Goyal Associates Limited is a Vadodara-based **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** as a **Non-Deposit taking entity**. The company specializes in credit disbursement and fund-based financial activities within the Indian market, targeting micro-enterprises, SMEs, and the retail salaried segment. --- ### **Core Financial Services & Market Focus** The company operates through a single reportable segment—**Financing**—with a diversified portfolio of credit products designed to reach "new-to-credit" customers in deeper geographic markets. * **Enterprise & Agro Lending:** Provision of **Micro Enterprise Loans**, **SME Loans**, and **Agro-based Loans**. * **Asset Financing:** Credit facilities for **Vehicle Loans**. * **Institutional Lending:** Extending credit lines to **Micro Financial Institutions (MFIs)** and other **NBFCs**. * **Capital Markets:** Engagement in **share trading** and related financial activities. --- ### **Strategic Pivot: Digital Lending & "SalaryDay" Platform** Goyal Associates is currently transitioning its retail loan business model to increase direct control over its portfolio and reduce dependency on third-party service providers. * **Proprietary Shift:** The company terminated previous retail loan tie-ups with external service providers to launch its own digital platform, the **"SalaryDay App,"** focused on direct lending to salaried individuals. * **Portfolio Cleanup:** Following the discontinuation of external partnerships, outstanding loans were either recovered from service providers per agreement terms or written off where recovery was deemed unfeasible. * **Current Operational Status:** As of **April 27, 2024**, the company **suspended all lending services** via the SalaryDay app. Current activities are restricted to **collection efforts** against previously disbursed loans. Management is actively exploring solutions to resume digital originations. --- ### **Capital Structure & Recent Fund Raising** The company has aggressively pursued capital infusion to strengthen its balance sheet and support future growth targets. **Preferential Allotment & Warrant Conversion (March 2025):** In a significant capital-raising exercise, the company allotted **60,00,000 convertible warrants** to non-promoter, public category investors. | Parameter | Details | | :--- | :--- | | **Total Warrants Allotted** | **60,00,000** | | **Issue Price per Warrant** | **INR 2.50** (Face Value ₹1.00 + Premium ₹1.50) | | **Total Capital Raised** | **INR 1,50,00,000 (1.50 Crores)** | | **Conversion Terms** | **1:1 ratio** into Equity Shares within **18 months** | | **Pre-Allotment Paid-up Capital** | **4,69,37,500** Equity Shares | | **Post-Allotment Paid-up Capital** | **5,29,37,500** Equity Shares | --- ### **Ownership & Governance Evolution** The company has undergone a fundamental shift in its shareholding structure and leadership team to align with its new strategic direction. * **Promoter Reclassification:** Following **SEBI-approved reclassifications** (notably **Mr. Narendra Goyal** in December 2023), the company is now heavily public-owned. * **Promoter Holding:** **5.33%** (**25,00,155 shares**) * **Public Holding:** **94.67%** (**4,44,37,345 shares**) * **Leadership Changes:** * **Mr. Bheemdi Raghuram Reddy** was appointed **CEO** on **June 1, 2024**, for a five-year term. * The company appointed a new **Company Secretary** in late **2022** following the resignation of the **CFO** in **August 2022**. --- ### **Financial Performance & Regulatory Compliance** The company maintains a conservative dividend policy, recommending **Nil dividends** for the recent fiscal cycles to preserve capital. | Metric | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Revenue from Operations** | **₹28.12 Lakhs** | **₹31.23 Lakhs** | | **Net Profit (PAT)** | **₹10.97 Lakhs** | *Not Specified* | | **Statutory Reserve Transfer** | **20% of Net Profit** | **20% of Net Profit** | | **Statutory Auditors** | **RSRV & Associates** | **RSRV & Associates** | --- ### **Critical Risk Factors & Audit Observations** Investors should note several high-impact risks and regulatory challenges that have led to "Emphasis of Matter" observations by auditors. **1. Operational & Going Concern Risks:** * **App Delisting:** The **'SalaryDay'** app was delisted from the **Google Play Store** during **FY 2023-24** and remains unavailable as of **May 2025**. This creates material uncertainty regarding the company's ability to acquire new customers and continue as a **Going Concern**. * **Credit Risk:** High exposure to the **semi-formal and informal sectors** increases the potential for non-performing assets (NPAs). **2. Regulatory & Legal Challenges:** * **ED Investigation:** The company received a summons from the **Enforcement Directorate (ED)** in **March 2023** under the **Prevention of Money Laundering Act (PMLA)**. * **SEBI Non-compliance:** The **Stock Exchange** issued a warning in **October 2024** regarding a **239-day delay** in disclosing promoter reclassification applications. * **Taxation Issues:** As of May 2025, the company has failed to file **GST returns** for **4 consecutive months** and has outstanding statutory dues exceeding **6 months**. Furthermore, auditors noted the **non-levy of GST** on cheque bounce charges. **3. Macroeconomic Environment:** * **Margin Pressure:** While the NBFC sector expects **12-14% growth**, rising interest rates are expected to compress **Net Interest Margins (NIMs)**. * **Policy Volatility:** The business remains highly sensitive to sudden shifts in **RBI policies** and Ministry of Finance directives.