**Rajkot Investment Trust Limited** is a registered **Non-Banking Financial Company (NBFC)** categorized as a **Loan Company (Base Layer)**. Incorporated in **1982** and registered with the **Reserve Bank of India (RBI)** since **August 5, 1999** (Registration No. **01.00308**), the company operates as a **non-deposit taking** institution. The company is currently undergoing a transformative phase, shifting its principal place of business from **Indore, M.P.** to **Surat, Gujarat**. To reflect its modernized vision and expansion goals, the Board and members have approved a name change to **RIT Finance Limited**, pending final regulatory clearances from the **RBI** and **Registrar of Companies (ROC)**. --- ### **Capital Restructuring and Expansionary Roadmap** The company is aggressively scaling its financial capacity to support a pivot toward high-growth lending segments. * **Rights Issue:** The Board has received in-principle approval from the **BSE** (dated **April 30, 2025**) to raise up to **Rs. 49,00,00,000** (Forty-Nine Crore) through the issuance of equity shares. * **Authorized Capital Expansion:** To accommodate future equity growth, the authorized share capital was increased from **Rs. 3,00,00,000** (Three Crore) to **Rs. 25,00,00,000** (Twenty-Five Crore) following the general meeting on **September 30, 2024**. * **New Equity Creation:** The company created **2,20,00,000** additional Equity Shares (Face Value **Rs. 10/-**), ranking pari-passu with existing shares. * **Diversified Fundraising:** The Board is authorized to evaluate a mix of instruments, including **bonds, debentures, and non-convertible debt**, via private placements or preferential issues to optimize the cost of capital. --- ### **Target Markets and Credit Strategy** The company’s business model focuses on identifying and financing commercially viable industries, with a specific emphasis on the **MSME** sector and under-banked populations. | Focus Segment | Strategic Drivers & Outlook | | :--- | :--- | | **MSME & Unsecured Loans** | Prioritizing these segments to lead **AUM (Assets Under Management)** expansion. | | **Vehicle Finance** | Capitalizing on demand in the **Used Vehicle, Commercial Vehicle, Passenger Vehicle, and Tractor** markets. | | **Affordable Housing** | Leveraging **Credit Linked Subsidy Schemes (CLSS)** and **NHB-refinance** to maintain margins. | | **Rural Distribution** | Utilizing a vast network in **rural areas and small towns** to reach customers with limited access to traditional banking. | **Operational Pillars:** * **Mentorship Model:** Promoting entrepreneurship through skill development and advisory services alongside credit. * **Credit Monitoring:** Implementing strict internal controls and **monthly post-disbursement monitoring** to manage asset quality. * **Partnership Focus:** Moving toward a business model centered on **co-lending partnerships**, aligning with an industry trend projected to grow at **35-40%**. --- ### **Financial Performance and Asset Quality** The company is currently navigating a transition from marginal profitability to a net loss as it invests in its structural turnaround. | Financial Metric | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Net Profit / (Loss)** | **Rs. (5.50) Lakhs** | **Rs. 1.92 Thousand** | | **Paid-up Share Capital** | **Rs. 1.00 Crore** | **Rs. 1.00 Crore** | | **Dividend Recommended** | **Nil** | **Nil** | | **Foreign Exchange Outgo** | **Nil** | **Nil** | **Asset Quality and Recovery:** The company actively utilizes legal and arbitration channels to address defaults. * **Total Secured Loan Amount (Arbitration Filed):** **Rs. 51,45,000.00** * **Total Amount of Claim Pending under Arbitration:** **Rs. 88,91,505.00** * **Industry Benchmark:** Management monitors **Gross Stage 3** assets against the industry benchmark of **~3.3%** to ensure long-term balance sheet strength. --- ### **Leadership and Governance Framework** The leadership team was reconstituted in **May 2024** to align with the company's growth objectives. The company maintains a lean structure with no subsidiaries or joint ventures. * **Managing Director:** **Mr. Shrikrishna Baburam Pandey**, appointed for a three-year term (effective **May 22, 2024**, to **May 21, 2027**). * **Chief Financial Officer:** **Mr. Parth Ketanbhai Patel**. * **Company Secretary:** **Ms. Surabhi Mahnot**. * **Statutory Auditor:** **M/S C.P. Jaria & Co.**, appointed until the **45th AGM** in **2027**. **Governance Note:** The company is currently exempted from certain **SEBI** related-party disclosures as its paid-up capital and net worth remain below the mandatory thresholds of **Rs. 10 Crore** and **Rs. 25 Crore**, respectively. --- ### **Risk Profile and Mitigation Strategies** The company operates in a high-stakes regulatory environment characterized by **Scale Based Regulation (SBR)**. **1. Financial & Market Risks:** * **Margin Compression:** Borrowing costs increased by **25-50 bps** in **Q4 FY25**, threatening **Net Interest Margins (NIMs)**. * **Market Volatility:** Exposure to listed company investments is managed via a **Whistleblower Policy** and rigorous analysis. * **Credit Risk:** Mitigated through **prudential loan-to-value (LTV) limitations** and individual/group exposure caps. **2. Regulatory & Compliance Risks:** * **Historical Lapses:** Management is addressing past administrative delays, including the transfer of **Rs. 6,750** in unclaimed dividends from **FY 2009-10** to the **IEPF** and previous delays in **KMP** appointments. * **SEBI Compliance:** The company has noted a need for stricter adherence to **Regulation 3(5) and 3(6) of SEBI (PIT) Regulations** regarding the **Structured Digital Database (SDD)**. * **RBI Convergence:** Potential future shifts toward bank-like regulations for NBFCs may increase compliance costs. **3. External Threats:** * **Competition:** Intense pressure from traditional banks and larger NBFCs. * **Macro Factors:** Global instability (e.g., the **Ukraine Conflict**) impacting domestic credit markets and commodity prices.