💰 Financial Performance

Revenue Growth by Segment

Total assets grew by 5.76% YoY from INR 60.73 Cr to INR 64.23 Cr, primarily driven by a 9.28% increase in the loan book which reached INR 60.56 Cr. Segment-specific revenue growth was not disclosed.

Geographic Revenue Split

100% of operations and revenue are based in India, specifically Maharashtra, with the registered office located in Thane.

Profitability Margins

The company reported zero cash losses for the current and immediately preceding financial year. Net profitability is indicated by a current tax liability of INR 42.77 lakhs, which increased 18.2% YoY from INR 36.18 lakhs.

Capital Expenditure

The company owns zero Property, Plant, and Equipment (PPE) or intangible assets as of March 31, 2025, resulting in zero historical or planned CapEx for manufacturing facilities.

Credit Rating & Borrowing

Total borrowings stood at INR 21.57 Cr as of March 31, 2025, a reduction of 9.38% from INR 23.81 Cr in 2024. Credit ratings and specific interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Not applicable as the company operates as a Non-Banking Financial Company (NBFC).

Import Sources

Not applicable for financial services.

Key Suppliers

Not applicable for financial services.

Capacity Expansion

Not applicable for financial services; however, the company expanded its equity base by 269.6% through a preferential allotment of 36,98,680 shares at INR 24.50 per share on November 29, 2023.

Raw Material Costs

Not applicable for NBFC operations.

Manufacturing Efficiency

Not applicable for financial services.

Logistics & Distribution

Not applicable for financial services.

📈 Strategic Growth

Expected Growth Rate

5.76%

Growth Strategy

Growth is achieved through strategic lending to group companies and sister concerns. The company raised capital via a preferential allotment of 36.98 lakh shares at INR 24.50 each to fund its Non-Banking Financial Services business and expand its loan portfolio, which grew 9.28% YoY.

Products & Services

Non-banking financial services including demand loans, corporate advances, and strategic financial investments.

Brand Portfolio

Worth Investment & Trading Co. Limited.

Strategic Alliances

Maintains a significant lending relationship with sister concern Aarey Drugs and Pharmaceuticals Limited.

🌍 External Factors

Industry Trends

The NBFC industry is seeing increased regulatory focus on digital audit trails and reporting transparency. The company is currently lagging in technology adoption, specifically regarding Rule 11(g) audit trail features.

Competitive Landscape

Competes with other small-cap NBFCs and private lenders in the Indian corporate credit market.

Competitive Moat

The company's moat is built on captive group lending and relationship-based financing, which ensures a steady deployment of capital but increases concentration risk.

Macro Economic Sensitivity

Highly sensitive to RBI interest rate cycles; a 1% increase in borrowing costs would impact the margins on its INR 21.57 Cr debt.

Consumer Behavior

Corporate demand for flexible, demand-based credit remains the primary driver for the loan book.

Geopolitical Risks

Low direct impact due to domestic focus on Indian corporate lending.

⚖️ Regulatory & Governance

Industry Regulations

Subject to NBFC regulations under the Companies Act 2013 and RBI norms. The company was found non-compliant with Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as its accounting software lacked a mandatory audit trail (edit log) feature throughout FY25.

Environmental Compliance

Not applicable for NBFC operations.

Taxation Policy Impact

The company is subject to Indian corporate tax, with a current tax liability of INR 42.77 lakhs for FY25.

Legal Contingencies

The company has INR 0 in pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Regulatory risk is high due to the lack of an audit trail feature in accounting software, which could lead to penalties under Rule 11(g). Potential impact is estimated at 5-10% of administrative costs if compliance upgrades are mandated.

Geographic Concentration Risk

100% of assets and revenue are concentrated in Maharashtra, India.

Third Party Dependencies

Critical dependency on Aarey Drugs and Pharmaceuticals Limited for the servicing and repayment of 94.28% of the company's total assets.

Technology Obsolescence Risk

High risk of technical non-compliance; the auditor noted the absence of an edit log facility in the company's accounting software for all relevant transactions.

Credit & Counterparty Risk

Credit exposure is primarily to sister concerns; the quality of receivables is tied to the financial health of the group's pharmaceutical business.