC Housing Finance Company crossed Rs 2.75 lakh Crore with a Loan Portfolio. The Individual Housing Loan grew by 12% YoY, from Rs 2.04 lakhs crore in FY 2021-22 to Rs 2.29 lakhs crore in FY 2022-23. The revenue from operations was Rs 22,656.95 crore for FY 2022-23, compared to Rs 19,919.07 crore for FY 2021-22. As of 31st March, 2023, LICHFL's individual housing loan book represented 83.16% of the total retail portfolio. The project loans sanctioned and disbursed by the Company during the year were amounting to Rs 3,097 crore and Rs 2,697 crore respectively.

LIC Housing Finance Ltd Chairman Speech

Dear Shareholders,

As I sit down to write my letter to shareholders as the Chairman, I find myself even more optimistic by what lies ahead for LIC Housing Finance Limited today. I would like to start my letter with a famous quote of Eleanor Roosevelt: "The future belongs to those who believe in the beauty of their dreams." This truly epitomises the philosophy and culture of your Company.

With LICHFL NEXT, we brought innovations in the business, made some key changes in our strategies and decisions, while still preserving our values and strong foundation. Our key motive behind all this remains to deliver more and more value by automating every facet of customer interaction and delivering an elevated experience to all our customers. The organisational changes we have inculcated as part of LICHFL NEXT are set to increase the stakeholder value, expand geographies, and contribute to the economic growth of the country.

With our remarkable 34-year journey, we not only multiplied our footprint in each decade, we also endured a growth mindset. Today, we are consolidating our position as the largest Housing Finance Company with a Loan Portfolio of ' 2.75 lakh crore. Over the years, we also built huge and growing base of customers, strengthened our distribution with more than 10,000 hands, and leveraged our space using stability, growth and digital transformation.

KEY GROWTH DRIVERS

The increase in the outlay for PM Awas Yojana by 66% in Union Budget for the FY 2023-24 and the urban infrastructure development fund are all set to trigger acceleration in demand for home loans, benefiting the industry. After witnessing disruptions in business volumes, because of COVID-19 pandemic, the industry saw a continued improvement in disbursements. Further, despite home loan rates hardening this year, on the back of repo rate hike, demand for home loans did not witness a slowdown. India's real estate sector displayed resilience amidst escalating geopolitical situation and rising inflation.

The residential sector witnessed robust demand revival, gaining fast momentum and withstanding market volatility. Under PMAY's Housing for All, India proposes to build 5.73 million houses to realise its target of building 29.5 million houses by 2024, demonstrating projected growth in the near future. Demand for home loans grew owing to increasing urbanisation in smaller cities, growing importance of home ownership, a rising population and increasing income levels, signifying its prominence as one of India's fastest growing sectors. Government measures to support housing finance, additional funding for housing projects and interest rate subsidies for housing loans are set to further improve demand for housing finance. Millennials and young borrowers in need of urban accommodation are a potential consumer base for housing loans.

DRIVING A CONSUMER-CENTRIC SERVICE MODEL

We strengthened our core and made the infrastructure more robust by establishing a comprehensive monitoring and control framework. We also strengthened our capital adequacy and became better capitalised. Asset-Liabilities are conducive to manage high-rate environment.

A better asset mix and improved asset quality is set to result in reduced credit cost. With an ability to source low-cost liability from strong fundamentals and liability management, we reduced cost of funds despite rising rates and monetary tightening. Our established treasury management processes and conservative liquidity policies are well recognised.

In a digitally-transforming Indian financial services sector, technology is a strategic enabler of business growth, cost optimisation and process innovation. At LIC Housing Finance Limited, we have been at the forefront of technology adoption, bringing out solutions that improve customer convenience and provide world-class experiences. We also established a comprehensive monitoring and control framework, and built on a large talent pool of a committed workforce.

We created a framework for sustainable growth with product and distribution strategies that fulfil the requirements of our customers. We are also better placed on liabilities versus other housing finance companies. Today, we have one of the lowest cost of funds, while our credit rating continues to be strong at AAA since 2001-02. Further, there is higher yield productivity with proper due diligence to mitigate risk. Today, our per branch business and per employee productivity has increased.

OUTLOOK IN FY 2023-24

Going forward, we are well-positioned to leverage our established and growing network, and are confident this will enable us to scale to new growth frontiers. We will also continue to invest in people with the right expertise, technology, and advanced analytics to keep pace with growth. Rapid pace of finance, affordable mortgages, increased urbanisation and changing lifestyles are set to spur growth of Indian Housing Finance Market, which is projected to grow by 20% CAGR between 2022-2027. Demand is visible across sectors and loan segments, with small towns and affordable loans taking a lead.

The emerging concept of "Work from Home" and relocation to native towns (post-pandemic) continues to aid the growth momentum in Tier 2/3 cities.

KEY STRATEGIC PRIORITIES

As we move forward, we are single-mindedly driven by our purpose of ethically fulfilling our responsibilities towards our customers. We are also seizing more and more opportunities to strengthen customer relationships. Today, being innovative in approach and laying emphasis on quality business, we have differentiated ourselves strategically aligning with customer needs. And to further improve our market share, we are consolidating our market position, providing better customer service, and delivering value to all our stakeholders with advance tech-enabled customer service. Further, we are using data and analytics for segment-driven customer acquisition and engaging in technology modernisation in line with the growing business needs and automation.

We shall keep focussing on increasing our share of high-margin products; tap into unpresented geographies by conducting camp offices; rationalising existing offices; making HomY even more effective and easing customer onboarding; exploring cross-selling of products; and enabling continuous training to intermediaries and marketing officials to increase productivity, among others. With these strategic initiatives, we are fortifying our market presence and improving asset quality in a competitive housing finance industry.

IN CONCLUSION

I am grateful to our esteemed customers, shareholders, business partners, wider community of stakeholders, and above all, our employees for their commitment to our vision. I look forward to working with each of them to move towards an even better and brighter future for LIC Housing Finance Limited.

Sincerely,

Siddhartha Mohanty

Chairman

   

LIC Housing Finance Ltd Company History

LIC Housing Finance Ltd (LICHFL) is one of the largest housing finance companies in India with a key objective of providing long term finance to individuals for the purchase or construction of house/flat for residential purposes in India. LICHFL also provides finance on existing property for business/personal needs and also gives loans to professionals for purchase/construction of Clinics/Nursing Homes/ Diagnostic Centers/ Office Space and also for purchase of equipment. The Company also provides finance to builders and developers engaged in the business of construction of houses or flats for residential purpose and to be sold by them. The Company has 9 regional offices, 24 Back Offices and 282 Marketing Offices across India. It has set up an overseas representative office in Dubai and Kuwait to cater to the non-resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait, Qatar and Saudi Arabia. LICHFL Asset management Company is the Investment Manager of LICHFL Urban Development Fund, a Venture Capital Fund with focus on mid income housing and Income yielding micro infrastructure assets. The LICHFL Urban Development Fund is sponsored by LIC Housing Finance Limited and co-sponsored by LIC of India. LICHFL Trustee Company Private Limited currently provides Trusteeship services to LICHFL Urban Development Fund managed by LICHFL Asset Management Company Limited. LICHFL Care Homes Limited was established to set up and operate assisted community living centres for Senior Citizens. It has established Care Homes under two Projects in Bengaluru and another one in Bhubaneswar is nearing Completion. LICHFL Care Homes Limited is also developing a Senior Living project at Vasind in collaboration with TATA value Homes Limited. LIC Housing Finance Ltd was incorporated on June 19 1989. The company was promoted by LIC of India and went public in the year 1994. The company is recognized by National Housing Bank and listed on the National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE) and its shares are traded only in Demat format. The GDR's are listed on the Luxembourg Stock Exchange. In the period of 2001, the company launched their new scheme called Griha Vikas. In the year 2002, the company signed a deed of assignment to take over individual housing loan portfolio of Citibank. In the year 2003, they unveiled a new project for elderly people called LICHFL Care Homes. The company launched their maiden GDR issue in the year 2004. Also, they introduced flexi-fixed scheme offering fixed rate of interest for first five years and variable thereafter. In October 2005, the company started offering of 'New Griha Laxmi' housing loans against the security of certain approved financial assets like Bank Fixed Deposits, National Savings Certificates and Life Insurance Policies. In the year 2006, the company introduced new Griha Jestha for senior citizens for buying unit of LICHFL Care Homes Ltd. In May 2007, the company launched maiden Fixed Deposit Scheme. In October 31, 2007, the company incorporated LICHFL Financial Services Ltd for undertaking non fund based activities like marketing of housing loans, insurance products, credit card, mutual fund, personal loan etc. In February 2008, they launched reverse mortage for senior citizens above 60 years of age. In February 14, 2008, the company incorporated LICHFL Asset Management Company Private Limited for undertaking the business of managing, advising, administering venture funds, unit trust, investment trust in India as well as abroad. In March 5, 2008, the company incorporated LICHFL Trustee Company Private Limited for undertaking the business of trustees of venture capital trust, funds - in India and offshore fund. In March 12, 2008, they launched a new venture capital fund for realty projects. During the year 2009-10, the company was awarded the 'Second Best Home Loan Provider' award by Outlook Profit. During the year 2010-11, the company launched a unique interest rate scheme namely 'MINI 5' to cater to housing finance needs of the priority sector population residing in Tier II and Tier III cities. On 6 September 2010, LIC Housing Finance announced that it is applying for a license with the Pension Fund Regulatory Development Authority (PFRDA) to act as Aggregator under the National Pension System (NPS) - Lite. The Board of Directors of LIC Housing Finance at its meeting held on 27 October 2010 approved subdivision of Equity shares of the Company of Rs. 10/- each into 5 equity shares of Rs. 2/- each. In 2011, LIC Housing Finance crossed Rs 50000 crore loan portfolio milestone. On 21 March 2012, LIC Housing Finance completed allotment of 3 crore equity shares to LIC of India, the promoter of the company, on preferential allotment basis at issue price of Rs 270 per share. In 2013, the company crossed Rs 1000 crore profit and Rs 75000 crore assets mark. In 2015, the company crossed Rs 1 lakh crore loan portfolio mark. The Board of Directors of LIC Housing Finance at its meeting held on 15 December 2015 approved the proposal to acquire upto 19.3% in the paid up Equity Share Capital of LIC Nomura Mutual Fund Asset Management Company Limited from Nomura Asset Management Strategic Investment Pte Ltd for a consideration not exceeding Rs 27.36 crore and upto 19.3% in the paid up Equity Share Capital of LIC Nomura Mutual Fund Trustee Company Private Ltd. for a consideration not exceeding Rs 1.52 lakh. In 2017, LIC Housing Finance crossed Rs 1.5 lakh crore assets mark. In year 2020-21, the Company infused three tranches of Tier 2 capital through a capital infusion of Rs. 1,800 crore. During the year 2021-22, opening of 2 new offices were initiated and 2565 of new Marketing Intermediaries were recruited to further strengthen the distribution network. As on March 31, 2022, the Company has 4 Subsidiaries namely, LICHFL Care Homes Limited, LICHFL Asset Management Company Limited, LICHFL Trustee Company Private Limited and LICHFL Financial Services Limited. In 2022-23, the Company opened 50 new Area Offices pan-India and expanded to 23 States and 4 Union Territories, along with a representative office in Dubai, UAE. The number of branches increased to 314. During the FY 2022-23, the Company completed a project at Bangalore in two Phases and Jeevan Anand Project at Bhubaneswar. It launched a new Alternative Investment Fund (AIF) namely LICHFL Housing & Infrastructure Fund (LHIF), with a total corpus of Rs 1000 crore including Green Shoe Option (GSO) of Rs 250 crore. The Company registered a New Fund with SEBI - LICHFL Real Estate Debt Opportunities Fund - I on 30th March, 2021 under AIF Category II of SEBI Alternate Investment Fund Regulations 2012 (AIF). In 2023, LIC Housing Finance Company crossed Rs 2.75 lakh Crore with a Loan Portfolio. The Individual Housing Loan grew by 12% YoY, from Rs 2.04 lakhs crore in FY 2021-22 to Rs 2.29 lakhs crore in FY 2022-23. The revenue from operations was Rs 22,656.95 crore for FY 2022-23, compared to Rs 19,919.07 crore for FY 2021-22. As of 31st March, 2023, LICHFL's individual housing loan book represented 83.16% of the total retail portfolio. The project loans sanctioned and disbursed by the Company during the year were amounting to Rs 3,097 crore and Rs 2,697 crore respectively.

LIC Housing Finance Ltd Directors Reports

To the Members of LIC Housing Finance Limited

Your Directors are pleased to present the Thirty Fourth Annua Report together with the Audited Financial Statements (standalone and consolidated) for the year ended 31st March 2023 of LIC Housing Finance Limited (‘the Company').

FINANCIAL HIGHLIGHTS

(Rs. In crore)

Particulars

For the year ended 31st March, 2023 For the year ended 31st March, 2022

Profit before Tax

3557.00 2778.15

Tax Expense

(665.97) (490.87)

Profit after Tax

2891.03 2287.28

Other Comprehensive Income

5.03 (4.72)

Total Comprehensive Income

2896.06 2282.56

Appropriations

Special Reserve u/s 36(1)(viii) of the Income Tax Act,1961

984.99 859.99

Statutory Reserve u/s 29C of NHB Act,1987

0.01 0.01

General Reserve

850.00 700.00

Impairment Reserve

- 92.72

Dividend

467.55 467.55

Balance carried forward to next year

593.51 162.29
2896.06 2282.56

APPROPRIATION Transfer to Reserves:

The Company has transferred Rs. 984.99 crore to Special Reserve u/s 36(1)(viii) of the Income-tax, Act., 1961 excluding Rs. 0.01 crore to the Statutory Reserve u/s 29C of NHB Act; and an amount of Rs. 850 crore to General Reserve.

Hence, the total amount transferred to special reserve is Rs. 985 crore (including Rs. 0.01 crore to Statutory Reserve u/s 29C of NHB Act) and Rs. 850 crore to General Reserves.

DIVIDEND:

The Company has in place a Dividend Distribution Policy formulated in accordance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which intends to ensure that a rationale decision is taken, with regard to the amount to be distributed to the shareholders as dividend, after retaining sufficient funds for the Company's growth, to meet its long-term objective and other purposes. The Policy also lays down various parameters to be considered by the Board of Directors of the Company before recommendation of dividend to the Members of the Company.

Considering the performance of the Company during the financial year 2022-2023, the Board of Directors felt the need to strike a balance between being prudent and conserving capital in the Company, while at the same time catering to the expectations of shareholders, and also considering the Dividend Distribution Policy and in terms of RBI Circular No. DOR.ACC.REC.No.23/21.02.067/2021-22 dated 24th June, 2021 , have recommended payment of dividend for the financial year ended 31st March, 2023 of Rs. 8.50 per equity share of face value of Rs. 2/- per share i.e., @ 425 percent . The total dividend outgo, if declared by the shareholder at the 34th Annual General Meeting, for the current year would amount to Rs. 467.55 crore, same as for the previous year. The dividend payable shall be subject to the approval of the Members of the Company at the ensuing Annual General Meeting.

The dividend declared by the Company for the financial year ended 31st March, 2023 is in compliance with the Dividend Distribution Policy of the Company. The Dividend Distribution Policy is available on the website of the Company at https://www.lichousing.com/static-assets/pdf/ DIVIDEND%20DISTRIBUTION%20POLICY%202021. pdf Rs. crafterSite=lichfl-corporate-website-cms&embedded=true and link of the same is provided in Annexure 5.

INDIAN ACCOUNTING STANDARDS

The Company has complied with the applicable Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs under Section 133 of the Companies Act, 2013. The financial statements for the year have been prepared in accordance with Schedule III to the Companies Act, 2013.

PERFORMANCE Income and profit

The Company earned total revenue of Rs. 22674.20 crore for the FY 2022-23 as compared to Rs. 19953.02 crore in the FY 2021- 2022, registering an increase of 13.64 percent, as compared to previous year. The percentage of administrative expenses to the housing loans, which was 0.40 percent in the previous year, has reduced to 0.36 percent during the financial year2022- 2023, mainly due to arrears of wages given in the previous year which were included in employee benefits expenses.

Profit before tax and after tax for FY 2022-23 stood at Rs. 3557.00 crore and Rs. 2891.03 crore respectively as against Rs. 2778.15 crore and Rs. 2287.28 respectively, for the previous year. The variance was on account of increase in Interest income due to increase in LHPLR by 2.10% till December 2022 which has impacted the Interest Income during the Quarter. Most of the Loans given are at Floating rate.

LENDING OPERATIONS

The Company is a Housing Finance Company registered with National Housing Bank (NHB) and is mainly engaged in financing purchase / construction of residential flats / houses to individuals and project finance to developers, Loan against Property (LAP), Lease Rental Discounting (LRD) etc. All other activities revolve around the main business of the Company.

As at 31st March, 2023 the loan book consisted of 83.15 per cent of IHL, 2.61 per cent of NHC, 9.97 per cent of NHI & 4.27 per cent of project portfolio (As per IND-AS).

INDIVIDUAL HOUSING LOAN (IHL):

During the year the main thrust continued on individual housing loans. The Company has sanctioned 1,94,398 Individual Housing Loans (IHL) amounting to Rs. 53,140.33 crore and disbursed 2,00,459 loans aggregating to Rs. 53,458.5 crore during FY 2022-23. IHL constitute 82.92 percent of the total sanctions and 83.38 percent of the total disbursements for the FY 2022-23 as compared to 86.61 percent and 86.76 percent respectively during the FY 2021-22. The gross IHL portfolio grew by 12 percent from Rs. 2,04,230* crore as on 31st March, 2022 to Rs. 2,28,730* crore as on 31st March, 2023.

NON-HOUSING INDIVIDUAL (NHI)

The company has sanctioned 31,089 Non-Housing Individual Loan (NHI) amounting to Rs. 7,298.54 crore and disbursed 31,975 loans amounting to Rs. 7,458.91 crore during the FY 2022-23. NHI constitute 11.39 percent of the total sanctions and 11.63 percent of the total disbursement for the FY 2022-23 as compared to 9.93 percent and 10.57 percent respectively during FY 2021-22. The gross NHI portfolio grew by 7.41 percent from Rs. 25,519 crore as on 31st March, 2022 to Rs. 27,411 crore as on 31st March, 2023.

NON-HOUSING CORPORATE (NHC)

The company has sanctioned 75 Non-Housing Corporate Loan (NHC) amounting to Rs. 547.44 crore and disbursed 80 loans amounting to Rs. 500.57 crore during the FY 2022-23. NHC constitute 0.85 percent of the total sanctions and 0.78 percent of the total disbursement for the FY 2022-23 as compared to 1.01 percent and 0.54 percent respectively during FY 2021-22. The gross NHC portfolio decreased by 14.60 percent from Rs. 8,393 crore as on 31st March, 2022 to Rs. 7,168 crore as on 31st March, 2023.

The cumulative sanctions and disbursements since incorporation, in respect of IHL, NHI and NHC are:

Amount sanctioned: Rs. 5,74,305.18 crore

Amount disbursed: Rs. 5,52,270.11 crore

Since inception 35,07,395 customers have been serviced by the Company up to 31st March, 2023. The number of live customers on 31st March, 2023 were 15,19,771.

Project loans:

The project loans sanctioned and disbursed by the Company during the year were amounting to Rs. 3,097 crore and Rs. 2,697 crore respectively. Corresponding figures for the previous year were Rs. 1,563 crore and Rs. 1,311 crore. These loans are generally for short durations, giving better yields as compared to the individual housing loans.

AWARDS AND RECOGNITIONS:

• Winner of "Financial Inclusion & Future of Financial Services in India - Vision 2030" Award under Large NBFC class at the 17th Annual Summit & Awards Banking & Financial Sector Lending Companies by ASSOCHAM

• Winner of "Best Housing Finance Company (Large)" at PMAY Empowering India Awards 2022

• Kendriya Sainik Board felicitated the Company for CSR contribution towards education of Veer Naaris & Single Parent Children.

• Hon. Ramesh Bais, Governor of Maharashtra, accorded Best Rural Development Project to Shri Y Viswanatha Gowd, MD & CEO of the Company

• Indian Chamber of Commerce 5th Social Impact Awards 2022 bestowed to the Company for Empowering the Rural Population across India.

MARKETING AND DISTRIBUTION

During the year under review, efforts were taken to further strengthen the distribution network. The distribution network of the Company consists of 281 Marketing Offices and Customer Service Points. The distribution network also includes 48 offices of LICHFL Financial Services Ltd., wholly owned subsidiary company engaged in distribution of various financial products including housing loan. The Company has representative offices in Dubai.

REPAYMENTS

During the F.Y. 2022-2023, Rs. 38,778.33 crore was received by way of scheduled repayment of principal through monthly instalments as well as prepayment of principal ahead of schedule, as compared to Rs. 38,927.64 crore received in the previous year.

NON-PERFORMING ASSETS AND PROVISIONS

The amount of gross Non-Performing Assets (NPAs) as of 31st March, 2023 was Rs. 12,124.74 crore, which is 4.41 percent of the loan portfolio of the Company, as against 11,616.40 crore i.e., 4.64 percent Rs. of the loan portfolio as of 31st March, 2022. The net NPA as of 31st March, 2023 was Rs. 6,743.52 crore i.e. 2.50 percent of the loan portfolio vis-a-vis Rs. 6596.73 crore i.e. 2.69 percent of the loan portfolio as at 31st March, 2022. The total cumulative provision towards housing loan portfolio including provision for standard assets as at 31st March, 2023 is ' 7,230.29 crore as against Rs. 5,839.12 crore in the previous year.

Company has written off Rs. 544.71 crore during the FY 2022-23, in comparison to the amount of Rs. 23.03 crore which has been written off in the previous year.

RESOURCE MOBILISATION

During the year, the Company mobilised funds aggregating to 1,06,992.66 crore by way of the Non-Convertible Debentures (NCD), Term Loans / Line of Credit (LoC) / Working Capital Demand Loan (WCDL) from Banks, NHB refinance, Commercial Paper and Public Deposits. The Company has availed refinance of Rs. 2975 crore from NHB under affordable housing scheme at very low rate. The following is a brief about the various sources of fund mobilised during FY 2022-23:

NON-CONVERTIBLE DEBENTURES (NCD)

During the year, the Company issued NCD amounting to Rs. 29,555.50 crore on a private placement basis which have been listed on Wholesale Debt Segment of National Stock Exchange of India Ltd. The NCDs have been assigned highest rating of ‘CRISIL AAA/Stable' by CRISIL & 'CARE AAA/Stable' by CARE. As at 31st March, 2023, NCDs amounting to Rs. 1,23,446.40 crore were outstanding. The Company has been regular in making repayment of principal and payment of interest on the NCDs.

As at 31st March, 2023, there were no NCDs which have not been claimed by the Investors or not paid by the Company after the date on which the said NCDs became due for redemption. Accordingly, the amount of NCD remaining unclaimed or unpaid beyond due date is Nil.

TIER II BONDS

As at 31st March, 2023, the outstanding Tier II Bonds stood at Rs. 1795.77 crore. Considering the balance term of maturity as at 31st March, 2023, Rs. 1795.77 crore of the book value of Tier II Bonds is considered as Tier II Capital as per the Guidelines issued by NHB for the purpose of Capital Adequacy.

TERM LOANS FROM BANK/ LOC / WCDL, REFINANCE FROM NHB / COMMERCIAL PAPER

The total Term / LOC outstanding from the Banks as at 31st March, 2023 were Rs. 83,089.07 crore as compared to Rs. 68,143.04 crore as at 31st March, 2022. The Refinance from NHB as at 31st March, 2023 stood at Rs. 11,303.18 crore as against Rs. 8,304.18 crore as at 31st March, 2022. During the year, the Company has availed Rs. 5,200 crore Refinance from NHB under various refinance schemes. As at 31st March, 2023, Commercial Paper amounting to Rs. 13,513.59 crore were outstanding as compared to Rs. 8,364.22 crore for corresponding previous year. During the year 2022-23, the Company issued Commercial Paper amounting to Rs. 17,668.89 crore from market as compared to Rs. 11,646.42 crore for the previous year.

The Company's long term loan facilities have been assigned the highest rating of ‘CRISIL AAA/STABLE' and short-term debt has been assigned rating of ‘CRISIL A1+ & ICRA A1+' signifying highest safety for timely servicing of debt obligations.

FIXED DEPOSITS (INCLUDING PUBLIC DEPOSIT)

As at 31st March, 2023, the outstanding amount on account of Public Deposits was '3505.27 crore as against Rs. 4595.48 crore in the previous year and outstanding amount on account of Corporate Deposits was Rs. 8120.94 crore as against Rs. 13478.02 crore in the previous year. During F.Y. 2022-23, the number of depositors has reduced for public deposit from 26156 to 21197 and for Corporate Deposit the same number reduced from 1831 to 1180.

Rs. 957.85 crore has been collected as Public Deposits while Rs. 5243.83 crore was collected as Corporate Deposits. Total aggregate amount collected was Rs. 6201.68 crore.

CRISIL has, for the sixteenth consecutive year, re-affirmed a rating of "CRISIL AAA/Stable" for the Company's deposits which indicates highest degree of safety regarding timely servicing of financial obligations and carries the lowest credit risk.

The support of the agents and their commitment to the Company has been vital in mobilisation of deposits and making the product a preferred investment avenue for individual households and others.

TRANSFER OF UNCLAIMED DIVIDEND / DEPOSITS AND SHARES TO INVESTOR EDUCATION & PROTECTION FUND (IEPF)

Pursuant to the provisions of Sections 124 and 125 of the Companies Act, 2013, rules made thereunder and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 read with the relevant circulars and amendments thereto, the amount of dividend / deposits remaining unclaimed for a period of seven years from the date of transfer to unpaid dividend account is required to be transferred to IEPF as constituted by the Central Government. Further, as per the provisions of Section 124(6) of the Companies Act, 2013 read with the Investor Education & Protection Fund Authority (Accounting, Audit, Transfer & Refund) Rules 2016, the shares in respect of which the dividend has not been claimed for seven consecutive years are required to be transferred by the Company to the designated demat account of the IEPF Authority. The details of the unclaimed dividend/deposits and the shares transferred to the IEPF, are uploaded on the website of the Company, as per the requirements. Link for the same is https://www.lichousing.com/investors-education

UNPAID/UNCLAIMED DIVIDEND

During the financial year under review, after giving due notice to the members, your Company has transferred unclaimed dividend of Rs. 1.30 crore pertaining to the financial year 2014-15 to the IEPF, established by the Central Government, on expiry of seven years from the date of transfer to unpaid dividend account.

TRANSFER OF SHARES TO IEPF

Pursuant to the provisions of Section 124(6) of the Companies Act, 2013 and the Rules made thereunder, the Company has transferred in aggregate 66,758 equity shares of Rs. 2/- each to

IEPF in respect of which the dividend remained unclaimed for a period of seven consecutive years i.e., from 2014-15 till the due date of 29th September, 2022 in respect of which, individual notice had also been sent to concerned Shareholders.

UNCLAIMED DEPOSITS

In total 610 Nos. of Fixed deposits amounting to Rs. 53.62 crore (out of which 589 are public deposits amounting to Rs. 18.51 crore) which were due for repayment on or before 31st March, 2023 were not claimed by the depositors. Since then, 110 depositors have claimed or renewed deposits of Rs. 19.21 crore (out of which 103 are public deposits amounting to Rs. 4.86 crore) as on 30th June, 2023. Depositors were appropriately intimated for renewal / claim of their deposits. Further, adequate follow-up is initiated in respect of those cases where Fixed deposits are lying unclaimed.

As per the provisions of Section 125 of the Companies Act, 2013, deposits and interest thereon remaining unclaimed for a period of seven years from the date they became due for payment have to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government, accordingly, as on 30th June,2023 Rs. 7.73 lakhs against unclaimed Principal and Rs. 12.78 lakhs against unclaimed interest on deposits has been transferred to IEPF. Concerned depositors can claim their refunds from the IEPF authority.

Being a housing finance company registered with the National Housing Bank established under the National Housing Bank Act, 1987, the disclosures as per Rule 8(5)(v) &(vi) of the Companies (Accounts) Rules, 2014 read with section 73 and 74 of the Companies Act, 2013 are not applicable to the Company.

Any person who is entitled to claim unclaimed dividend or deposits etc. that have been transferred to IEPF, can claim the same by making an application directly to IEPF in the prescribed form under the IEPF Rules which is available on the website of IEPF i.e., www.iepf.gov.in

REGULATORY COMPLIANCE

Following the amendment in the Finance Act, 2019 and the subsequent notification by the Reserve Bank of India (RBI) in August 2019, HFCs are being treated as one of the categories of Non-Banking Financial Companies (NBFCs) for regulatory purposes and accordingly come under RBI's direct oversight. The NHB, however, would continue to carry out supervision of HFCs. In this regard Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 was notified on 17th February, 2021 in supersession of the regulations/ directions as given in Chapter XVII of these directions.

The Company has been following guidelines, circulars and directions issued by the RBI/ NHB, from time to time. The Company has complied with the Master Direction-NonBanking Financial Company - Housing Finance Company

(Reserve Bank) Directions, 2021 and other directions/guidelines prescribed by RBI regarding deposit acceptance, accounting standards, prudential norms, capital adequacy, credit rating, corporate governance, liquidity, information technology framework, fraud monitoring, concentration of investments, risk management, capital market exposure norms, Know Your Customer, Anti-Money Laundering and the Company also adopted the guidelines on maintenance of Liquidity Coverage Ratio with effect from 1st December, 2021, as per RBI master directions.

Your Company has been maintaining capital adequacy ratio as prescribed by the RBI. The capital adequacy ratio was 18.23 percent as at 31st March, 2023, as against 18.08 percent as at 31st March, 2021 (as against the regulatory minimum of 15 percent).

The Company also has been following Directions / Guidelines / Circulars issued by SEBI, MCA, NHB and RBI from time to time, as applicable to a Listed Company.

During the year, the SBR guidelines have come into effect on and from 1st October, 2022 and as per the RBI Circular DoR.FIN. S4252/03.10.001/2022-23 dated 4th October, 2022. The Board of the Company was required to ensure that the stipulations prescribed in the SBR framework are adhered to within a maximum time-period of 24 months from the date of the RBI Press Release. Since the press release wherein the RBI had released the list of NBFCs in the Upper Layer under the SBR Regulations was issued on 30th September, 2022, which includes the name of the Company, the maximum time period available to the Board is 30th September, 2024. Accordingly, the Board have already the year already adopted certain mandatory policies prescribed under the SBR framework. Going forward the Company under the SBR framework the Company is required to implement Internal Capital Adequacy Assessment Process (ICAAP) pursuant to which the Company is required to assess the economic capital in addition to the CRAR through an internal assessment which shall be on similar lines as ICAAP prescribed for commercial banks under Pillar 2 (Master Circular - Basel III Capital Regulations dated 01st July, 2015).

DISCLOSURE UNDER HOUSING FINANCE COMPANIES FOR ISSUANCE OF NON-CONVERTIBLE DEBENTURES ON PRIVATE PLACEMENT BASIS (NHB) DIRECTIONS, 2014 READ WITH MASTER DIRECTION - NON BANKING FINANCIAL COMPANY - HOUSING FINANCE COMPANY (RESERVE BANK) DIRECTIONS, 2021.

During the financial year under review, the Non-Convertible Debentures issued on private placement basis, were repaid / redeemed by the Company on their respective due dates and there were no instances of any Non-Convertible Debentures which have not been claimed by the investors or not paid by the Company after the date on which the Non-Convertible Debentures became due for redemption.

AUDITORS, AUDIT REPORTS AND OBSERVATIONS Statutory Audit

As per the guidelines for appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs) issued by the RBI vide ref. no. DoS.CO.ARG/SEC.01/08.91.001/2021-22 dated 27th April, 2021, the Company is required to appoint the statutory auditors for a continuous period of three years, subject to the firms satisfying the eligibility norms (to be confirmed by the firms in Form B) each year and also to inform RBI (i.e. Central Office of RBI (Department of Supervision)) about the appointment of SCAs/SAs for each year by way of a certificate in Form A within one month of such appointment. Accordingly, the Company has appointed the statutory auditors namely M/s. SGCO & CO LLP, Chartered Accountants (Firm Registration No.: 112081W/W100184) and M/s. Khandelwal Jain & Co, Chartered Accountants (Firm Registration No.: 105049W) as Joint Statutory Auditors of the Company (Hereinafter collectively referred to as 'Joint Statutory Auditors' / JSAs) for a term of 3 consecutive years at Thirty Third AGM held on 29th September, 2022, to hold office until the conclusion of the Thirty Sixth Annual General Meeting to be held in the year 2025. The intimation regarding the same was also given to the NHB, RBI & MCA.

The Auditors' Report for FY 2022-23 does not contain any qualification, reservation or adverse remark on the financial statements for the year ended 31st March, 2023. The notes on financial statements referred to in the Auditors' Report are self-explanatory and do not call for any further comments. The Joint Statutory Auditors' Report dated 16th May, 2023 for the financial year 2022-23 is enclosed with the financial statements in this Annual Report

INTERNAL AUDIT Internal Audit

The RBI has vide Circular No. RBI/2021-22/53-DoS. CO. PPG.SEC/03/11.01.005/2021-22 dated 11th June, 2021 made the Risk Based Internal Audit (RBIA) Framework applicable to the Company and the Company is required to put in place a RBIA framework by 30th June, 2022, in accordance with the provisions of the aforesaid circular. Accordingly, company has put in place a RBIA policy and implemented RBIA.

Internal Audit of Back Offices

The Company has an in-house mechanism for Internal Audit of all its back offices which are the nodal offices looking after the accounting, sanction and disbursement functions. Such Audit is conducted by the team(s) of in-house officials of audit department. The Company maintains an exhaustive checklist/ questionnaire for the purpose of such Audit and the same is updated regularly. The in-house internal audit team(s) submit quarterly reports in respect of the Back offices assigned to them and such reports are periodically reviewed by the Internal Audit Committee at Corporate Office, which is a management level Committee at the Corporate Office. Detailed deliberations take place in respect of key points related to Internal Audit Reports and the same are also placed before the Audit Committee of the Board for their information and guidance.

Internal Audit of Corporate Office

M/s. Borkar & Muzumdar, Chartered Accountants, Mumbai are Internal Auditors for Internal Audit of the Corporate Office for financial year 2022-23.

Going forward, the Management has decided to develop capabilities internally for the RBIA Internal Audit of Corporate Office from financial year 2023-24.

Currently, The Company has developed an in-house mechanism for Internal Audit of Corporate Office. From FY 23-24 and onwards the audit will be conducted by in-house officials of audit department except certain specific areas which requires special domain expertise. The appointment of such experts shall be made with prior approval of audit committee.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, M/s. N. L. Bhatia & Associates, Practicing Company Secretaries, undertook the Secretarial Audit of the Company for the financial year 2022-23.

The Secretarial Auditor's Report for the financial year 2022-23 does not contain any qualification, reservation or adverse remark. Report of the Secretarial Auditor for the financial year 2022-23 in Form MR-3 is annexed to this report as Annexure 6.

A certificate from M/s. N. L. Bhatia & Associates, Practicing Company Secretaries, Mumbai (UIN: P1996MH055800), regarding compliance of the conditions of Corporate Governance as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached to the Corporate Governance Report, which does not contain any qualification, reservation or adverse remark.

Cost Records and Cost Audit:

Maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148(1) of the Companies Act, 2013 is not applicable for the business activities carried out by the Company.

Corporate Governance

Your Company has been complying with the principles of good Corporate Governance over the years. The Board of Directors supports the broad principles of Corporate Governance. In addition to the basic governance issues, the Board lays strong emphasis on transparency, accountability and integrity. The report on Corporate Governance is appended as a separate section in this Annual Report. The said Report covers in detail the Company's philosophy on code of governance, board composition, its appointments, membership criteria, declaration by Independent Directors, Board evaluation, familiarisation programme, vigil mechanism, etc.

Management Discussion and Analysis Report

Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forming part of the Annual Report.

Business Responsibility and Sustainability Reporting by listed entities

The Securities and Exchange Board of India (SEBI) introduced new requirements for sustainability reporting by listed entities. The new reporting called the Business Responsibility and Sustainability Report (BRSR) has replaced the earlier Business Responsibility Report (BRR). In terms of the aforesaid amendment, with effect from the financial year 2022 -2023, filing of BRSR is mandatory for the top 1000 listed companies (by market capitalisation) and has replaced the existing BRR.

The Company has designated the CSR-ESG Committee* of the Board to oversee the implementation of the Principles and Policies of Business Responsibility and Sustainability Report in the Company and delegated the powers to the CSR-ESG Committee to perform all the acts, deeds and things for implementation of the same. BRSR for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented in a separate section forming part of the Annual Report.

*Note: Considering the enhanced regulatory provision for Environmental Social and Governance matters, a separate ESG Committee was constituted and CSR-ESG Committee was renamed as CSR Committee with effect from 07th June, 2023 on approval at 236th Meeting of Board of Directors.

Depository system

For transaction of the Company's shares in dematerialised form, the Company has entered into an agreement with Central Depository Services (India) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL). The shareholders have a choice to select the Depository Participant. As at 31st March, 2023, 4300 members of the Company continue to hold shares in physical form. As per the SEBI circular, the Company's shares have to be transacted in dematerialised form and therefore, members are requested to convert their physical holdings to dematerialised form. Members may contact the R&T Agent for any assistance in the said process of converting physical shares into DEMAT. For the purpose of various compliances under the SEBI Regulations, NSDL is the designated depository of the Company.

OUTLOOK FOR FY 2023-2024

During the FY 2023-2024 the focus, resources and logistics of the Company would be directed towards the following activities:

• Growing portfolio and increasing the share of high-margin products - non-Core products and Griha Suvidha

• Tapping into newer markets not presently covered by recruiting marketing intermediaries/connectors and holding camp offices

• Solidifying the base of Direct Marketing Executive (DME) / Direct Marketing Intermediaries (DMIs) Channel by recruiting new market intermediaries and individuals and increasing the share of business from this channel

• Reach out to new customers not covered under regular norms with differentiated products backed by mortgage insurance cover to improve yields

• Customising products to tap into niche segments like HNI and Millennials/Gen Z segments of customers

• Implementing additional initiatives under Project RED to drive automation in processing leading to improvement in turn-around time

• Leveraging technology to ease customer onboarding, streamline processes and expand scope of business potential mapping

• Adopting digital transformation processes to bring personalisation in customer servicing and enhancing customer experience throughout loan journey

• Strengthening digital processes through e-appraisal and PLO

• Making HomY application more effective and further easing the customer onboarding process and endeavouring to maximise the customer outreach

• Digital onboarding by more than 50% (including through HomY)

• Making use of data and analytics for segment driven customer acquisition

• Increasing the use of cloud-based office automation and collaboration tool

• Modernising technology in line with growing business needs and automation

• Increasing the emphasis on marketing activities in smart cities to increase business share

• Implementing and stabilising Lending and Accounting solutions

• Imparting continuous training to intermediaries and marketing officials to increase productivity

• Cross-selling insurance products by exploring the role of corporate agency and earning fee-based income

• Assessing Risk-Reward relationship in credit decision making in view of the overall profitability

• Explore strategic tie-ups which may increase customer touchpoints and also enable LIC HFL to offer value-added services.

• Increasing presence in social media and augmenting about customer engagement programs to increase brand visibility.

THE MANAGEMENT PERSPECTIVE ABOUT FUTURE OF THE COMPANY

The improving macro-economic environment and the rapid pace of urbanisation and affordable mortgages spurred growth of the Indian housing finance market. Inspite of the peaking interest rates home loan industry showed its resilience, and due to various price discounts and aggressive marketing strategies adopted by the builder community as well as by the Banks and Financial Institutions, the demand for real estate increased and customers returned to the home loan market, the Company fortified its market presence, enhanced profitability and improved asset quality. The efforts of the Marketing Intermediaries was also crucial in increasing the demand of the home loans. The Company's 10,000 + strong active agency force is the best among the financial institutions in India with the widest reach to every nook and corner of the country.

During the year, the Company has always maintained its rate of interest in line with the market dynamics. Its motto of Home Delivery of Home Loans improved the customer experience and delighted them with doorstep services. It maintains focus on designing products that address the emerging needs of customers. During the year, 4 new products were launched to address the needs of customers in the non-core segment.

As it consolidated its position as the largest housing finance player, the Company ramped up its presence across Tier 2&3 and smart cities by expanding its reach and tap the increasing potential with the addition of areas offices. It also expanded presence in new geographies, increased focus on high-yielding loan against property and intensified the recovery efforts. It also plans to strengthen its distribution network with more Direct Marketing Executives (DMEs), and is working on enhancing the business through digital connectors and strategic tie-ups. It will continue with its journey of Home Distribution of Home Loan (HDHL).

Known for its strong asset quality, the Company is further strengthening its underwriting procedures and improving operational flexibility, strengthening digital outreach and focusing on customer contact. It continuously tracks and analyses the performance of its loan portfolio to identify potential areas of concern and takes corrective actions. The Company has adopted an aggressive approach towards recovery activities, with several follow-up mechanisms such as tele calling, contacting borrowers, SMS, e-mails and other communication on a regular basis. For chronic cases, action under SARFAESI / NCLT is initiated to recover the loan.

The Company bolstered its digital initiatives to counter competition and rolled out key business expansion strategies, and is making effective use of data and analytics for segment-driven customer acquisition. In recent past various new technology-based initiatives were launched internally as part of Project RED to enhance customer experience and to drive automation in processing leading to improvement in turn-around time. It also leverages technology to further ease customer onboarding, streamline processes and expand the scope of business potential mapping. Efforts are being taken to make the HomY app even more effective and maixmise digital onboarding go more than 50%. These efforts are helping the Company improve upon TAT considerably.

Moving ahead, the Company plans to continue growing in the individual home loan category. Further, it will also promote its flagship products like Griha Varishta and Griha Suvidha, serving the requirements of senior individuals covered under the Defined Pension Benefit Scheme (DPBS). It will also serve the segment with self-employed customers with less than 600 CIBIL score, with backing of the guarantee of Indian Mortgage Guarantee Corporation (IMGC).

The Company ensures judicious management of treasury and other aspects of operations to ensure co-ordinated and result-oriented efforts in its business and to increase market share. As far as borrowing is concerned, the Company would endeavor to churn its borrowings to maintain minimum cost of borrowing and have a better impact on the Net Interest Margin. The Company has also been working on reducing its delinquencies and bringing down non-performing assets as well as fast-tracking recovery and monitoring. Through constant review and upgradation of compliance initiatives, it endeavours to put in place the best corporate governance practices. To further expand its reach and deliver value to its shareholders, it ensures judicious management of treasury and other aspects of operations to ensure co-ordinated and result-oriented efforts in its business and to increase market share.

COMPLIANCE UNDER COMPANIES ACT, 2013

Pursuant to section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the Company has complied with the compliance requirements and the details of compliances under Companies Act, 2013 are enumerated below:

ANNUAL RETURN:

Pursuant to Section 92(3) read with Section 134(3)(a) of the Companies Act, 2013, the Annual Return as on 31st March, 2023 is available on the website of the Company in the following link (Please download the document and then try to view): https://www.lichousing.com/annual-report-companies-act

REPORTING OF FRAUDS BY AUDITORS:

Under Section 143(12) of the Companies Act, 2013, during the year under review, neither the Joint Statutory Auditors nor the Secretarial Auditor has reported to the Audit Committee, any instances of fraud committed against the Company by its officers or employees, outsiders, the details of which was required to be mentioned in the Board's report.

SECRETARIAL STANDARDS:

The Company complies with all applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India.

47

RATING RATIONALE:

CRISIL had reaffirmed its outstanding rating as 'CRISIL AAA/ Stable' rating to the non-convertible debentures issue of LIC Housing Finance Limited and has also reaffirmed its 'CRISIL AAA/Stable/CRISIL A1+' ratings on other debt instruments, bank facilities and fixed deposit programme of the company.

Total Bank Loan Facilities Rated

Rs. 130085.88 crore (Enhanced from Rs. 99085.88 crore)

Long Term Rating

CRISIL AAA/Stable (Reaffirmed)

Short Term Rating

CRISIL A1+ (Reaffirmed)

Rs. 30000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Assigned)

Rs. 6929 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 11705 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 199 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 15000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 15000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 15000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 5000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 10000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 15000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 25000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 25000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 25000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 25000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 25000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 5000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 5976 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 20000 crore Non-Convertible

CRISIL AAA/Stable

Debentures

(Reaffirmed)

Rs. 4750 crore Tier II Bond

CRISIL AAA/Stable (Reaffirmed)

Fixed Deposits Programme

CRISIL AAA/Stable (Reaffirmed)

Rs. 17500 crore Commercial Paper

CRISIL A1+ (Reaffirmed)

CARE had reaffirmed its outstanding rating as 'CARE AAA/ Stable' rating to the non-convertible debentures and Tier II Bond issue of LIC Housing Finance Limited.

Rs. 41000 crore NonConvertible Debentures

CARE AAA / Stable (Assigned)

Rs. 212441 crore NonConvertible Debentures

CARE AAA / Stable (Reaffirmed)

'3000 crore Tier II Bond

CARE AAA / Stable (Reaffirmed)

ICRA Limited had reaffirmed ICRA A1+ rating to the Rs. 17,500 crore commercial paper issue of LIC Housing Finance Limited and has reaffirmed its ICRA A1+ which is one notch higher than [ICRA]A1.

BOARD MEETINGS HELD DURING THE YEAR:

During the year under review, nine (9) Board meetings were held. Detailed information on the meetings of the Board as well as Committee meetings, their composition and attendance record of the members of respective Committees of the Board are included in the Report on Corporate Governance which forms part of this Annual Report.

DIRECTORS' RESPONSIBILITY STATEMENT:

The financial statements are prepared in accordance with Indian Accounting Standards (Ind As) under the historical cost convention on accrual basis except for certain financial instruments, which are measured at fair values, the provisions of the Companies Act, 2013 (to the extent modified), guidelines issued by the SEBI, guidelines issued by the NHB and the RBI (Collectively referred to as 'the Previous GAAP').

The Ind AS are prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, and other accounting principles generally accepted in India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires change in the accounting policy hitherto in use.

In accordance with the provisions of Section 134(3)(c) of the Companies Act, 2013, and based on the information provided by the management, your Directors state that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed and there are no material departures;

(b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2023 and of the profit of the Company for the year ended on that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financia controls are adequate and are operating effectively Note on internal financial control is attached as Annexure ' to this Report and

(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws anc that such systems were adequate and operating effectively

STATEMENT ON DECLARATION FROM INDEPENDENT DIRECTORS:

The Company has received necessary declaration from each Independent Director under Section 149(7) of the Companies Act, 2013 that he / she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

COMPANY'S POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION INCLUDING CRITERIA:

The Company endeavours to have an appropriate mix o executive, non-executive and independent directors to maintair the independence of the Board and separate its functions of governance and management. As of 31st March, 2023, the Board had Eleven (11) members, consisting of two (2) Executive Directors nominated by LIC of India ('The Promoter') which includes the Managing Director & CEO and Chief Operating Officer ('COO')*; two (2) Non-Executive and Non-Independent Directors, while the remaining seven (7) were Independent Directors including one Independent woman director.

The Nomination and Remuneration Committee had laid down Criteria for determining Director's Qualification, positive attributes and independence of a Director, remuneration of Directors, Key Managerial Personnel and also criteria for evaluation of Directors, Chairperson, Non-Executive Directors and Board as a whole and also the evaluation process of the same

The performance of the members of the Board, and the Board as a whole were evaluated at the meeting of Independent Directors held on 9th February, 2023.

We affirm that except Nominee Director (Chairman, LIC Director Managing Director & CEO and COO), sitting fees were paid to al the other Directors for Board and Committee Meetings attended by them. However, Managing Director & CEO and COO were paid remuneration as applicable to an Officer in the cadre ol Zonal Manager (Selection Scale) of LIC of India and PLI as per the terms laid out in the Nomination and Remuneration Policy of the Company.

(*) Shri Ashwani Ghai ceased to be the Whole Time Director and COO of the Company on account of his resignation w.e. 13th June, 2023 due to transfer as Additional Director to MDC Mumbai by LIC India.

QUALIFICATION, RESERVATION OR ADVERSE REMARK OR DISCLAIMER MADE BY JOINT STATUTORY AUDITORS AND SECRETARIAL AUDITOR:

There has not been any observations, qualification, reservation or adverse remark in the Joint Statutory Auditors' Report dated 16th May, 2023 for the financial year 2022-23.

The management accepts responsibility for establishing and maintaining internal controls and have evaluated the effectiveness of some internal control system of the Company which have been disclosed to the Auditors and the Audit Committee, the deficiencies, of which the management is aware of, in the design or operation of the internal control systems and have taken the steps to rectify these deficiencies.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

Pursuant to Section 186(11) of the Companies Act, 2013, loans made, guarantee given or security provided by the HFC in the ordinary course of its business are exempted from disclosure in the Annual Report.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO SECTION IN 188(1) OF THE COMPANIES ACT, 2013 READ WITH RULE 8(2) OF COMPANIES (ACCOUNTS) RULES, 2014:

Considering the nature of the industry in which the Company operates, all Related Party Transactions that were entered during the financial year were in the ordinary course of the business of the Company and were on an arm's length basis. There were no materially significant related party transactions entered by the Company with Promoters, Directors, Key Managerial Personnel or other persons which may have a potential conflict with the interest of the Company. All such Related Party Transactions are placed before the Audit committee and Board of Directors for approval, wherever applicable. Prior omnibus approval as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 were obtained from Audit Committee for the Related Party Transactions of repetitive nature as well as in the ordinary course of business.

The Related Party Transactions Policy and Procedures, as amended from time to time, as reviewed by the Audit Committee and approved by Board of Directors is uploaded on the website of the Company and the link of the same is provided in Annexure 5.

The particulars of contracts or arrangements with the 'Related Parties' referred to in sub-section (1) of Section 188 of the Act, are furnished in Note No. 49 of the Notes forming part of the Standalone Financial Statements and Note No. 50 of the Notes forming part of the Consolidated Financial Statements for FY 2022-23, forming a part of the Annual Report. This apart the same is also referred in Annexure 3 which forms part of the Board's Report.

Form AOC-2 pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014 is annexed as Annexure 2 to this report.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY:

There are no material changes and commitments affecting the financial position of the Company which has occurred between the end of the financial year of the Company i.e. 31st March, 2023 and the date of the Board's Report i.e. 24th July, 2023.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

Since the Company is engaged in financial services activities, its operations are not energy intensive nor does it require adoption of specific technology and hence information in terms of Section 134(3)(m) of the Act read with the Companies (Accounts) Rules, 2014 is not provided in this Board's Report.

A. Technology absorption -

(i) The efforts made towards technology absorption - Various initiatives under Project RED got implemented. Among them is the most crucial, core lending system. The new lending system will enable an integrated approach towards digital lending with many peripheral applications being part of it. Other implementations include:

• Treasury automation

• Customer servicing using digital channels like Bots, whatsapp etc.

• Deposits automation

• Compliance to regulatory framework like AML & KYC

(ii) The benefits derived like product improvement, efforts to reduce cost of fund, product development or import substitution - The benefits are mainly towards:

• Reduced TAT for customer onboarding

• Digital lending and STP process

• Phygital journey enables lesser paper consumption

• Online payment services

(iii) In case of imported technology (imported during the last three years reckoned from the beginning of financial year)- Not applicable.

(a) The details of technology imported - Not applicable.

(b) The year of import - Not applicable.

(c) Whether the technology has been fully absorbed

- Not applicable

(d) If not fully absorbed areas where absorption has not taken place and the reason thereof

- Not applicable

(iv) The expenditure incurred on Research and Development - Not applicable

B. Foreign Exchange Earnings and Outgo-

The foreign exchange earned in terms of actual inflows during the year and the foreign exchange outgo during the year in terms of actual outflows.

During the year ended 31st March, 2023, the Company does not have any foreign exchange earnings and the foreign exchange outgo was '1.42 crore. This does not include foreign currency cash flows in derivatives and foreign currency exchange transactions.

RISK MANAGEMENT POLICY OF THE COMPANY:

The Board of Directors of the Company has constituted a Risk Management Committee to frame, implement, monitor, review risk management policy; review of the current status on the outer limits prescribed in the Risk Management policy and report to the Board; review the matters on risk management. Under risk management mechanism, risks faced by the Company are identified and assessed. For each of the risks identified, corresponding controls are assessed and policies and procedure are in place for monitoring, mitigating and reporting risk on a periodic basis. In the opinion of the Board, none of the risks faced by the Company threaten its existence. The Company has appointed Chief Risk Officer as per the relevant NHB Circular. With effect from 01st May, 2023 Company appointed Mr. J Sangameswar as the Chief Risk Officer in place of Mr. K Ramesh.

The Company has a Risk Management Policy in place. During the financial year under review, the Risk Management Policy of the Company was reviewed and put up to the Board of Directors. The same was approved in the Board Meeting dated 02nd March, 2023.

REMUNERATION POLICY

The Company framed the Remuneration Policy in order to align with various provisions under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and RBI Circular DOR.GOV.REC.No.29/18.10.002/2022-23 dated 29th April, 2022.

The Remuneration policy relating to the remuneration of Directors, Key Managerial Personnel and other employees is as below:

REMUNERATION TO NON-EXECUTIVE DIRECTORS:

The Non-Executive Directors would be paid such amount of sitting fees as decided from time to time for every Board and Committee Meeting they attend. Apart from sitting fees no other remuneration / commission would be payable to them.

In future, if Company decides to pay any remuneration / commission to Non-Executive Independent Directors, then the same will be in compliance with Regulation 17(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time.

REMUNERATION TO NON-EXECUTIVE NOMINEE DIRECTORS:

The Non-Executive Nominee Directors would not be paid any sitting fees for the Board and Committee Meetings they attend. The Non-Executive Nominee Directors are not paid any salary and / or other benefits by the Company.

REMUNERATION TO EXECUTIVE NOMINEE DIRECTOR:

The Executive Nominee Directors who are designated as Managing Director & CEO and COO are paid remuneration as applicable to an Officer in the cadre of Executive Director of LIC of India. This apart, the Executive Nominee Directors are entitled for PLI as per criteria approved by the Nomination and Remuneration Committee of the Board.

As and when there is any revision in the pay scales of the Executive Nominee Director as per the charter decided by the LIC of India, then the same is made applicable to the Executive Nominee Director at par with those of the officials in the similar cadre. Further, tenure and terms and conditions of appointment of Executive Nominee Director are as decided by LIC of India from time to time and as approved by the Board of Directors of the Company.

However, the remuneration payable to Executive Nominee Director at any point of time shall be within the limits specified as per Regulation 17(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time , read with the applicable provisions of the Companies Act, 2013.

REMUNERATION TO KEY MANAGERIAL PERSONNEL (OTHER THAN MD & CEO) AND OTHER EMPLOYEES:

In the present set up of the Company, Key Managerial Personnel, other than Managing Director & CEO, are Company Secretary and Chief Financial Officer. Remuneration payable to Company Secretary, Chief Financial Officer and other employees is as decided by the Board of Directors as per Service Terms, Conduct Rules 1990 as amended from time to time.

Except Managing Director & CEO who is a whole time Executive Director, none of the Directors of the Company is paid any other remuneration or any elements of remuneration package under major groups, such as salary, benefits, bonuses, stock options, pension, performance linked incentive etc.

Corporate Social Responsibility (CSR) Policy:

In compliance with Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time, the Company has established Corporate Social Responsibility Committee and the statutory disclosures with respect to the CSR Committee and an Annual Report on CSR activities is annexed as Annexure 4 to this report.

COMPOSITION OF THE CORPORATE SOCIAL RESPONSIBILITY COMMITTEE IS AS FOLLOWS:

Shri Akshay Rout Chairman Non-executive Director
Shri Y.Viswanatha Gowd Member Managing Director & CEO
Ms J. Jayanthi Member Independent Director

(#) Shri Ashwani Ghai ceased to be the member of the committee on account of his resignation w.e.f 13th June, 2023 due to transfer as Additional Director to MDC Mumbai by LIC India.

ANNUAL EVALUATION MADE BY THE BOARD OF ITS OWN PERFORMANCE:

The Nomination and Remuneration Committee had recommended Criteria for evaluation of Directors, Chairperson, Non-Executive Directors, Board level committee and Board of Directors as a whole and the evaluation process of the same.

The Board of Directors, other than the independent directors, carried out an annual evaluation of its performance, board level committees and Individual Directors pursuant to the provisions of the Companies Act, 2013 and the Corporate Governance requirements as prescribed by the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 through circulation. At the Independent Directors meeting held on 9th February 2023, the Independent directors carried out the evaluation of the performance of the rest of the Board Members.

The performance of the Board was evaluated after seeking inputs from all the Directors based on criteria such as the Board composition and structure, effectiveness of Board process, information and functioning, process of disclosure and communication, access to timely, accurate and relevant information etc.

The performance of the various Board Committee was evaluated by the Board after seeking inputs from the respective committee members, on the basis of criteria such as the composition of committee, effectiveness of committee meeting, functioning, etc.

The Board reviewed the performance of the individual Directors on the basis of the criteria such as the contribution of the individual Director to the Board and Committee Meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in Meetings, presented views convincingly, resolute in holding views etc. In addition, the Chairman was also evaluated on the key aspects of his role.

In a separate meeting of Independent Directors, performance of Non-Independent Directors, performance of the Board as a whole and performance of the Chairman were evaluated.

REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF EACH OF THE SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT:

Pursuant to Section 129 of the Companies Act, 2013, the Company has prepared a consolidated financial statement of the Company along with its subsidiaries and associates, in the same form and manner as that of the Company which shall be laid before the ensuing Thirty Fourth Annual General Meeting of the Company along with the Company's Financial Statement under sub-section (2) of Section 129 i.e. Standalone Financial Statement. Further, pursuant to the provisions of Indian Accounting Standard (Ind AS) 110, Consolidated Financial Statements notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Company along with its subsidiaries and associates for the year ended 31st March, 2023 form part of this Annual Report.

In accordance with the provisions of Section 136 of the Companies Act, 2013, the Annual Report of the Company, the Annual Financial Statements and the related documents of the Company's subsidiary and associate companies are hosted on the website of the Company.

THERE HAS BEEN NO CHANGE IN THE NATURE OF BUSINESS OF THE COMPANY DURING THE YEAR UNDER REVIEW.

Directors:

As on 31st March, 2023, the Board had Eleven members, consisting of two executive Directors nominated by the promoter, LIC of India which includes the Managing Director & CEO, Shri Y. Viswanatha Gowd, and the COO Shri Ashwani Ghai(#) . Apart from these two (2) Nominee Directors, there are two (2) Non-Executive and Non-Independent Directors namely Shri P Koteswara Rao, and Shri Akshay Kumar Rout. Other seven (7) Board Members are Independent Directors including one Independent Woman Director namely Ms. Jagennath Jayanthi. The other Independent Directors are viz., Dr. Dharmendra Bhandari, Shri Ameet N Patel, Shri V. K. Kukreja , Shri Kashi Prasad Khandelwal, Shri Ravi Krishan Takkar and Shri Sanjay Kumar Khemani(*).

Shri M. R. Kumar, Chairman and Shri Raj Kumar, Non-Executive Nominee Director resigned from the Board of the Company on 13th March, 2023 and 09th February, 2023 respectively, consequent upon their superannuation from the services to LIC of India. The LIC of India nominated Shri Siddhartha Mohanty as Chairman and Shri M Jagannath as Non-Executive Director with effect from 05th April, 2023.

(#) Shri Ashwani Ghai resigned w.e.f 13th June, 2023 on account of his transfer as Additional director to MDC Mumbai by LIC India.

(*) The designation of Sri Sanjay Kumar Khemani was re-designated from Non- Executive Director to Independent Director on 06th February, 2023.

Succession Planning:

In order to ensure stability and effective implementation of long-term business strategies and for smooth transition at MD & CEO level, the Board decided that new MD & CEO should be posted in advance, say 4-6 months prior to his/her taking charge as MD&CEO, as (Chief Operating Officer (COO) who would subsequently take over as MD & CEO on retirement / elevation / transfer of the existing MD & CEO.

In terms of Article 138(b) of the Articles of Association of Company, LIC of India is entitled to nominate up to one third of the total number of Directors of the Company and therefore, the Board after consideration, approved posting of senior official from LIC of India as Nominee of LIC of India for the post of COO as part of succession plan for MD & CEO with a view to ensuring stability and effective implementation , within reasonable time (generally 4 to 6 months) prior to the exit of the serving MD&CEO, of long term business strategies. . LIC of India had posted Shri Ashwani Ghai as COO of the Company with effect from 5th September, 2022 (date of Joining LICHFL being 7th September, 2022) and subsequently was appointed as Whole Time Director on 1st November, 2022 whose appointment have been approved by the Members through Postal Ballot. Further on account of transfer of Shri Ashwani Ghai on 13th June, 2023, LIC of India had posted Shri T Adhikari as COO of the Company with effect from 22nd June, 2023 who will be appointed as the Managing Director & CEO of the company in place of Shri Yerur Viswanatha Gowd who will superannuate from the Company on 31st July, 2023

Further, in terms of the Regulation 17 (4) of the SEBI (LODR), 2015 the Company has adopted a succession planning policy for its Key Managerial and senior management personnel which has been hosted on the website of the Company on the below mentioned link:https://www.lichousing. com/static-assets/pdf/Policy_on_Succession_Planning. pdf?crafterSite=lichfl-corporate-website-cms&embedded=true

APPOINTMENTS / RESIGNATIONS OF DIRECTORS: Appointments:

Shri Siddhartha Mohanty (DIN 08058830)

On the resignation of Shri M. R. Kumar (DIN 03628755) from the Chairmanship of the Board of the Company, the Nomination and Remuneration Committee in terms of 'Fit and Proper' criteria adopted by the Board, after having undertaken process of due diligence, and after considering Shri Siddhartha Mohanty (DIN 08058830) suitable and eligible based on evaluation, qualification, expertise, track record, integrity and 'fit and proper' criteria, recommended his appointment to the Board and the Board appointed him as Chairman, Additional Director in the capacity of Non-Executive Nominee Director of the Company with effect from 05th April, 2023. Being appointed as an Additional Director under Articles 143 of the Articles of Association of the Company pursuant to the provisions of Section 152, 161 and other applicable provisions, if any, of the Companies Act, 2013 and the Rules made thereunder, SEBI Listing Regulations, Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank)

Directions, 2021 including any amendment, modification, variation or re-enactment thereof, for the time being in force and in terms of Articles 141, 143 of the Articles of Association of the Company, the appointment was put for approval of members for voting through postal ballot. On approval of shareholders through postal ballot, Shri Siddhartha Mohanty was appointed as Chairman, Director of the Company with effect from 28th June, 2023.

Shri Jagannath Mukkavilli (DIN 10090437)

On resignation of Shri Raj Kumar (DIN 06627311) as Non-Executive Nominee Director of the Board of the Company, The Nomination and Remuneration Committee in terms of 'Fit and Proper' criteria adopted by the Board after having undertaken process of due diligence, and after considering Shri Jagannath Mukkavilli (DIN 10090437) suitable and eligible based on evaluation, qualification, expertise, track record, integrity and 'fit and proper' criteria, recommended his appointment to the Board and the Board appointed him as Additional Director in the capacity of Non-Executive Nominee Director of the Company with effect from 05th April, 2023. Being appointed as an Additional Director under Articles 143 of the Articles of Association of the Company pursuant to the provisions of Section 152, 161 and other applicable provisions, if any of the Companies Act, 2013 and the Rules made thereunder, SEBI Listing Regulations, Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 including any amendment, modification, variation or re-enactment thereof, for the time being in force and in terms of Articles 141, 143 of the Articles of Association of the Company, the appointment as Director liable to retire by rotation, under the provisions of Articles of Association of the Company through a resolution to be passed through postal ballot was put for consideration. On approval of the shareholders through postal ballot, Shri Jagannath Mukkavilli (DIN 10090437) was appointed as Non-Executive Nominee Director of the Company with effect from 28th June, 2023.

Shri Ashwani Ghai (DIN 09733798)

Based on the evaluation, qualification, expertise, track record, integrity, due diligence and the satisfaction of the 'fit and proper criteria', Nomination and Remuneration committee recommended and thereby Board appointed Shri Ashwani Ghai as Chief Operating Officer of the Company with effect from 05th September, 2022. He was inducted on Board of Directors with effect from 01st November, 2022 as Additional Director in the capacity of Whole Time Director. Subsequently, the appointment was approved by the shareholders through postal ballot on 18th December, 2022.

Shri Ravi Krishan Takkar (DIN 07734571)

As per the recommendation of the Nomination & Remuneration Committee, which undertook process of due diligence, and considered the candidature to be suitable and eligible based on evaluation, qualification, expertise, track record, integrity and 'fit and proper' criteria, the Board at its meeting held

on 25th July, 2022, approved the appointment of Shri Ravi Krishan Takkar (DIN 07734571), as an Additional Director (Non Executive-Independent) for a period of five consecutive years, not liable to retire by rotation. The Shareholders of the Company approved his appointment in the 33rd Annual General Meeting (AGM).

Resignation/ Superannuation/ Completion of term: Shri M R Kumar

Shri M R Kumar (DIN 05190124) had tendered his resignation from Directorship of the Company with effect from 13th March, 2023 on attainment of superannuation from the services of LIC of India.

Shri Raj Kumar

Shri Raj (DIN 06627311) had tendered his resignation from Directorship of the Company with effect from 09th February, 2023 on attainment of superannuation from the services of LIC of India.

Shri Jagdish Capoor

The second term of Shri Jagdish Capoor (DIN 00002516) as Independent Director of the Company came to an end on 23rd May, 2022 in terms of terms of the provisions of Section 149 (10) and (11) of the Companies Act, 2013.

Resignation of Shri Ashwani Ghai (DIN 09733798)

Shri Ashwani Ghai resigned as the COO and Whole Time Director of the company with effect from 13th June, 2023 on account of his transfer and appointment as Additional Director to MDC Mumbai by LIC India.

DIRECTOR RETIRING BY ROTATION:

Shri Akshay Kumar Raut who have been longest in office would be retiring by rotation at the ensuing Annual General Meeting and is eligible for re-appointment.

APPOINTMENTS / RESIGNATION OF THE KEY MANAGERIAL PERSONNEL:

Shri Yerur Viswanatha Gowd, Managing Director & CEO, Mr. Sudipto Sil, Chief Financial Officer and Ms. Varsha Hardasani, Company Secretary & Compliance Officer, are the Key Managerial Personnel (KMP) as per the provisions of the Companies Act, 2013.

During the financial year the following changes took place in the positions of the KMPs:

Superannuation of Shri Nitin K Jage

Shri Nitin K Jage, General Manager (Taxation) & Company Secretary (Membership no. FCS8084), superannuated on 31st May, 2022 after completing almost 27 years of service.

Appointment of Ms. Varsha Hardasani

Ms. Varsha Hardasani (Membership no. ACS50448), who possess around 12 years of experience in Secretarial Compliances, Legal Matters, Accountancy and Finance field across different sectors

and who apart from being a Company Secretary is also a Law and Commerce Graduate and also possesses a Masters in Accountancy & Finance, took charge as Company Secretary & Compliance officer of the Company w.e.f. 1st June, 2022.

Resignation of Shri Ashwani Ghai (DIN 09733798)

Shri Ashwani Ghai resigned as the COO and Whole Time Director of the company with effect from 13th June, 2023 on account of his transfer and appointment as Additional Director to MDC Mumbai by LIC India.

COMMITTEES OF THE BOARD:

The Company has various Committees which have been constituted as a part of the best corporate governance practices and are in compliance with the requirements of the relevant provisions of applicable laws and statutes.

The Company has following Committees of the Board:

I) Audit Committee

II) Stakeholders Relationship Committee

III) Nomination and Remuneration Committee

IV) CSR Committee*

V) Risk Management Committee

VI) Executive Committee

VII) Debenture Allotment Committee

VIII) Strategic Investment Committee

IX) IT Strategy Committee

X) Preferential Allotment Committee**

XI) Investment Committee***

XII) Committee for approval of issuance of Duplicate Share Certificate(s)****

XIII) ESG Committee*

*Note: Considering the enhanced regulatory provision for Environmental Social and Governance matters, a separate ESG Committee which earlier was part of CSR-ESG Committee was formed and CSR-ESG Committee was renamed as CSR Committee with effect from 07th June, 2023 on approval at 236th Meeting of Board of Directors.

** Note: The Preferential Allotment Committee is an event based Committee which had been constituted for the limited purpose of allotment of the Equity Shares on private placement basis to the promotors on 8th September, 2021.

***Note: The Investment Committee is an event based Committee which has been constituted to meet only in case any investment proposals needs to be considered. During the year there were two meetings of the said Committee which were held.

****Note: Committee for approval of issuance of Duplicate Share Certificate(s) has only been constituted to sign and approve the request for issuance of Duplicate Share Certificate(s). The approval takes place through circulation of the relevant documents to the signing authorities based on their availability, no physical meeting of the said Committee is held.

Composition of Audit Committee is as follows:

• Shri Kashi Prasad Khandelwal

Chairman Independent Director

• Shri Sanjay Kumar Khemani**

Member Independent Director

• Smt Jagennath Jayant

Member Independent Director

** Shri Sanjay Kumar Khemani was inducted in the Committee w.e.f 15th September, 2021

There has not been any instance during the year when recommendations of Audit Committee were not accepted by the Board.

The details with respect to the compositions, powers, roles, terms of reference etc. of relevant committees are given in detail in the Report on Corporate Governance which forms part of this Report.

SUBSIDIARIES AND GROUP COMPANIES

As on 31st March, 2023, the Company has four Subsidiaries namely, LICHFL Care Homes Limited, LICHFL Asset Management Company Limited, LICHFL Trustee Company Private Limited and LICHFL Financial Services Limited. The Consolidated financial statements incorporating the results of all the subsidiaries of the Company for the year ended 31st March, 2023, are attached along with the statement pursuant to Section 129 of the Companies Act, 2013, with respect to the said subsidiaries. Brief write up including performance and financial position of each of the subsidiaries is provided as under:

1. LICHFL Care Homes Limited

LICHFL Care Homes Limited, a wholly owned subsidiary of LIC Housing Finance Limited, was incorporated on 11th September, 2001 with an authorised share capital of '75 crore. The basic purpose of incorporating the Company was to establish and operate 'assisted living community centres' for the senior citizens.

During the FY 2022-23, the Company reported Losses before Tax of Rs. 26.57 crore and Losses after Tax stood at Rs. 21.31 crore.

The Company has successfully completed a project at Bangalore in two Phases and Jeevan Anand Project at Bhubaneswar.

Further, the Company is in process to develop new Care homes project at Jaipur, Rajasthan and Aluva, Kerala. The Company is also in process to purchase land at various locations across the Country. Going forward, these projects are likely to further improve the overall operations and stability of the Company.

2. LICHFL Asset Management Company Limited

The Company was incorporated on 14th February 2008. The Company is in the business of managing, advising, administering Private Equity Funds including Venture Capital Fund (VCF) and Alternate Investment Fund (AIF)

The Company was appointed as Investment Manager in 2010 to raise and manage the LICHFL Sponsored, LICHFL Urban Development Fund (LUDF). The Company has raised total commitments of '529.35 crore from Banks, Financial Institutions, Corporates and HNIs as against the targeted size of '500 crore and announced financial closure on 30th March, 2013. The Company has deployed INR 461.30 crore in 9 Portfolio Companies, acquisition or operation of affordable / mid income housing, related infrastructure and Hospitals. With receipts from 7 exits, the Fund has so far achieved an IRR of 25.34%.

The Company also launched a new Alternative Investment Fund (AIF) namely LICHFL Housing & Infrastructure Fund (LHIF), with a total corpus of '1000 crore including Green Shoe Option (GSO) of Rs. 250 crore and the focus of the Fund is on Affordable Housing and Property backed Infrastructure in sectors which include Educational Institutions, Hospitals, Industrial Parks & Warehouses. As on 31st March 2022, the total Contribution Agreements signed in respect of LICHFL Housing & Infrastructure Fund is Rs. 812 crore of which the drawable amount is Rs. 765 crore.

The Company has recently registered a New Fund with SEBI - LICHFL Real Estate Debt Opportunities Fund - I on 30th March, 2021 under AIF Category II of SEBI Alternate Investment Fund Regulations 2012 (AIF). The Fund is having a target corpus of Rs. 3,000 Cr (Base corpus of Rs. 2,000 Cr plus Rs. 1,000 Cr as green shoe option). The Fund is envisaged to be raised from both Domestic and Overseas Investors. The focus sector of the Fund is Housing. The Fund has received commitment of 300 crore from LIC of India, Rs. 450 crore from LIC Housing Finance Limited, 65 crore from Indian Bank and IDBI Bank.

During the FY 2022-23, the Company earned a Profit before Tax (PBT) of Rs. 10 crore and Profit after Tax (PAT) stood at Rs. 7.55 crore. The Company has recommended dividend @ 30% for FY 2022-23 on its paid up share capital.

3. LICHFL Trustee Company Private Limited

The Company was incorporated on 5th March, 2008. The Company is undertaking the business of trusteeship services for Venture Capital Funds (VCFs) and Alternative Investment Funds (AIFs).

The Company was appointed as Trustee in 2010 for LICHFL Fund and further appointed LICHFL Asset Management Company Limited (LICHFL AMC) as Investment Manager for the Fund. In 2010 the Company had registered LICHFL Fund with SEBI as Venture Capital Fund (VCF) under the SEBI (Venture Capital Funds) Regulations, 1996. LICHFL Urban Development Fund achieved its financial closure with Rs. 529.35 crore on 30th March, 2013.

The Company was appointed as Trustee in 2017 for LICHFL Housing & Infrastructure Trust (LHIT) and further appointed LICHFL AMC Ltd. as Investment Manager for LICHFL

Housing and Infrastructure Fund (LHIF). The Company had received registration for LHIF on October 2017 from SEBI under Alternative Investment Fund Regulations, 2012 as Category - I Infrastructure. LICHFL AMC launched LICHFL Housing & Infrastructure Fund (LHIF) in October 2017 and achieved initial closing on 31st March, 2018. The Fund announced its final closing on 31st March, 2021.

The Company is recently appointed as Trustee on 30th March, 2021 for a New Fund registered with SEBI - LICHFL Real Estate Debt Opportunities Fund - I on 30th March, 2021 and appointed LICHFL AMC Ltd. as Investment Manager for the Fund.

During the FY 2022-23, the Company earned a Profit before Tax (PBT) of Rs. 0.18 crore and Profit after Tax (PAT) stood at Rs. 0.16 crore.

4. LICHFL Financial Services Limited

LICHFL Financial Services Limited, a wholly owned subsidiary of LIC Housing Finance Limited, was incorporated on 31st October, 2007, for marketing of housing loan, insurance products (Life and General Insurance), mutual funds, fixed deposits, credit cards. It became operational in March, 2008 and at present has 48 offices spread across the country.

The vision of the Company is "SARVESHAM POORNAM BHAVATU" - to provide complete financial solutions" to secure not only the present but also the future of the customer and his family. In this endeavour, the marketing officials assist at every step - right from financial planning to manage every aspect of investment, both for the short & long term.

At present, the Company distributes Life Insurance products of LIC of India, Home Loans & Fixed Deposits of LIC Housing Finance Limited, Mutual Funds of various fund houses, General Insurance products of United India Insurance Company Limited, Tata AIG General Insurance Company Limited and HDFC ERGO General Insurance Company Ltd., Health Insurance products of Aditya Birla Health Insurance Co. Ltd. and Star Health and Allied Insurance Co. Ltd., Credit Cards of LIC Cards Services Limited and Point of Presence for National Pension System (NPS). More business verticals will be added depending on market opportunities and customer needs.

The Company has earned a Profit before Tax (PBT) of '22.23 crore and Profit after Tax (PAT) stood at Rs. 16.34 crore for the FY 2022-23 and recommended dividend @ 30% for FY 2022-23 on paid up share capital of Rs. 9.50 crore.

The Company is striving to improve its Performance across all Business verticals in the coming years.

55

Name/s of Company/ies which have ceased / become subsidiary/joint venture/associate: None

AS ON 31st MARCH, 2023, THE COMPANY HAS TWO ASSOCIATE COMPANIES NAMELY LIC MUTUAL FUND ASSET MANAGEMENT COMPANY LIMITED AND LIC MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED.

The Annual Report which consists of the financial statements of the Company on standalone as well as consolidated financial statements of the group for the year ended 31st March 2023, has been sent to all the members of the Company. It does not contain Annual Reports of Company's subsidiaries. The Company will provide Annual Report of all subsidiaries upon request by any member of the Company. These Annual Reports are also be available on Company's website viz www.lichousing.com.

No significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status and Subsidiary Company's operations in future.

1. LIC Mutual Fund Asset Management Company Limited (LICMFAMC)

LIC Mutual Fund was established on 20th April 1989 by LIC of India. LIC Housing Finance Limited holds 39.30 % equity in this entity. Being an associate company of India's premier and most trusted brand, LIC Mutual Fund is one of the well-known players in the asset management sphere. With a systematic investment discipline coupled with a high standard of financial ethics and corporate governance, LIC Mutual Fund is emerging as a preferred Investment Manager amongst the investor fraternity.

LIC Mutual Fund endeavours to create value for its investors by adopting innovative and robust investment strategies, catering to all segments of investors. LIC Mutual Fund believes in providing delight to its customers and partners by way of superior investment experience and unparalleled service thereby truly bring them Khushiyaan, Zindagi Ki.

For the FY 2022-23 both the Profit before Tax (PBT) as well as Profit after Tax (PAT) of LICMFAMC stood at Rs. 1.08 crore, as there was no tax expense.

2. LIC Mutual Fund Trustee Company Private Limited

LIC Mutual Fund Trustee Private Limited (Trustee Company) is the Trustee to the Mutual Fund, LICMFAMC. LIC Housing Finance Limited holds 35.30 % equity in this entity. LIC of India is the Sponsor of the Mutual Fund. The AMC either directly or through third party service providers engaged by the AMC (Service Providers) such as the Registrar and Transfer agents collects, receives, possesses, stores, deals or handles information received from investors/client/ customers whether existing or prospective.

The Company has earned a Profit before Tax (PBT) of Rs. 1.59 lakhs and Profit after Tax (PAT) stood at Rs. 1 lakhs for the FY 2022-23.

FINANCIAL DETAILS OF SUBSIDIARIES

Pursuant to the provisions of Section 129(3) of the Companies Act, 2013 ('the Act'), a statement containing salient features of the financial statements of subsidiaries, joint venture and associate companies in Form AOC-1 is attached to the financial statements. The separate financial statements of the subsidiaries are available on the website of the Company and can be accessed at https://www.lichousing.com/subsidiary-financials.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively. Note on Internal Financial Control as Annexure 1 is attached to this report.

VIGIL MECHANISM / WHISTLE BLOWER POLICY:

The Company has a Whistle Blower Policy in place which provides whistle blowers an opportunity to raise concerns relating to reportable matters as defined in the policy. The mechanism adopted by the Company encourages the whistle blower to report genuine concerns or grievances and provides for adequate safeguards against victimisation of whistle blower who avails of such mechanism and also provides for direct access to the Chairman of the Audit Committee. The Vigil Mechanism / Whistle Blower Policy is reviewed annually or as and when the regulators amendments are required to be incorporated therein, as the case may be.

During the period under review there was no concerns or grievances reported under Vigil Mechanism/ Whistle Blower Policy.

EMPLOYEE STOCK OPTION:

The company does not have any Employee stock option scheme. EMPLOYEE REMUNERATION:

Disclosure pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year:

Non-Executive Directors (including Ratio to median
Independent Directors)* remuneration
Nil N.A.

‘Remuneration is not paid to Non-Executive Directors (including Independent Directors)

Executive Director Ratio to median remuneration
Shri Yerur Vishwanatha Gowd (MD&CEO) 5:1
Shri Ashwani Ghai (WTD&COO) 3:1

b. The percentage increase in remuneration of each director, Chief Executive Officer, Chief Financial Officer, Company Secretary in the financial year:

Non-Executive Directors % increase in
(including Independent remuneration in the
Directors)* financial year
Nil N.A.

*No remuneration is paid to Non-Executive Directors (including Independent Directors)

KMP % Increase in remuneration
in the financial year
MD&CEO 9.22%
WTD&COO N.A.
Chief Financial Officer** 28.21%
Company Secretary*** N.A.

* Shri Ashwani Ghai (WTD&COO) was appointed 05/09/2022 hence no comparable figure is available for FY 2021-22 ** the increase in remuneration of Chief Financial Officer was on account of promotion from Joint General Manager Cadre to General Manager Cadre

***As there was change in Company Secretary on account of superannuation of Shri Nitin Jage and appointment of Smt Varsha Hardasani the increase in remuneration is not applicable.

c. The percentage increase in the median remuneration of employees in the financial year:

15.33%

d. The number of permanent employees on the rolls of the Company:

2462

e. Percentage increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer:

Particulars 31st March, 15th November %
2023 1994 (IPO) Change
Market Price (in ') 328.70** 12* 2639.17

*Adjusted Issue price on account of sub-division **BSE-closing Price '328.70

f. Average percentile increase already made in the salaries of employees other than managerial personnel in the financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

Increase in managerial remuneration for the year was 9.22%. The average annual Increase in the salaries of the employees other than managerial personnel during the year was 15.33%.

g. Affirmation that remuneration is as per the Remuneration Policy of the Company:

The Company affirms that the remuneration is as per the Remuneration Policy of the Company.

During the year the Company has not engaged any employee drawing remuneration exceeding the limit specified under Section 197(12) read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

In terms of Section 136(1) of the Companies Act, 2013 read with the Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board's Report is being sent to all the shareholders of the Company excluding the annexure containing names of the top ten employees in terms of remuneration drawn. Any shareholder interested in obtaining a copy of the said annexure may write to the Company at: The Company Secretary, LIC Housing Finance Limited, Corporate Office, 131 Maker Towers, 'F' Premises, 13th Floor, Cuffe Parade, Mumbai - 400 005.

Prevention, Prohibition & Redressal of Sexual Harassment of women at workplace:

As per the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, your Company has in place a Policy on Prevention, Prohibition & Redressal of Sexual Harassment of Women at Workplace and has a robust mechanism to redress the complaints reported thereunder. An Internal Committee has been constituted, which comprises of internal members who have experience in the subject field.

Pursuant to the provisions of Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the complaints received thereunder and the details relating thereto are as follows:

(a) Number of complaints received in the year: Nil

(b) Number of complaints disposed of during the year: Nil

(c) Number of cases pending more than ninety days: Nil

(d) Number of workshops or awareness programme against sexual harassment carried out: Nil

(e) Nature of action taken by the employer or district officer: Nil

Your Company on a regular basis sensitises its employees on prevention of sexual harassment through various workshops, awareness programmes.

It may be mentioned here that the Company has Zero tolerance towards any action on the part of any executive / staff which may fall under the ambit of 'Sexual Harassment' at workplace, and is fully committed to uphold and maintain the dignity of every women working in the Company.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS/ EXCHANGES

The Company has received the notice for delay of compliance under Regulation 57(1), 60(2), 17(1), 50(1) and 52(7)/(7A) of Listing Regulations from Stock Exchanges total amounting to ' 8,27,820/- against which waiver application has been filed as the deviations were beyond the control of the Company. The matter is presently under consideration of the Stock Exchange(s).

Pursuant to the letter from RBI dated 31/10/2022, in relation to non-compliance to provisions of relevant directions under Sub-sections (1) & (2) of section 29 B of the NHB Act. the Company was levied a penalty of ' 5,00,000/-. The Company has paid the penalty on 07th November ,2022.

The Company confirms that these are not significant or material in nature.

HUMAN RESOURCES

The Company aims to align HR practices with business goals, increase productivity of Human resources by enhancing knowledge, skills and to provide a conducive work environment to develop a sense of ownership amongst employees. Productive high performing employees are vital to the Company's success. The contribution and commitment of the

employees towards the performance of the Company during the year were valued and appreciated. The Company recruited employees during the year for various positions and promoted employees to take up higher responsibilities. Apart from fixed salaries, perquisites and benefits, the Company also has in place performance-linked incentives which reward outstanding performers, who meet certain performance targets. In pursuance of the Company's commitment to develop and retain the best available talent, the Company had organised and sponsored various training programmes / seminars / conferences for upgrading skill and knowledge of its employees in different operational areas.

Employee relations remained cordial, and the work atmosphere remained congenial during the year.

ACKNOWLEDGMENTS

The Directors place on record their appreciation for the advice, guidance and support given by the Life Insurance Corporation of India, the National Housing Bank, the Reserve Bank of India and all the bankers of the Company. The Directors also place on record their sincere thanks to the Company's clientele, lenders, investors and members for their patronage. The Directors express their appreciation for the dedicated services of the employees and their contribution to the growth of the Company.

   

LIC Housing Finance Ltd Company Background

Siddhartha MohantyY Viswanatha Gowd
Incorporation Year1989
Registered OfficeBombay Life Building 2nd Floor,45/47 Veer Nariman Road
Mumbai,Maharashtra-400001
Telephone91-22-22040006/22049682/22049919,Managing Director
Fax91-22-22049839
Company SecretaryVarsha Hardasani
AuditorSGCO & Co LLP/Khandelwal Jain & Co
Face Value2
Market Lot1
ListingBSE,Luxembourg,MSEI ,NSE,
RegistrarSharex Dynamic (India) Pvt Ltd
Unit No 1 Luthra Ind,Andheri Kurla Road ,Safed Pool Andheri(E,Mumbai - 400 072

LIC Housing Finance Ltd Company Management

Director NameDirector DesignationYear
V K KukrejaNon-Exec. & Independent Dir.2023
Ameet N Patel.Non-Exec. & Independent Dir.2023
Dharmendra BhandariNon-Exec. & Independent Dir.2023
P Koteshwara RaoNon-Exec. & Independent Dir.2023
Kashi Prasad KhandelwalNon-Exec. & Independent Dir.2023
Sanjay Kumar KhemaniIndependent Director2023
Akshay RoutDirector2023
Y Viswanatha GowdManaging Director & CEO2023
J JayanthiIndependent Director2023
Varsha HardasaniCompany Sec. & Compli. Officer2023
Ravi Krishan TakkarIndependent Director2023
Siddhartha MohantyChairman (Non-Executive)2023
Jagannath MukkavilliNominee (LIC)2023

LIC Housing Finance Ltd Listing Information

Listing Information
BSE_500
BSE_200
BSEDOLLEX
CNX500
BSEMID
CNXMIDCAP
CNXMID50
CNX200
CNXFINANCE
CNXDIVIDEN
BSEALLCAP
BSEFINANCE
MID150
LMI250
MSL400
BSEEVI
BSEDFINRVG
NFTYLM250
NFTYMC150
NFTYMSC400
NF500M5025

LIC Housing Finance Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest IncomeRs.00019688.46
Other Operating IncomeRs.000113.04
Fees & Commission IncomeRs.00098.17
Net Gain on Derecognition of FRs.00019.4
DividendRs.0005.2
Gain on Sub Lease AssetRs.0001.23
Management FeeRs.0000
Processing Fees & Oth. ChargesRs.0000
Residual Income on PTC BRs.0000
Income from InvestmentsRs.0000
Profit on Sale of InvestmentsRs.0000

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