Ekam Leasing and Finance Co. Limited is an Indian **Non-Banking Financial Company (NBFC)**, registered with the **Reserve Bank of India (RBI)** since **March 07, 1998** (**Registration No. 14.00332**). The company is listed on the **Bombay Stock Exchange (BSE)** and operates as a **Non-Deposit Taking Systemically Important Investment and Credit Company (NBFC-ICC)**. The company is currently undergoing a significant transition phase, characterized by corporate restructuring, capital enhancement initiatives to meet evolving regulatory "Scale Based Regulations," and a strategic shift toward high-growth retail credit segments. --- ### **Corporate Structure & Strategic Amalgamation** The Group is currently simplifying its organizational architecture to drive operational efficiency and consolidate its capital base. #### **Current Subsidiary Framework** | Entity Name | Relationship | Primary Business Activity | | :--- | :--- | :--- | | **S & S Balajee Mercantile Pvt Ltd** | Subsidiary | Trading in essential commodities and machinery | | **Jet Air Securities Pvt Ltd** | Subsidiary | Dealing in securities | | **Rex Overseas Pvt Ltd** | Subsidiary | Import, export, and dealing in securities | #### **The Consolidation Roadmap** The company has initiated a **Scheme of Amalgamation** to merge **Rex Overseas Private Limited** and **S & S Balajee Mercantile Private Limited** into the parent entity, **Ekam Leasing and Finance Co. Limited**. * **Status:** Joint First Motion Application filed with **NCLT, New Delhi**, on **March 31, 2026**. * **Appointed Date:** **April 1, 2025**. * **Rationale:** The merger aims to eliminate redundant legal entities, optimize managerial resources, and centralize financial strength to meet higher regulatory capital thresholds. No new shares will be issued as the subsidiaries are 100% owned. --- ### **Regulatory Capital Compliance & "Scale Based Regulation" (SBR)** Under the RBI’s **Scale Based Regulation** framework (effective **October 19, 2023**), the company is classified as a **Non-Systemically Important Non-Deposit Taking NBFC**. A critical strategic priority is meeting the mandated **Net Owned Fund (NOF)** glide path. #### **NOF Enhancement Targets** | NBFC Category | Current NOF (Mar 2024) | Target by March 31, 2025 | Target by March 31, 2027 | | :--- | :--- | :--- | :--- | | **NBFC-ICC** | **₹3.39 Crore** | **₹5.00 Crore** | **₹10.00 Crore** | To facilitate this growth, the company increased its **Authorized Share Capital** from **₹3 crore** to **₹5 crore** (divided into **100,00,000** equity shares of **₹5** each). Management’s internal target is to achieve a combined Net Worth exceeding **₹8 crore** by **December 2025** through the aforementioned restructuring. --- ### **Operational Model & Market Strategy** Ekam is realigning its business model to counter rising borrowing costs and systemic liquidity shifts. * **Target Segments:** The company is pivoting toward **unsecured loans**, **used vehicles**, and the **MSME** sector to capture higher yields. * **Digital Integration:** Leveraging digitization to enhance process efficiency and customer acquisition, aligning with broader retail credit expansion trends in India. * **Geographic Focus:** Operations remain exclusively concentrated within the **Indian domestic market**. * **Internal Governance:** **M/s ACG & Co.** serves as the Internal Auditor to monitor financial controls. --- ### **Financial Performance & Capital Adequacy** The company has recently transitioned from a loss-making position to profitability, though asset quality remains a focal point for stakeholders. #### **Consolidated Financial Summary** | Particulars | FY 2023-24 (Audited) | FY 2022-23 (Audited) | | :--- | :--- | :--- | | **Total Revenue** | **₹65.17 Lacs** | **₹63.09 Lacs** | | **Net Profit / (Loss)** | **₹63.36 Lacs** | **₹(18.10) Lacs** | | **Total Equity** | **₹889.55 Lakhs** | **₹289.99 Lakhs** | | **Gearing Ratio** | **9.61%** | **122.37%** | | **Standalone CRAR** | **48.32%** | **39.50%** | * **Capital Strength:** The **Tier I CRAR** of **48.32%** is significantly above the regulatory minimum, indicating a strong capital buffer relative to risk-weighted assets. * **Tax Assets:** The group maintains **Deferred Tax Assets** of **₹17.19 Lakhs** and **MAT credit entitlement** of **₹25.44 Lakhs**, reflecting management's expectation of sustained future profitability. * **Dividend Policy:** No dividend was recommended for **FY 2023-24** to prioritize capital preservation for NOF requirements. --- ### **Asset Quality & Audit Qualifications** The company’s financial reporting is currently subject to a **Qualified Opinion** from statutory auditors due to specific provisioning and income recognition practices. * **Provisioning Shortfall:** Auditors identified a shortfall of **₹5,26,16,759** in provisions for **Non-Performing Assets (NPA)**. The company maintained a **10%** provision on certain unsecured loans older than 18 months, rather than the mandated **100%**. * **Sub-standard Assets:** Approximately **₹5.83 crore** in loans were rescheduled in **FY 2022-23**. While management views these as recoverable, they remain classified as **Sub-standard**. * **Income Recognition:** The company recognized interest income (e.g., **₹49.70 Lakhs** through Dec 2023) on NPA accounts on an accrual basis rather than a cash basis, which auditors argue overstates profits. * **Struck-off Entities:** The company maintains financial exposure (loans and interest) to **N K J Securities Private Limited** and **Alsan Buildcon Private Limited**, both of which have been struck off by the **Registrar of Companies (ROC)**. --- ### **Risk Profile & Compliance Challenges** Investors should note several material risks regarding regulatory adherence and macro-financial stability. * **Regulatory Non-Compliance:** * **NOF Shortfall:** As of **February 2026**, the company had not yet reached the **₹5 crore** NOF milestone required by the RBI. * **Unregistered Subsidiaries:** **Jet Air Securities** and **Rex Overseas** are currently operating as NBFCs (meeting the 50:50 test) without mandatory **RBI registration** under **Section 45-IA**. * **KMP Vacancies:** The company has faced persistent vacancies in the **Company Secretary (CS)** role, though a **CFO** was appointed in **January 2025**. * **Exchange Penalties:** **BSE Limited** has imposed fines for non-compliance with **SEBI (LODR)** regulations, including delayed annual reports and improper board composition. A waiver request for these fines was rejected in **November 2024**. * **Legal Contingencies:** The company is contesting **Income Tax notices** under **Section 153C** for **AY 2011-12 to 2017-18** in the **Delhi High Court**. * **Market Risks:** The company faces a **2.9% YoY drop** in bank lending to the NBFC sector (as of April 2025) and rising systemic interest rates, which may compress **Net Interest Margins (NIM)**. --- ### **Equity & Shareholding Profile** * **BSE Ticker:** **EKAM** | **ISIN:** **INE 906L01025** * **Total Paid-up Capital:** **60,00,000 Shares** (Face Value **₹5**) * **Registrar (RTA):** **Alankit Assignments Limited** **Shareholding Distribution (as of March 31, 2024):** | Mode of Holding | No. of Shares | % of Shareholding | | :--- | :--- | :--- | | **NSDL (Demat)** | **36,05,104** | **60.09%** | | **CDSL (Demat)** | **5,57,396** | **9.29%** | | **Physical Form** | **18,37,500** | **30.62%** | | **Total** | **60,00,000** | **100.00%** |