Ascom Leasing & Investments Limited is a **Non-Systemically Important Non-Deposit Taking Non-Banking Financial Company (NBFC)** registered with the Reserve Bank of India (CoR No. **B-01.00559**). Headquartered in **Surat, Gujarat**, the company serves as a critical credit intermediary for the under-served retail and MSME segments. By bridging the gap between traditional banking and unbanked populations, Ascom provides a diversified portfolio of secured and unsecured credit products designed to foster financial inclusion. --- ### **Core Credit Products and Lending Specializations** The company’s revenue model is built upon a multi-asset lending strategy, balancing high-yield unsecured products with stable, asset-backed financing. * **Mortgage and Real Estate Financing:** * **Standard Mortgages:** Loans secured against immovable properties with a conservative target Loan-to-Value (**LTV**) ratio of approximately **50%**. * **House Renovation Loans:** Targeted credit for property improvement with an expanded **LTV** of **60-65%**. * **Home Equity:** Leveraging existing real estate assets to provide liquidity for diverse borrower needs. * **Retail and Personal Credit:** * **Unsecured Personal Loans:** Primarily targeted at **government, semi-government, and salaried employees**, backed by personal guarantees. * **Gold Loans:** Short-term liquidity solutions secured by gold ornaments. * **Vehicle Finance:** Specialized financing for both **new and pre-owned cars**. * **Commercial and Business Finance:** * **Term Loans & Leasing:** Provision of business finance, hire purchase, and leasing solutions for MSMEs. * **Working Capital:** Short-term credit facilities to support operational cycles. --- ### **Financial Performance and Capital Adequacy** Ascom has demonstrated consistent profitability and a robust capital base, maintaining a **Capital Adequacy Ratio** significantly higher than the regulatory floor mandated by the RBI. | Fiscal Year | Turnover (₹) | Net Profit (₹) | Growth (Turnover) | | :--- | :--- | :--- | :--- | | **2024-25** | **12,92,16,433** | **5,11,15,530** | **+4.76%** | | **2023-24** | **12,33,43,780** | **4,96,64,258** | **+1.51%** | | **2022-23** | **12,15,10,519** | **4,96,10,659** | **-** | **Capital Structure Highlights:** * **Authorized Share Capital:** **₹ 15,00,00,000** (**1.5 Crore shares** at **₹ 10** each). * **Paid-up Share Capital:** **₹ 11,71,41,790** (**1,17,14,179 equity shares**). * **Bonus Issue:** In **March 2023**, the company executed a **1:2 bonus issue**, capitalizing the **Share Premium** account. * **Statutory Reserves:** In compliance with **Section 45-IC of the RBI Act, 1934**, the company transferred **₹ 99,32,852** (20% of profits) to the Statutory Reserve in the 2023-24 period. * **Dividend Policy:** Management currently prioritizes **re-investment of profits** to strengthen the reserve base; no dividends were recommended for the most recent cycle. --- ### **Strategic Growth Pillars and Market Outlook** The company is positioning itself to capture a share of the projected **15-17% growth** in the Indian NBFC sector for **FY 2025-26**. * **Digital Transformation:** Implementing technology-led efficiencies to drive down operational costs and reach under-penetrated rural and semi-urban markets. * **Funding Diversification:** Utilizing **Securitization** and **Strategic Alliances with Banks** to expand liquidity and manage borrowing costs. * **Sectoral Alignment:** Focusing on high-value manufacturing segments, including **pharmaceuticals, chemicals, and electronics**, which are benefiting from India's **US$2 trillion export target**. * **Product Evolution:** Transitioning from traditional lending to a broader "Personal Finance & Investment" ecosystem to combat the **commoditization** of standard loan products. --- ### **Operational Controls and Risk Management** Ascom employs a structured framework to manage credit, operational, and regulatory risks. * **Asset Quality Monitoring:** Adheres to **IRAC (Income Recognition, Asset Classification, and Provisioning)** norms. The company monitors overdues exceeding **90 days** and maintains a contingent reserve on standard assets at **0.25%**. * **Internal Audit:** An independent **Internal Audit Department** reports directly to the Audit Committee and Managing Director to ensure financial integrity. * **Risk Mitigation:** A dedicated **Risk Management Committee** (non-mandated) reviews threats to business continuity, including **interest rate volatility** and **liquidity stress**. --- ### **Related Party Transactions and Concentration** The company utilizes its NBFC status to provide working capital to related entities at **arm's length pricing**. However, there has been a notable increase in credit exposure to related parties. **Loan Portfolio Concentration:** | Category | As at 31-03-2024 | % of Total Loans | As at 31-03-2023 | % of Total Loans | | :--- | :--- | :--- | :--- | :--- | | **Promoters/KMPs** | **Nil** | **0%** | **Nil** | **0%** | | **Related Parties** | **₹ 1,143.18 Lakhs** | **28.29%** | **₹ 461.50 Lakhs** | **12.26%** | **Authorized Facilities for FY 2025-26:** * **Aryan Infra (Partnership Firm):** Loan up to **₹ 25 Crores**. * **Ashtavinayak Share Trading LLP:** Loan up to **₹ 25 Crores**. --- ### **Governance and Regulatory Challenges** As of **March 31, 2025**, the Board comprises **five members**, including **three Independent Directors**. Key leadership includes **Mr. Tushar Rohitbhai Pandya** (MD & CFO). **Regulatory Scrutiny:** The company has faced challenges regarding disclosure and classification: * **SEBI Investigation (2024-25):** Inquiry into alleged violations of **LODR Regulations** and the **Securities Contracts (Regulation) Act**. * **Misclassification Issue:** SEBI found that **M/s Saffron Hitech Equipment Pvt Ltd** (100% owned by promoters) was not correctly classified within the **Promoter Group**, leading to inaccurate shareholding filings with the **NSE** between **2021 and 2023**. --- ### **Macroeconomic Risk Landscape** Ascom’s performance is highly sensitive to the broader Indian economic environment: * **GDP Growth Sensitivity:** A forecasted dip in GDP growth (**6.5% for FY25** vs **9.2% in FY24**) may impact credit demand. * **Inflation and Rural Demand:** Persistent inflation continues to weigh on rural consumption, a key segment for retail NBFCs. * **Competitive Pressure:** Intense competition from **FinTech entrants**, **Small Finance Banks**, and **Captive Finance Companies** is compressing margins. * **Global Volatility:** US tariffs and geopolitical conflicts in the Middle East pose risks to borrowing costs and the stability of the Indian Rupee.