Shareholders meeting

SUNDARAM FINANCE LIMITED 21, PATULLOS ROAD, CHENNAI - 600 002 MINUTES OF THE PROCEEDINGS OF THE 73^** ANNUAL GENERAL MEETING OF THE SHAREHOLDERS OF SUNDARAM FINANCE LIMITED HELDT HROUGH VIDEO CONFERENCING ON WEDNESDAY, THE 22"^ DAY OF JULY2 026 BETWEEN 10.00 A.M. AND 10.40 A.M. PRESENT: MEMBERS* 112 * includes Directors and Key Management Personnel whow ere present in person at a central location Chairman Mr. S. Viji Mr. T.T. Srinivasaraghavan** Mr. Srivats Ram** Dr. R. Raghuttama Rao Directors Mr. L. Ganesh** Mrs. Bhavani Balasubramanian** Mr. R. Venkatraman** Mrs. Anuradha Rao Executive Vice Chairman Mr. Harsha Viji Managing Director Mr. Rajiv C. Lochan Joint Managing Director Mr. A.N. Raju Chief Financial Officer Mr. M. Ramaswamy CCO & Company Secretary Mr. P.N. Srikant Mr. P. Babu, Brahmayya & Co**. Mr. L. Ravi Shankar, Brahmayya & Co**. Statutory Auditors Mr. K. Venkatakrishnan, R.G.N. Price & Co**. Mr. Vinay M Kothari, R.G.N. Price & Co**. Secretarial Auditor Mr. M. Damodaran, Damodaran & Associates LLP** Scrutinizer Mr. T. K. Bhaskar, Partner, H&B Partners** ** attended through video conference mode SUNDARAM FINANCE LIMITED 21, PATULLOS ROAD, CHENNAI - 600 002 Mr. S. Viji occupied the Chair and called the meeting to order. He informed the members that a certificate had beeno btained from the practising Company Secretary regarding compliance with Securitiesa nd Exchange Board of India (Share Based Employee Benefits and Sweat Equity)R egulations, 2021. With the permission of the members, Notice of the Meetingw as taken as read. The Secretary informed the shareholders that the AuditorsR’ eport on the accounts for the year ended 31®* March 2026, being an unqualified one, was not required to be read out at the Annual General Meeting as per the provisionso f Section 145 of the Companies Act, 2013. Mr. S. Viji, Chairman, then delivered his Speech, highlighting the following points: . The global economic environment remained challenging during the year, marked by geopolitical tensions, tariff measures and the outbreako f war in West Asia in late February 2026, which affected confidence and growth prospects. . Disruptions to critical energy infrastructure andr estrictions around the Strait of Hormuz affected freight movement and supply chains,p articularly for crude oil, hydrocarbons, fertilisers and other essential commodities. • In this context, the World Economic Outlook’s “referencef orecast” projects global growth at 3.1 per cent in 2026 and 3.2 per cent in2 027, compared with 3.4 per cent during 2024-25. Over the medium term, growth ise xpected to remain below the historical average of 3.7 per cent recorded during2 000 to 2019. Global headline inflation is projected at 4.4 per cent in2 026 and 3.7 per cent in 2027, reflecting upward revisions and continuing external pressures. ♦ Prospects could improve if structural reforms regainm omentum and trade tensions ease durably. For now, the global environmentc alls for prudence, agility and close monitoring. . Against this backdrop, the Indian economy remainedr esilient in financial year 2025-26. As per official estimates under the revisedG DP series with base year 2022-23, real GDP grew by 7.6 per cent. Real GVA grewb y 7.7 per cent, led by SUNDARAM FINANCE LIMITED 21, PATULLOS ROAD, CHENNAI - 600 002 services, industry, and agriculture, which grew by9 .1 per cent, 6.2 per cent and 3.1 per cent respectively. . Inflation first moderated and then normalised. HeadlineC PI inflation fell from about 3.8 to 4.0 per cent in early 2025 to near zerob y October 2025 before rising to around 3.9 per cent by May 2026 due to unfavourableb ase effects and higher energy and food costs. • Core inflation remained broadly stable at around3 .4 per cent. During financial year 2025-26, the Reserve Bank of India’s MonetaryP olicy Committee moved from a restrictive stance to calibrated easing. Thep olicy repo rate was reduced cumulatively to 5.25 per cent by December 2025. . In early financial year 2026-27, the West Asia crisisa ffected industrial activity due to disruptions in gas and chemical supplies. The Governmentr esponded with timely measures to address supply disruptions, preservee nergy security, support trade and logistics, and maintain macroeconomic stability. • The Monetary Policy Committee adopted a cautiousw ait-and-watch approach and kept the policy repo rate unchanged at 5.25 perc ent. The Reserve Bank actively managed liquidity to support monetary transmissionw hile preserving financial stability. It also encouraged capital inflows through Foreign Currency Non-Resident Bank deposits and External CommerciaBl orrowings to strengthen external buffers and support durable domestic liquidity. • On the fiscal front, India’s fiscal deficit stooda t 4.4 per cent of GDP in financial year 2025-26 and is estimated at 4.3 per cent in financiayl ear 2026-27. . During financial year 2025-26, the Indian Rupee cameu nder pressure from United States tariff measures, sustained portfolioo utflows and elevated energy import costs linked to the West Asia conflict. Continuedg eopolitical uncertainties underscore the need for continued vigilance on externasl ector risks. . After a modest start, the Indian automotive industryr ecorded its highest-ever sales across the principal vehicle segments in financiayl ear 2025-26. This was the first such peak in seven years. Domestic saleso f passenger vehicles, commercial vehicles, two-wheelers and three-wheelersr eached record levels, aided by improved affordability, lower policy rates, income-tax slab changes, GST-related reforms and sustained domestic demandA. ccording to the Society SUNDARAM FINANCE LIMITED 21, PATULLOS ROAD, CHENNAI - 600 002 of Indian Automobile Manufacturers, this performancew as driven largely by momentum in the second half of the year. . Passenger vehicle sales rose 7.9 per cent year-on-yeart o 46.4 lakh units, representing the segment’s highest-ever annual volumeT. he growth was aided by both the government’s income tax and GST reformsa s well as the RBI’s interest-rate measures, better affordability and strongerc onsumer sentiment. . The commercial vehicle segment recorded sales of1 0.8 lakh units, up 12.6 per cent over the previous year. This was supported bGy ST-related reforms, fleet operator demand, increased economic activity, publicc apital expenditure and lower financing costs after the policy repo rate reduction. . Electric light commercial vehicles gained acceptanceb ecause of favourable total cost of ownership and organised fleet adoption. Electrics mall commercial vehicles also gained early traction, aided by intra-city logistics demand. • The tractor and farm equipment segment grew stronglyd uring financial year 2025-26, increasing by 23.5 per cent over the previous year. Growth was aided by favourable monsoon conditions, improved rural sentiment,s tronger farm incomes and lower financing costs. • Automotive exports grew by 24 per cent, reflecting the continued global acceptance of Indian automotive products. Passengerv ehicle exports reached their highest-ever level for the second consecutivey ear, growing 17.5 per cent over financial year 2024-25. Commercial vehicle exports rose 17.4 per cent. • The outlook for the automotive sector in financialy ear 2026-27 remains favourable, supported by strong macroeconomic fundamentalsa nd healthy domestic demand. . The Company’s disbursements grew by 13.8% to ?32,321c rores during the year under review, despite external demand uncertaintiesG. rowth was recorded across all geographies, though it was muted in somea sset classes. Gross receivables under management stood at ?70,137 croresa s of 31st March 2026, up 16.3% over the previous year. Margins remained underp ressure. However, prudent risk pricing and competitive resource mobilisationb y the treasury team, enabled by your Company’s AAA credit rating, helpeds ustain margins at a healthy level. SUNDARAM FINANCE LIMITED 21, PATULLOS ROAD, CHENNAI - 600 0 [Showing first 8,000 characters — download PDF for full document]