Prime Capital Market Limited (**PCML**) is an **RBI-registered Non-Deposit taking Non-Banking Financial Company (NBFC)** incorporated in **1994**. The company operates as a specialized financial intermediary within the Indian capital markets, focusing on credit provision, asset management, and strategic investments. PCML is currently undergoing a structural transition aimed at improving governance, administrative efficiency, and regulatory alignment. --- ### **Core Business Operations & Revenue Segments** The company operates under a **single reportable business segment**: **Finance & Investments**. Its operational framework is divided into three primary activities: * **Credit & Financing:** Granting secured and unsecured loans and advances to a diverse clientele, including corporate bodies, firms, LLPs, and other commercial parties. * **Asset Management & Investment:** Managing a proprietary portfolio consisting of **shares, securities, debentures, and commodities**. * **Capital Market Services:** Engaging in various financial market products and services to leverage market volatility and interest rate spreads. --- ### **Financial Performance Trajectory (FY 2023 – FY 2025)** PCML has demonstrated a significant exponential increase in its top-line performance over the last three fiscal years, successfully transitioning from a marginal profit position to a higher revenue bracket. | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **703.00** | **124.00** | **36.71** | | **Profit Before Tax (PBT)** | **82.52** | **4.10** | **0.77** | | **Profit After Tax (PAT)** | **48.49** | **1.34** | **5.25** | | **Cash & Cash Equivalents** | **1.75** | **0.09** | **-** | **Capital & Dividend Status:** * **Paid-up Equity Capital:** **₹10.001 Crore**, comprising **1,00,00,100 Equity Shares** (Face Value **₹10**). * **Dividend Policy:** No dividend was proposed for **FY 2024-25** as the Board opted to retain meager profits for operational stability. * **Borrowing Profile:** Total borrowings are stable at **₹20.00 Lakhs**, with **RPP Infra Project Pvt. Ltd** acting as the sole counterparty (**100% of borrowings**). --- ### **Strategic Governance & Leadership Continuity** The company has secured its management pipeline through **2030** to ensure long-term strategic execution and stability. * **Executive Leadership:** Mr. Adarsh Purohit has been re-appointed as **Chairman & Managing Director** for a **5-year term** (October 2025 – October 2030). * **Independent Oversight:** Ms. Sunita Rani Parida (re-appointed effective November 2025) and Mr. Umang Bagaria (appointed effective February 2026) provide independent board supervision for **5-year tenures**. * **Administrative Optimization:** The company is shifting its **Registered Office** from Bhubaneswar, Orissa, to **Mumbai, Maharashtra** (approved May 2022) to be closer to India’s financial hub. * **Listing Rationalization:** To reduce compliance costs, the company approved delisting from the **Calcutta Stock Exchange (CSE)** in **June 2024**, maintaining its primary listing on the **BSE Limited**. --- ### **Regulatory Status & Compliance Challenges** PCML is currently navigating a complex regulatory environment characterized by several historical and ongoing restrictions: * **SEBI Classification:** Previously classified as a **Suspected Shell Company**. A **Re-forensic Audit** for the period **FY 2014-15 to FY 2017-18** was concluded in **February 2023**. * **Trading Restrictions:** Shares are currently under **Graded Surveillance Measure (GSM) Stage VI**, which limits trading to once per week (Mondays). * **Demat Status:** Company Demat accounts are currently **frozen** by SEBI/BSE due to fee defaults by promoter group entities (**Blue Circle Services Ltd** and **Warner Multimedia Ltd**). * **Listing Fee Arrears:** Trading has faced suspensions due to non-payment of **Annual Listing Fees** since **FY 2018-19**. * **Reporting Lapses:** The company has yet to register with **Trans-Union CIBIL**, **NeSL**, or file required monthly returns with Credit Information Companies (**CICs**). --- ### **Promoter Re-classification (June 2024)** In a move to broaden the public shareholding base and potentially improve liquidity, the following entities were re-classified from **'Promoter Group'** to **'Public'**: | Name of Entity/Individual | Shares Held | % of Holding | | :--- | :--- | :--- | | **Zenser Merchandise Private Limited** | **2,50,000** | **2.50%** | | **Bhuwania Vinimay Private Limited** | **2,07,751** | **2.08%** | | **Vimal Joshi** | **32,600** | **0.33%** | --- ### **Risk Management Framework & Asset Quality** The company utilizes a **Management Information System (MIS)** and an **Asset Liability and Risk Management Committee (ALRMC)** to monitor the following risks: * **Credit Risk:** Managed via an internal **three-tier rating system** (Low, Moderate, High). However, auditors note **₹2.45 crore** in interest-free advances against shares, which may impact yield. * **Valuation Risk:** A significant portion of the portfolio consists of **small-cap illiquid or suspended stocks**. These are currently valued at the **last traded price** or **original cost**; a formal fair valuation by independent registered valuers is currently in progress. * **Liquidity & Liability:** Trade payables were reduced from **₹54.67 Lakhs** to **₹2.85 Lakhs** in 2025, though **Other Financial Liabilities** rose to **₹188.40 Lakhs**. * **Market Risk:** PCML utilizes **derivative instruments** as a hedging mechanism against equity price fluctuations where appropriate. --- ### **Future Growth Catalysts & Macro Outlook** PCML is positioning itself to capitalize on the **Union Budget 2025-26** initiatives and the modernization of the Indian financial system: * **Rural Credit Expansion:** The company aims to leverage the **'Grameen Credit Score'** framework to integrate Self-Help Groups (SHGs) and rural entities into formal credit channels. * **Infrastructure Support:** Monitoring the **Partial Credit Enhancement Facility** by **NaBFID** to explore opportunities in commercial bond support for infrastructure. * **Digital Policy:** The company maintains a conservative stance on digital assets, with a strict policy of **no investment or trading in Crypto currencies**. * **Macro Headwinds:** Management remains cautious regarding **IMF** forecasts of a domestic slowdown and potential **RBI** interest rate hikes driven by food inflation, which may increase the **Cost of Funds** for NBFCs.