Overview
The Company is registered with the Reserve Bank of India (RBI) as a non-deposit accepting NBFC. As per RBIs Scale Based Regulations (SBR), the Company shall be classified as NBFC- Base Layer (NBFC-BL) as the Company has no public deposits. The Company is listed with Bombay Stock Exchange Ltd and the Calcutta Stock Exchange Ltd.. The Company is principally into lending and investing in Shares and Securities.
Indian Economy
India continues to consolidate its position as a major global economic powerhouse. Retaining its rank as the fifth-largest economy, it remains the fastest- growing among large economies and is projected to become the third-largest economy by 2027, surpassing a GDP milestone of US$5 trillion, trailing only the USA and China. For CY2025, Indias growth is forecast to remain robust at 6.2%, supported by resilient domestic demand. Indias export performance has shown impressive momentum over the past decade. In FY 2025, total exports reached 69.1 trillion (US$825 billion), marking a 6% increase compared to 65.2 trillion (US$778 billion) in FY 2024. Over this period, Indias share in global merchandise trade improved from 1.66% to 1.81%, elevating its global ranking from 20th to 17th position. Indias foreign exchange reserves experienced notable fluctuations in FY 2024-25. Reserves peaked at an all-time high of US$704 billion in September 2024, before easing by 6.5% to
US$659 billion by March 2025, partly due to the Reserve Bank of Indias interventions aimed at curbing excessive volatility in the Indian Rupee. The countrys digitalisation journey has been transformative, reshaping economic activity at an unprecedented pace. By 2030, the digital economy is projected to account for one-fifth of Indias GDP, outpacing the growth of traditional sectors. According to the State of Indias Digital Economy Report 2024, India now ranks as the third-most digitalised economy globally and 12th among G20 nations in terms of digital adoption by individual users. The Union Budget 2025 26 has been crafted to sustain growth while maintaining fiscal prudence. With measures to simplify regulations, support MSMEs, enhance exports, and attract investments, the budget lays down a clear roadmap towards Viksit Bharat 2047. Its emphasis on tourism, healthcare, and manufacturing is expected to generate employment opportunities.
Furthermore, a targeted fiscal deficit of 4.4% for FY 2026 underscores the governments commitment to fiscal consolidation, debt sustainability, and macroeconomic stability, encouraging greater private sector participation.
Indian Economy Outlook
India is expected to remain relatively shielded from global headwinds, maintaining its strong growth trajectory. The countrys long-term structural growth drivers remain intact, supported by favourable demographics, stable governance, and ongoing infrastructure development. As per the IMFs World
Economic Outlook Report, India will continue to lead as the fastest-growing major economy, with growth underpinned by an expanding services sector, a strengthening manufacturing base, and supportive government policies aimed at improving infrastructure and rationalising tax regimes.
Capital Markets - Industry Overview
India continues to hold its place as the fourth-largest equity market globally, with a market capitalisation exceeding US$4.0 trillion.
Market Performance in FY 2024-25
The Indian equity market closed FY 2025 with modest gains, despite notable foreign portfolio investor (FPI) outflows in the latter half of the year. The Nifty index delivered positive returns, outperforming certain Asian benchmarks such as Nikkei 225 and the Korea Composite Stock Price Index, while the Hang Seng Index topped regional charts with a remarkable 39.8% return. Midcap and smallcap indices on the NSE and BSE had a strong finish to the year, fuelled by market recovery, heightened retail participation, and attractive valuations. The Nifty Midcap150 and Nifty500 rose 7.6% and 5.4%, respectively, while the BSE Smallcap index gained 8% and the midcap index advanced 5.6%. By comparison, the Sensex posted a 5.1% increase during the same period. Despite earlier concerns over valuations and market volatility, renewed optimism in the broader markets helped sustain momentum in these segments.
Global Economy
The global economy demonstrated resilience through 2024 (Calendar Year 2024), recording an expansion of 3.2%, according to the IMF World Economic Outlook (April 2025). However, escalating trade frictions and increasing policy unpredictability are expected to weigh heavily on global growth momentum. For CY2025, the world economy is projected to moderate to 2.8%, followed by 3% in CY2026, which remains well below the historical average of 3.7% (2000 2019) due to ongoing structural challenges. While robust real income gains and easing interest rates supported economic activity, weaker public expenditure, subdued consumer sentiment, and fluctuating external demand constrained growth in certain geographies. Within advanced economies, the United States is expected to slow to 1.8% in CY2025, impacted by rising policy uncertainty, softening demand, and trade-related tensions. The euro area is projected to expand 0.8% in 2025, with an improvement to 1.4% in 2026 as financial conditions ease. Other advanced economies are anticipated to maintain steady growth, with income recovery counterbalanced by trade headwinds.
In emerging markets and developing nations, economic growth is likely to ease to 3.7% in 2025, reflecting the effects of recent trade restrictions. Chinas growth outlook has been revised down to 4% in 2025, amid lingering tariff impacts and prolonged trade-policy uncertainty. In contrast, India is expected to maintain stability, with growth forecast at 6.2% for 2025 and 6.3% for 2026, aided by sustained private consumption, particularly in rural areas. Global trade volumes rose by US$1.2 trillion in 2024, reaching US$33 trillion, supported by 9% growth in services trade and 2% in goods trade. Notably, trade in developing economies grew faster than in advanced economies, with China and India outperforming, while several developed nations experienced contractions. However, with the Trump 2.0 administration introducing new tariffs, and the likelihood of reciprocal actions from major trade partners, the global economy faces a phase of elevated trade tensions. Despite this,
Indias trade outlook remains resilient, backed by a strong services base, proactive domestic reforms, and strategic export diversification into high-value segments such as electronics and pharmaceuticals. Looking ahead, global growth is expected to moderate further to 2.8% in CY2025, shaped by new bilateral tariff regimes and rising geopolitical and policy uncertainties.
Indias NBFC Sector
India, as one of the worlds fastest-growing major economies, continues to provide a favourable environment for the expansion of its credit markets. The total NBFC credit outstanding stood at approximately 52 trillion as of December 2024 and is projected to cross 60 trillion by FY 2025-26, underscoring the sectors sustained growth trajectory. Within the overall lending landscape comprising banks, NBFCs, and All-India Financial Institutions, NBFCs have consistently maintained a 21 24% share of total credit from FY 2016-17 to FY 2023-24, highlighting their critical role in Indias financial ecosystem. As the country works towards becoming a US$5 trillion economy, the demand for credit will continue to rise, further cementing the importance of NBFCs in driving economic growth and enabling access to finance. Retail loans remain the cornerstone of NBFC growth, accounting for 58% of total NBFC credit as of December 2024. Within this segment, unsecured business loans formed 28% of retail NBFC credit, reflecting rising demand for small-ticket, short- tenure financing. However, the Reserve Bank of India, concerned about the rapid expansion in unsecured personal loans and credit card portfolios, raised risk weights on unsecured retail loans by 25 bps to 125%, prompting tighter risk management practices. In FY 2024-25, certain asset segments, including microfinance, personal loans, credit cards, and unsecured business loans, faced higher stress, resulting in elevated delinquencies and write-offs. Despite these challenges, NBFCs have strengthened their balance sheets over the years, with reduced leverage, improved asset quality, and a strategic shift towards the retail segment.
The sector is also leveraging digital data and technology to enhance credit assessment and improve operational efficiency. Investor confidence remains strong, supported by sustained equity interest and an untapped pool of overseas debt capital offering additional growth avenues. With this stable foundation and adaptive capabilities, NBFCs are well-positioned to navigate an evolving regulatory environment while maintaining growth momentum and supporting Indias broader economic development.
Opportunities and threats
The RBI has been continually strengthening the supervisory framework for NBFCs in order to ensure sound and healthy functioning and avoid excessive risk taking. It has issued several new guidelines in the recent past. The uncertainties and volatility in the financial market are a continuing threat to the organizational performance. However, the twin features of foresightedness and focused analysis of the market have challenged the threat of adverse performance
Financial condition
Refer to the Standalone and Consolidated financial statements in this Annual Report for detailed schedules and notes.
No movement in equity shares during the year.
20% of the net profit is transferred to the Special Reserve Account created pursuant to Section 45 IC of RBI.
Non financial liabilities include deferred tax liability created on investment in equity instruments measured at fair values through other comprehensive income.
Financial assets includes Loans and Advances and Investments in equity shares of quoted and unquoted companies.
Non-financial assets include current tax assets and other assets.
Results of operations
The Company has earned a net profit of Rs. 441.37 lakhs during the financial year 2024-2025. The Company has generated major income this year from Interest on Loan and Sale of Shares and Securities, dividends received on equity instruments and other interest income.
Outlook, risks and concerns
Your Company is exposed to normal industry risk such as interest rates, market and operational risks. In order to mitigate the risk, your Company invest the surplus funds in growth schemes primarily seeking to generate long term capital appreciation commensurate with prudent risk from a portfolio comprised substantially of high quality securities and large cap companies.
Internal Financial Control System and their adequacy
The Company believes in the system of internal controls and has provided for proper checks and control at various operational levels.
Material developments in human resources/ industrial relations, including number of people employed
There has been positive working relationship between the Company and the employees of the Company during the year. The Company strives to provide conducive working environment to its employees and to maintain the pace with the economic situations, Company has always focused on enhancing the efficiency of the employees including restructuring their compensation, working conditions e.t.c. Accordingly, the Company has also provided work from home facility to its employees and evaluated the performance of employees during the year under review to retain the motivation among the employees of the Company.
CAUTIONARY STATEMENT
This statement made in this section describes the companys objectives, projections, expectation and estimations, which may be forward looking statements within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realised by the company. Actual result could differ materially from those expressed in the statement or implied due to influence of external factors, which are beyond the control of the company. The company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.
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