The Board of Directors of Haryana Financial Corporation has pleasure in
presenting the 58^th Annual Report on the working of the Corporation together with
the Audited Financial Statements of Accounts for the year ended 31^st March, 2025.

FINANCIAL RESULTS

During the financial year 2024-25 the Corporation has achieved the following
working results.

(Rs. in Crore)

Explanation

* During the last (FY 2023-24), the Other Income was Rs.30.19 Crore which
included a sum of Rs.26.43 crore the income from sale of Corporate Building at
Panchkula and Rs.2.27 crore (P.Y. Rs. 1.77 crore) as interest income from Bank
deposits.

OPERATIONAL HIGHLIGHTS

The Corporation has already stopped sanction of the loans w.e.f. May, 2010 as
already stated in the previous Annual Reports. The details of the operations of the

Corporation i.e. recovery of its dues during the year are given as under:-

RESOURCES MANAGEMENT

The Corporation has stopped fresh Sanctions since May, 2010. No borrowings
from the market/banks have been made during the year. As stated earlier, the
Corporation has since repaid its borrowings and there is no outstanding loan against the
Corporation. The Corporation utilized its limited resources for meeting the
commitments/liabilities during the year.

SHARE CAPITAL FROM STATE GOVT.

Since the State Government has already decided to wind up the Corporation,
the State Govt, has not sanctioned/released any amount towards share capital during
the year.

CORPORATE GOVERNANCE/MANAGEMENT DISCUSSION & ANALYSIS REPORT

The Corporate Governance and Management discussion and Analysis report as
per SEBI (Listing Obligations a Disclosure Requirements) Regulations, 2015, is annexed
as Annexure with the Directors' Report. A certificate from M/s Sharma Sarin & Associates, Company Secretaries, on the above for the year ending on 31^st March, 2025
is also annexed with this report.

DEMATERIALIZATION FACILITY

The demat facility of the Corporation has been activated. The ISIN No. issued
to the Corporation is INE737G01016.

LISTING

The equity shares of the Corporation are listed at BSE Ltd. (BSE Script Code
No.530927). The Corporation has paid the Annual Listing fee of Rs. 3.25 lakh plus GST
to the Stock Exchange (BSE) within time. The State Govt (being Promoter) had filed an
exemption application with SEBI in accordance with Regulation 42 of SEBI (Delisting of
Equity Shares) Regulations, 2021 for delisting of shares of the Corporation from Bombay
Stock Exchange and the SEBI had granted certain exemptions/relaxations to the
Corporation from delisting procedure subject to certain conditions.

AUDIT

The shareholders in its 57^th Annual General Meeting held on 30.12.2024 as per
provisions of section 37 of State Financial Corporations’ Act, 1951, had appointed M/s
Prem Ravinder & Co., Chartered Accountants, Chandigarh (on the panel of the RBI) as
Statutory Auditors for the financial year 2024-25, (for 4^th term), who have conducted
audit of the Financial Statements of the Corporation, which form part of the Report.

As per RBI guidelines, in the normal course, an audit firm may continue for a
term of 4 years in one spell. The term of 4 years of existing statutory auditors M/s
Prem Ravinder & Co., Chartered Accountants, Chandigarh has been completed.
Accordingly, the RBI vide their letter dated 05.06.2025 have forwarded a list containing
the names of the eligible audit firms based at Chandigarh and complying with the
norms for appointment as Statutory Auditors in public sector banks for appointment as
Statutory auditors for the years 2025-26. The name of the one audit firm has been
short listed and the item for appointment of statutory auditors for the year 2025-26
has been included in the notice for the AGM.

AUDIT BY COMPTROLLER & AUDITOR GENERAL OF INDIA (CAG)

The Comptroller & Auditor General of India (CAG) had conducted the audit of
the accounts of the Corporation upto FY 2024-25 and their report along with replies of
Management thereto shall form part of this Directors’ Report and is being forwarded to
the State Govt, for placing before the State Legislature.

CASH FLOW STATEMENT

In conformity with the provisions of SEBI (LODR) Regulations, 2015, the Cash
Flow Statement for the year ending on 31.03.2025 is annexed with the Annual
Accounts.

BOARD OF DIRECTORS

The composition of the Board of Directors of your Corporation as on 31.03.2025
was as under:-

During the year under review, four meetings of Board of Directors were held on
30.05.2024, 14.08.2024, 12.11.2024 and 13.02.2025. The detail of the number of
meetings of the Board held during the Financial Year 2024-25 form part of the Report
on Corporate Governance in terms of regulation 34(3) of SEBI (LODR) Regulations, 2015.

POSITION OF WINDING UP/LIQUIDATION OF CORPORATION

It was already informed to the shareholders in the previous Annual General
Meetings that the proposal for liquidation/winding up of the Corporation has been
forwarded to the State Govt and the State Govt, has appointed Managing Director,
HSIIDC as the Nodal Officer for commencing and completing the liquidation
proceedings. Further, the Merchant Banker for delisting procedure of the Corporation,
has already been appointed and further action is being taken.

ACKNOWLEDGMENTS

The Board of the Haryana Financial Corporation wishes to place on record its
special thanks and gratitude to Govt, of Haryana, Department of Industries &
Commerce, Finance Department and Small Industrial Development Bank of India (SIDBI)
for their continuous co-operation and support in all the operational/financial matters.

The Board wishes to take the opportunity to thank the Banks and
shareholders for extending their support and cooperation.

The Board of Directors placed on record its appreciation of the contribution
made by the outgoing Directors.

The Board placed on record its appreciation for the services rendered by the
staff of the Corporation at different levels during the year.

For and on behalf of Board of Directors

Dated: 26.02.2026

Place : CHANDIGARH MANAGING DIRECTOR