Shri Kalyan Holdings Limited (**SKHL**) is a Jaipur-based **Non-Banking Financial Company (NBFC)** incorporated in **1994**. Listed on the **BSE**, the company operates a diversified financial services model, functioning as both a credit provider and a regulated intermediary in the Indian capital markets. SKHL positions itself as a catalyst for financial inclusion, targeting niche segments and the unbanked sector to drive long-term value. --- ### **Core Business Architecture & Revenue Streams** The company’s operations are consolidated into a single reportable segment: **NBFC**. However, its functional reach extends across the broader financial services spectrum through various **RBI** and **SEBI** registrations. * **Financing & Lending Operations:** This is the primary engine of the company, contributing **98.23%** of total income in **FY 2024-25**. SKHL holds a valid Certificate of Registration from the **RBI** under **Section 45-IA** of the RBI Act, 1934, as a **Non-Deposit taking NBFC**. * **Capital Market Intermediary Services:** SKHL maintains a comprehensive suite of licenses to serve retail, **HNI**, corporate, and institutional clients: * **Stock Broking:** Member of both **BSE** and **NSE**, executing proprietary and client trades. * **Depository Participant:** Registered with **CDSL**. * **Advisory & Research:** SEBI-registered **Research Analyst** and **Investment Advisor**. * **Investment Management:** The company actively manages its capital and shareholder returns by investing in **mutual funds** and utilizing **innovative fund management techniques**. --- ### **Financial Performance & Capital Structure** SKHL has demonstrated a robust recovery in profitability over the last three fiscal years, successfully transitioning from historical losses to a period of accelerated bottom-line growth. #### **Three-Year Financial Summary** | Metric (₹ in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Revenue from Operations** | **1.51** | **1.34** | **1.57** | | **Profit Before Tax (PBT)** | **1.06** | **0.37** | **0.56** | | **Net Profit After Tax (PAT)** | **0.81** | **0.26** | **0.29** | | **Net Worth** | **10.14** | **9.32** | **9.06** | #### **Key Financial Metrics & Solvency** * **Profitability Surge:** Net profit rose significantly to **₹81.47 lakhs** in **FY 2024-25**, up from **₹26.21 lakhs** the previous year. * **Debt Management:** The company has optimized its leverage, with the **Gearing Ratio** improving to **0.26** in **FY 2023-24** (down from **0.33**). **Net Debt** was reduced to **₹23,992.98 (in thousands)**. * **Statutory Reserves:** In compliance with NBFC regulations, SKHL transfers at least **20% of its net profit** to a statutory reserve fund annually. * **Cash Flow Integrity:** The company reported **Nil cash losses** for the most recent fiscal periods. --- ### **Strategic Growth Pillars & Modernization** SKHL is currently undergoing a structural transformation to align with the digital-first landscape of Indian finance. * **Digitalization & IT Infrastructure:** The company is migrating to **cloud-based technologies** and upgrading its **IT infrastructure**. This is designed to enhance internal controls, automate monitoring, and improve operational efficiency. * **Financial Inclusion Focus:** Strategy is centered on the **unbanked sector**, **rural credit**, and **weaker sections of society**, viewing these as high-growth areas for employment generation and wealth creation. * **Risk Diversification:** Management is actively identifying niche market segments to add value and mitigate the impact of increasing competition from traditional banks and larger NBFCs. * **Operational Efficiency:** Significant investments are being made in **cybersecurity controls** and **workplace transformation** to maintain a competitive edge in a tightening regulatory environment. --- ### **Risk Management & Asset Quality** The company employs a structured framework to manage credit, liquidity, and market risks, utilizing **Ind AS 109** for financial reporting. #### **Credit Risk & Expected Credit Loss (ECL)** SKHL has seen a notable improvement in its impairment profile, as evidenced by the reduction in its ECL allowance: | Particulars | As at 31st March, 2025 (₹ Lakhs) | As at 31st March, 2024 (₹ Lakhs) | | :--- | :---: | :---: | | Opening Balance | **57.63** | **57.71** | | Impairment Loss Recognized | **(28.04)** | **(0.08)** | | **Closing Balance** | **29.59** | **57.63** | #### **Market & Liquidity Risk** * **Interest Rate Exposure:** SKHL currently reports **no borrowings** from banks or financial institutions, which shields the company from market interest rate volatility. * **Liquidity Monitoring:** Management tracks liquidity through three lenses: **Funding Risk** (outflows), **Time Risk** (inflow delays), and **Call Risk** (contingent liabilities). * **Currency Risk:** Exposure to foreign currency is deemed **insignificant** and remains unhedged. --- ### **Governance & Regulatory Compliance Profile** While the company maintains a stable leadership core, it has faced recent challenges regarding regulatory filings and human capital retention. * **Leadership Stability:** **Mr. Bhupendra Kumar Jain** (Managing Director) and **Mr. Rajendra Kumar Jain** (Chairman) were re-appointed for terms ending in **August 2028**. A new **Non-executive Independent Director** was appointed for a **5-year term** starting **February 2024**. * **Human Capital Volatility:** The company recently experienced the resignation of its **Whole-time Director (KMP)**, **CFO**, and an **Independent Director** (June 2024). * **Compliance Observations:** As of **September 2025**, several non-compliance instances were noted: * **SEBI PIT Regulations:** Delays in updating the **Structured Digital Database (SDD)** regarding a Director's resignation. * **SEBI LODR Regulations:** Failure to provide explanatory statements for auditor appointments and delays in submitting **AGM proceedings**. * **Filing Defaults:** Financial filings were submitted in **PDF** rather than the required **XBRL** format, and there was a delay in filing the **CFO's resignation** (effective **March 12, 2025**) with the ROC. * **Internal Controls:** Physical verification of fixed assets is conducted every **three years**, and the company maintains an internal audit system commensurate with its operational scale.