*Transitioning to SRG Fingrow Finance Limited* S R G Securities Finance Limited (**SRGSFL**) is a **Reserve Bank of India (RBI)** registered Non-Banking Financial Company (**NBFC**) categorized as a Non-Deposit taking entity. Headquartered in **Udaipur, Rajasthan**, the company specializes in providing credit solutions to the rural and underserved segments of the Indian population. Leveraging the established brand equity of the **SRG Group**, the company is currently undergoing a strategic transformation to modernize its operations and expand its footprint in the evolving Indian credit ecosystem. --- ### Strategic Rebranding and Corporate Evolution The company is currently executing a significant structural and identity shift to align with its long-term growth objectives. * **Corporate Identity Change:** In **May 2025**, the Board and shareholders approved a name change from **S R G Securities Finance Limited** to **SRG Fingrow Finance Limited**. This rebranding is intended to reflect a more dynamic, growth-oriented trajectory. * **Regulatory Alignment:** The company is in the process of aligning its **Memorandum of Association (MoA)** and **Articles of Association (AoA)** with this new corporate identity during **Q1 FY2025-26**. * **Leadership Stability:** To ensure continuity during this transition, **Mr. Vinod K. Jain**, who possesses over **20 years** of industry experience, has been re-appointed as Managing Director for a five-year term (**2024 – 2029**). He is supported by Whole Time Director **Mrs. Seema Jain**. --- ### Core Lending Portfolio and Market Focus SRGSFL operates within a single reportable segment—**Finance**—focusing on secured and asset-backed lending. Its product suite is designed to cater to the specific needs of rural enterprises and individuals. * **Equipment Finance:** Funding for construction and mining machinery. * **Vehicle Finance:** Loans for both commercial and personal vehicles. * **Business Loans:** Tailored credit for small and medium enterprises. * **Loan Against Property (LAP):** Secured lending backed by real estate collateral. **Operational Workflow:** The company maintains a competitive edge through a streamlined **four-step** credit process designed for speed and "hassle-free" documentation: 1. **Appraisal:** Initial borrower profile assessment. 2. **Security Evaluation:** Professional valuation of collateral. 3. **Loan Sanction:** Formal credit limit approval. 4. **Loan Disbursement:** Final release of funds. --- ### Financial Performance and Portfolio Metrics While the company has maintained a stable capital base, recent years have shown a strategic pivot from aggressive lending to portfolio regularization, followed by a return to growth in **FY 2024-25**. | Financial Metric (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Loan Portfolio (₹ Cr)** | **7.82** | **7.17** | - | - | | **Gross Revenue** | - | **145.95** | - | - | | **Profit Before Tax (PBT)** | **45.75** | **62.21** | - | - | | **Profit After Tax (PAT)** | **34.83** | **47.14** | **51.91** | **38.61** | | **Earnings Per Share (EPS)** | - | - | **0.97** | **0.72** | | **Shareholder's Funds** | - | **1441.76** | - | - | **Key Financial Insights:** * **Portfolio Growth:** The loan book grew by **9.01%** in the most recent fiscal year, reaching **₹7.82 crore**. * **Profitability Compression:** Despite asset growth, **PAT** declined by **26.1%** in FY25 compared to FY24. This follows a peak in FY23 (**₹51.91 Lakhs**). * **Capital Retention:** The Board has opted to **retain all earnings** rather than declaring dividends, aiming to strengthen **Shareholders' wealth** and fund future expansion. * **Reporting Standards:** As a **BSE SME** listed entity, the company follows **Accounting Standards (AS)** rather than Ind-AS, utilizing specific regulatory exemptions. --- ### Strategic Growth Pillars for 2025 and Beyond To navigate a decelerating GDP (projected at **6.5% for FY25**) and high competition, SRGSFL has identified five strategic pillars: 1. **Market Penetration:** Targeting **steady double-digit expansion** in credit by deepening reach in under-served rural segments. 2. **Digital Transformation:** Implementing **technology-driven underwriting** and exploring **Fintech-NBFC collaborations** to improve efficiency. 3. **Funding Diversification:** Reducing reliance on traditional sources by exploring **securitisation**, **capital markets**, and **co-lending partnerships**. 4. **Asset Specialization:** Capitalizing on government-led **capex initiatives** and infrastructure demand through equipment and vehicle financing. 5. **Regulatory Resilience:** Proactive alignment with **RBI Scale-Based Regulations** and heightened licensing requirements for **FY 2024-25**. --- ### Risk Management and Governance Framework The company employs a risk management matrix based on **probability of occurrence** and **impact analysis**. **Risk Categorization:** * **External:** Rising cost of funds, tightening **RBI** regulations, and intense competition from **Scheduled Commercial Banks (SCBs)**. * **Internal:** Potential for staff attrition, management changes, and operational delinquencies. * **Operational:** Credit, liquidity, and cyber security risks. **Governance and Controls:** * **Internal Audit:** Conducted by independent Chartered Accountants (**M/s Jain Kothari & Co.**) using a risk-based program. * **Capital Adequacy:** The company maintains a **High Capital Adequacy Ratio** to provide a buffer against market volatility. * **Compliance Note:** Management has addressed historical lapses, such as a brief period in **2022-23** where the company lacked a qualified **Company Secretary** under **SEBI (LODR) Regulations**. * **Regulatory Environment:** Operations are strictly governed by the **RBI Act, 1934**, and the **Prevention of Money Laundering Act, 2002**. --- ### Investment Outlook SRGSFL presents a profile of a niche rural lender in a state of transition. While the company faced a period of **zero new disbursements** in **FY 2023-24** to focus on post-pandemic portfolio health, the **9.01% growth** in the loan book for **FY 2024-25** signals a return to active lending. The upcoming rebranding to **SRG Fingrow Finance Limited** and the focus on **digital underwriting** suggest a move toward a more scalable, modern financial services model, balanced by a conservative approach to capital preservation.