Lakshmi Finance & Industrial Corporation Limited is an Indian listed Non-Banking Financial Company (**NBFC**) primarily engaged in **Portfolio Investments**. Operating as a single-segment entity under **Ind AS-108**, the company focuses on capital appreciation and periodic dividend returns through a diversified portfolio of financial assets. --- ### **Core Investment Strategy & Asset Management** The company’s business model is centered on the management of financial assets, where classification and measurement are determined by the **Solely Payments of Principal and Interest (SPPI)** and business model tests. * **Portfolio Evaluation:** Performance is assessed based on how financial assets are managed collectively to achieve specific business objectives. Management conducts continuous monitoring to ensure the business model remains aligned with market conditions. * **Regulatory Compliance:** As an **NBFC**, the company adheres to **RBI guidelines** for provisioning. For FY 2024-25, the company proposed a transfer of **₹75 lakhs** (**20% of Net Profit**) to the **Reserve Fund** in compliance with **Section 45-IC of the RBI Act, 1934**. * **Corporate Structure:** The company operates with a lean structure and had **no subsidiaries, associates, or joint ventures** as of December 31, 2025. --- ### **Financial Performance & Key Metrics** The company’s revenue is derived entirely from **Investment Activities** within **India**. While the company maintains a strong equity base, performance in F.Y. 2024-25 saw a decline compared to the previous year, attributed to **sluggish Stock Market conditions** and a **decrease in investment valuations**, despite stable rental incomes. | Metric (₹ in Lakhs) | F.Y. 2024-25 | F.Y. 2023-24 | F.Y. 2022-23 | | :--- | :--- | :--- | :--- | | **Gross Income** | **771.91** | **1,489.00** | **360.00** | | **Gross Profit (Before Tax)** | **243.26** | **1,281.47** | **17.73** | | **Net Profit (After Tax)** | **357.98** | **1,037.74** | **55.05** | | **Equity Capital & Reserves** | **5,884.98** | **5,651.40** | **4,668.08** | | **Total Investments** | **5,437.13** | **5,220.69** | **4,576.47** | | **Earnings Per Share (₹)** | **11.93** | **34.59** | **1.84** | | **Dividend (%)** | **30%** | **40%*** | **20%** | *\*Includes a Special Dividend of 15% for the centenary year.* --- ### **Investment Portfolio Composition & Valuation** As of **March 31, 2025**, total investments reached **₹48.12 crore** (excluding specific liquid assets). The company utilizes a fair value hierarchy to manage its holdings: | Asset Type | Value (₹ Lakhs)* | Valuation Method | Classification | | :--- | :--- | :--- | :--- | | **Mutual Funds** | **3,578.14** | **Level 2 (NAV)** | **FVTPL** | | **Equity Instruments** | **992.55** | **Level 1 (Quoted)** | **FVTPL** | | **Government Bonds** | **400.00** | **Quoted** | **Amortised Cost** | | **Public Deposits (NBFCs)** | **150.00** | **Unquoted** | **Amortised Cost** | | **NCDs** | **100.00** | **Unquoted** | **Amortised Cost** | *\*Values based on March 31, 2024, hierarchy data.* --- ### **Leadership Continuity & Governance Strategy** The company prioritizes long-term leadership stability, evidenced by the tenure of its Managing Director, while refreshing its board to meet **SEBI (LODR) Regulations, 2015**. * **Executive Leadership:** **Shri. K. Harischandra Prasad** has been re-appointed as **Managing Director** for **3 years** (effective **April 1, 2026**). He has served the company for **four decades** (since **1985**), providing "profound expertise" for sustained growth. * **Board Refreshment:** Recent appointments of **Independent Directors** include **Smt. B. Shanti Sree** (until Nov 2029), **Shri. Simhadri Suryanarayana**, and **Dr. D. Nageswara Rao** (both until the **2029 AGM**). * **Governance Compliance:** The company utilizes special resolutions for directors attaining **75 years** of age to ensure regulatory alignment. --- ### **Risk Profile & Fiscal Position** The company maintains a **debt-free status** but manages several financial and regulatory risks. #### **Financial Risk Management** * **Market & Price Risk:** Exposure is primarily to **equity instruments** and **mutual funds** classified as **FVTPL**. * **Interest Rate Risk:** Minimal exposure, as the company invests in **fixed-rate interest-bearing deposits** and has **zero borrowings**. * **Credit & Liquidity Risk:** Mitigated by dealing with **high credit rating counterparties** and maintaining sufficient cash on demand. * **Foreign Currency Risk:** **Zero exposure**; no foreign currency transactions were recorded. #### **Fiscal & Regulatory Challenges** * **Tax Asset Recognition:** A **Key Audit Matter (KAM)** exists regarding the non-recognition of **Deferred Tax Assets** and **MAT Credit**. Management has opted not to recognize these due to uncertainties in forecasting future taxable profits. * **Unrecognized MAT Credit:** **₹1.53 Crore** (as of Dec 2025) remains unrecognized. * **Regulatory Penalties:** The company paid a **SOP fine of ₹4,54,300** to the **NSE** for failing to maintain the required **six directors** between August and November 2024. --- ### **Operational Assets & Real Estate Litigation** The company maintains a portfolio of immovable properties and equipment under the **Cost Model**. * **Land Disputes:** The company is currently in legal proceedings at the **District Court, Adoni (AP)** to recover possession of lands costing **₹11.59 lakhs** from trespassers. * **Title Issues:** While most deeds are secured, **Pattadar Pass Books** for **23.93 Acres** of land in Adoni, Kurnool District, are still pending acquisition. * **Inventory:** The company does not maintain inventory and operates without **working capital limits**. --- ### **Capital Management & Shareholder Returns** The primary objective is to maintain an **efficient capital structure** consisting entirely of **Equity Share Capital**. * **Dividend Policy:** For F.Y. 2024-25, a dividend of **30%** (**₹3 per share**) was recommended, totaling an outflow of **₹90.00 lakhs**. * **Investor Protection:** In September 2024, **₹16.80 lakhs** in unclaimed dividends (F.Y. 2016-17) was transferred to the **Investor Education and Protection Fund (IEPF)**. * **Audit Status:** Financial statements for the year ended March 31, 2025, received an **unmodified opinion**, with CEO/CFO certification of **Internal Control systems**.