Alfred Herbert (India) Limited is a registered **Non-Banking Financial Company (NBFC)**, regulated by the **Reserve Bank of India (RBI)** (Registration No. **05.04665**). Following the strategic discontinuation of its legacy manufacturing operations, the Group has transitioned into a specialized investment and holding entity. The company’s value proposition is centered on high-value real estate monetization, disciplined capital market participation, and the management of a diversified financial asset portfolio. --- ### **Strategic Pivot: Asset Monetization and Value Unlocking** The company has shifted from an industrial focus to a "patient capital" investment model. This strategy is characterized by the aggressive monetization of non-core or legacy land parcels to fund a diversified portfolio of liquid and long-term assets. **Key Monetization Milestones (2024–2026):** * **Whitefield Property Sale (May 2025):** The company executed a landmark sale of its land and property on Whitefield Road, Bangalore, for **₹485.90 crore**. This transaction resulted in a net profit of **₹480.47 crore**, recognized as an exceptional item in Q1 FY 2025-26. * **Strand Road Development (June 2024):** The company successfully transitioned its **Strand Road, Kolkata** project from Capital Work-in-Progress (CWIP) to building assets following the receipt of a **Certificate of Completion**. The asset, valued at **₹36.21 crore**, is a **Platinum Green Building (LEED certified)**, serving as a core rental and investment property. * **Investment Property Disposal (Dec 2025):** Partial disposal of land and buildings contributed a consolidated net profit of **₹19.06 crore** for the nine months ended December 31, 2025. --- ### **Investment Philosophy and Asset Allocation** The Group operates as a single-segment entity focused on sustainable value creation through a mix of traditional and alternative asset classes. * **Equities:** Long-term positions in listed securities on the **BSE** and **NSE**, targeting structural growth themes such as India’s digital adoption and infrastructure expansion. * **Real Estate (Realty):** Strategic ownership and leasing of administrative offices, with a focus on mid-income and premium residential and commercial segments. * **Alternative Assets:** Evaluation of high-conviction platforms, including **Private Equity and Infrastructure**, to reduce correlation with public markets. * **Fixed Income:** Maintenance of a liquidity cushion through **bonds, mutual funds, and fixed deposits**. --- ### **Financial Performance and Capital Distribution** The company’s financial profile has been transformed by its recent divestment activities, leading to a significant strengthening of its balance sheet and reserve position. **Comparative Financial Summary (Standalone):** | Metric (₹ Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Gross Income** | **10.25** | **1.95** | **2.78** | | **Profit Before Tax (PBT)** | **6.95** | **0.53** | **1.39** | | **Profit After Tax (PAT)** | **6.23** | **0.72** | **1.48** | | **Dividend Per Share** | **₹ 5.00** | **₹ 4.00** | - | **Capital Allocation and Reserves:** * **Shareholder Returns:** Proposed a final dividend of **₹5 (50%) per share** for FY 2024-25, reflecting a commitment to distributing realized gains. * **Statutory Transfers:** In FY 2024-25, the company transferred **₹100 Lakhs** to the **General Reserve** and **₹1.25 Crore** to the **Special Reserve** (as per RBI requirements). * **Investment Gains:** Realized net gains on the sale of investments reached **₹3.2 crore** in the first nine months of FY 2026, a significant increase from **₹22.06 Lakhs** in the full year FY 2025. --- ### **Corporate and Subsidiary Structure** Headquartered in **Kolkata**, the Group manages its operations through two **wholly owned subsidiaries (WOS)**: 1. **Herbert Holdings Limited:** Dedicated to non-banking financial activities and investment management. 2. **Alfred Herbert Limited:** Formerly a manufacturer of rubber and tyre machinery. Due to eroded net worth and accumulated losses, manufacturing has been discontinued. The entity now manages remaining obligations and spare parts procurement via third-party arrangements. * *Note:* In FY 2022-23, the parent company wrote off a loan of **₹4.31 crore** to this subsidiary as a loss asset per RBI guidelines. --- ### **Risk Management and Regulatory Landscape** As a **Base Layer (Non-Systemically Important Non-Deposit taking)** NBFC, the company is subject to rigorous RBI oversight and market-linked risks. **1. Legal and Tax Contingencies:** The company is navigating several high-value disputes: * **Income Tax Demands:** Historically faced massive demands regarding land valuation. While the **ITAT** ruled in favor of the company for **72%** of a **₹24,127 crore** demand in 2023, several other demands remain pending, including **₹357 crore** (AY 2016-17) and **₹220.48 crore** (AY 2017-18). * **Infrastructure Disputes:** The **NOIDA Bridge** toll collection remains suspended following a 2016 High Court order (currently under Supreme Court appeal). Additionally, a **₹26.05 crore** advertisement display dispute with NOIDA authorities is being challenged. * **Tenancy Litigation:** Contingent liabilities include **₹80.68 Lakhs** (plus monthly accruals) for interim compensation regarding Ballard Estate tenancy. **2. Market and Operational Risks:** * **Equity Price Risk:** The portfolio is sensitive to market volatility; a **2% shift** in market indices impacts **Other Comprehensive Income (OCI)** by approximately **₹117.99 Lakhs**. * **Liquidity and Credit:** The company relies on internal accruals and does not provide for interest on borrowings following a 2018 NCLAT "Cut-off date." Credit risk is managed through a strict policy on loans and receivables. * **Labour Compliance:** Effective **November 21, 2025**, the company adopted the new **Government of India Labour Codes**. Actuarial assessments under **Ind AS 19** are conducted to manage employee benefit costs. --- ### **Governance and Internal Oversight** The company maintains a robust governance framework to ensure transparency and compliance: * **Board Composition:** Consists of **6 directors**, including **3 Independent Directors**. * **Audit Oversight:** The Audit Committee is composed exclusively of Independent Non-executive Directors. * **Auditors:** Internal controls are managed by **Chaudhuri P & Associates**, with statutory auditing conducted by **ALPS & Co.** * **Geographic Scope:** Operations are concentrated **entirely within India**, providing a focused exposure to the Indian domestic economy.