Saraswati Commercial (India) Limited (SCIL) is a Mumbai-based **Investment and Credit Company (NBFC-ICC)**. Registered with the Reserve Bank of India (RBI) since **April 27, 2007**, the company operates as a non-deposit-taking entity specializing in financial market activities, strategic investments, and credit provision. --- ### **Regulatory Classification & Scale-Based Framework** Following the implementation of the RBI’s Scale-Based Regulatory (SBR) framework on **October 19, 2023**, SCIL has been elevated to the **Middle Layer NBFC (NBFC-ML)** category. * **Classification Driver:** This status is triggered by a consolidated group asset size exceeding **₹1,000 crore**. The group includes Winro Commercial (India) Limited, Singularity Holdings Limited, and GeeCee Fincap Limited. * **Compliance Implications:** The transition to the Middle Layer necessitates stricter governance, including the appointment of statutory auditors meeting specific RBI eligibility criteria (partner count and professional staff) and enhanced capital adequacy monitoring. --- ### **Core Business Verticals & Revenue Streams** The company’s operations are centralized under a single reportable segment (Financial & Investment Activities) as per **Ind AS 108**, comprising four primary pillars: 1. **Strategic Investment Portfolio:** Long-term holdings in listed and unlisted equity shares, group company securities, bonds, and debentures. 2. **Active Trading:** Tactical trading in shares and securities to capitalize on short-to-medium-term market movements. 3. **Lending Activities:** Provision of credit facilities. Currently, **100%** of loan assets are classified as **Standard Assets (Stage 1)**, with a mandatory **0.40%** provision maintained as per RBI prudential norms. 4. **Anchor Investing:** Participation in Initial Public Offerings (IPOs) under the anchor investor category to secure priority allocations in high-growth prospects. --- ### **Strategic Growth: The "QIB" Transition Path** SCIL is currently executing a capital-intensive strategy to transition into a **Qualified Institutional Buyer (QIB)** under SEBI regulations. This requires maintaining a standalone asset size of at least **₹1,000 crore**. **Capital Augmentation (March 2025):** To reach this threshold, the company completed a significant preferential allotment to its promoter group, **Winro Commercial (India) Limited**: * **Shares Issued:** **66,000 equity shares** * **Issue Price:** **₹11,913 per share** (Premium of **₹11,903**) * **Total Funds Raised:** **₹78.63 crore** **Impact on Capital Position:** | Metric | Pre-Issue (Dec 2024) | Post-Issue (Projected) | | :--- | :--- | :--- | | **Standalone Asset Size** | **₹921.01 Crore** | **₹999.64 Crore** | | **Capital Adequacy Ratio (CRAR)** | **81.69%** | **84.81%** | --- ### **Investment Portfolio & Recent Deployments** The company maintains a diversified and aggressive investment mandate. Recent major deployments include: * **Equity & Warrants:** * **Precision Wires India Limited (PWIL):** Total investment of **₹45.30 Crore** following the conversion of **20,00,000** warrants in **October 2025**. * **Tilaknagar Industries Limited:** Converted **7,00,000** warrants into equity in **November 2025** for **₹26.74 Crore**. * **Bharti Airtel Limited:** Paid a final call of **₹23.56 Crore** in **March 2026** to convert **5,87,212** partly paid shares to fully paid. * **IPO & QIP Participation:** * **Pine Labs Limited:** **₹15.00 Crore** (Anchor Investor). * **Sambhv Steel Tubes Limited:** **₹15.00 Crore** (Anchor Investor). * **Aditya Infotech Limited:** **₹13.00 Crore** (Anchor Investor). * **Veranda Learning Solutions:** **₹10.00 Crore** via QIP. --- ### **Financial Performance & Asset Quality** SCIL follows a conservative dividend policy, opting to retain **100%** of earnings to fund portfolio expansion and meet regulatory capital tiers. **Standalone Financial Highlights:** | Particulars | FY 2024-25 | FY 2023 (Lakhs) | FY 2022 (Lakhs) | | :--- | :--- | :--- | :--- | | **Gross Revenue** | **₹75.42 Crore** | **₹2,397.56** | **₹8,678.46** | | **Profit After Tax (PAT)** | **-** | **₹1,166.40** | **₹6,487.90** | | **Unrealized Gains (OCI)** | **₹172.94 Crore** | **-** | **-** | | **Statutory Reserve Transfer** | **₹10.68 Crore** | **₹2.33 Crore** | **-** | | **Earnings Per Share (EPS)** | **-** | **₹113.25** | **₹631.25** | **Consolidated Liquidity Position (as of March 31, 2025):** * **Cash & Cash Equivalents:** **₹22.82 crore** (up from **₹2.61 crore** in 2024). * **Listed Equity Holdings:** **₹338.68 crore**. * **Liquid Mutual Funds:** **₹150.80 crore**. * **Total Price Risk Exposure:** **₹1,023.09 crore**. --- ### **Corporate Structure & Governance** **Subsidiaries:** * **Sareshwar Trading and Finance Private Limited** (**60.77%** holding). * **Arkaya Commercial Private Limited** (**61.83%** holding). * *Note: Divested stake in **Arcies Laboratories Limited** (diluted from **31.03% to 4.43%**) in March 2024.* **Board & Management:** The board consists of **6 Directors** (1 Executive, 2 Non-Executive, 3 Independent). Key recent appointments include **Mrs. Vaishali Dhuri** as Whole Time Director and **Mr. Rohit Kothari** as Non-Executive Director. --- ### **Risk Management Framework** SCIL’s profitability is highly sensitive to Indian equity market volatility. The company manages this through a structured risk framework: * **Market & Price Risk:** Managed via diversification across sectors and instruments. Total market risk exposure stands at **₹807.13 Crore** (as of Mar 2024). * **Credit Risk:** Minimal exposure in the lending book (**₹1.56 Crore**); loans are monitored for "Stage 1" status (performing). * **Concentration Risk:** Successfully reduced funding concentration from **31.49%** (one counterparty) in 2023 to **0%** in 2024. * **Regulatory Risk:** The resignation of statutory auditors in **August 2025** (due to the company crossing the **₹1,000 crore** asset threshold) highlights the ongoing challenge of meeting heightened RBI compliance standards for Middle Layer NBFCs. **Contingent Liabilities:** * **Stamp Duty Dispute:** **₹1.01 crore** held in escrow since **2004-05** pending a High Court hearing. * **NEPC India Suit:** A legacy decree of **₹10.53 lakhs** plus **12% interest** (dating back to 1998) is currently under appeal in the Madras High Court.