Nikki Global Finance Limited is a specialized **Non-Banking Financial Company (NBFC)** and credit institution. Established on **June 13, 1986**, the company is registered under **Section 45-IA of the RBI Act, 1934**, and operates as an **NBFC-ICC** (Investment and Credit Company). The company serves as a financial intermediary, bridging credit gaps for Indian corporates and individuals, particularly in segments underserved by traditional banking channels. It operates within a **single reportable geographical and business segment** (NBFC activities) in compliance with **Ind AS 108**. | Feature | Details | | :--- | :--- | | **Corporate Identification Number (CIN)** | **L65999DL1986PLC024493** | | **Registered Office** | **Janpath, New Delhi** | | **Managing Director** | **Rajesh Kumar Pandey** (DIN: 09745776) | | **Chairman of the Board** | **Rahul Bahukhandi** (Appointed June 2023) | | **Statutory Auditor** | **M/s Rajani Mukesh & Associates** | | **Subsidiaries/Associates** | **None** (As of August 2025) | --- ### **Strategic Turnaround and Operational Consolidation** The company is currently undergoing a rigorous turnaround phase aimed at reversing a period of significant financial contraction. Following a massive decline in operational scale—where turnover dropped from **₹16,37,748** in FY 2022-23 to just **₹1,620** in FY 2023-24—management has pivoted from aggressive expansion to a strategy of **capital preservation and cost control**. **Key Performance Trajectory:** The primary objective of the current leadership is the reduction of net losses and the stabilization of the balance sheet. | Metric | FY 2023-24 | FY 2024-25 | Change (%) | | :--- | :--- | :--- | :--- | | **Net Loss** | **₹ 14,62,240** | **₹ 3,37,965** | **~77% Reduction** | | **Strategic Focus** | Market Expansion | **Cost Control & Recovery** | Shift to Prudence | | **Profitability Status** | Net Loss | **Targeting Break-even** | Improving | **Strategic Pillars for FY 2025-26:** * **Prudent Lending:** Prioritizing **asset quality** over book size by focusing on **lower-risk segments** and implementing stricter **underwriting standards**. * **Recovery Frameworks:** Strengthening internal mechanisms to resolve legacy non-performing assets and improve liquidity. * **Digital Integration:** Enhancing **digital processes** to drive operational efficiencies and modernize customer engagement. * **Capital Allocation:** The Board has adopted a policy to **plough back all funds** into operations; consequently, **no dividend** has been recommended for the recent period. --- ### **Macroeconomic Context and Sector Outlook** Nikki Global Finance operates against a backdrop of a resilient Indian economy. While the management acknowledges a moderation in GDP growth—projected at **6.5% for 2024-25** compared to the three-year average of **8.8%**—the NBFC sector remains a vital pillar of the financial system. * **Regulatory Support:** The sector benefits from proactive **RBI oversight** and liquidity management, which helps mitigate risks associated with inflationary pressures. * **Market Opportunity:** Despite sector consolidation, the company sees growth potential in **customized financing solutions** and **sustainable finance initiatives**. * **Governance Enhancements:** To support this growth, the company strengthened its board with the appointment of a new **Independent Director** in **September 2024** for a **five-year term**. --- ### **Risk Profile and Legal Contingencies** The company faces a complex risk landscape, primarily driven by historical legal disputes and the inherent volatility of the capital markets. #### **1. Legal and Tax Litigation** The company is currently managing significant disputed tax liabilities pending before the **CIT (Appeals), Kanpur**. | Nature of Dues | Amount (₹ in Lacs) | Assessment Year (A.Y.) | Forum Pending | | :--- | :--- | :--- | :--- | | **Income Tax** | **1.04** | 2010-11 | CIT (A), Kanpur | | **Income Tax** | **14.56** | 2011-12 | CIT (A), Kanpur | | **Income Tax** | **8.33** | 2012-13 | CIT (A), Kanpur | | **Income Tax** | **6.82** | 2013-14 | CIT (A), Kanpur | | **Income Tax** | **1.91** | 2014-15 | CIT (A), Kanpur | | **Total Disputed Tax** | **32.66** | - | - | #### **2. Regulatory Enforcement History** * **SEBI Recovery:** In **September 2022**, SEBI concluded recovery proceedings (Certificate No. **4239 of 2021**). A total of **₹5,88,752** (including penalty and interest) was recovered, resulting in the release of previously attached Demat accounts and lockers. * **Disputed Assets:** As of **August 2025**, approximately **₹13,21,668** remains classified as disputed assets, representing funds seized by **SEBI** and the **Income Tax Department**, alongside **TDS receivables**. #### **3. Financial and Operational Risks** * **Liquidity Risk:** Management must navigate potential **asset-liability mismatches**. While auditors suggest the company can meet liabilities due within **one year**, long-term viability depends on successful revenue regeneration. * **Interest Rate Sensitivity:** Fluctuations in market rates pose a direct threat to **Net Interest Margins (NIMs)**. * **Credit Risk:** The company’s shift toward **lower-risk segments** is a direct response to the need for better credit risk mitigation. --- ### **Governance, Compliance, and Internal Controls** Nikki Global Finance maintains a structured internal oversight mechanism to ensure regulatory adherence and investor protection. * **Vigil Mechanism:** The company operates a formal **Whistle Blower Policy** to report unethical behavior. * **Investor Relations:** The company reported **zero pending investor complaints** for the periods ending March 2023 and March 2024. * **Internal Audit:** Oversight is conducted by the **Company Secretary** and a dedicated internal inspection team to ensure the integrity of **accounting records**. * **Deposit Policy:** The company **does not accept public deposits**, exempting it from the specific requirements of **Sections 73 to 76** of the Companies Act. * **Financial Reporting:** All results are prepared in strict accordance with **Ind AS** and relevant **SEBI circulars**.