JPT Securities Limited is a Mumbai-based **Non-Banking Financial Company (NBFC)**, incorporated in **1994** and registered with the **Reserve Bank of India (RBI)** under Section **45-IA** of the RBI Act, 1934. The company is a non-deposit-taking entity listed on the **BSE Limited**, primarily focused on the capital market and financial services sectors. --- ### **Corporate Structure and Strategic Relationships** The company operates within a concentrated ownership framework and maintains a lean operational footprint. * **Parentage:** The company is a subsidiary of **Awaita Properties Private Limited**, which holds a controlling **60.09%** promoter stake as of **March 31, 2024**. * **Associate Entity:** **JPT Share Services Pvt. Ltd. (JSSPL)** serves as the company’s associate. JSSPL is a deposit-based trading member of the **NSE**. Notably, its **BSE Registration** was cancelled effective **March 01, 2024**, due to non-commencement of business, though its **NSE** license remains active. * **Human Capital:** Operations are managed by a minimal team of **3 permanent employees**. There have been no reported salary increases or managerial remuneration for directors or Key Managerial Personnel (KMP) in recent review periods. --- ### **Core Business Segments and Revenue Model** JPT Securities operates through a **single reportable segment: Loans**. Its business model is built upon three pillars: 1. **Lending Services:** The primary revenue driver involves providing **loans and advances** to corporate and individual clients. 2. **Capital Market Operations:** Engaging in financial services and strategic investments within the Indian capital markets. 3. **Strategic Management:** Identifying and leveraging new business avenues to strengthen existing operations and capitalize on emerging market opportunities. --- ### **Financial Performance and Capital Position** The company’s financial health has been characterized by persistent losses and a shrinking reserve base, though recent data suggests a narrowing of the net loss. | Particulars (Rs. in Lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **42.01** | **42.09** | **47.78** | | **Loss After Tax (LAT)** | **(20.00)** | **(83.50)** | **(11.44)** | | **Paid-up Share Capital** | **300.60** | **300.60** | **300.60** | | **Reserves and Surplus** | **32.45** | **52.45** | **135.95** | | **Basic/Diluted EPS (Rs.)** | **(0.67)** | **(2.53)** | **(0.40)** | * **Capital Adequacy:** The paid-up capital is stable at **Rs. 300.60 Lacs**, divided into **3,006,000 Equity Shares** (Face Value **Rs. 10**). * **Dividend Policy:** No dividends were recommended for **FY 2024-25** to conserve liquidity. * **Statutory Reserves:** Due to the lack of post-tax profits, no funds were transferred to the **Statutory Reserve Account** required under **Section 45-IC of the RBI Act**. * **Asset Valuation:** Management states that current assets and advances are recorded at realizable value; however, the company reported **nil contingent liabilities** in recent cycles. --- ### **Macroeconomic Alignment and Growth Strategy** The company’s long-term outlook is tied to the **Government of India’s** capital expenditure programs and digital transformation initiatives. | Focus Area | Investment / Target | Strategic Relevance | | :--- | :--- | :--- | | **Infrastructure** | **Rs. 10.68 lakh crore** CapEx | Driving demand for credit via **PM GatiShakti**. | | **Manufacturing** | **Rs. 30 lakh crore** (PLI) | Targeting a **25% GDP contribution** from manufacturing. | | **R&D & Startups** | **Rs. 1,00,000 crore** fund | Opportunities in **deep-tech** and low-interest funding. | | **Digital Economy** | **Blockchain/Digital Rupee** | Alignment with **Digital India** and fintech evolution. | | **Energy & Space** | **Rs. 24,000 cr** (Solar) / **Rs. 13,700 cr** (Space) | Participation in high-growth, tech-led sectors. | --- ### **Critical Risk Factors and Material Uncertainties** JPT Securities faces severe operational and financial headwinds that have led auditors to flag a **material uncertainty regarding its status as a "Going Concern."** #### **1. Asset Quality and Liquidity Constraints** * **Defaulted ICDs:** The company advanced Inter-Corporate Deposits (ICDs) of **Rs. 6.49 crores** which defaulted on principal and interest. These are classified as **Loss Assets**, requiring **100% provisioning** as of **February 2026**. * **Statutory Arrears:** Due to a liquidity crunch, the company has failed to settle statutory dues of **Rs. 2.85 crores** outstanding for over six months. * **Taxation Risks:** Multiple pending income tax cases exist with unquantified liabilities and interest. #### **2. Regulatory Non-Compliance and Governance Issues** * **BSE Penalties:** Failure to pay **Annual Listing Fees (ALF)** since **FY 2020-21** has resulted in the **freezing of the entire promoter shareholding**. * **Board Vacancies:** The company lacks a **Whole Time Company Secretary**, a **Compliance Officer**, and a **Woman Director** (beyond the 3-month grace period). * **Reporting Failures:** Non-compliance includes failure to maintain a **Structured Digital Database (SDD)** for UPSI, non-filing of **RBI returns (DNBS 02, 10, 13)**, and failure to renew credit ratings. #### **3. Market and Competitive Threats** * **Market Risk:** Exposure to **interest rate volatility** on long-term floating debt and fluctuations in equity prices. * **Credit Risk:** High risk of financial loss from counterparty defaults on trade receivables and bank deposits. * **Macro Pressures:** Inflationary trends and a reduction in household savings directed toward financial products may dampen growth. * **Competition:** Intense pressure from both domestic and multinational financial institutions. --- ### **Internal Control Framework** To manage these risks, the company utilizes an internal control system overseen by the **Audit Committee**. This framework is designed to ensure compliance with **Indian Accounting Standards (Ind-AS)** and to monitor the **gearing ratio** (net debt to total capital). While the company reported no breaches in financial covenants for interest-bearing borrowings, the persistent regulatory lapses indicate significant room for improvement in administrative oversight.