Assam Entrade Limited is a registered **Non-Banking Financial Company (NBFC)**, classified under the **Base Layer (NBFC-BL)** category by the Reserve Bank of India (RBI). Established on **March 26, 1985**, the company operates as an **Investment and Credit Company (NBFC-ICC)**. Headquartered in **Kanpur** with a registered office in **Kolkata**, the firm specializes in corporate lending and strategic asset management, positioning itself as a niche provider of financial solutions to corporate clients. --- ### Core Operational Segments The company’s business model is structured around three primary operational pillars as per **IndAS 108** reporting standards: * **Corporate Lending:** Providing inter-corporate loans to a diversified client base. * **Securities Trading:** Active trading in shares and equity instruments. * **Asset Management:** Dealing in mutual fund units and managing a portfolio of financial investments. --- ### Strategic Growth Pillars and Market Outlook Assam Entrade’s strategy emphasizes stability and credit quality over aggressive expansion. The management has identified several key drivers for **FY 2024-25** and beyond: * **Sector-Specific Expansion:** Identifying and evaluating high-growth opportunities within the **Infrastructure** and **Real Estate** sectors. * **Credit Quality Prioritization:** Maintaining a "right choice" acquisition model to ensure superior credit quality and a balanced portfolio mix. * **Macroeconomic Tailwinds:** The company anticipates that potential **RBI policy rate cuts** and improving business sentiment will support a revival in private investments, benefiting the lending business. * **Operational Leanliness:** A focus on maintaining a lean cost structure to protect margins during periods of moderating inflation or economic volatility. --- ### Financial Performance Trajectory The company has demonstrated consistent growth in revenue and profitability over the last three fiscal years. Notably, the **Earnings Per Share (EPS)** saw a significant jump in the most recent period. #### Three-Year Consolidated Financial Summary | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue from Operations** | **₹8.55 Crore** | **₹7.27 Crore** | **₹5.81 Crore** | | **Net Profit Before Tax (PBT)** | **₹4.07 Crore** | **₹2.40 Crore** | **₹1.19 Crore** | | **Net Profit After Tax (PAT)** | **₹3.02 Crore** | **₹1.34 Crore** | **₹1.49 Crore** | | **Earnings Per Share (EPS)** | **₹21.01** | **₹9.30** | **₹10.33** | #### Capital and Reserves * **Paid-up Share Capital:** Stable at **₹1,43,97,900** (approx. **₹1.44 Crore**). * **Statutory Reserves:** In compliance with **Section 45IC of the RBI Act**, the company transferred **₹26.79 Lakhs** to statutory reserves in FY 2023-24. * **Dividend Policy:** The Board has consistently recommended **no dividend** for recent fiscal years to strengthen the financial cushion for future contingencies. --- ### Corporate Structure and Subsidiary Holdings Assam Entrade manages its operations alongside two subsidiary entities, though the ownership structure of one remains under a consolidated management framework despite a reported zero-percent equity stake. | Subsidiary Name | Ownership % | Nature of Entity | | :--- | :--- | :--- | | **Sumeru Commosales Private Limited** | **55.56%** | Unlisted Subsidiary | | **Pacific Barter Private Limited** | **0%*** | Unlisted Subsidiary | *\*Note: Managed under the consolidated framework as per regulatory filings.* --- ### Governance and Leadership Continuity The company maintains a board of **6 directors**, including **3 Non-Executive Independent Directors** and **1 Executive Woman Director**, ensuring a balance of transparency and operational expertise. #### Key Management Personnel (KMP) * **Nishant Gupta (Managing Director):** Re-appointed for a **3-year term** (**Sept 2024 – Sept 2027**). * **Rati Gupta (Executive Director):** Re-appointed for a **3-year term** (**Oct 2024 – Sept 2027**) with a revised remuneration of **₹18,00,000 per annum**, reflecting her **9-year** tenure. * **Jayesh Gupta:** Chief Financial Officer. * **Arpita Sharma:** Company Secretary & Compliance Officer (Appointed **Dec 30, 2024**). The Board has established provisions for **minimum remuneration** for MD and Executive Directors even in the event of loss or inadequacy of profits, subject to **Section 197 and Schedule V** of the Companies Act, 2013. --- ### Risk Management and Regulatory Compliance The company operates under the RBI’s **Scale Based Regulation (SBR)** framework. Risk oversight is managed by a dedicated committee focusing on credit, liquidity, and market risks. #### Financial and Accounting Risks Statutory auditors have noted specific deviations from standard **Ind AS** treatments: * **ECL Provisioning:** The company continues to use the **incurred loss provisioning method** rather than the **Expected Credit Loss (ECL)** approach required by **Ind AS 109**. This affects **67.38%** of Total Assets (as of August 2024). * **Investment Valuation:** Equity investments are recorded at **amortized cost** rather than **fair value** due to a lack of recent valuation data. * **Ratio Volatility:** In FY 2023-24, the **Debt Service Coverage Ratio** and **Net Profit Ratio** declined by more than **25%** due to increased borrowing and profit fluctuations. #### Operational and Legal Risks * **Related Party Exposure:** A significant unsecured loan to **Mantora Oil Products Private Limited** (an entity with influential control) had **₹4,251.07 Lakhs** outstanding as of March 31, 2024. The transaction is conducted at arm's length with a limit of **₹60 Crore**. * **Legal Contingencies:** An ongoing dispute in **District Court, Kanpur** against the Public Works Department regarding illegal construction on company land (valued at approx. **₹17,00,000**). * **Compliance Track Record:** While maintaining a robust vigil mechanism with **zero complaints** in 2024-25, the company incurred a minor **₹5,900 fine** from the **BSE** in 2024 for a one-day delay in filing related party disclosures. #### Internal Controls **M/s Bajpai & Co.** serves as the Internal Auditor (appointed through **FY 2026-27**) to evaluate financial procedures and ensure the efficacy of internal controls.