Jindal Capital Limited is a **Delhi-based** financial services firm registered as a **Non-Banking Financial Company (NBFC)** under **Section 45 IA** of the **Reserve Bank of India Act, 1934**. Operating as a non-deposit-taking entity, the company specializes in financial resource allocation and credit activities. As a standalone entity with **no subsidiaries, joint ventures, or associate companies**, Jindal Capital focuses exclusively on the **Financial Activities** segment within the Indian regulatory landscape. --- ### **Capital Structure and Strategic Expansion** The company is currently undergoing a significant capital restructuring phase to enhance financial flexibility and support future business prospects. | Capital Metric | Current Status | Proposed Status (Post-Approval) | | :--- | :--- | :--- | | **Authorised Share Capital** | **₹7,25,00,000** | **₹12,00,00,000** | | **Total Equity Shares** | **72,50,000** | **1,20,00,000** | | **Face Value per Share** | **₹10** | **₹10** | | **Paid-up Equity Capital** | **₹7,20,81,000** | **₹7,20,81,000** (Current) | | **Net Worth (as of March 31, 2023)** | **₹10,95,00,000** | - | **Strategic Priorities:** * **Capital Infusion:** The proposed creation of **47,50,000** additional equity shares is intended to fund general corporate requirements and scale operations. * **Resource Conservation:** The Board has consistently recommended **No Dividend** and opted not to transfer funds to **General Reserves**, prioritizing the retention of earnings to fuel growth. * **Regulatory Thresholds:** The company currently falls below the **SEBI** threshold for mandatory **Corporate Governance** disclosures under **Regulation 15(2)**, as its **Paid-up Capital** is under **₹10 Crore** and **Net Worth** is under **₹25 Crore**. --- ### **Financial Performance Trends** Following a contraction in **2023**, the company has demonstrated a steady recovery in revenue and a significant stabilization of net profits. | Financial Year | Total Revenue (Cr) | Net Profit / PAT (Cr) | | :--- | :--- | :--- | | **2024-25** | **3.89** | **1.17** | | **2023-24** | **3.55** | **1.20** | | **2022-23** | **5.03** | **0.25** | * **Revenue Trajectory:** Revenue increased by **9.57%** year-on-year in the most recent cycle, recovering from the **2023-24** low. * **Profitability:** While **Net Profit** saw a marginal decline from **₹1.2 Crore** to **₹1.17 Crore** in the latest fiscal year, it remains substantially higher than the **₹25.49 Lakhs** reported in **2022-23**. --- ### **Operational Framework and Regulatory Compliance** Jindal Capital operates under a centralized business model focused on credit and financial instruments, adhering to stringent Indian accounting and regulatory standards. * **Accounting Standards:** Operations are conducted in accordance with **Ind AS 108** (Operating Segments) and **Ind AS 109** (Financial Instruments). The company utilizes the **Expected Credit Loss (ECL)** model for asset impairment assessment. * **Statutory Reserves:** In compliance with **Section 45IC** of the RBI Act, the company transfers **20% of its annual profits** to a **Statutory/Special Reserve Account** (e.g., **₹3.00 Lakhs** transferred for FY 2022-23). * **Exclusions:** The company is specifically **not** authorized for **Housing Finance** activities and does not operate as a **Core Investment Company (CIC)**. It maintains a strict policy against accepting **public deposits**. * **Service Providers:** * **Registrar and Share Transfer Agent (RTA):** **MUFG Intime India Private Limited**. * **Secretarial Auditor:** **M/s. A Tiwari & Associates** (Appointed for a **5-year term** from **2025-26 to 2029-30**). --- ### **Risk Management Framework** The company employs a formal **Risk Management Policy** overseen by the **Board of Directors** and a dedicated **Risk Management Committee**, utilizing both quantitative and qualitative criteria. | Risk Category | Primary Drivers | Mitigation Strategy | | :--- | :--- | :--- | | **Credit Risk** | Client defaults; asset concentration; exchange/clearing house failures. | Consolidation of individual obligator and sector risks; continuous monitoring of receivables. | | **Liquidity Risk** | Working capital for margin maintenance and settlement obligations. | Reliance on **internal accruals** and short-term credit/overdrafts against pledged assets. | | **Market Risk** | Volatility in equity, debt, and commodities due to macro factors. | Setting **outstanding position limits** and real-time monitoring by senior management. | | **Interest Rate Risk** | Floating-rate working capital loans and overdraft facilities. | Monitoring **interest rate gaps** and re-pricing bands; no current use of derivatives for hedging. | **Operational & Regulatory Challenges:** * **Price Risk:** Proprietary positions in equities for **arbitrage opportunities** expose the company to security volatility. * **Labour Codes:** The company is monitoring the **Labour Codes, 2020** (Code on Wages and Social Security). While **29 laws** are being consolidated, no material financial impact is currently foreseen. * **Internal Controls:** An **Internal Audit department** reports directly to the **Audit Committee** to ensure compliance with **RBI and SEBI** statutes and to safeguard assets against unauthorized use. --- ### **Leadership and Governance** The company is led by a senior management team with specialized expertise in the Indian financial regulatory environment. * **Leadership Continuity:** To ensure stability during market volatility, the company revised managerial remuneration for the **Chairman-cum-Managing Director** and **Executive Director & CFO** to **₹1,00,000 per month** effective **April 1, 2024**. This applies even in instances of inadequate profits. * **Operational Status:** Management has noted that operations were **severely disrupted** by recent market challenges and are currently functioning in a **phased manner** following government directives. * **Corporate Philosophy:** Although not meeting the legal threshold for mandatory **Corporate Social Responsibility (CSR)** under the Companies Act, 2013, the company continues to engage in community welfare as part of its core philosophy.