Garbi Finvest Limited is an Indian **Non-Banking Financial Company (NBFC)** registered under **Section 45-IA of the Reserve Bank of India Act, 1934**. Established in **1982** and active in the NBFC space since **1998**, the company operates as a single-segment entity focused on credit provision and strategic financial investments. After a period of regulatory restructuring, the company is currently focused on strengthening its governance framework and modernizing its credit risk models. --- ### **Core Business Operations & Asset Composition** The company’s business model is built upon two primary pillars of financial services. It operates as a **Non-Deposit taking NBFC** and is not classified as a Core Investment Company (CIC). * **Financing & Advancing:** The company provides loans and financial assistance. Current credit exposure includes **unsecured loans** provided to entities where directors exercise significant influence. * **Investment Activities:** Garbi Finvest manages a portfolio of shares and securities held in both electronic and physical forms. * **Asset Management:** While the company maintains records for **Property, Plant, and Equipment (PPE)** and intangible assets, it holds **no immovable property**. A physical verification program for PPE is conducted annually to ensure asset integrity. --- ### **Corporate Governance & Leadership Structure** The company is currently undergoing a leadership transition designed to centralize accountability and ensure long-term operational continuity. The Board consists of **six directors**, including **three Independent Directors**, providing a balance of executive management and independent oversight. **Key Management Personnel (KMP):** | Appointee | Designation | Tenure | Effective Date | | :--- | :--- | :--- | :--- | | **Mr. Kripa Shankar Mahawar** | **Managing Director** | **5 Years** | September 2023 | | **Mr. Suranjan Upadhyay** | **Non-executive Director** | **5 Years** | August 22, 2023 | | **Mr. Sachin Kumar Sharma** | **CFO** | Ongoing | - | | **Ms. Richa Agarwal** | **Company Secretary** | Ongoing | - | **Strategic Governance Focus:** * **Stability:** By securing **5-year mandates** for the Managing Director and Non-executive Director, the company aims to stabilize its strategic direction. * **Compliance:** Adherence to the **Companies Act 2013** regarding managerial remuneration and appointments is a core priority. * **Shareholder Relations:** The company maintains a prompt share transfer turnaround, typically addressed within **15 days**. --- ### **Human Capital & Remuneration Trends** Garbi Finvest maintains a lean operational structure, recently consolidating its workforce to manage overhead costs. As of **July 2024**, the organization employs **8 permanent employees**, a reduction from **10** in the previous year. **Remuneration Overview (Latest FY):** * **Managing Director (K.S. Mahawar):** **Rs. 12,96,000** * **CFO (S.K. Sharma):** **Rs. 8,04,600** * **Company Secretary (R. Agarwal):** **Rs. 1,44,000** **Key Personnel Metrics:** * **Median Remuneration:** Experienced a significant **decrease of 21.12%** in the most recent financial year, following a sharp **71.09% increase** in the **September 2023** period. * **Salary Increments:** While non-managerial salaries saw an average percentile increase of **39.93%** in **2023**, the latest data indicates **no increase** in remuneration for the MD, CFO, or Company Secretary. * **Policy Adherence:** All payments are affirmed to be in accordance with the company’s **Remuneration Policy**. --- ### **Financial Health & Regulatory Metrics** The company follows **Indian Accounting Standards (Ind AS)** and prioritizes the retention of earnings for future growth over dividend distribution. | Metric / Provision | Status / Value | | :--- | :--- | | **Statutory Reserve (Sec 45IC)** | **Rs. 85.51 Lakh** transferred to Special Reserve (FY22-23) | | **Cash Losses** | **None** incurred in the current or preceding FY | | **Working Capital Limits** | Not sanctioned in excess of **Rs. 5 Crore** from banks/FIs | | **Promoter Holding** | **59.27%** of **11,731,000** total shares | | **Foreign Exchange Risk** | **NIL** earnings or outgo | | **Subsidiaries/JVs** | **None** | --- ### **Risk Landscape & Mitigation Strategies** Garbi Finvest operates in a high-stakes regulatory environment and faces competition from both traditional banks and emerging fintech players. #### **1. Regulatory & Reporting Challenges** The company has faced historical and recent scrutiny regarding its internal processes: * **Audit Qualifications:** For **FY 2023-24**, auditors issued a **Qualified Opinion** due to non-compliance with **Ind AS 109**. Specifically, the company had not implemented the **Expected Credit Loss (ECL)** model and lacked documented **Internal Financial Controls (IFC)**. * **Remediation:** As of **September 2025**, management has initiated the implementation of the **ECL model** and is formalizing IFC documentation. * **Historical "Shell" Status:** In **August 2017**, **SEBI** classified the company as a **"Shell Company."** Following a forensic audit, the **BSE** revoked all trading restrictions in **December 2021**, restoring the company's standing. #### **2. Operational & Market Risks** * **Credit Quality:** The company faces risks from **Rising NPAs**, particularly in the **MSME** and rural sectors. To mitigate this, loan documents were retroactively executed in **2024-25** to align with new, stricter credit policies. * **Competitive Pressure:** The **Banking Industry** (with lower **Cost of Funds**) and **Fintechs** present significant competition. The company’s strategy involves focusing on untapped semi-urban markets and digital solutions. * **Liquidity & Solvency:** Despite reporting challenges, the company has **NIL defaults** on loan or interest repayments. Auditors confirm the company is capable of meeting liabilities falling due within **one year**. #### **3. Risk Management Framework** The Board has established a formal **Risk Management Policy** to identify and prevent internal and peripheral risks. This includes regular assessments of related party transactions; notably, no transactions were reported under **Section 188** for the latest review period.