**BSE Scrip ID: FYNX | Scrip Code: 507962 | ISIN: INE455H01013** Fynx Capital Limited (formerly **Rajath Finance Limited**) is a **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** under Section **45-IA** of the RBI Act, 1934. Following a significant change in management and control in **May 2023**, the company is currently undergoing a strategic pivot toward a technology-driven, digital-first lending model focused on financial inclusion and **MSME** financing. --- ### Corporate Structure and Capital Evolution The company has aggressively restructured its balance sheet and capital base to transition from a legacy finance firm to a scalable digital NBFC. | Metric | Details / Value | | :--- | :--- | | **Authorized Share Capital** | Increased to **Rs. 25 Crore** (divided into **25 crore** shares of **Rs. 1** each) | | **Paid-up Share Capital** | Increased from **Rs. 4 Crore** to **Rs. 20 Crore** (as of March 2025) | | **Net Worth** | **Rs. 5.11 Crore** (as of March 31, 2024) | | **Promoter Holding** | **74.90%** (Led by **9Anium Tech LLP**) | | **Public Shareholding** | **24.85%** | | **Borrowing Limit** | Enhanced to **Rs. 100 Crore** (August 2025) | **Key Capital Actions:** * **Stock Split:** In **January 2026**, the company executed a sub-division of **1** equity share (FV **Rs. 10**) into **10** equity shares (FV **Rs. 1**) to enhance market liquidity. * **Rights Issue:** Allotted **1,60,00,000** shares at **Rs. 10** each in **March 2025**, raising **Rs. 16 Crore** for business expansion. * **Promoter Reclassification:** Following the acquisition by **9Anium Tech LLP** (which initially acquired **69.76%**), former promoters were reclassified to the **Public Category** in **2023**. --- ### Multi-Channel Lending & Financial Services Portfolio Fynx Capital operates through a single reportable segment (Finance) but maintains a diversified product suite targeting underserved rural and urban segments. * **SME & Micro-Enterprise Financing:** Providing critical working capital and growth loans to small businesses. * **Microfinance Services:** Offering **collateral-free credit**, term loans, and thrift services for livelihood enhancement. The company utilizes **Individual Lending**, **Group Lending**, and **Joint Liability Group (JLG)** frameworks. * **Supply Chain Finance (SCF):** Leveraging a technological setup for SCF lending and **digital bill discounting**. * **Retail & Housing Finance:** Financing for **two-wheeler loans**, personal loans, and **rural/urban housing development**, including the acquisition of apartments and consumer durables via **hire purchase**. * **Specialized Industrial Finance:** Authorized to engage in **factoring**, project finance, and the leasing of industrial machinery or immovable properties. * **Intermediary Services:** Acting as a **Business Correspondent (BC)** for banks; providing credit reporting, underwriting, and brokerage services. --- ### Digital Transformation & Operational Infrastructure The company’s "New-Age NBFC" strategy relies heavily on integrating advanced technology into traditional lending. * **Fintech Integration:** Implementation of **AI-driven** credit assessments and digital lending platforms in collaboration with **Billmart Fintech Private Limited**. * **Strategic Partnerships:** Approved **Co-Lending** arrangements with other NBFCs and Banks to scale the loan book without proportional balance sheet strain. * **Regulatory Compliance Framework:** Adheres to **RBI Scale Based Regulations**. As of March 31, 2025, the company maintained a **15% Capital to Risk Weighted Assets Ratio** and met **Liquidity Coverage Ratio (LCR)** requirements. * **Internal Controls:** An **Asset Liability Committee (ALM)** meets monthly to monitor liquidity. Internal Financial Controls (IFC) track repayments and report overdues exceeding **90 days**. --- ### Financial Performance Summary The company is currently in a "gestation phase" characterized by rising assets but temporary operational losses due to restructuring costs. **Standalone Financial Position (Rs. in Lakhs):** | Particulars | June 30, 2025 (Unaud) | March 31, 2025 (Audited) | March 31, 2024 (Audited) | | :--- | :--- | :--- | :--- | | **Total Assets** | **1,964.52** | **1,970.31** | **654.56** | | **Financial Assets** | **1,849.73** | **1,861.27** | **447.86** | | -- *Loans* | **699.47** | **126.18** | **3.96** | | -- *Cash & Equivalents* | **14.68** | **1,604.07** | **10.31** | | **Total Equity** | **1,888.30** | **1,936.89** | **566.35** | | **Net Profit/(Loss)** | *(Loss)* | *(Loss)* | **(125.12)** | **Operational Trends:** * **Revenue:** Revenue decreased from **Rs. 33.12 Lakhs** in FY23 to **Rs. 9.36 Lakhs** in FY24 as the company pivoted away from legacy assets. * **Asset Shift:** A massive increase in the loan book from **Rs. 3.96 Lakhs** (March 2024) to **Rs. 699.47 Lakhs** (June 2025) signals the commencement of the new lending strategy. --- ### Leadership & Governance The board was reconstituted in 2025 to bring in professional expertise for the turnaround. * **Chairman:** **Mr. Maheswar Sahu** (Appointed Nov 2025). * **Managing Director:** **Mr. Shanker Raman Siddhanathan**, a finance professional with **25+ years** of experience (Appointed Aug 2025). * **Board Composition:** **6 Directors** (1 Executive, 5 Non-Executive, including **4 Independent Directors**). * **Incentivization:** Launched the **ESOP 2025** plan, covering up to **5%** of paid-up equity (**10,00,000 options**) to retain key talent. * **Remuneration:** MD remuneration is set at **Rs. 24,00,000 p.a.**; CFO at **Rs. 33,00,000 p.a.** --- ### Risk Factors & Regulatory Challenges Investors should note several critical risks associated with the company’s transition and historical compliance record. **1. Regulatory Non-Compliance & Penalties:** The company has faced multiple **BSE penalties** for lapses, including: * Fines of **Rs. 108,560** and **Rs. 71,980** for non-appointment of a Company Secretary in FY24. * Delays in filing financial results (Regulation 33) due to the relocation of the registered office to **Mumbai**. * Listed as **SDD (Structured Digital Database) Non-Compliant** by BSE. **2. Internal Control & Statutory Gaps:** * **Unrecognized Liabilities:** As of January 2026, the company has **not recognized provisions for gratuity liability** under **Ind AS 19**. * **Operational Registrations:** As of late 2024, the company lacked membership in all four **CICs** and was not registered with **CERSAI** for **CKYC**. **3. Related Party Transactions (RPTs):** Several material transactions have been disclosed as **not being at arm's length** or in the ordinary course of business, including arrangements with: * **Parshwashanti Buildinfra Projects** (FY 2024-27). * **Billmart Fintech Private Limited** (FY 2024-26). * Entities linked to the CFO (**Shree Sai Tours and Travels**) and other Directors. **4. Market & Macro Risks:** * **Asset Quality:** Exposure to the **MSME** and **Gig Worker** segments carries inherent risks of higher **NPAs** during economic downturns. * **Profitability:** The company is currently **running at a loss**, and the success of the turnaround depends on containing **Loss Given Defaults (LGD)** while scaling the loan book.