Ushakiran Finance Limited is a Hyderabad-based **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** under **Section 45-IA** of the RBI Act, 1934. The company is listed on the **BSE Limited** (Scrip Code: **511507**). The company is classified as a **Non-Systemically Important Non-Deposit taking NBFC (NBFC-ND)**, specifically categorized within the bracket of companies having total assets of less than **Rs. 100 Crores**. It does not accept fixed deposits and does not engage in housing finance activities. ### **Dual-Vertical Business Model** The company’s revenue generation and value creation strategies are bifurcated into two primary financial operations: * **Strategic Investment Portfolio:** The company manages a portfolio of **long-term investments**, primarily in equity markets and bodies corporate. The objective is to drive stakeholder value through a combination of long-term capital appreciation and consistent dividend yields. * **Financing and Lending Operations:** Ushakiran Finance provides credit and financing solutions to various economic segments. This vertical is characterized by a high-touch management approach toward **Non-Performing Assets (NPAs)** and credit risk mitigation. ### **Capital Structure and Financial Health** Ushakiran Finance maintains a lean, domestically funded capital structure with no reliance on foreign investment or international collaborations. | Financial Metric | Value / Status | | :--- | :--- | | **Effective Capital (as of FY24)** | **₹18.7 Crore** | | **Foreign Collaboration / Investment** | **Nil** | | **Borrowings** | **Zero** | | **Unutilized Credit Limits (Banks)** | **Nil** | | **Statutory Dues Compliance** | Regular (No arrears > **6 months**) | **Working Capital Trends:** The company’s working capital position has seen a slight contraction, moving from **Rs. 36.31 lakhs** in **2023** to **Rs. 29.71 lakhs** in **March 2024**. ### **Investment Exposure and Market Sensitivity** The company has significantly increased its exposure to the equity markets, which enhances potential returns but elevates sensitivity to capital market volatility. **Comparative Investment Exposure (Rs. in lakhs):** | Asset Class | As at 31st March, 2024 | As at 31st March, 2023 | | :--- | :--- | :--- | | **Equity Securities** | **1727.18** | **944.41** | | **Mutual Funds** | **103.35** | **81.48** | * **Interest Rate Risk:** Deemed **low** as the company has no significant debt security investments and maintains a zero-borrowing status. * **Currency Risk:** The company has **NIL** exposure to foreign currency fluctuations. ### **Credit Portfolio and Recovery Management** The company’s lending book is characterized by high liquidity but carries specific recovery challenges. **100%** of the aggregate loans, totaling **₹100.19 crore**, are **repayable on demand**. Notably, there are **Nil** loans extended to related parties. **Asset Quality and Litigation:** * **Overdue Assets:** As of **September 2023**, total amounts overdue for more than **90 days** reached **Rs. 30,18,910**. * **Active Recovery Litigation:** The company is aggressively pursuing legal channels for capital recovery. A primary case is filed against **M/s. AKR Construction Limited** and guarantor **Sri A. Krishna Reddy** for **Rs. 50,48,700** (inclusive of interest as of **March 5, 2025**). * **Security Status:** Management notes that some unsecured loans are only "partly secured" by illiquid assets, which may impact the speed of recovery. ### **Governance Framework and Strategic Oversight** The company is currently executing a long-term roadmap to enhance corporate transparency and regulatory adherence. **Five-Year Governance Roadmap:** | Strategic Initiative | Detail | Period | | :--- | :--- | :--- | | **Secretarial Audit Appointment** | M/s. P.S. Rao & Associates | **FY 2025-26 to FY 2029-30** | | **Regulatory Compliance** | SEBI (LODR) Regulations, 2015 | Ongoing | | **Governance Oversight** | Peer Reviewed Firm (Cert: **6678/2025**) | **5 Consecutive Years** | **Key Leadership and Administration:** * **Management:** **Mr. Omprakash Koyalkar** serves as Manager, with a renewed term extending to **July 9, 2027**. * **Shareholding Shift:** In **November 2025**, a **7.58%** equity stake (**192,900 shares**) was transferred from **APIDC** to **TSIDC** as part of the state reorganization protocols between Andhra Pradesh and Telangana. * **Organizational Structure:** The company operates as a standalone entity with **no subsidiaries, associates, or joint ventures**. ### **Risk Management and Future Outlook** Ushakiran Finance operates under a philosophy of "managing rather than avoiding" risk. The strategic focus is currently directed toward three pillars: 1. **Operational Excellence:** Leveraging digital technology to manage fraud and contain operational losses. 2. **Regulatory Alignment:** Strict adherence to **Regulation 24A and 30** of the SEBI Listing Obligations and Disclosure Requirements to ensure investor protection. 3. **Competitive Positioning:** Navigating an environment of intense competition that is currently exerting downward pressure on **yields, fees, and commissions**. ### **Key Service Providers** | Role | Entity | | :--- | :--- | | **Statutory Auditors** | NSVR & Associates, LLP | | **Secretarial Auditors** | P.S. Rao & Associates | | **Registrar & PTA** | Venture Capital and Corporate Investments Private Limited | | **Primary Bankers** | State Bank of India, Axis Bank |