PMC Fincorp is fundamentally a lender and an investor - it makes money by putting its own capital to work in loans and stock-market bets, not by taking deposits from the public. Incorporated in 1985 in Kanpur and registered with the RBI as a non-deposit-taking NBFC since 1998, the company has stayed deliberately lean, operating with fewer than ten employees from a leased office in Delhi. The recurring approach that explains everything else is a dual-engine model: a steady, unsecured lending book generates interest income, while a separately managed equity portfolio hunts for longer-term trends, with the company avoiding leverage and accepting that quarterly mark-to-market swings are the price of that strategy. # Business segments Two engines that share one balance sheet - a steady unsecured lending book that generates interest income, and a capital-market portfolio that hunts for longer-term trends, with the company accepting that quarterly mark-to-market swings are the price of that strategy. ## 1. Lending: the steady interest-income engine **The company lends its own money to individuals and small businesses, earning interest on a declining balance, and has never reported a non-performing asset.** - **Unsecured loans are the core** - the loan book, which stood at roughly ₹111 crore as of March 2024, consists entirely of unsecured, standard (performing) loans to individuals and small businesses, with no doubtful or non-performing assets recorded in recent years. - **A secured product was bolted on** - in April 2023, the company announced it will be launching a Loan Against Securities (LAS) product that lets borrowers pledge liquid shares (initially Nifty 100 stocks) as collateral, so they can raise cash without selling their investments. - **Interest is the straightforward revenue model** - income is accrued by applying the agreed rate on the declining loan balance over the life of the agreement, and no income is recognised on any asset that turns non-performing, following RBI prudential norms. - **Funding comes from short-term borrowings** - the company’s loans are funded by unsecured, on-demand borrowings from body corporates, which totalled about ₹18.5 crore as of March 2024, and it has stated an intent to build a more diversified funding base to lower its cost of capital. ## 2. Capital market operations: the trend-hunting portfolio **The company runs a proprietary investment book of listed and unlisted equities, where returns come from dividends, fair-value gains, and realised trading profits - and volatility is built into the accounting.** - **A portfolio with no fixed mandate** - the company invests in listed and unlisted shares, preference shares, and occasionally holds inventory of securities, with no predefined limits on sectors or instruments; the mix shifts as opportunities and market conditions change. - **Mark-to-market drives the reported numbers** - because holdings are recorded at market value at the end of each quarter, the company’s financial performance swings with stock prices, a feature management openly flags as inherent to the business. - **The hunt is for longer-term trends** - investment decisions are driven by fundamental developments rather than market sentiment, though sentiment is used as a signal for when to enter or exit a position. - **The book has swung in size and composition** - total investments grew from about ₹4.5 crore in March 2021 to roughly ₹21 crore by March 2024, with the quoted portion shifting across sectors such as defence, railways, public-sector banks, and consumer durables, while unquoted holdings have included preference shares in Catamaran Corp. and equity in BSB Marketing. # Group structure and partners **The company is a standalone entity with no subsidiaries or joint ventures, run by a small promoter group and a six-person board.** - **No group, no subsidiaries** - PMC Fincorp has no subsidiaries, joint ventures, or associate companies, and it is not classified as a Core Investment Company by the RBI. - **Promoters hold a fifth of the company** - as of March 2024, the promoter group - including two corporate bodies (RRP Management Services and Prabhat Management Services) and three individuals (Rekha Modi, Raj Kumar Modi, and Prabhat Modi) - collectively owned just over 20% of the shares. - **A six-director board with family at the helm** - the board comprises Raj Kumar Modi as Managing Director, Prabhat Modi as Whole-Time Director, Rekha Modi as Non-Executive Chair, and three independent directors, supported by a CFO and a company secretary. - **Key service providers are long-tenured** - the statutory auditor (M/s. Pankaj Gupta & Co.) is on a five-year term, the internal auditor (M/s. KPSP & Associates) was reappointed for three years from April 2024, and the share registrar (Indus Shareshree Private Limited) has served the company across multiple years.