Dear Shareholders

I extend my warm welcome to all of you on this occasion of the 55th Annual General Meeting of Assam Financial Corporation. It gives me immense pleasure to present before you the Annual Results of Assam Financial Corporation for FY-2008-09, highlighting the annual operational performance together with the Statements of Accounts for the year ended 31st March, 2009 and Auditor’s Report. I am glad to inform you that the Corporation has been able to push forward in its efforts for “turn around” with improved performance recording net profit for 3rd consecutive year. I would like to thank all the dedicated employees of the Corporation for this achievement. Before presenting the performance highlights of the Corporation, let me briefly mention here the over all economic scenario for financial year 2008-09.

Overview of Economic Scenario

Indian economy has been witnessing a robust growth since the last decade. After recording growth rates over 9 percent for the last couple of years, it is still holding its ground in the midst of the current global financial crisis. The country’s gross domestic product (GDP) grew by 6.7 per cent in 2008-09, lower than the government’s estimated 7.1 per cent but high enough to ensure that India remains among the fastest growing economies in the world. The economy of India is the twelfth largest in the world by market exchange rates and the fourth largest in the world by GDP measured on a purchasing power parity (PPP) basis .It is predicted that India would continue being the second fastest growing economy in the  world despite the ongoing global economic downturn.

The fiscal year 2008-09 was marked by global financial crisis and high fluctuation in the domestic inflation rate. The inflation dipped to 0.44% by the end of the fiscal year. There are so many sectors in India that are continuously growing at high speed and that too at a time of financial crisis. The banking sector of India, IT sector, Indian media & entertainment industry, real estate and automobile industry of India are some of sectors performing well. For the entire fiscal, manufacturing grew by just 2.4 per cent against 8.2 per cent in 2007-08. Agriculture posted 1.6 per cent growth in 2008-09 against 4.9 per cent in 2007-08. The services sector, which has been India’s prime growth engine for the last five years, is slowing, mainly in construction, transport and communication, trade, hotels and restaurants sub-sectors. MSME sector has remained pivotal to Indian economy contributing 45% of the total manufacturing output and nearly 40% of total export employing around 42 million people. Recent data indicate that the demand for bank creditthrough SHG & JLG and has been recognized as an effective means of empowering the rural and economically backward section of the society. The Corporation is expected to play a vital role in this new segment of state economy as a major player with its proposed foray with a fund of Rs 10.00 crores set aside by Govt. of Assam under its Chief Minister’s Micro Finance Scheme. The Corporation has appointed a consultant for developing a Whole Sale Micro Finance Product   including a programme manual, capacity building of the employees of the Corporation, etc.

Corporate Governance

The Corporation is following Corporate Governance Practice for its effective functioning with transparency, accountability and fairness. The Board of Directors meetings are held regularly for periodical review of its operation with appropriate policy direction.

The Year Ahead

The Corporation will focus on improving its business with better customer service with growth in sanction and disbursement, increased non-fund based activities, and venturing into micro finance in the year ahead. We are also working on setting up a Venture Capital fund with support of Govt. of Assam etc.

Govt Support

Continued support of Govt. of Assam for restructuring of the Corporation during the concluded year has been highly encouraging. Govt. of Assam has released its committed fund of Rs 5.00 Crores during the FY 2008-09 as additional share capital. Govt. of Assam has further released the fund for Micro Finance of Rs 10.00 crores to the Corporation.

Acknowledgement

I on behalf of myself and the Board of Directors express my gratitude to the valued customers of the Corporation for their continued faith and confidence in the Corporation. I am thankful to the shareholders and stake holders of the Corporation for their trust and belief in the Corporation.

I acknowledge the valued support, assistance and guidance of Govt. of Assam to the Corporation for its revival. I place my deep appreciation to the Govt. of Meghalaya, Manipur, Tripura for their support and co-operation extended to the Corporation.

I am grateful to IDBI,SIDBI, RBI, LICI, COSIDICI, SBI, PNB and other Sate and National level Financial and Development Institution , co-operative banks etc for their co-operation and support to the Corporation.

I convey special thanks to the Managing Director, management team, and employees of the Corporation for their dedicated service to the Corporation.

Ladies and Gentlemen, thank you and my best wishes to you all.

Place : Guwahati                                                                                               (Abhijit Barooah)

Dated : 30.07.2009                                                                                            CHAIRMAN