Amarnath Securities Limited is an Indian listed entity currently undergoing a fundamental structural and strategic transformation. Historically operated as a **Reserve Bank of India (RBI)** registered **Non-Banking Financial Company (NBFC)**, the company is executing a phased exit from the financial services sector to pivot toward the **Media and Entertainment** industry. This transition is accompanied by a complete overhaul of leadership, a relocation of corporate infrastructure, and a significant restructuring of the balance sheet. --- ### **Strategic Pivot: From Financial Services to Media & Entertainment** The company is actively "de-focusing" from its legacy lending business, citing a lack of internal domain expertise within the current management team. No new NBFC business has been initiated since **2016**. * **NBFC License Surrender:** Shareholders have approved a **Special Resolution** to surrender the company’s NBFC registration. The company will formally cease non-banking financial activities once financial assets and income fall below the **50% threshold** of total assets/income. * **Media Sector Entry:** The company has identified content creation, including feature films and web series, as its new core growth driver. * **₹100 Crore Investment Mandate:** In **March 2025**, the company announced a fund aggregation mandate to invest **₹100 crore** into the media sector in collaboration with filmmaker **Dr. Deepak Singh**. * **Phased Funding Model:** The initial **₹100 crore** is earmarked for content development, with subsequent capital infusions planned based on the commercial success of releases and the establishment of studio partnerships. --- ### **Financial Performance & Capital Restructuring** Despite the transition, the company has maintained a stable capital structure and demonstrated consistent growth in **Profit Before Tax (PBT)** over the last three fiscal cycles. #### **Three-Year Financial Summary (INR)** | Particulars | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :---: | :---: | :---: | | **Profit before Interest, Dep. & Tax** | **29,24,124** | **23,63,415** | **8,04,600** | | **Interest Expense** | **3,04,577** | **2,94,098** | **-** | | **Profit Before Tax (PBT)** | **26,19,547** | **20,45,846** | **8,04,600** | | **Profit After Tax (PAT)** | **18,71,096** | **19,77,551** | **5,93,100** | #### **Capital and Debt Management** * **Authorized Share Capital:** Increased from **₹4 Crore** to **₹7 Crore** in **September 2025** to facilitate expansion. * **Debt-to-Equity Conversion:** The company approved the conversion of **₹47,43,000** in unsecured loans into equity, issuing up to **3,16,200** shares at **₹15** per share (including a **₹5 premium**). * **Statutory Reserves:** In compliance with the **RBI Act**, the company transferred **20% of net profit** to its Statutory Reserve as of **November 2024**. * **Dividend Policy:** No dividends were recommended for **FY 2022-23** or **FY 2023-24** as the company prioritizes capital preservation for its new business foray. --- ### **Governance, Leadership & Shareholding** The company has refreshed its board to align with its new operational focus and has seen a significant shift in its promoter group. * **Executive Leadership:** * **Ms. Prarthee Chetan Patel:** Appointed **CEO** in **April 2026**. * **Mr. Rajendrabhai Ramanbhai Patel:** Appointed as **Executive Whole-Time Director** for a **5-year term** (Dec 2025), bringing expertise in the automobile and agriculture sectors. * **Mrs. Kinnari Chetan Patel:** Appointed as **Executive Women Director** (**April 2026**). * **Promoter Reclassification:** In **September 2025**, the **BSE** approved the reclassification of **Dr. Omkar Herlekar** (holding **3.17%** or **95,076 shares**) from the 'Promoter' category to the 'Public' category following his resignation. * **Operational Leanliness:** The company maintains a minimal internal workforce, reporting only a **Company Secretary** as a formal employee, suggesting a model reliant on directors and outsourced services. #### **Shareholding Pattern (as of March 31, 2023)** | Form of Holding | No. of Shares | % of Total | | :--- | :--- | :--- | | **Electronic (NSDL)** | **15,77,561** | **52.58%** | | **Electronic (CDSL)** | **11,54,029** | **37.47%** | | **Physical** | **2,68,610** | **08.95%** | | **Total** | **30,00,200** | **100.00%** | --- ### **Operational Infrastructure & Compliance** * **Geographic Shift:** The Registered Office moved from **Ahmedabad** to **Mumbai** (**814, Hubtown Viva, Jogeshwari East**). The Corporate Office was relocated to **Valsad, Gujarat** in **December 2025**. * **Registrar:** **Bigshare Services Private Limited** manages share transfer activities. * **Auditor Appointment:** **M/s. H K Shah & Co.** has been appointed as Statutory Auditors for a five-year term (**FY 2025-26 to FY 2029-30**). * **Regulatory Framework:** Financials are prepared under **Indian Accounting Standards (Ind AS)** and **SEBI (LODR) Regulations, 2015**. --- ### **Risk Factors & Transition Challenges** Investors should note that the company is navigating a high-risk period marked by documentation gaps and management transitions. * **Qualified Audit Opinions:** The **February 2026** financial statements received a **qualified conclusion**. Auditors cited a lack of documentation for expenses recorded as current financial assets and unconfirmed balances for **revenue (Rs. 9.59 lakhs)** and **finance costs (Rs. 0.44 lakhs)**. * **Legacy Management Reliance:** The current board has disclosed that certain transactions are still influenced by the **former management** due to the current team's lack of NBFC expertise. * **Unconfirmed Portfolio Sale:** There is a lack of third-party confirmation regarding a portfolio sale agreement with **Shivsahaydri Sahkari Patpedhi Limited**, where loan receivables were set off. * **Market & Environmental Risks:** * **Interest Rate Sensitivity:** Profitability in government securities is vulnerable to rate fluctuations and competition from equity and real estate markets. * **Climate Disruptions:** Operations in regions like **Morbi** are subject to infrastructure risks, such as the **Machhu-2 dam** overflow which previously disrupted local logistics. #### **Audit History Summary** | Period | Opinion Status | Primary Concern | | :--- | :--- | :--- | | **Feb 2026** | **Qualified** | Missing documentation for expenses and revenue recognition. | | **May 2025** | **Unmodified** | Emphasis of Matter regarding unconfirmed unsecured loans. | | **May 2023** | **Unmodified** | Emphasis of Matter regarding the Shivsahaydri portfolio sale. |