**Aastamangalam Finance Limited** (formerly known as **Upasana Finance Limited**) is a Chennai-based **Non-Banking Financial Company (NBFC)** incorporated in **1985**. Registered with the **Reserve Bank of India (RBI)** as a **Non-Deposit taking Loan Company (NBFC-ND)** (Registration No. **B-07-00421**), the company has recently undergone a strategic rebranding and capital restructuring to pivot toward aggressive growth in the Indian credit market. --- ### **Core Business Model and Specialized Lending Operations** The company operates a streamlined, single-segment business model focused exclusively on **Financing Activities**. By avoiding diversified business lines, management maintains a concentrated focus on credit delivery and asset quality. * **Lending Portfolio:** The company provides both **short-term and long-term financing** solutions. Its client base is diversified across **corporate and non-corporate entities**, offering a mix of **secured and unsecured** loan products. * **Target Market & Financial Inclusion:** A key strategic pillar is the expansion into **untapped rural and semi-urban markets**. The company targets underserved segments, including **first-time borrowers, small traders, and farmers**, leveraging flexible loan terms to compete in areas where traditional banking penetration is low. * **Asset Management & Recovery:** A critical component of the operational framework is the active concentration on the **recovery of overdue receivables**. The company employs a dual-track strategy: * **Legal Proceedings:** Utilizing statutory frameworks for debt recovery. * **Direct Negotiation:** Engaging in settlements for early debt resolution to maintain liquidity. --- ### **Strategic Capital Expansion and Funding Roadmap** To transition from a legacy entity to a high-growth NBFC, Aastamangalam Finance has aggressively scaled its capital base and borrowing limits between **2023 and 2025**. | Strategic Initiative | Date | Financial Impact / Limit | | :--- | :--- | :--- | | **Rights Issue Allotment** | **January 2025** | Raised **₹28.16 Crore** (66.27 Lakh shares at ₹42.50) | | **Rights Issue Approval** | **July 2024** | Target up to **₹30.3 Crore** | | **Authorised Capital Increase** | **April 2024** | Raised from **₹15 Crore** to **₹20 Crore** | | **Borrowing Power Expansion** | **April 2024** | Increased limit to **₹100 Crore** (Section 180(1)(c)) | | **Preferential Allotment** | **August 2023** | **27,90,750** Equity Shares at **₹40** per share | | **Authorised Capital Increase** | **February 2023**| Raised from **₹10 Crore** to **₹15 Crore** | **Utilization of Funds:** Capital raised through rights issues and preferential allotments has been primarily deployed to meet **Working Capital Requirements** and expand the loan book. To secure future financial assistance such as term loans and debentures, the Board is authorized to create **charges or securities** on company properties up to **₹100 Crore**. --- ### **Financial Trajectory and Performance Metrics** The company has demonstrated exponential growth in its top and bottom lines over the last four fiscal cycles, reflecting the successful deployment of newly raised capital. **Key Financial Indicators (₹ in Lakhs):** | Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Total Income** | **1,549.62** | **703.04** | **335.00** | **126.00** | | **Total Expenditure** | **501.24** | **221.70** | **144.00** | **101.00** | | **Profit Before Tax** | **1,048.38** | **481.34** | **191.00** | **25.00** | | **Profit After Tax (PAT)** | **827.67** | **360.19** | **145.00** | **12.00** | * **Capital Structure:** As of **January 2025**, the paid-up equity share capital stands at **₹1,553.73 Lakhs** (1,55,37,332 shares). * **Dividend Policy:** Management currently follows a **plough-back strategy**, reinvesting all profits into the business to fuel growth; no dividends were recommended for **FY23, FY24, or FY25**. * **Statutory Compliance:** For FY 2024-25, the company transferred **₹1.66 Crores** to the Statutory Reserve as mandated by **Section 45 IC of the RBI Act, 1934**. --- ### **Accounting Standards and Operational Framework** Aastamangalam Finance adheres to rigorous financial reporting standards to ensure transparency for stakeholders. * **Reporting Standards:** Financials are prepared in accordance with **Indian Accounting Standards (Ind AS)** on an accrual basis. Assets and liabilities are reported on a **gross basis** and presented in the **order of liquidity**. * **Revenue Recognition:** Interest income is recognized using the **Effective Interest Rate (EIR)** method based on the time proportion of the outstanding amount. * **Asset Measurement:** * **Amortized Cost:** Applied to trade receivables, loans, and employee/related party advances. * **FVTOCI (Fair Value Through Other Comprehensive Income):** Applied to equity instrument investments. * **Depreciation:** Tangible assets follow the **Straight Line Method (SLM)**, while intangible assets (software) are amortized over **2 to 4 years**. --- ### **Governance, Risk Management, and Compliance** The company operates under a structured governance framework designed to balance promoter control with independent oversight. **Board and Committee Structure:** * **Leadership:** The Board includes **Smt. Rekha M Jain**, **Smt. Bhavika M Jain**, and **Smt. Kushbu M Jain** (Non-Executive), alongside Independent Directors **Sri. J Akash Jain** and **Sri. Bharat Kumar Dughar**. * **Oversight:** Specialized committees include the **Audit Committee**, **Nomination and Remuneration Committee**, and **Stakeholders Relationship Committee**. * **Regulatory Strengthening:** In **July 2024**, a new **Company Secretary and Compliance Officer** was appointed to manage the complexities of the expanded capital base. **Risk Mitigation Profile:** * **Credit Risk:** Managed through rigorous borrower vetting and active recovery of overdue debts to prevent capital erosion. * **Regulatory Risk:** The company maintains the required **Net Owned Funds** as per RBI Master Directions. Management actively monitors the tightening NBFC regulatory landscape to mitigate increased compliance costs. * **Internal Controls:** The company maintains an **adequate** system of **Internal Financial Controls** and regular internal audits to ensure adherence to all statutes. * **Related Party Transactions:** To protect minority interests, any related party transaction exceeding **₹1,000 crore** or **10% of annual consolidated turnover** requires formal member approval. --- ### **Market Outlook and Future Growth Drivers** Management identifies a significant opportunity in the "India Growth Story," specifically driven by: 1. **Consumption Trends:** Rising middle-class consumption and household savings. 2. **Macro-Economic Factors:** Supportive government tax policies and declining inflation. 3. **Competitive Positioning:** Leveraging a low-cost operational model to provide credit where traditional banks face structural barriers. Despite **global political uncertainties** and **liquidity challenges** in the broader NBFC sector, Aastamangalam Finance is positioned to leverage its expanded **₹100 Crore borrowing limit** and strengthened equity base to capture a larger share of the rural and urban personal finance market.