Ad-Manum Finance Limited is an Indore-based **NBFC-ND-NSI** (Non-Banking Financial Company – Non-Deposit Taking – Non-Systemically Important) incorporated in **1986**. The company is an associate of **Agarwal Coal Corporation(s) Pte. Ltd. (Singapore)**, which maintains a significant **36.93%** stake. Ad-Manum operates a dual-segment model, primarily focusing on niche financial services while maintaining a legacy presence in renewable energy. --- ### Core Financial Services & Market Positioning The company is registered with the **RBI** (Registration No. **B-03.00081**) as a Category-B institution. Its primary business involves **Investment and Lending Activities**, with a strategic focus on **corporate and real estate finance**. * **Niche Strategy:** Ad-Manum targets remote locations and sectors that are traditionally underserved by mainstream commercial banks, viewing these as high-potential growth areas with limited competition. * **Lending Terms:** Loans are issued in the ordinary course of business with interest rates consistently charged above the **RBI bank rate**. * **Related Party Lending:** The company provides financing to group concerns at interest rates ranging from **9% to 15%**. Key borrowers include **Fuel Agarwal Corporation Private Limited** and **Agarmin Coalwashery Private Limited**. * **Asset Quality:** Management prioritizes low **Non-Performing Asset (NPA)** levels through rigorous security and recovery protocols. Recent cycles reported a recovery/security figure of **₹1.44 crore**. --- ### Renewable Energy Portfolio (Windmill Segment) Ad-Manum generates secondary revenue through wind electric generators. However, the company is currently undergoing a **strategic downsizing** of this segment to streamline operations. | Asset Location | Capacity | Status / Agreement Entity | Energy Charges | Expiry Date | | :--- | :--- | :--- | :--- | :--- | | **Shailkewadi, Sangli, Maharashtra** | **0.6 MW** | **MSEDCL** | **₹2.65 per kWh** | **July 5, 2031** | | **Sikar, Rajasthan** | **600 KW** | **Sold (Dec 2024)** to Shri Mohangarh Renewables | N/A | N/A | The disposal of the Rajasthan asset in **December 2024** reflects a shift toward concentrating resources on the core financial services vertical. --- ### Financial Performance & Capital Structure The company has demonstrated consistent growth in revenue and profitability over the last four fiscal years, maintaining a stable capital base without equity dilution. **Key Financial Metrics (₹ in Crore):** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **13.30** | **11.03** | **9.15** | **8.45** | | **Net Profit After Tax (PAT)** | **8.90** | **7.70** | **5.02** | **2.43** | | **Transfer to Statutory Reserve**| **1.78** | **1.54** | **1.00** | **0.48** | **Capital Data:** * **Paid-up Equity Capital:** Remains constant at **₹7.5 Crore**, comprising **75,00,000 Equity Shares** (Face Value **₹10**). * **Dividend Policy:** The Board recommended **Nil dividend** for the last three fiscal years (**FY23-FY25**) to reinvest surplus funds into business expansion. * **Reserves:** While no funds were moved to General Reserves, the company strictly adheres to **RBI Directions** by transferring mandated amounts to the **NBFC Statutory Reserve**. --- ### Strategic Growth & Leadership Transition Ad-Manum is currently transitioning its executive leadership to support long-term scaling and regulatory alignment. * **Leadership Strengthening:** The company is seeking **RBI approval** for a new **Whole-Time Director** and **Non-Executive Chairman**. * **Board Composition:** * **Mr. Sanjeev Sharma:** Appointed as **Whole-time Director** for **5 years** (Effective **March 13, 2025**). * **Ms. Priyanka Jha:** Re-appointed as **Independent Director** for a **5-year** second term (Effective **March 30, 2024**). * **Ms. Apoorva Jain & Mr. Pradhumn Pathak:** Appointed as **Independent Directors** for **5-year** terms (Effective **August 1, 2024**). * **Executive Resignation:** **Mr. Dharmendra Agrawal** resigned as **WTD & CEO** effective **April 03, 2026**. * **Expansion Strategy:** The company is broadening its **operating base** and introducing **higher-value products** to enhance margins and increase overall turnover. --- ### Risk Factors & Governance Observations Investors should note the following risks and recent regulatory observations: **1. Operational & Market Risks:** * **Interest Rate Volatility:** Rising interest rates are identified as a primary threat to profitability and loan takeover rates. * **Regulatory Shifts:** Changes in **RBI policies**, **taxation**, or **industrial policy** could impact the NBFC business model. * **Actuarial Risks:** The company faces **Interest Rate Risk** and **Liquidity Risk** regarding its **Gratuity** obligations, where liability duration exceeds asset duration. **2. Governance & Compliance Issues:** * **Remuneration Overages:** The company paid an excess remuneration of **₹9,93,444** to the former CEO beyond sanctioned limits, requiring regularization under **Section 197(10)** of the Companies Act. * **Insurance Lapses:** The **Secretarial Audit** noted a failure to renew the **Special Contingency Insurance Policy** (expired **Feb 15, 2025**) and the absence of a mandatory **IEPF Insurance Policy**. * **Internal Controls:** The company utilizes an **Internal Control System** reviewed by **Statutory Auditors** to safeguard assets, though management acknowledges the need for constant monitoring of cost control measures. **3. Technology:** As a service-oriented NBFC, there is no manufacturing technology absorption; however, the company relies on modern **financial software and IT infrastructure** to manage its lending portfolio.