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Assam Financial Corporation (AFC), incorporated under the State Financial Corporations Act of 1951, is a pioneer financial institution of the North East region for long term finance as well as working capital support to M SM Es. The Corporation is playing a major role in the development and industrialization ofAssam extending financial assistance to Micro, Small and Medium Enterprises both in manufacturing and service sector. Since inception AFC has nurtured 6877 MSME projects spread over the length and breadth of the State. Operating at the grass root level, AFC is playing a significant role for the economic & industrial development of the state by encouraging first generation entrepreneurs and creating employment opportunities for unemployed youths of the state. In the face of numerous challenges arising from the pandemic, the Corporation has successfully positioned itself as the preferred partner for aspiring young entrepreneurs in the State. Following the post¬COVID period, the Corporation's performance has witnessed enhancement due to a series of reforms. These initiatives include reducing interest rates, embracing digitization to enhance customer experience, and focusing on improving productivity, revenue, and the overall quality of the loan portfolio. These efforts underscore the Corporation's commitment to offering a diverse range of high-quality products and services. The following outlines the performance highlights of the Corporation in key result areas, including sanction, disbursement, and recovery, for the benefit of our shareholders: • The total loan amount reached INR 1910 lakh and total loan disbursed was INR 2398 lakh during FY 2022-23. This is a significant increase compared to the previous year's figures of INR 944 lakh sanctioned and INR 547 lakh disbursed. • The Corporation achieved a total loan recovery of INR 2036 lakh in FY 2022-23, marking a growth of 13.44% from the previous year's INR 1795 lakh. • The Corporation recorded a total income of INR 919 lakh in FY 2022-23, reflecting an increase from INR 811 lakh in the previous year, attributed to enhanced recovery from NPA accounts. • The loan portfolio increased to INR 6960 lakh as of March 31, 2023, compared to INR 5862.46 lakh on March 31, 2022. However, it's important to note that the portfolio size remains below the sustainable level, impacting operational results. • In the Tnicrofinance sector, the Corporation sanctioned INR 1170 lakh in FY 2022-23, compared to INR 604 lakh in the previous year. Notably, the Corporation has achieved almost a 100% loan recovery rate since its inception in FY 2009-10. • The Corporation has sanctioned and disbursed total loan of INR 7166 lakh and Rs 6546 lakh respectively in micro finance sector and provided livelihood support to about 70000 women beneficiaries of the State so far. The Corporation has successfully implemented the prestigious "Chief Minister's Micro Finance Scheme" with 100% recovery rate previously. I would like to inform you that the Corporation, faced with high operating costs primarily attributed to personnel and administrative expenses, needs to increase its operational volume to attain self¬sustainability. Consequently, I seek continued support from the Government of Assam, the Small Industries Development Bank of India, and all other stakeholders for the all-round success of our organization and to further contribute to the socio-economic development of the state. In the evolving business landscape, AFC's role in the development of the MSME and MF sectors has been growing. Stakeholders will be pleased to learn about the Corporation's ambitious plan to undergo a complete transformation of its activities. We are proposing to engage the Government of Assam to designate our state-owned organization as implementing agencies for various government schemes such as Chief Minister's Atmanirbhar Asom Abhijan, Kshyamata, Assam Agribusiness Investment Fund, etc., on behalf of the Government of Assam. Additionally, we are putting forth a new scheme to provide livelihood support to women entrepreneurs in the state by encouraging the establishment of various income-generating activities, offering financial support at subsidized interest rates in collaboration with various line departments and with budgetary support from the Government ofAssam. Our organizational goals will be achieved through the strength of our employees, and we seek their continuous involvement in meeting our objectives. The organization is committed to its shareholders by maximizing wealth through sustained growth within the overall framework of the spirit of Public-Sector Enterprises, ensuring an optimal balance between commercial objectives and the goals of social service to the state and the nation at large. Therefore, I seek the continued patronage of our valued customers, the cooperation of our employees, and extend gratitude to all stakeholders and well-wishers who have contributed to the betterment of the organization. In a rapidly changing financial sector, we believe that embracing change quickly and wholeheartedly is essential to remain a strong market player. The Corporation has received support and guidance from all quarters, particularly from the Government of Assam and SIDBI. We hope for this support to continue in the years to come, enabling us to achieve our goals and objectives. In conclusion, I express my gratitude to all stakeholders and well-wishers who have contributed to the betterment of the organization. I am confident that with the continued support of all, the Corporation will overcome challenges and reach the self-sustainability in its operations in the coming years.


(LAYA MADDURI, IAS)
MANAGING DIRECTOR
Guwahati:Dated 21-12-2023