Money Masters Leasing & Finance Limited is a Reserve Bank of India (RBI) registered **Non-Banking Financial Company - Asset Financing Company (NBFC-AFC)**. Classified as a **Non-Deposit taking entity (NBFC-ND)**, the company has specialized in hire-purchase finance and secured lending for over a decade, having ceased the acceptance of public deposits in **December 2011**. The company achieved a significant corporate milestone on **May 06, 2024**, by successfully migrating from the BSE SME Platform to the **BSE Mainboard**, signaling its transition into a more mature phase of capital market participation. --- ### **Core Business Model & Asset Specialization** The company operates through a single-segment business model focused exclusively on **Leasing and Finance**. Its primary objective is to promote financial inclusion by providing credit for productive, income-generating assets to retail, SME, and commercial customers in both urban and rural India. * **Primary Product Suite:** Financing for **auto-rickshaws, two-wheelers, four-wheelers (taxis), computers, industrial machinery, and small equipment**. * **Lending Philosophy:** Focus on small-ticket assets and niche financial services where traditional banks may have a limited appetite. * **Regulatory Compliance:** The company consistently maintains an Asset Financing ratio significantly above the **60%** RBI requirement for AFCs. As of March 31, 2025, asset financing stood at **₹28.70 crore**. --- ### **Financial Performance & Operational Metrics** Money Masters has demonstrated steady operational resilience with marginal year-on-year growth in profitability and a consistent yield on its lending portfolio. | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Outstanding Advances** | **₹29.03 crore** | **₹28.42 crore** | **₹25.78 crore** | | **Net Receipts from Operations** | **₹2.14 crore** | **₹2.07 crore** | **₹2.27 crore** | | **Profit After Tax (PAT)** | **₹51.19 lakhs** | **₹50.85 lakhs** | **₹48.88 lakhs** | | **New Disbursements (Value)** | **₹2.81 crore** | **₹5.17 crore** | **₹3.27 crore** | | **New Loans Sanctioned (Count)** | **34** | **68** | **77** | | **Average Yield on Advances** | - | - | **16.5% p.a.** | **Asset Quality Profile:** * **Gross Non-Performing Advances (GNPA):** **₹68.05 lakhs** (**2.30%** of total assets). * **Net Non-Performing Advances (NNPA):** **₹20.50 lakhs** (**0.69%** of total assets). * **Installment Collections:** **₹4.75 crore** (FY 2024-25). --- ### **Capital Structure & Strategic Restructuring** The company is executing a multi-stage capital expansion strategy to enhance market liquidity and strengthen its balance sheet for long-term lending. **Key Capital Actions:** * **Stock Split (Aug 2024):** Sub-divided **1** equity share (FV **₹10**) into **10** equity shares (FV **₹1**) to broaden the investor base. * **Rights Issue:** Received in-principle approval from the BSE in **November 2024** for a Rights Issue not exceeding **₹49 Crores**. * **Authorized Capital Expansion:** Increased from **₹34 Crores** to **₹60 Crores** in **August 2025** to facilitate future fund infusions. **Current Capital Position (as of March 31, 2025):** * **Paid-up Share Capital:** **₹12.65 crore**. * **Equity Component:** **10,03,82,290 Equity Shares** (FV **₹1**). * **Preference Component:** **26,13,500 Non-Convertible Cumulative Redeemable Preference Shares** (FV **₹10**). * **Net Worth:** **₹15.75 crore**. --- ### **Solvency & Regulatory Buffers** Money Masters maintains a robust capital cushion, significantly exceeding the **15%** Capital Adequacy Ratio (CAR) mandated by the RBI. | Regulatory Metric | Current Status (FY25) | RBI Mandate | | :--- | :--- | :--- | | **Total Capital Adequacy Ratio (CAR)** | **59.17%** | **15.00%** | | **Tier I Capital** | **49.35%** | - | | **Tier II Capital** | **9.82%** | - | --- ### **Growth Strategy & Market Outlook** The company anticipates steady growth in **Assets Under Management (AUM)** for **FY 2025-26**, driven by high credit penetration and a projected sector real growth rate of **7-10%** over the next five years. * **Geographic Expansion:** Aggressive push into **semi-urban and rural areas** to capture demand for **Electric Vehicle (EV)** and agricultural equipment financing. * **Digital Transformation:** Implementing digital tools to accelerate customer acquisition and loan disbursements. * **Strategic Partnerships:** Exploring **Co-lending** opportunities with banks and fintech firms to leverage their low cost of funds and the company's last-mile reach. * **Market Opportunity:** Capitalizing on the reduced lending appetite of public sector banks due to legacy bad debt issues. --- ### **Governance & Management Framework** The company emphasizes independent oversight by maintaining distinct individuals for the roles of **Chairman** and **Managing Director**. * **Leadership:** The day-to-day operations are led by **Mr. Hozef Darukhanawala (Managing Director)**, who brings **35 years** of banking experience. * **Executive Remuneration:** Effective **October 1, 2025**, the MD’s base salary is set at **₹18,00,000 per annum**. This is structured as **Minimum Remuneration**, payable even in the event of inadequate profits, with future increments linked to performance. * **Statutory Transfers:** The company strictly adheres to Section **45IC** of the RBI Act, transferring **₹10.24 lakhs** to its Reserve Fund in the most recent cycle. --- ### **Risk Factors & Mitigation** Investors should consider the following risks inherent to the mid-sized NBFC sector: * **Compliance Gaps:** As of **September 2025**, the company is in the process of finalizing the appointment of an **Internal Auditor** to address non-compliance with **Section 138 of the Companies Act, 2013**. * **Financial Risks:** Exposure to **interest rate volatility** and potential **liquidity crunches** due to limited refinance avenues compared to larger peers. * **Credit & Macro Risks:** Repayment capacity is sensitive to **inflationary pressures** and rural economic distress, which could impact the debt-servicing ability of the target demographic. * **Regulatory Risk:** Frequent shifts in RBI policies regarding **Provisioning Norms** and **KYC/AML** (Prevention of Money Laundering Act) require constant operational adaptation.