Haryana Capfin Limited is an Indian **Non-Banking Financial Company (NBFC)** categorized under the **RBI’s Scale-Based Regulation (SBR)** framework as a **Non-Systemically Important Non-Deposit Taking Company**. The company serves as a strategic investment and financing vehicle, primarily focused on capital market activities and credit delivery to corporate entities. --- ### Core Business Operations and Segment Analysis The company operates exclusively within a single reportable segment: **Investment & Financing**. As a service-oriented financial entity, it maintains **nil physical inventory**. Its operational activities are bifurcated into two primary streams: * **Strategic Investment:** Deploying capital into financial instruments, equity markets, and group companies. The company’s balance sheet is heavily characterized by long-term equity holdings. * **Financing Operations:** Providing loans and advances to body corporates. These borrowers are typically engaged in real estate and investment activities, though the company maintains no direct exposure to real estate projects. **Operational Framework & Limits:** | Feature | Details | | :--- | :--- | | **Regulatory Category** | **NBFC – Non-Systemically Important Non-Deposit Taking** | | **Working Capital Limits** | Capped at **₹ 5 crore** from Banks/Financial Institutions | | **Accounting Standards** | **Ind AS** compliant; Investments valued at **FVTOCI** | | **Credit Rating** | **Not Applicable** | | **Labour Compliance** | Transitioning to **New Labour Codes** (Effective **Nov 21, 2025**) | --- ### Financial Performance and Asset Composition The company has demonstrated a robust growth trajectory in profitability over the last three fiscal cycles, characterized by a significant **85% increase in Profit After Tax (PAT)** in the most recent year. #### Three-Year Financial Summary | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **752.96** | **439.10** | **276.00** | | **Profit Before Tax (PBT)** | **692.56** | **377.91** | **215.00** | | **Profit After Tax (PAT)** | **522.09** | **281.76** | **159.00** | | **Transfer to General Reserve** | **Nil** | **10.00** | **10.00** | #### Investment Concentration and Exposure Profile The company’s asset base is highly concentrated in equity instruments, reflecting a strategy of long-term capital appreciation within its corporate ecosystem. * **Group Concentration:** As of March 31, 2025, the company held **₹423.64 crore** in equity shares of group entities, representing **97.74% of Total Assets** (**₹433.44 crore**). * **Market Exposure:** Total investment in equity shares and equity-oriented mutual funds reached **₹48,273.53 lakhs** (approx. **₹482.74 crore**) by March 2024, a substantial increase from **₹20,401.37 lakhs** the previous year. * **Risk Mitigation in Lending:** The company reports **zero** exposure to unhedged foreign currency and **zero** intra-group loan exposure. --- ### Governance Structure and Leadership Continuity The company maintains a governance model where **Non-Executive Directors (NEDs) constitute over 50%** of the Board, ensuring a balance between promoter vision and independent oversight. **Board Composition & Key Personnel:** * **Mrs. Shruti Raghav Jindal:** Whole-Time Director (Promoter), re-appointed for **3 years** effective **July 1, 2023**. * **Mr. Vijay Kaushik:** Independent Director, appointed for a **5-year term** effective **December 30, 2024**. * **Mr. Ram Ji Nigam:** Additional Director (Non-Executive Non-Independent), appointed effective **February 13, 2026**, to bolster strategic oversight. * **Mr. Shivam Kaushik:** Company Secretary & Compliance Officer, effective **April 1, 2025**. The Board utilizes a **"liable to retire by rotation"** policy to ensure leadership refreshment while maintaining institutional memory. All appointments are governed by the **Nomination and Remuneration Committee** in alignment with **Section 178(3) of the Companies Act, 2013**. --- ### Strategic Growth Drivers The company’s strategy is aligned with the broader formalization of the Indian economy and the government’s infrastructure-led growth model. * **Macro-Economic Alignment:** Management seeks to leverage the **₹ 11.11 lakh crore** CAPEX allocation from the **Budget 2024-25** and increased credit penetration in the Indian market. * **Capital Conservation:** For **FY 2024-25**, the Board opted **not to recommend a dividend**, choosing instead to retain earnings to fund future operational requirements and strengthen the balance sheet. * **Digital & Regulatory Adaptation:** Strategy focuses on navigating the formalization brought by **GST** and the digital transformation of financial services while adhering to **SEBI (LODR) Regulations, 2015**. --- ### Risk Landscape and Regulatory Challenges Despite strong profitability, the company faces specific regulatory and market headwinds that require active management. #### Critical Risk Factors * **Capital Adequacy Breach:** The company did not meet the **Minimum Capital Adequacy Ratio (CAR) of 15%** for the year ended **March 31, 2025**, as required by the **RBI Master Direction (NBFC-SBR) 2023**. Addressing this shortfall is a primary regulatory priority. * **Concentration Risk:** With over **97% of assets** tied to group equity, the company is highly sensitive to the market valuation and performance of its affiliate entities. * **Competitive Pressure:** The rise of **Fintech** and aggressive lending by traditional banks creates margin pressure and challenges in the credit delivery segment. * **Liquidity and Market Volatility:** Exposure to equity markets subjects the company’s Net Worth to fluctuations in market sentiment, managed via **Ind AS 109** fair valuation assessments. #### Mitigation Framework | Risk Category | Mitigation Approach | | :--- | :--- | | **Regulatory** | Strengthening internal controls to align with **RBI Scale-Based Regulations**. | | **Financial** | Utilizing **advanced analytics** for early warning signals regarding credit and liquidity. | | **Operational** | Transitioning to new **Labour Codes** and enhancing human capital retention. | | **Strategic** | Regular board-level review of investment portfolios and diversification opportunities. |