Financial Highlights (FY 2025-26 vs FY 2024-25)

  • Total Income: ₹710.00 Lakhs (vs ₹205.54 Lakhs) - 245.44% increase
  • Total Expenditure: ₹643.15 Lakhs (vs ₹42.34 Lakhs) - 1419.82% increase
  • Profit Before Tax: ₹66.85 Lakhs (vs ₹163.20 Lakhs) - 59.04% decrease
  • Profit After Tax: ₹82.55 Lakhs (vs ₹135.85 Lakhs) - 39.23% decrease
  • Basic EPS: ₹1.55 (vs ₹2.86) - 45.80% decrease
  • Loan Portfolio: ₹2,689.51 Lakhs as of March 31, 2026
  • Net Owned Fund: ₹612.21 Lakhs as of March 31, 2026

Annual General Meeting Details

  • 33rd AGM Date: Thursday, September 24, 2026 at 11:00 AM IST
  • Mode: Video Conferencing/Other Audio Visual Means (VC/OAVM)
  • Cut-off Date: September 17, 2026
  • Remote e-voting Period: September 21, 2026 (9:00 AM) to September 23, 2026 (5:00 PM)

AGM Agenda Items

Ordinary Business:

1. Adoption of audited financial statements for FY ended March 31, 2026

2. Re-appointment of Smt. Sarika Kumbhat (DIN: 08032091) as Director retiring by rotation

Special Business:

3. Borrowing Limit Enhancement: Special resolution to approve borrowing under Section 180(1)(c) of Companies Act, 2013 up to ₹43,00,00,000 (increased from previous limit of ₹37 crores)

4. Creation of Charge: Special resolution to authorize creation of mortgage/charge on company assets under Section 180(1)(a) to secure borrowings within the enhanced limit

Capital Structure

  • Authorized Share Capital: ₹15,00,00,000 (15,000,000 equity shares of ₹10 each)
  • Paid-up Share Capital: ₹5,32,80,000 (5,328,000 equity shares of ₹10 each) - unchanged during FY26
  • Dematerialized Shares: 29,58,700 shares (55.53% of total paid-up capital)

Director Details

Mr. Sanjay Kumbhat (Managing Director, DIN: 03077193)

  • Appointment: December 30, 2017; Re-appointed: September 1, 2025
  • Qualification: B.Com
  • Experience: 28+ years business experience, 10+ years in NBFC sector
  • Shareholding: 11,89,690 equity shares (22.33%)

Smt. Sarika Kumbhat (Non-Executive Director, DIN: 08032091)

  • Appointment: December 30, 2017
  • Qualification: B.A.
  • Experience: 9+ years in NBFC sector
  • Shareholding: 82,326 equity shares (1.55%)
  • Seeking re-appointment at AGM

Independent Directors:

  • Mr. Sakthivel Murugan (DIN: 08531800) - Appointed August 8, 2019
  • Mr. S Ramabadran (DIN: 01280165) - Appointed December 15, 2020; Re-appointed for 5 years from December 15, 2025

Key Management Changes

  • Mr. Mohan Raj S resigned as Company Secretary and Compliance Officer on February 28, 2026
  • Mr. Bharath Selva Ganesh P appointed as Company Secretary and Compliance Officer effective March 1, 2026

Board and Committee Meetings

  • Board Meetings: 7 meetings held during FY26 with 100% attendance by all directors
  • Audit Committee: 6 meetings with 100% attendance
  • Nomination & Remuneration Committee: 2 meetings
  • Stakeholders Relationship Committee: 5 meetings
  • Risk Management Committee: 3 meetings

Regulatory Compliance Observations

Secretarial Audit Report contained the following observations:

1. General delays in ROC return filings

2. SDD non-compliance status displayed on BSE website

3. Delay in submission of promoter declaration under SEBI Takeover Regulations for FY25

4. Some instances of delay in updating digital database for UPSI

5. Former stock exchanges where company was listed have ceased operations

The company has implemented corrective measures for these observations.

Related Party Transactions

Transactions during FY26 included:

  • Rental expenses to promoter relatives: ₹4.80 lakhs
  • Website charges to Kumbhat Bazaar: ₹0.61 lakhs
  • Managerial remuneration to Sanjay Kumbhat: ₹10.50 lakhs
  • Unsecured loan from Sanjay Kumbhat: ₹550 lakhs (₹200 lakhs repaid during year)
  • Interest on director's loan: ₹21.59 lakhs

All transactions were at arm's length and approved by the Board.

Borrowings and Financial Arrangements

  • Total Borrowings: ₹1,962.50 lakhs as of March 31, 2026 (vs ₹1,500 lakhs previous year)
  • Primary Lenders: M/s Monet Securities Private Limited and M/s Maa Creations Private Limited
  • Interest Rates: 12% per annum on most borrowings
  • Terms: Various tenures from 1-5 years, some with moratorium periods

Asset Quality and Provisioning

  • Gross NPA: ₹1.61 lakhs (0.06% of loan portfolio)
  • Total Provisions: ₹29.50 lakhs (ECL model)
  • Stage 3 (Credit Impaired) Assets: ₹1.61 lakhs
  • Loans Written Off: ₹7.25 lakhs during FY26

Dividend and Reserves

  • No dividend recommended for FY26 to conserve resources for business requirements
  • ₹16.51 lakhs transferred to Statutory Reserve as required by RBI Act
  • Retained Earnings: Negative ₹189.20 lakhs

Other Significant Disclosures

  • Inter-se Share Transfers: 5,11,200 shares transferred among promoter family members to Sanjay Kumbhat during FY26
  • Vigil Mechanism: Whistle Blower Policy in place
  • Sexual Harassment: No complaints received during FY26
  • Corporate Governance: Provisions not applicable as company below threshold limits
  • Net Worth: ₹612.20 lakhs, above RBI requirement of ₹5 crore but below enhanced ₹10 crore requirement
  • RBI Compliance: Company holds valid Certificate of Registration as NBFC-ND-SI

Forward-looking Statements

The Management Discussion & Analysis contains cautionary statements about forward-looking statements being subject to various risks and uncertainties including economic conditions, government policies, regulatory changes, competition, and other factors beyond the company's control.

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