Nagreeka Capital & Infrastructure Limited is a prominent **Non-Banking Financial Company (NBFC)** headquartered in **Kolkata, West Bengal**. Registered with the **Reserve Bank of India (RBI)** since **September 2008** (Registration No. **N.05.06774**), the company is classified as a **Non-Deposit taking Systemically Important NBFC (NBFC-ND-SI)**. The company serves as a strategic vehicle for capital market investments and specialized financing, operating under the regulatory oversight of the **RBI Act, 1934**. --- ### **Core Business Pillars and Revenue Streams** The company operates through a single primary reportable segment: **Financial & Related Services**. Its revenue model is diversified across two distinct operational pillars: * **Investment Operations:** The company engages in the acquisition and trading of **shares, stocks, bonds, securities, and derivatives**. Its inventory consists of shares held in **dematerialized form**, verified through rigorous demat statement reconciliation. Income is primarily generated through **securities trading** and **dividend income** from a portfolio of **quoted scripts, unquoted scripts, and mutual funds**. * **Financing Services:** Nagreeka provides credit and customized loan solutions to niche, underserved sectors. It specifically targets the **power, logistics, and infrastructure** industries. These loans are often structured as **repayable on demand** or without fixed repayment periods, providing the company with high liquidity control. --- ### **Strategic Capital Allocation & Investment Philosophy** Nagreeka employs a disciplined investment strategy focused on long-term value creation and sustainable growth. The company prioritizes capital allocation toward entities with high-quality earnings while maintaining a balanced exposure to emerging sectors. * **Core Value Investments:** A significant portion of the portfolio is dedicated to established companies demonstrating **consistent growth prospects** and robust earnings quality. * **High-Growth "New-Age" Companies:** The company maintains a strategic, small-scale allocation in high-growth potential firms. While these entities may currently face valuation concerns, management expects earnings to fructify in later development stages. * **Liquidity Management:** To ensure operational flexibility, surplus funds are frequently invested in **liquid and arbitrage funds**, ensuring that short-term obligations are met without disrupting long-term investment positions. --- ### **Financial Performance and Capital Structure** After a period of volatility, the company demonstrated a strong recovery in **FY 2023-24**, returning to profitability. | Metric (₹ in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | *Not Disclosed* | **62.88** | **22.36** | | **Net Profit / (Loss)** | *Not Disclosed* | **13.34** | **(36.42)** | | **Dividend Recommended** | **Nil** | **Nil** | **Nil** | | **Deferred Tax Assets** | **25.98** | *Not Disclosed* | *Not Disclosed* | **Key Financial Observations:** * **Profitability:** The company reported **no cash losses** for the financial years 2023-24 and 2024-25. * **Tax Assets:** As of March 31, 2025, the company recognized **₹ 25.98 crore** in **Deferred Tax Assets**, primarily due to the **carry forward of business losses**. Management asserts **virtual certainty** regarding future profits to justify this recognition. * **Dividend Policy:** No dividends were recommended for the last three fiscal years. The Board has prioritized **improving liquidity** and meeting **working capital requirements** over immediate payouts. * **Share Capital:** The **Authorized Share Capital** is **₹ 13 crore** (14,000,000 Equity Shares at ₹ 5/- par and 12,000,000 Preference Shares). The **Paid-up Capital** consists of **12,615,300 Equity Shares**, with **96.31%** of the share capital held in dematerialized form. --- ### **Leadership Transition and Governance Framework** The company has recently restructured its leadership to enhance day-to-day strategic oversight and align with the **RBI’s Scale Based Regulation (SBR)** framework. | Personnel | Role / Designation | Effective Period | | :--- | :--- | :--- | | **Mr. Sushil Patwari** | **Executive Chairman** | Transitioned from Non-Executive w.e.f. **Oct 1, 2025** | | **Mr. Sunil Ishwarlal Patwari** | **Managing Director** | Re-appointed for **5 years** (June 2025 – May 2030) | | **Mr. Santosh Harkchand Somani** | **Independent Director** | Re-appointed for **5 years** (April 2025 – March 2030) | | **Mrs. Sarita Patwari** | **Non-Executive Women Director** | Regularized w.e.f. **Sept 23, 2025** | | **M/s M&A Associates** | **Secretarial Auditor** | Appointed for **5 years** (FY 2025-26 to FY 2029-30) | The governance model is built on four cornerstones: **Responsible Financial Innovation**, **Accountable Conduct**, **Responsible Governance**, and **Centrality of the Customer**. --- ### **Operational Framework and Risk Mitigation** As a capital market-linked entity, Nagreeka maintains no physical plant locations, centralizing operations at its **Kolkata** office. Its risk management strategy is integrated into an information system that monitors several key areas: | Risk Category | Mitigation Strategy | | :--- | :--- | | **Market Risk** | Exposure to fluctuations in **quoted securities** is managed through a prudent, diversified investment approach. | | **Credit Risk** | Managed through **periodic credit limit reviews** and by providing loans primarily to sectors like infrastructure and logistics. | | **Liquidity Risk** | Borrowings are secured against the **pledge of quoted securities**. The company maintains sanctioned working capital limits exceeding **₹ 5 crore**. | | **Interest Rate Risk** | Monitoring volatility in short-term borrowings and the impact on the **Defined Benefit Plan (Gratuity)**, which is currently an **unfunded liability**. | --- ### **Regulatory Challenges and Contingencies** Investors should be aware of specific regulatory and legal headwinds currently facing the company: * **SEBI Penalty:** In **August 2023**, SEBI imposed a penalty of **₹ 10,00,000** each on the Company and its Promoter, **Mr. Sushil Patwari**, alleging trading in **Rupa & Company Limited** based on **Unpublished Price Sensitive Information (UPSI)** in 2021. The matter is currently pending before the **Securities and Appellate Tribunal (SAT)**. * **Related Party Transactions:** For **FY 2025-26**, the company anticipates entering into transactions with related parties that may exceed **₹ 1,000 crores** or **10% of annual consolidated turnover**, requiring shareholder approval. * **Compliance History:** The **NSE** previously imposed a penalty of **₹ 8,63,500** for non-compliance regarding minimum Board strength (**6 directors**). While refunded, it underscores the importance of maintaining strict adherence to **Regulation 17(1)(c)**. * **Macroeconomic Factors:** The company’s margins are sensitive to **CPI inflation** (projected at **4.0% to 4.7%** for FY25) and global oil prices. Furthermore, the adoption of the **Expected Credit Loss (ECL) model** under **Ind AS 109** introduces complexity in impairment provisioning.