Indian Infotech and Software Limited is a **Reserve Bank of India (RBI)** registered **Non-Banking Financial Company (NBFC)**, classified as an **Investment and Credit Company (NBFC-ICC)**. Originally incorporated in **1982** as Indian Leasers Limited, the company has evolved into a financial services provider focused on rural and semi-urban geographies, targeting the unbanked and underbanked segments through a mix of traditional lending and digital origination. --- ### Corporate Structure and Regulatory Standing The company operates as a **Non-Systemically Important Non-Deposit taking NBFC** under RBI Certificate of Registration **No. B-13.00221**. It maintains a lean operational structure with no subsidiaries, joint ventures, or associate companies. | Feature | Specification | | :--- | :--- | | **Listing Status** | Listed on **BSE Ltd.** since April 19, 1985 | | **Regulatory Layer** | Base Layer (Non-Deposit Taking) | | **Risk Framework** | **ISO 31000: 2018** compliant | | **Fixed Assets** | **NIL** (Operates via leased/licensed premises) | | **Inventory** | Held as **Investments in Demat form** | --- ### Core Financial Products and Revenue Streams The company operates through a single reportable segment: **Financing and Share Trading**. Its "hub & spoke" model utilizes a Mumbai-based registered office for retail operations while leveraging digital platforms for loan origination. * **Micro-Centric & MSME Lending:** Credit solutions for individuals and small business owners, focusing on the fast-growing e-commerce and small-scale industrial sectors. * **Vehicle Finance:** Specialized financing for both commercial and personal vehicles. * **Corporate & Professional Finance:** Secured and unsecured loans extended to corporate entities, LLPs, and self-employed professionals. * **Loan Tenures:** * **Short-term:** **1 to 12 months**. * **Long-term:** **12 to 84 months**. * **Capital Market Activities:** Active investment and trading in shares and securities of various listed and unlisted companies. --- ### Strategic Growth and Capital Raising Initiatives The company is currently executing a capital-intensive expansion strategy to augment its fund-based capacity and deepen its presence in the **MSME** sector. * **2025 Rights Issue:** The Board has approved a Rights Issue of up to **42,23,47,590 equity shares** at **₹1.10 per share** (including a **₹0.10 premium**), totaling **₹46.46 crore**. The entitlement ratio is **1:3** with a record date of **July 28, 2025**. * **Expansion of Financial Limits:** To facilitate large-scale lending, the company has increased its statutory limits: * **Borrowing Limit:** Increased to **₹500 crore**. * **Investment/Loan Limit:** Increased to **₹500 crore** for acquisitions and inter-corporate loans. * **Related Party Transactions:** Limit increased to **₹250 crore**. * **Technological Integration:** Investment in **AI, advanced analytics, and machine learning** to develop propensity models for real-time lead generation and credit assessment. * **Co-Lending Models:** Actively seeking synergistic alliances with **fintech companies** to access niche markets and lower the overall cost of funds. --- ### Financial Performance Summary The company’s financial trajectory has shown significant volatility, moving from a turnaround in FY 2023-24 to a substantial loss in FY 2024-25 due to escalating expenses. | Particulars (INR) | FY 2024-25 (Audited) | FY 2023-24 (Audited) | FY 2022-23 (Audited) | | :--- | :--- | :--- | :--- | | **Total Income** | **39,42,79,651** | **21,12,12,075** | **47,06,12,802** | | **Total Expenses** | **46,09,51,785** | **18,79,84,858** | **46,28,04,457** | | **Net Profit / (Loss)** | **(6,91,57,134)** | **1,71,60,217** | **60,59,276** | | **Dividend** | **Nil** | **Nil** | **Nil** | **Capital Evolution:** * **Authorized Capital:** Increased from **₹127 crore** to **₹207 crore** in September 2024 to accommodate new equity issuances. * **Previous Fund Utilization:** A **₹41.83 crore** Rights Issue in FY 2023-24 was deployed into **Inventory of Shares (₹3,217 Lakhs)** and **Loans (₹961 Lakhs)**. --- ### Risk Management Framework and Asset Quality The company employs an **Expected Credit Loss (ECL)** framework under **Ind AS** to categorize financial assets: 1. **Stage 1:** Unimpaired assets with no significant increase in credit risk. 2. **Stage 2:** Assets with a significant increase in credit risk (**Lifetime ECL** recognized). 3. **Stage 3:** Default or credit-impaired assets (**Lifetime ECL** recognized). **Governance Oversight:** * **Asset Liability Committee (ALCO):** Monitors liquidity and interest rate sensitivity. * **Leadership:** **Mr. Anant Chourasia** (Managing Director) leads a 6-member board, supported by a dedicated **Rights Issue Committee**. --- ### Critical Risk Factors and Contingencies Investors should note several operational and regulatory challenges currently facing the entity: **1. Documentation and Audit Gaps:** * Statutory auditors have highlighted a **lack of external confirmations** for interest balances and unsecured loans. * A substantial number of borrowers have not provided loan or ledger confirmations, leading to an **"Emphasis of Matter"** in audit reports. **2. Internal Control Deficiencies:** * Previous audit qualifications noted a lack of formal appraisal and renewal procedures for granting loans. * The company has faced challenges in adhering to the **₹20,000** statutory limit for cash loan disbursals as per RBI directives. **3. Legal and Tax Liabilities:** | Nature of Litigation | Amount (INR) | Status | | :--- | :--- | :--- | | **Direct Tax (FY 2015-16)** | **3,26,53,570** | Under Appeal / Protest | | **Direct Tax (FY 2017-18)** | **1,06,890** | Under Protest | | **SEBI Penalty (2022)** | **5,00,000** | Paid (Reduced from 13L) | **4. Market and Credit Risks:** * **Unsecured Exposure:** High reliance on unsecured lending increases the risk of total loss upon default. * **Negative Cash Flows:** Historical periods of negative cash flow may impact future operational stability. * **Regulatory Pressure:** Increased RBI scrutiny on **usurious lending** and new **5% provisioning** requirements for infrastructure exposure may impact capital adequacy.