1. Industry Structure and Developments
The Indian NonBanking Financial Companies (NBFC) sector continues to play a crucial role in the development of the financial system by providing diversified credit solutions to underserved and unbanked segments. FY 2024 25 witnessed a sustained recovery in demand for credit, aided by improving macroeconomic fundamentals, digital transformation, and favourable government policies. The Reserve Bank of India (RBI) also focused on strengthening the regulatory architecture through the ScaleBased Regulation (SBR) framework.
Capfin India Limited herein after referred to as the company, being a registered nondeposit taking NBFC under RBI and listed on the BSE has maintained compliance with all regulatory requirements and currently evaluating and adapting to the evolving landscape through digitisation and customercentric innovation in finance sector.
2. Opportunities and Threats Opportunities:
Rising demand for credit in Tier 2 and Tier 3 cities
Government focus on financial inclusion and MSME support
Use of technology to expand credit reach and reduce operational costs
Strategic tieups with fintech platforms
Threats:
Rising competition from fintech and small finance banks
Credit risk due to potential borrower defaults
Economic disruptions impacting liquidity and repayment cycles
3. Segmentwise or Productwise Performance
During the year under review, since company is being working in a single segment therefore the specific performance does not stand eligible.
4. Outlook
The mediumterm outlook for NBFCs remains positive, supported by sustained credit demand from the informal sector and MSMEs, along with a stable regulatory environment. Capfin India Limited aims to leverage these opportunities by:
Actively pursuing business opportunities,
Maintaining a generic business approach to cater to diverse customer and market needs, and
Strengthening governance and compliance frameworks.
With these focused initiatives, the Company remains committed to delivering growth while ensuring financial stability and regulatory compliance.
5. Risks and Concerns
The company remains exposed to various risks:
Credit Risk: Inherent in lending operations; managed through robust credit appraisal systems.
Liquidity Risk: Addressed through ALM planning and maintaining adequate liquidity buffers.
Operational Risk: Regular system audits and cybersecurity checks are in place.
Regulatory Risk: Continuous monitoring of regulatory updates and prompt compliance is ensured.
6. Internal Control Systems and Their Adequacy
The company has implemented adequate internal control systems to safeguard its assets and ensure proper accounting and compliance. Periodic internal audits are conducted, and findings are reviewed by the Audit Committee.
7. Financial and Operational Performance
During FY 2024 25, the company achieved the following financial highlights: (Rs. In lakhs)
Total Income: 90.89
Net Profit After Tax: 16.22
Net Worth: 654.69
The growth reflects Capfin Indias prudent financial management and commitment to delivering value to stakeholders.
8. Human Resources
The company believes in developing a strong and motivated workforce. Following the acquisition by the new management, Capfin India is in the process of establishing adequate HR controls and strengthening its internal people management systems. This includes recruitment planning, performance management, policy updates, and employee engagement to ensure alignment with the companys renewed vision and growth strategy.
9. Cautionary Statement
Certain statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, and expectations may be forwardlooking statements within the meaning of applicable laws and regulations. Actual results may differ materially due to economic conditions, government policies, and other factors beyond the Companys control.
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