Arihant’s Securities Limited is a Chennai-based **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** under Section 45IA of the RBI Act, 1934 (**Registration No. 07.00211**). The company operates as a **Non-Deposit taking NBFC (NBFC-ND)**, primarily engaged in capital market operations and financial services within the Indian domestic market. --- ### **Core Business Operations and Revenue Streams** The company’s business model is centered on the Indian financial markets, with a strategic focus on liquidity and asset management. While its regulatory status allows for lending, recent operational data shows a heavy concentration in investment activities. * **Investment Management & Share Trading:** This is the primary driver of the company’s top line. The firm actively manages a portfolio of financial instruments to generate returns through capital appreciation and trading gains. * **Loan Financing:** Although part of its core mandate, the company reported **0% income** from loan assets or asset financing for the **FY 2024-25** period, indicating a temporary pivot or strategic pause in lending activities. * **Asset Composition:** The balance sheet is highly liquid, with **99.77%** of total assets held in financial instruments. **Asset and Income Breakdown (As of March 31, 2025):** | Category | Value (₹ in Lakhs) | Percentage of Total | | :--- | :--- | :--- | | **Total Assets** | **3,996.94** | **100%** | | **Financial Assets** | **3,987.88** | **99.77%** | | **Total Income** | **129.19** | **100%** | | **Income from Investments** | **129.19** | **100%** | | **Income from Loans/Asset Finance** | **NIL** | **0%** | --- ### **Financial Performance and Capital Retention Trends** The company has navigated a period of contraction in both top-line and bottom-line figures, largely attributed to macroeconomic volatility and stagnation within the capital markets. **Comparative Financial Summary:** | Metric (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Total Income** | **129.19** | **281.00** | - | - | | **Profit Before Tax (PBT)** | **66.19** | **147.00** | **94.06** | **1,499.04** | | **Profit After Tax (PAT)** | **48.82** | **103.00** | - | - | | **Net Cash from Operations** | - | - | **62.20** | **(17.04)** | | **Closing Cash Equivalents** | - | - | **90.84** | **28.63** | **Key Financial Policies:** * **Statutory Reserve Compliance:** In accordance with **Section 45-IC(1) of the RBI Act, 1934**, the company transferred **₹ 9.76 lakh** (20% of net profit) to its **Statutory Reserve Fund** for **FY 2024-25**. * **Dividend Policy:** The Board has consistently opted **not to recommend dividends** for the recent cycles (including FY 2024-25). This strategy prioritizes **internal capital reinvestment** and the strengthening of the reserve base to support future expansion. * **Lean Balance Sheet:** The company reported **zero Depreciation & Amortization** and **zero Provisions** in recent audited cycles, reflecting a streamlined, asset-light operational structure. --- ### **Strategic Leadership and Governance Structure** Arihant’s Securities is currently undergoing a leadership transition designed to drive innovation and long-term business strategy. **Leadership Restructuring (Effective September 2025):** | Personnel | Designation | Tenure | Background/Role | | :--- | :--- | :--- | :--- | | **Mrs. Aarisha** | **Managing Director** | **5 Years** | Promoter group; focus on strategy/innovation. | | **Mr. Nishikant M. Choudhary** | **Non-Executive Director** | - | Strategic oversight. | | **Mr. Abishek Jain** | **Secretarial Auditor** | **5 Years** | Governance and compliance monitoring. | **Corporate Structure and Ownership:** * **Promoter Holdings:** **DMRR Commodities Private Limited** is a significant promoter entity. **Mrs. Rajshri Choudhary** (Promoter) maintains an **87.43%** stake in DMRR Commodities. * **Standalone Operations:** The company has **no subsidiaries, joint ventures, or associate companies**, ensuring a simplified corporate structure and direct management oversight. * **Transparency:** The company employs **M/s. ASJ & Associates** as scrutinizers for electronic voting to ensure high standards of corporate governance. --- ### **Risk Management Framework and Oversight** The company operates a systematic risk mitigation framework overseen by a **Risk Management Committee** consisting of **three members** (two Independent Directors and one Executive Director). **Risk Mitigation Matrix:** | Risk Category | Oversight Mechanism | | :--- | :--- | | **Market Risk** | Use of **extensive analytics** and **early warning systems** to track volatility. | | **Credit & Liquidity** | Continuous monitoring of **risk indicators** and liquidity ratios. | | **Operational Risk** | Frequent review of **control procedures** and agile execution strategies. | | **Information Security** | Regular **Systems Audits** to ensure data integrity and control design. | | **Regulatory Risk** | Periodic **compliance reporting** across all support functions. | **Primary Challenges:** * **Concentration Risk:** Revenue is currently **100% dependent** on financial asset performance. * **Macro Factors:** Sensitivity to **Indian Rupee depreciation**, political shifts, and global market trends. * **Regulatory Environment:** Stringent **RBI norms** and government restrictions are identified as potential hurdles to operational flexibility. --- ### **Future Outlook and Strategic Pillars** Management maintains an **encouraging outlook** for the Indian capital markets and has positioned the company for a new growth phase through the following pillars: 1. **Capital Preservation:** Prioritizing financial prudence and building a **strong reserve base** over immediate shareholder payouts. 2. **Internal Reinvestment:** Funneling 100% of retained earnings back into core trading and investment activities. 3. **Governance Integrity:** Ensuring no material funds are diverted to intermediaries or unauthorized beneficiaries, and maintaining a record of **no pending material litigation**. 4. **Market Positioning:** Leveraging the new leadership under **Mrs. Aarisha** to navigate macroeconomic cycles and scale the investment portfolio as market conditions improve.