Easun Capital Markets Limited is a **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** since **March 26, 1998**. Under the RBI’s **Scale-Based Regulations (SBR)**, the company is classified as a **Base Layer, Non-Systemically Important Non-Deposit Accepting NBFC**. Operating as an **Investment and Credit Company (ICC)**, the firm focuses on conventional investing and financing for corporate customers, group entities, and the burgeoning MSME sector. --- ### **Core Business Verticals & Revenue Streams** The company operates through a single primary segment: **Financing and Investment**. Its revenue is generated through interest earnings on loans and returns from a diversified investment portfolio. * **Strategic Investment Portfolio:** The company acquires and holds a variety of securities, including **mutual funds, perpetual bonds, Non-Convertible Debentures (NCDs), and equity shares** (both quoted and unquoted). A notable recent deployment includes an investment of **₹6.50 Crore** in debentures of **Bengal Salarpuria Infra Development Co Pvt Ltd** during FY 2024-25, up from **₹3.95 Crore** the previous year. * **Corporate & SME Financing:** Easun provides loans and advances to **Small and Medium Enterprises (SMEs)** and manages the short-term funding requirements of **group entities**. * **Specialized Healthcare Expansion (MPIL Pharmaceuticals):** Through its pharmaceutical arm, the company has diversified into high-growth wellness segments. In **September 2024**, it launched the **"Earth Segment,"** a dedicated vertical for **menopause management**. This research-driven portfolio addresses over **30 symptoms** of perimenopause and menopause using scientific-grade botanicals like **Chasteberry**. --- ### **Financial Performance & Capital Structure** The company maintains a lean operational structure with a strong emphasis on **Net Owned Funds (NOF)** and capital adequacy. | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Turnover** | - | **70.59** | **90.48** | | **Net Profit After Tax (PAT)** | **(0.36)** | **70.53** | **24.75** | | **Earnings Per Share (EPS)** | **(₹ 0.01)** | **₹ 1.35** | **₹ 0.47** | | **Net Owned Fund** | **₹130.84 Cr** | - | - | | **Weighted Avg. Equity Shares** | **52,29,209** | **52,29,209** | **52,29,209** | **Key Financial Observations:** * **Profitability Volatility:** While FY 2023-24 saw a nearly **threefold improvement in EPS**, the company reported a marginal **Net Loss of ₹0.36 Lakh** in FY 2024-25, reflecting a transitional phase. * **Capital Adequacy:** The company maintains a stable **Capital to Risk Weighted Assets Ratio (CRAR)**. Notably, **Tier II CRAR** saw significant growth (**41.85% in FY24** and **700% in FY23**) following the deployment of fresh loans. * **Asset Quality:** As of March 31, 2025, the company reports **Nil contingent liabilities** and **Nil estimated capital commitments**. It does not own any **immovable property** or **investment property** for rental purposes. --- ### **Strategic Growth Pillars & Market Positioning** Easun is positioning itself to capitalize on India’s projected **6.5% GDP growth** and the digital transformation of the financial landscape. * **MSME Credit Gap:** The company is targeting the **INR 103 trillion** credit gap in the MSME sector. With a government target for MSMEs to contribute **50% of GDP by 2030** (up from 30%), Easun aims to serve the **3.8 crore MSMEs** currently lacking formal credit access. * **Co-Lending & Capital Efficiency:** By utilizing the **RBI’s co-lending model**, the company partners with banks for **priority sector lending**. This allows Easun to leverage bank balance sheets, offering competitive rates while maintaining high capital efficiency. * **Digital Inclusion:** The firm is scaling operations via **mobile banking, digital wallets, and UPI** to drive a cashless economy and improve underwriting models through data analytics. * **Sector Diversification:** Strategic alignment with high-growth areas including **Renewable Energy, Semiconductors, and the Services sector**. --- ### **Governance, Compliance & Infrastructure** The company is governed by a professionally qualified management team and a recently strengthened Board of Directors. * **Board Appointments:** Key Independent Directors, **Mr. Akshaya Kumar Panda** and **Ms. Annapurna Gupta**, have been appointed for five-year terms (effective **September 30, 2024, to September 29, 2029**). * **Regulatory Adherence:** The company is listed on the **BSE** and **The Calcutta Stock Exchange**. It maintains a strict **non-acceptance policy for public deposits** (reaffirmed by a Board resolution on **April 25, 2023**). * **Auditor Status:** **M/s. Rakesh Ram & Associates** serve as Statutory Auditors (appointed until **2028**), following the resignation of the previous auditor in 2023 over fee disputes. * **Incentive Alignment:** The company is currently framing an **Employees Share Purchase Scheme / Stock Option Scheme** to align staff interests with long-term shareholder value. --- ### **Risk Management Framework** Easun employs a robust reporting system to monitor credit and operational exposure, overseen by the **Audit and Risk Management Committees**. | Risk Category | Mitigation & Impact | | :--- | :--- | | **Regulatory (SBR)** | RBI mandates increasing **Net Owned Fund (NOF)** to **₹10.00 Crores** by **March 2027**. | | **Credit & Pledge Risk** | Risk of counterparty default; includes **Pledge obligation risk** where default by a pledgee results in asset loss. | | **Interest Rate Risk** | Managed via a balanced portfolio of fixed and variable rate borrowings to counter **floating rate exposure**. | | **Asset Classification** | Under **IRACP norms**, NPAs can only be upgraded to 'standard' after **full payment of all arrears**. | | **Market Volatility** | Strict policy prohibiting **speculative derivative trading**; monitoring global liquidity and inflation. | **Operational Challenges:** * **Borrowing Costs:** Recent increases in **RBI risk weights** on bank exposures to NBFCs have raised the cost of capital. * **Labour Codes:** The company is preparing for the implementation of the **four unified Labour Codes** (Wages, Social Security, Industrial Relations, and Occupational Safety) effective **November 21, 2025**. * **Competition:** Intense pressure from **new-age fintechs** and traditional banks necessitates continuous investment in **AI and data analytics** to maintain lean operations.