Shreevatsaa Finance & Leasing Limited is an Indian **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)**. Categorized as an **Investment and Credit Company (ICC)**, the firm operates as a **non-deposit taking Non-Systemically Important** entity. The company is listed on the **BSE** and serves as a specialized financial vehicle focused on capital market activities and corporate lending. --- ### **Core Business Operations & Revenue Segments** The company operates through a unified business segment focused on **Loans and Investments**. Its primary revenue-generating activities include: * **Corporate Lending:** Providing loans and advances to corporate bodies as part of its standard business operations. * **Capital Market Activities:** Engaging in the active **sale and purchase of shares, securities, and units**, alongside other financial instruments to optimize treasury returns. * **Strategic Financial Management:** Current operations are underpinned by a focus on **Asset/Liability Management (ALM)**, **cost reduction**, and the continuous strengthening of **collection mechanisms** to ensure liquidity. --- ### **Strategic Growth & Capital Allocation Framework** The company is currently executing a transition toward a more robust investment profile, supported by recent shareholder mandates and leadership stability. * **Expanded Investment Mandate:** Under **Section 186** of the Companies Act, 2013, the company has secured approval to increase its investment and lending limits up to **Rs. 30.00 Crores**. This allows for significant flexibility in acquiring securities or providing guarantees beyond the standard statutory thresholds (**60% of paid-up share capital + free reserves** or **100% of free reserves**). * **Leadership Continuity:** To ensure long-term strategic execution, **Mr. Anil Kumar Sharma** was re-appointed as Managing Director for a **5-year term**, effective through **September 17, 2028**. * **Market Expansion:** Management is targeting **financial inclusion** by leveraging **digital platforms** and **personalized offerings** to penetrate **semi-urban and rural areas**, aligning with India’s broader macroeconomic growth. --- ### **Regulatory Framework & Compliance Standards** Shreevatsaa Finance operates under a stringent regulatory regime, ensuring transparency and adherence to the latest **RBI** and **SEBI** guidelines. | Feature | Details | | :--- | :--- | | **RBI Registration No.** | **12.00050** (Dated **27.02.1998**) | | **NBFC Category** | **Investment and Credit Company (ICC)** | | **Reporting Standards** | **Ind AS** (Indian Accounting Standards) | | **Listing Regulations** | **SEBI (LODR) Regulations, 2015** (Reg 30 & 33) | | **Audit Opinion** | **Unmodified Opinion** (as of March 31, 2025) | --- ### **Financial Health & Capital Reserves** The company maintains a conservative financial stance, prioritizing capital preservation and internal accruals to fund future growth. * **Reserve Strengthening:** For the period ending March 2025, the company transferred **Rs. 44,93,163** to **General Reserves**. * **Dividend Policy:** The Board has opted **not to recommend dividends** recently, choosing instead to retain earnings as a cushion for financial contingencies and to support the **Rs. 30 Crore** investment ceiling. * **Audit Oversight:** The company is audited by **Tandon & Mahendra** (Statutory) and **Alok Basudeo & Co** (Internal), ensuring compliance with **Schedule III** of the Companies Act. --- ### **Risk Management & The 'PSPD' Model** The company utilizes a **'Practicable, Sustainable, Profitable and De-risked' (PSPD)** model to navigate the evolving NBFC landscape. #### **Regulatory Evolution: Scale-Based Regulation (SBR)** The RBI’s four-tier SBR framework has introduced stricter capital requirements. Shreevatsaa Finance has proactively managed its **Net Owned Funds (NOF)** to meet these escalating benchmarks: * **2025 Target:** **₹5 Crores** (Achieved). * **2027 Target:** **₹10 Crores** (Current strategic focus). #### **Operational & Market Risks** * **Asset Quality:** While the industry **Gross Non-Performing Assets (GNPA)** hit a record low of **2.4%** in FY 2023-24, the company maintains rigorous underwriting to protect its loan book. * **Capital Adequacy:** The company monitors its **Capital Adequacy Ratio** against the regulatory minimum of **15%**, noting the industry average of **27.6%** as a benchmark for competitive stability. * **Resilience Standards:** Adherence to the **April 2024 RBI Guidance Notes** ensures operational risk management is aligned with international **Basel Committee (BCBS)** standards. --- ### **Governance Structure & Key Service Providers** The company’s governance is designed to provide independent oversight and operational integrity. * **Board Composition:** **4 Directors** (1 Executive Managing Director, 3 Non-Executive Directors). The board includes **2 Independent Directors** and a **Woman Director**. * **Internal Controls:** A formal **Risk Management Policy** is in place, supported by a **3-year appointment** of **Alok Basudeo & Co.** as Internal Auditors (through FY 2025-26). * **Shareholder Services:** **Maheshwari Datamatics Private Limited** serves as the Registrar & Transfer Agent. --- ### **Market Outlook** As India moves toward becoming a **$4 trillion economy** by **2025**, Shreevatsaa Finance & Leasing Limited is positioned to capitalize on rising credit demand. By maintaining **strong capital adequacy** and focusing on **related business proposals**, the company aims to navigate global commodity volatility and interest rate fluctuations while expanding its footprint in the Indian financial services sector.