Lyons Corporate Market Limited is a Reserve Bank of India (**RBI**) registered **Non-Banking Financial Company (NBFC)**, holding Certificate of Registration No. **B-05.00932**. Classified as a **Base Layer NBFC (NBFC-BL)** under the RBI’s Scale-Based Regulations, the company operates as a non-Core Investment Company (**non-CIC**) focused exclusively on the Indian financial markets. --- ### **Core Business Model and Revenue Streams** The company operates a streamlined, single-segment business model focused on credit delivery and financial asset management. As per **IND AS-108**, all activities are consolidated under the **NBFC activities** segment. * **Credit Operations:** Providing loans to a targeted client base. The company prioritizes borrowers with **high credit scores** to maintain asset quality. * **Investment Portfolio:** Strategic investment in shares, bonds, mutual funds, and other securities. Assets are managed at **amortized cost** or **fair value** (FVTPL/FVOCI) based on risk-performance evaluations. * **Operational Leanliness:** The entity does not maintain physical inventory or utilize traditional working capital limits. It operates with a lean workforce below the statutory thresholds for Provident Fund, ESI, and Gratuity Acts, resulting in **zero present obligations** for post-employment benefits. --- ### **Capital Structure and Debt Profile** The company employs a capital management strategy aimed at optimizing its **gearing ratio** to support expansion while maximizing shareholder value. Recent years have seen a deliberate shift in the debt-to-equity mix. | Particulars (₹ in Lacs) | As at 31-Mar-25 | As at 31-Mar-24 | As at 31-Mar-23 | | :--- | :---: | :---: | :---: | | **Total Borrowings** | **918.00** | **810.00** | **293.00** | | Less: **Cash & Cash Equivalents** | **20.73** | **27.93** | **22.68** | | **Adjusted Net Debt** | **897.27** | **782.07** | **270.32** | | **Fixed Interest Rate Debt %** | **100%** | **100%** | **100%** | **Key Financial Observations:** * **Debt Composition:** **100%** of the company’s debt is held at **Fixed Interest Rates**, providing a hedge against market volatility and rising interest rate environments. * **Net Worth & Compliance:** With a Net Worth of **₹3.27 Crore** and Paid-up Share Capital of **₹4.68 Crore**, the company remains below the thresholds (**₹25 Crore** and **₹10 Crore** respectively) for certain **SEBI (LODR) Regulation 23(9)** disclosures. * **Capital Adequacy:** The company has historically improved its **Tier-I** and **Tier-II CRAR** (Capital to Risk-weighted Assets Ratio) through the realization of loans and reduction of **Risk Weighted Assets**. --- ### **Financial Performance and Shareholder Returns** The company has navigated a period of fluctuating profitability, influenced by market conditions and the realization of financial assets. | Metric (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | |:---|:---:|:---:|:---:| | **Profit / (Loss) Before Tax** | **(7.27)** | **2.19** | **5.45** | | **Dividend Recommended** | **Nil** | **Nil** | **Nil** | Due to **brought-forward losses** and the need to conserve capital for growth, the Board has not recommended dividends for the recent cycles. However, the company reserves the right to adjust dividend policies or issue new shares to maintain an optimal gearing ratio. --- ### **Strategic Assets and Related Party Interests** * **Real Estate:** The company holds title deeds for its immovable properties (office premises) in **Kolkata** in its own name. It holds no intangible assets. * **Major Shareholding:** **DIPL Computers Pvt. Ltd.** is the primary stakeholder, holding **49.47%** of equity shares. Notably, previous loan balances from this related party were cleared to **zero** as of March 2024. * **Market Status:** A significant milestone was achieved on **September 13, 2024**, when the suspension of trading for the company’s shares on the **BSE** was revoked, allowing for resumed liquidity for shareholders. --- ### **Risk Management and Contingent Liabilities** Lyons Corporate Market operates under an **Integrated Enterprise Risk Management** framework to mitigate the inherent risks of the financial sector. #### **1. Financial and Market Risks** * **Interest Rate & Inflation:** While fixed-rate debt protects the company from rising borrowing costs, inflation can erode the purchasing power of investment returns. * **Price Risk:** Exposure to fluctuations in the fair value of equity and bond investments. * **Liquidity Risk:** Managed through a **well-diversified portfolio** and high liquidity retention from loan realizations. #### **2. Credit Quality and Asset Integrity** * **Stressed Assets:** As of March 31, 2024, the company reported **zero transfers** of NPAs, SMAs, or stressed loans, indicating a clean credit book. * **Counterparty Risk:** Mitigated by rigorous credit scoring and regular Board-level reviews of the loan portfolio. #### **3. Contingent Liabilities and Guarantees** The company has significant exposure through third-party security arrangements: * **Corporate Guarantee:** **₹7.30 Crores** (as of March 31, 2025) provided to **Central Bank of India** for credit facilities sanctioned to **Aditya Translink Pvt. Ltd.** * **Collateral:** The company’s **Kolkata office premises** are under an **Equitable Mortgage** to secure these third-party facilities. --- ### **Regulatory and Competitive Outlook** The company’s future performance is closely tied to the **Indian Economy** and the evolving regulatory landscape of the **RBI** and **SEBI**. * **Regulatory Compliance:** Following historical non-compliance with the **SEBI Act, 1992** (which led to the previous trading suspension), the company is now focused on full adherence to **RBI Master Directions** and scale-based norms. * **Competitive Landscape:** The company faces intensified competition from **traditional banks**, which often possess lower costs of funds and larger scales of operation. * **Litigation Environment:** The entity operates within a high-litigation sector involving various legal and regulatory proceedings, which are monitored by the **Audit Committee** to ensure internal control and authorized reporting.