U. Y. Fincorp Ltd

Dear Shareholders,

It gives me great pleasure and immense pride in placing before you the 31st Annual Report of your Company for the financial year 2023-24, marking yet another remarkable chapter in our journey together.

Global economy continues to present a mixed picture. Multiple factors like the on-going geopolitical conflicts, wide-spread elevation of debt, extreme weather conditions and elections in many parts of the world continue to contribute to the uncertainty of the Global Economic Outlook. Encouragingly, inflation has softened over the highs of the previous year and is expected to continue to moderate. Global GDP growth is expected to remain low at 3% for 2024. Country variations will continue, with different parts of the world growing at varied pace. The Indian economy was among the fastest-growing in the world before the onset of the COVID-19 pandemic. In the years leading up to the global health crisis, the country's economic indicators posted gradual improvements. The twin deficits, namely current account and fiscal deficits, narrowed, while the growth inflation mix showed a positive and sustainable trend. As the country progresses, demand for credit is likely to remain strong, especially among Micro, Small and Medium Enterprises (MSMEs) and retail, and is projected to grow by 13.5-14.0 per cent.

Expansion of business operations into newer loan segments under the New Brand name

“GrowU. Money” has received positive response under its pilot project in the areas of lucknow and Kanpur, it is now inter alia expanding further into central and eastern Uttar Pradesh covering Prayagraj, Varanasi, Sonbhadra, Ayodhya, Deoria and Gorakhpur regions. The Company had also entered into various Business Correspondent Agreements for expansion of its business. The Company has also digitalized the onboarding disbusrement process of small ticket sized Loan with the monthly run rate of approx Rs. 100 Lakhs with an interest rate ranging between 24-33% p.a.

“GrowU. Money”, founded with the mission to democratize financial access, has consistently focused on providing innovative financial solutions to individuals and businesses. From its inception, the company has embraced cutting-edge technology to offer services such as personal finance management, investment advisory, and secure digital transactions. This commitment to innovation has not only attracted a broad customer base but also garnered significant investor interest.

In the rapidly evolving landscape of fintech, the Company emerged as a formidable player, setting new benchmarks for growth and innovation. As the company reports its latest financial performance for the stock exchange, it is evident that strategic vision, technological prowess, and customer-centric approaches have propelled the Company to new heights.

We are committed to maintaining the highest standards of corporate governance credit scoring model, to leverage data analytics and modelling techniques to help assess clients' credit worthiness. We have also expanded our team of experienced professionals, who bring their expertise to bear on our operations in order to enhance our capacity to serve our customers better. Your Company strong financial performance has solidified its position as a leader in the fintech & NBFC sector. The company's innovative solutions and strategic foresight position it well to capitalize on emerging trends in digital finance. Looking ahead, several factors are expected to drive further growth:

Expansion into New Markets: Plans to enter new geographical markets and diversify service offerings are likely to open

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up new revenue streams.

Enhanced Product Offerings: Upcoming product launches and enhancements are set to attract a wider audience and

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increase user engagement.

Sustainability Initiatives: A focus on sustainable finance and ethical investing is expected to resonate with socially

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conscious investors and users.

Your Company has developed a new strategic plan for growth in order to achieve transformation in its preparation for the future. The Company intends to continue its efforts of mainstreaming financial inclusion and providing affordable credit to customers in the lower half of the socio-economic pyramid. The Company aims to create value for its customers, employees, and shareholders, by expanding operations in existing areas, expanding to newer geographies through organic, as well as inorganic opportunities and exploring new ways in its journey to the 'next'.

At the heart of everything we do, we try to deliver excellent service, making customers connected with us, feel recognised, respected and valued with each interaction. Over more than three decades of rich knowledge enables us to develop products and services according to the specific needs of our customer across various locations. Our continues focused on stringent credit norms has helped us in maintaining assets quality over the years. Quality and Profitability has been the underlying philosophy that has guided your Company over the years and shall continue to do so in the future as well. As always, preservation of asset quality will remain a key imperative.

The year 2023-24 has been a great one for us, as we ended the year with the highest ever disbursements and portfolio size, with the fully capacitized and diverse management team by Company's expansion into central and eastern Uttar Pradesh and many more. We are constantly building on our existing strengths, while at the same time envisaging our business priorities to reach new

horizons of growth and opportunities and also re-assured stability and soundness in terms of overall business performance by achieving revenue from operations of 12,185.29 Lakhs as against 5,557.17 Lakhs in the previous year and recorded profit before tax of 8,437.63 Lakhs as against 1,110.86 lakhs in the financial year 2022-23.

At U. Y. Fincorp Limited, employees are an integral part of the organization's journey isn't a trite saying. Every HR strategy that we adopt, aims at helping employees contribute at the highest, perform at their peak by building the right skills, eliciting the right attitude. In an increasingly competitive market for talent, the Company continues to focus on attracting and retaining right talent. It is committed to provide right opportunities to employees to realise their potential. Your Company focuses on widening organisational capabilities and improving organisational effectiveness by having a competent and engaged workforce. Our people are our partners in progress and employee empowerment has been critical in driving our organisation's growth to the next level.

On behalf of the Board and on my own behalf, I place on record my sincere appreciation and gratitude to our Bankers, RBI, SEBI, MCA, Registrar and Share Transfer Agents, Registrar of Companies, Stock Exchanges, Depositories, Customers, Business Associates & Auditors for their continued support and the confidence they have reposed in the Company. I record my special appreciation of the tireless efforts of Team U. Y., a dedicated and loyal band of people who have displayed unswerving commitment to their work in these challenging times and helped the Company deliver strong results. I owe my gratitude to the Company's valuable shareholders for their continued patronage & co-operation and seek their continued support and cooperation in future.

Sincerely,