Stellar Capital Services Limited is an established **Indian Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** under **Section 45 IA** of the RBI Act, 1934. With an operational history spanning over **20 years**, the company is classified as a **Non-Deposit Taking Company (Non-CIC)**. Listed on the **BSE Limited (Scrip Code: 536738)**, Stellar Capital specializes in delivering bespoke credit solutions to a diverse clientele ranging from Small and Medium Enterprises (SMEs) to large-scale corporate entities. --- ### **Core Financial Product Suite & Market Verticals** The company operates through a single primary segment—**Financing of Loans**—utilizing an in-house team of experts to evaluate asset classes and structure credit. Its service portfolio is organized into three strategic verticals: | Vertical | Target Audience | Primary Purpose & Features | | :--- | :--- | :--- | | **Structured Finance** | Corporates & Promoters | Funding for acquisitions, buyouts, and diversifications. Includes **Term Loans**, **Inter-Corporate Deposits (ICDs)**, and subscriptions to **Debt Instruments** or **Convertible Preference Shares**. | | **Project Finance** | Mid-range & Emerging Corporates | Capital expenditure (**CAPEX**) and growth strategies. Funding is based on **Projected Cash Flows** and asset-backed collateral. | | **Real Estate Finance** | Developers & Builders | Acquisition, construction, and redevelopment of **Residential, Commercial, Retail, and Industrial** projects. | **Key Lending Products:** * **Working Capital Loans:** Short-term support for operational expenses, including inventory management, payroll, and accounts payable. * **Loan Against Property (LAP):** Secured by equitable or registered mortgages, primarily used for debt consolidation or facility takeovers. * **Promoter Funding:** Secured against property, **Fixed Deposits**, or the pledge of **Marketable Securities**, often utilizing credit enhancements like **Debt Service Reserve Accounts (DSRA)**. --- ### **Strategic Growth & Operational Framework** Stellar Capital has transitioned toward a **sector-agnostic lending approach**, prioritizing the quality of collateral over specific industry exposure. * **SME & Emerging Corporate Focus:** Management has identified the **SME segment** as a high-growth driver. By diversifying the portfolio across these entities, the company aims to mitigate concentration risk. * **Asset Management:** The company maintains a lean balance sheet with **no intangible assets** and **no inventories**. It maintains records for **Property, Plant, and Equipment (PPE)**, though these have **not been revalued** in recent reporting periods. * **Geographical Focus:** Operations are strictly concentrated within **India**, focusing on sectors such as Infrastructure, Manufacturing, and Services. * **Governance Standards:** While the company falls below certain mandatory thresholds for paid-up capital, it has voluntarily adopted higher compliance standards, including the appointment of a **Secretarial Auditor** for a fixed **5-year term**. --- ### **Leadership & Corporate Governance** The company is led by a senior management team with extensive experience in banking and infrastructure consultancy. To ensure stability, key leadership has been secured for a **five-year tenure (2023–2028)**: * **Mr. Pranay Aneja (Managing Director):** Appointed until **Sept 27, 2028**; Annual Remuneration: **₹4,20,000**. * **Mrs. Rajni Aneja (Whole Time Director):** Appointed until **Sept 27, 2028**; Annual Remuneration: **₹4,20,000**. **Audit & Compliance Partners:** * **Statutory Auditor:** **M/s Hemant Arora & Co, LLP** (Term: **2025–2030**). * **Secretarial Auditor:** **M/s Kundan Kumar Mishra & Associates** (Term: **FY 2025-26 to FY 2029-30**). --- ### **Financial Performance & Capital Structure** Stellar Capital has maintained a stable capital base, though recent performance reflects a cautious approach to liquidity in a volatile market. **Capital Position:** * **Paid-up Share Capital:** Stable at **₹24,96,15,000**. * **Issuances:** No new equity, debentures, sweat equity, or bonus shares were issued in the recent cycle. * **Dividend Policy:** **No dividend** was declared for **FY 2023-24** or **FY 2024-25**, as the company prioritized **liquidity preservation** and internal funding. **Comparative Financial Summary:** | Particulars (in ₹) | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | | **Total Income** | **3,14,11,190** | **3,39,60,400** | | **Total Expenditure** | **3,92,88,770** | **2,99,34,220** | | **Profit Before Tax (PBT)** | **(78,77,580)** | **40,26,180** | | **Profit After Tax (PAT)** | **(77,78,580)** | **31,04,620** | | **Reserves and Surplus** | **22,24,29,340** | **23,02,07,920** | **Liquidity & Credit Risk:** * **Cash Position:** Total cash and bank balances (including deposits under lien) were **₹7.52 Lakhs** as of March 31, 2025. * **Loan Book Exposure:** Maximum credit risk exposure from loans stood at **₹4,366 Lakhs** in 2025, an increase from **₹4,160 Lakhs** in 2024. --- ### **Risk Profile & Mitigation Strategies** The company operates in a high-risk environment characterized by liquidity constraints and regulatory scrutiny. **1. Internal Governance & Compliance Risks:** * **CFO Vacancy:** The company has been in non-compliance with **Section 203** of the Companies Act since **September 30, 2022**, due to the absence of a **Chief Financial Officer (CFO)**. Auditors note this may impact financial record accuracy. * **Related Party Transactions:** Auditors flagged that salary expenditures for related parties (Oct 2023 – March 2024) could not be definitively confirmed as **arm’s length** under **Ind AS-24**. * **Balance Confirmations:** There is a recurring challenge in obtaining **balance confirmations** from borrowers, affecting the verification of asset carrying values. **2. Financial & Market Risks:** * **Unsecured Exposure:** A significant portion of the loan portfolio is **unsecured**, increasing potential loss given default. * **Interest Rate Sensitivity:** The company is exposed to **Cash Flow Interest Rate Risk** as borrowings are often tied to floating **RBI repo rates**. * **Tax Contingencies:** The company is currently contesting **Income Tax disputes** totaling approximately **₹1.28 Crores** across assessment years **2014-15 to 2022-23**. **3. Macroeconomic Threats:** * **Industry Volatility:** Sector-wide rating downgrades and liquidity issues among large NBFCs. * **Credit Culture:** Potential negative impact of rural **loan waivers** on overall repayment discipline. **Risk Management Framework:** The **Audit Committee** and **Internal Auditor** employ a **top-down and bottom-up** approach to monitor **Key Risk Indicators (KRIs)**. The company adheres to **RBI Prudential Norms** and maintains a defined credit policy to monitor borrower creditworthiness and ensure sufficient funds for both normal and stressed market conditions.