Easy Fincorp's record is clean on its face: seven years of unqualified audit opinions, no fraud or default findings, and a board that draws no remuneration. Two things deserve attention: preference shares classified as borrowings are excluded from the company's own debt metrics, and a small contingent liability has crystallised from a BSE communication spanning 2014 to 2020.
Key findings
- Preference shares classified as borrowings are excluded from the company's own debt metrics
Minor- Easy Fincorp has 9,50,000 authorised preference shares of ₹100 each, classified as borrowings under Ind AS and redeemable within 20 years from 25 October 2016. The company explicitly excludes the liability component from its capital management and ratio calculations, despite recognising them as borrowings and charging notional interest. Preference shareholders are entitled to a non-cumulative dividend at 1% per annum. - Statutory auditor resigned mid-term in December 2022, triggering a casual vacancy filled for a five-year term
Minor- M/s. Chandak & Associates resigned on 8th December 2022, citing an expiring Peer Review Certificate and an ongoing renewal process that made them unable to continue under SEBI (LODR) Regulations. The Board appointed M/s. Ray & Ray on 19th December 2022 to fill the casual vacancy, and shareholders approved the appointment at an EGM on 3rd February 2023 with 198,909 votes in favour. At the 38th AGM on 30th August 2023, shareholders appointed M/s. Ray & Ray for a five-year term from the conclusion of that AGM till the conclusion of the 43rd AGM in 2028, with 217,705 votes in favour. - A contingent liability of ₹4.22 lakhs has crystallised from a BSE communication alleging SEBI LODR non-compliances from 2014 to 2020
Minor- In FY2025-26, the company recognised a provision of ₹1.33 lakhs for late-filing fines and disclosed a contingent liability of ₹4.22 lakhs from a BSE communication dated 23rd April 2026 regarding alleged non-compliances from December 2014 to November 2020. The company applied for a waiver on 27th April 2026. Easy Fincorp reported nil contingent liabilities not acknowledged as debts for the three prior years.
What to watch
- Waiver application. Outcome of the waiver filed on 27th April 2026 regarding the ₹4.22 lakhs BSE fine for alleged SEBI LODR non-compliances.
- Auditor term. M/s. Ray & Ray's current five-year term expires at the conclusion of the 43rd AGM in 2028.
- Director reappointment. Mr. Raj Karan Daga retires by rotation and offers himself for reappointment at the 41st AGM, per the FY2025-26 Annual Report.
- Independent director term. Mr. Rama Chandra Kurup's second term as Independent Director runs until the conclusion of the 45th AGM in 2030.
Bottom line: This is a disclosed and audited record with a clean audit trail and a governance structure that costs shareholders nothing. The risk sits in two small places: the preference shares that sit on the balance sheet as borrowings but outside the company's own debt arithmetic, and the crystallised BSE fine awaiting a waiver decision. Watch the waiver outcome and the auditor transition in 2028.