WIXLIB

GLORIOUS JOURNEY OF 25 YEARSPATTotal 998199920172000200120022003200420051Loans and 26.792Interest n for 90.040.340.630.931.50(0.39)0.501.084.126Cash ad Debts W/o (Net)0.080.110.150.170.210.430.390.330.650.658Bad Debts w/o onLoans O/s (%)2.611.611.571.421.372.742.501.863.312.439Bad Debts 0Net otal .7712Outside 512.1 Bank 912.2 2.3 Intercorporate Loans0.000.000.002.093.465.683.906.765.989.56Other 5.034.0113Debt To Equity Ratio0.951.532.032.533.102.722.802.141.803.2014ROE ( 15ROA 0

AUMShare capitalCAGR-59.0Shareholder's 6,354201719932017( in 1.00961.21996.94 88.73967.43 1,154.67 1,247.69 1,060.10 1,111.94 1,293.05 96.095.655.314.003.493.79S. E. Investments Limited 2016-1711

LETTER TO SHAREHOLDERSIN 2016-17OUR TOTAL INCOMEGREW BY 29%,FROM 193 CRORESTO 250 CRORES.Dear Shareholders,It is with great pleasure that I present to you theCompany's Annual Report for FY17 against thebackdrop of increasing optimism within India. Atthe onset, I would like to thank each and everyshareholder of our Company who has shownutmost trust and confidence on the businessmodel, its management and its business strategy.The sector of Non-Banking Financial Company, inwhich we operate play an important role in nationbuilding and financial inclusion by complementingthe banking sector in reaching out credit to theunbanked segments of society, especially to themicro, small and medium enterprises (MSMEs),which form the cradle of entrepreneurship andinnovation. Our ground-level understanding of thecustomers' profile and their credit needs gives usan edge, as does our ability to innovate andcustomise products as per our client's needs. Thismakes us the perfect channel for delivering creditto MSMEs. The NBFC sector in India hasundergone a significant transformation over thepast few years. It has come to be recognised asone of the systemically important components ofthe financial system and has shown consistentyear-on-year growth. As of November 2016, the12outstanding credit to NBFCs stood at USD 55.27billion, growing at a rate of 25 per cent on Year onYear basis. Bank credit granted to Non-BankingFinancial Companies (NBFCs) has touched thehighest in 3 years.I am pleased to share with you that this year marks25th year of our company being in business. Ourtotal income grew from Rs. 193 Crores to Rs. 250Crores, a growth of 29% over the period ascompared to previous year. We are even morepleased that we have been able to maintain ourasset quality at high standards. Profit after taxgrew from Rs. 45 Crores to Rs. 51 Crores, a growthof 14%. Our AUM grew from Rs. 1,293 Crores toRs. 1,534 Crores witnessing a growth of 19 %. Wehave built an extensive reach of 26 locationsacross the country to service our client base.Keeping this in mind, during the financial year2016-17, we have opened various new branches.I'm happy to inform you that your companycontinues to enjoy a credit rating of IND A-.Therehave been notable trends in the NBFC space like,focus on financial inclusion - RBI has emphasisedthe need to focus on spreading the reach ofbanking services to the unbanked population ofIndia. Focus towards Jan Dhan Yojana - Key

thAnnual Report“CREATING VALUE FOR SHAREHOLDERS—INVESTORS, CUSTOMERS, EMPLOYEES ANDTHE COMMUNITY—IS THE BACKBONE OFOUR BUSINESS. WE FOCUS ON CREATINGLONG LASTING AND TRANSFORMATIONALVALUE FOR EACH OF THEM.objective of Pradhan Mantri Jan Dhan Yojana(PMJDY) is to increase the accessibility offinancial services such as bank accounts,insurance, pension, credit facilities, etc. mostly tothe low income groups. Under the Jan DhanYojana, as on April 5, 2017, 282.3 million newaccounts were opened & around USD 9,515.30million were deposited with the banks under thisscheme.We are reaping benefits from increased usage oftechnology. Now we are able to do mobile loanfinancing in just 24 Hrs. All it requires is AadharCard and Bank account and with the help oftechnology we use, we are able to deliver smallticket size loans within 24 hrs even in remotelocations where the company operates.”I would like to assure you that all our employeesare working extremely hard with great dedication,high energy and strong commitment through theyear for your Company. I sincerely thank them all. Iwould also like to thank all our stakeholders forreposing their faith in us and thank our regulators,for their constant support and guidance.We will continue to stay focussed on creatingvalue for both external and internal stakeholders. Iwish to express my thanks to all our Directors fortheir valuable contribution.I thank you all once again and offer my best wishesfor a very bright and prosperous year ahead.Best WishesThe NBFC segment is a catalyst to the economicdevelopment of the country. The RBI is constantlystriving to bring necessary changes in the NBFCregulatory space to proactively provide regulatorysupport to the segment and also to ensurefinancial stability in the long run. We hope that theforthcoming changes in the pipeline will furtherstrengthen the robustness of the sector and allowu s to o p e ra t e i n a n e n a b l i n g re g u l a to r yenvironment.Sd/Sunil AgarwalManaging DirectorS. E. Investments Limited 2016-1713

MANAGEMENTDISCUSSION& ANALYSIS

thAnnual ReportMANAGEMENT DISCUSSION & ANALYSISGlobal EconomyAccording to the World Bank, Global growth isestimated to have slowed in 2016 to a post-crisislow of 2.3 percent, as global trade stalled,investment decelerated, and policy uncertaintyincreased. A moderate recovery is expected in2017, with global growth forecast to increase to2.7 percent, mainly driven by improvements inemerging market and developing economies.However, downside risks still dominate globaleconomic prospects and are associated withheightened policy uncertainty, protectionistpressures, and risk of financial market disruptions.Growth in emerging market and developingeconomies (EMDEs) is expected to pick up in2017, reflecting receding obstacles to activity incommodity exporters and continued soliddomestic demand in commodity importers. Weakinvestment and productivity growth are, however,weighing on medium-term prospects across manyEMDEs.(Source: Global Economic Prospects: Divergence and Risks, a report by TheWorld Bank and IMF vanced economiesEMDEsS. E. Investments Limited 2016-1715

Indian EconomyThe Indian economy is currently seeing aculmination of positive domestic indicators.Economic growth has picked up and both thegovernment and the IMF expect it to be 7.2% inFY17. India's statistics department has estimatedeconomic growth in 2016-17 at 7.2%. The AsianDevelopment Bank said India's economy is set togrow at 7.4% in financial year 2017-18 against7.1% the previous year, on the back of a pick-up inconsumption demand and higher publicinvestment. The fiscal deficit is on track, as per thetarget of 3.5%, and retail inflation has dipped tobelow 5%.NBFC size substantially lower vs. other economies2641307433UKJapanUS292726China Germany Thailand Malaysia13IndiaThree years into its term in office, the currentGovernment has covered considerable ground interms of reforms, creation of housing and16infrastructure and making it easier to do businessin India. Most importantly, the Cabinet approved aproposal for the introduction of the Micro, Smalland Medium Enterprises Development(Amendment) Bill, 2015, which aimed at theamendment of the Micro, Small and MediumEnterprises Development Act, 2006. TheGovernment has also made great headway in itsmission to promote financial inclusion. The “JanDhan Yojana” and other schemes that proposetargeted subsidies have been further cementedwith the passing of the Aadhaar (Targeted Deliveryof Financial and Other Subsidies, Benefits andServices) Bill, 2016.India is expected to be the third largest consumereconomy as its consumption may triple to US 4trillion by 2025, owing to shift in consumerbehavior and expenditure pattern, according to aBoston Consulting Group (BCG) report; and isestimated to surpass USA to become the secondlargest economy in terms of purchasing powerparity (PPP) by the year 2040, according to a reportby Pricewaterhouse Coopers. Also, the PrimeMinister, Mr. Narendra Modi has stated that Indiahas become the world's fastest growing largeeconomy, and is expected to grow five-fold by2040, owing to a series of policy measures.

thAnnual ReportOverview of the NBFC Sector:NBFCs are rapidly gaining prominence asintermediaries in the retail finance space. NBFCsfinance more than 80 per cent of equipmentleasing and hire purchase activities in India. As of30 t h June 2017, there were 11,523 NBFCsregistered with the Reserve Bank of India, of which178 were deposit accepting (NBFCs-D) and 11,345were non deposit accepting (NBFCs-ND), whilearound 2926 NBFC's registered companiescertification has been cancelled (As of 30th June2017). New RBI guidelines on NBFCs with regardto capital requirements, provisioning norms &enhanced disclosure requirements are expectedto benefit the sector in the long run.THE GOVERNMENT HASALSO MADE GREATHEADWAY IN ITS MISSION TOPROMOTE FINANCIALINCLUSION. THERE LIES ANENORMOUS POTENTIAL INNBFC'SThe credit penetration in India is low compared toother economies. On similar benchmarks, the nonbank finance penetration in India is even lower.NBFC's credit penetration in GDP of India at 13% issignificantly behind developed economies like UK(264%), US (130%), Japan (74%) and also wellbehind emerging economies like China (33%),Thailand (27%) and Malaysia (26%).Lower credit penetration in India vs. other economies447374244165UKJapanUS149127217China Germany Thailand Malaysia97India(Total credit as % of GDP) / Source: EIU, International Financial StatisticsDatabase, RBI, Global Shadow Banking Monitoring Report 2015, BCG analysisNBFC size substantially lower vs. other economies264Indian economy has a huge latent credit demandfueled by a massive self-employed population thatis underserved by the banks. The recentdevelopments in deepening the wholesale debtmarkets bode well with liquidity for funding forNBFCs. The report also expects that the growth inNBFC credit to further accelerate over the next 510 years.(A study by the Boston Consulting Group)1307433UKJapanUS292726China Germany Thailand Malaysia13India(NBFC credit as % of GDP) / Source: EIU, International Financial StatisticsDatabase, RBI, Global Shadow Banking Monitoring Report 2015, BCG analysisS. E. Investments Limited 2016-1717

Business Overview S. E. Investments Limited (SEIL) is a Non-DepositTaking Systemically Important Non-BankingFinancial Company (ND-SI-NBFC) engaged inlending to individuals, SSIs, SMEs and othermanufacturing, trading and service sectorentities/ organizations for income generationactivities. It has a large and growing presence inthese segments and caters to their multiplefinancing needs. Through its extensive reach andproprietary underwriting methods, it providesessential debt capital to MSMEs in a quick,affordable and convenient manner.1,431.34 CrTotal Disbursements7.7 Lakhs Customers Financed55,241 LakhsNet WorthThe Company is providing a number of financialproducts like Business Loans, MSME Loans andIncome Generation Loans, which are expected totake the growth of the Company to a higher level.38.08%CRARSME ConsumersShort termbusinessfundingLoans forbusinessexpansionLoansfor plant &machineryLoans foroffice spaceLoansforAgricultureCattlesBusiness SegmentsCompany operates in two segments, viz1996-991002000-04100secured loans and2005-092010-141.51498.5unsecured loansFY2015AUM: 10 Cr (Avg)AUM: 26 CrAUM: 134 CrAUM: 1,080 CrPAT: 0.33 CrPAT: 0.73 CrPAT: 7.81 CrPAT: 56.83 Cr77.75AUM: 1,112 Cr78AUM: 1,293 Cr77AUM: 1,534 CrCustomers: 6.55 Lakhs Customers: 7.09 Lakhs Customers: 7.7 LakhsPAT: 44.52 Cr18FY2017232222.2586FY2016(in %)PAT: 45.13 CrPAT: 51.30 Cr

thAnnual ReportProducts OfferedBusiness LoansMSME's/SME/BusinessLoansIncome GenerationLoansEasy EMI FinanceSchemeTicket Size 1 Lakh - 10 LakhsTicket Size 10 Lakhs - 10 CroreTicket Size 15,000 - 1 LakhTicket Size 20,000 - 1 LakhProfitabilitySEIL ended the financial year on a positive notewith pre-tax profits of Rs. 7,719 Lakhs and post-taxprofit of Rs. 5,129 Lakhs against Rs. 6,860 Lakhsand Rs. 4,513 Lakhs respectively in the previousyear. SEIL always focuses on maximizing thewealth of investors. With a continued focus oncontrolling the costs and maintaining comfortabledebt equity ratio, the company is witnessingimproved profitability and belief for sustaining thesame in the coming years.( in ,383.953.42%Customers7,74,1907,09,2589.15%Total Loan 1%Total ExpenditurePATNet WorthTotal AssetsAsset Under Management (AUM)( in Cr.)Company's total AUM crosses 1,500 Cr. 20151342005-0920162017S. E. Investments Limited 2016-1719

Fulfilment of the RBI's Norms and StandardsSEIL fulfils and exceeds norms and standards laid down by the RBI relating to the recognition andprovisioning of non–performing assets, capital adequacy, statutory liquidity ratio, etc. The Company hasmaintained a healthy capital adequacy ratio over the years, which is well above the RBI norm of 15%. Asof March 31, 2017, the overall capital adequacy ratio of the Company is 38.08%.SEIL has maintained a Capital Adequacysignificantly higher than regulatory requirementsover the years. Regulatory requirement of TotalCAR is 15%The Company has raised primary capitalconsecutively over the years. The increasingbottom line growth has also been contributing tothe overall Net worth for the Company.CARTotal Net worth48.30%47.48%39.28%41.69%( in 152016201720132014201520162017Credit Rating“IND A-” by M/s India Ratings & Research Private Limited - For 2017.A-A-A-A-A-Credit Rating provided byM/s India Ratings & Research Private LimitedA2013201420152016Before 2016, Credit Rating provided by CARE India LimitedFor 2017, Credit Rating provided by India Ratings & Research202017

thAnnual ReportFinancial PerformanceThe following table presents the results of the Company's operations for the year ended March 31, 2017( in Cr.)Year endedMarch 31,2017249.52Year endedMarch 37%EBIT165.56133.4724.04%Finance Cost88.3764.8736.22%PBT77.1968.6012.52%Tax larsTotal IncomeTotal Expenses( in Cr.)Interest Income% change29.04%( in 2014454520152016512017Debt Equity RatioOperational Sustainability RatioAt the end of the financial year 2016-17 theCompany's equity base is 40.56 Crores and DebtEquity Ratio stands at 1.76 %.The Company has seen a sustained operationalefficiency over last few 0.92201320142015201620172013201420152016S. E. Investments Limited 2016-17201721

Our InitiativeAt SEIL, Digital Loan Process (DLP) wassuccessfully rolled out not only for mobilefinancing but also in small ticket size incomegeneration loans this year. Now the entire loanprocess is automated thereby resulting not onlyincreased efficiencies, toned up delivery time, costsaving which in turn not only leads to maximiserevenue but also contributing to achievingoverarching objective of Digital India.During the financial year 2016-17, Company haslaunched a new product line “Group Finance” withthe objective of providing financial support tounderprivileged and women. As our Hon’ble PrimeMinister Shri Narendra Modi Ji also has vision andmission of “Saab ka Saath Saab ka Vikas” wherebycurrent government under his able leadershipstarted an Initiative called “JAM” i.e. Jan Dhan,Aadhar, Mobile for laying the foundation ofmission “Digital India”. After the launch of “JAM”government has already made phenomenalprogress in opening Jan Dhan Saving BankAccounts linked to Aadhar (A unique biometricidentity of each citizen of India). Now it was ourturn to take forward the dream of our Hon’blePrime Minister by starting a “Digital Loan Scheme”for Income Generation Scheme (IGL) and to reacha maximum number of underser

The company is having robust credit appraisal system which helps to bring clean customer on board. The application for loan gets filtered through 3 layered credit processing. Approx. 37% of the total applications get disbursed after thorough scrutiny and checks. Till date company has disbursed 7,74,190 cases, This