Trustedge Capital Limited (the **Company**) is an Indian **Non-Deposit-taking Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** under **Section 45IA** of the **RBI Act, 1934**. The Company is currently undergoing a comprehensive strategic transformation, characterized by a corporate rebranding, significant capital infusion, and a modernized governance structure designed to scale its presence in the Indian financial services sector. --- ### **Strategic Rebranding and Corporate Identity Evolution** In **2025**, the Company initiated a fundamental shift in its corporate identity to better align its brand with its core financial activities. * **Name Change:** Formerly known as **Adinath Exim Resources Limited (AERL)**, the Company officially transitioned to **Trustedge Capital Limited** on **June 2, 2025**. This change followed a No Objection Certificate from the **RBI** and approval from the Ministry of Corporate Affairs. * **Strategic Intent:** The rebranding is intended to reflect a specialized focus on financial services, brand building, and establishing a "trust-based" market positioning. * **Operational Focus:** The Company operates a streamlined model with a **single reportable segment (Finance)** under **Ind AS 108**. All operations are conducted within India, focusing on lending, investments, and treasury management. --- ### **Core Financial Operations and Asset Management** The Company’s business model revolves around the deployment of capital into high-yield financial instruments and credit facilities. * **Lending Activities:** Provision of **secured and unsecured** advances to a diverse client base, including corporate entities, firms, Limited Liability Partnerships (LLPs), and other parties. * **Investment Portfolio:** Management of a diversified portfolio comprising **listed shares**, **debt instruments** across various industries, and **mutual funds**. * **Treasury & Guarantees:** Utilization of internal capital for strategic investments and the provision of guarantees or security in the ordinary course of business. * **Asset Oversight:** The Company does not hold physical inventory or immovable property. Its asset base consists of financial instruments and **Property, Plant and Equipment (PPE)**, which undergo physical verification on a **three-year phased cycle**. --- ### **Capital Restructuring and 2025 Rights Issue** To support its growth trajectory and meet **RBI Scale-Based Regulations (SBR)**, the Company has aggressively expanded its equity base through multiple funding rounds. | Event | Date | Details | | :--- | :--- | :--- | | **Authorized Capital Increase** | **July 2025** | Increased from **₹7 Crore** to **₹15 Crore**. | | **Preferential Allotment I** | **Jan 2025** | **649,500** shares at **₹40** per share to Promoter Group. | | **Preferential Allotment II** | **June 2025** | **885,000** shares at **₹57** per share to Promoter Group. | | **Rights Issue 2025** | **Oct 2025** | Raised **₹26,99,54,240** via **3,374,428** shares at **₹80** per share. | **Rights Issue Impact (October 2025):** * **Entitlement Ratio:** **49** Rights Equity Shares for every **85** fully paid-up shares held. * **Issue Price:** **₹80** (including a **₹70 premium**). * **Capital Expansion:** Post-issue, the total outstanding shares increased from **5,853,600** to **9,228,028**, bringing the paid-up capital to **₹9,22,80,280**. * **Utilization:** Proceeds are earmarked for strengthening **Capital Adequacy**, supporting **Working Capital** requirements, and pursuing emerging business opportunities. --- ### **Comparative Financial Performance Analysis** While the Company has maintained consistent top-line growth, recent profitability has been impacted by operational restructuring and rising costs. | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Total Income** | **109.32** | **103.46** | **99.73** | **97.48** | | **EBITDA / PBT** | **22.04** | **74.09** | **67.92** | **75.46** | | **Profit After Tax (PAT)** | **16.49** | **55.57** | **68.11** | **34.93** | | **Earnings Per Share (EPS)** | **0.37** | **1.29** | **1.58** | **0.81** | * **Revenue Trend:** Total income has grown at a steady pace, reaching **₹1.09 Crore** in FY25 (**+5.66%** YoY). * **Profitability Compression:** PAT declined by **70.32%** in FY25 compared to FY24, primarily due to increased operational expenses and the cost of strategic transitions. * **Dividend Policy:** The Board consistently recommends **no dividend**, opting to **plough back resources** to fund internal growth and capital requirements. --- ### **Governance and Executive Leadership** The leadership team was restructured in late **2024** and early **2025** to ensure regulatory compliance and executive stability. * **Board Composition:** As of **March 31, 2025**, the Board consists of **four members**: one Whole Time Director, one Executive Director, and two Independent Directors. * **Key Personnel:** * **Chairman & Managing Director:** **Mr. Manoj Shantilal Savla** (Re-designated **April 10, 2025**). He brings over **38 years** of experience and is appointed for a **3-year term** ending in **2028**. * **CEO:** **Mr. Deepak Kabra** (Appointed **February 03, 2025**). * **CFO:** **Shri Bharat Jethalal Suthar**. * **Company Secretary:** **Ms. Anjali Vipulkumar Barot**. * **Employee Incentivization:** The Company adopted the **Trustedge Employee Stock Option Scheme 2025 (TEDGE ESOS 2025)**, authorizing up to **1,000,000 stock options**. As of **July 24, 2025**, **382,824 options** have been granted. --- ### **Risk Management and Regulatory Framework** Trustedge Capital operates under a formal **Risk Management Policy** in compliance with **Section 134** of the **Companies Act, 2013** and **SEBI (LODR) Regulations**. | Risk Category | Focus Areas | Mitigation Strategy | | :--- | :--- | :--- | | **Credit Risk** | Loan book quality | Adherence to **IRAC norms** (Income Recognition, Asset Classification, and Provisioning) and **RBI risk weights**. | | **Market Risk** | Equity price volatility | All investments are listed on **BSE/NSE**; portfolio is diversified to mitigate index volatility. | | **Liquidity Risk** | Funding and debt | Reliance on **Promoter Equity** and **Commercial Bank financing**; monitoring of **Cost of Funds**. | | **Operational Risk** | Internal controls | Internal audits conducted by **M/s MGP & Associates**; robust internal control systems for transaction authorization. | **Key Challenges:** 1. **Cost of Funds:** As a non-deposit-taking NBFC, the Company faces a **higher cost of funds** compared to banks, which may impact lending margins. 2. **Regulatory Dynamics:** Continuous compliance with **RBI Master Directions** for **Scale-Based Regulations (SBR)** and **Internal Capital Adequacy Assessment Process (ICAAP)** is required to maintain the NBFC license. 3. **Competitive Pressure:** The Company must innovate with **new products and services** to compete with conventional banking institutions and larger NBFCs.