Notice is hereby given that the Extra Ordinary General Meeting (EGM) of the members of Arohan Financial Services Limited (“Arohan” or the “Company”) will be held on Tuesday, April 22, 2025, at 03:30 PM (IST) through Video Conferencing (‘VC’)/Other Audio-Visual Means (‘OAVM’) facility to transact the following business:Special Business:Appointment of Mr. Narasimha Kummamuri Murthy (DIN: 00023046), as a Non-Executive Independent Director of the Company:<ul><li>RESOLVED THAT, in accordance with the Companies Act, 2013, the SEBI Listing Regulations, 2015, and other applicable laws, and based on the recommendation of the Nomination and Remuneration Committee and approval of the Board of Directors, the shareholders approve the appointment of Mr. Narasimha Kummamuri Murthy (DIN: 00023046) as a Non-Executive Independent Director of the Company for a term of five years, from February 12, 2025, to February 11, 2030. Mr. Murthy, who was appointed as an Additional Director effective February 12, 2025, has the necessary expertise, experience, and eligibility, and has confirmed that he meets the criteria for an Independent Director as per the Companies Act and SEBI regulations. During his tenure, he shall not be liable to retire by rotation.</li></ul>

Notice of EGM – Arohan Financial on April 22, 2025

Notice of EGM to the members of Arohan Financial Services – 22nd April, 2025

Basilic Fly Studio, a Chennai-based visual effects (VFX) company, has been a&nbsp; rising famous star in India’s entertainment industry, known for its diligent work on high-profile projects and tasks like Avengers: Endgame and Avatar 2. However, recent allegations of financial irregularities have cast a strong shadow over its achievement. This article delves into the information of the case, analyzing the allegations, the vital component and players concerned, and the broader implications for corporate governance in India’s VFX and AI sector. About Basilic Fly Studio Founded in 2016, Basilic Fly Studio quickly gained recognition for its incredible and high-quality VFX art work, serving over 300 customers and finishing 10,000 initiatives of projects, inclusive of films, TV shows, and commercials or advertisements. The business enterprise’s IPO in 2023 was a report-breaking achievement, with subscriptions exceeding 286 times the issue size significantly exceeded, raising ₹14,160 crore in opposition to a ₹66 crore issue. However, beneath this fulfillment and success lay signs of financial mismanagement that would later&nbsp; come to light. The Basilic Fly Studio Ltd. fraud case stems from accusations that the business enterprise's promoters manipulated its stock price, resulting in excessive financial implications for investors and heightened scrutiny from regulatory authorities. Problem Statement The primary trouble at the coronary heart of the Basilic Fly fraud case is the alleged manipulation of financial statements and stock prices by business enterprise's promoters. This raises concerns about the integrity of financial reporting, the effectiveness of regulatory oversight, and the vulnerability of investors in such eventualities or scenarios. Record-Breaking IPO and Market Performance In September 2023, Basilic Fly Studio launched an Initial Public Offering (IPO) on the SME platform that was aiming to raise ₹66 crore. The IPO received an amazing response from the IPO introduced, bringing up bids exceeding ₹10,000 crore, highlighting considerable investor interest within the VFX industry. The shares were priced between ₹92-97, and upon listing, the stock primarily delivered outstanding returns to its investors. Financial Discrepancies and Red Flags&nbsp;&nbsp; Post-IPO, issues and concerns emerged regarding the company's financial reporting. Analysts highlighted that some major accounting rules and assumptions might have precipitated inflated profit figures. While these strategies are within the legal barriers, they raise questions on the sustainability and authenticity of the suggested reported earnings. July 2023:&nbsp; Initial reviews and reports emerge suggesting discrepancies within the business enterprise's financial statements. September 2023: The business enterprise conducts a public offering that sees overwhelming interest from investors, contemplated at a 286 times subscription rate. January 2024: Concerns about the integrity of the promoters resulted in challenging situations from investors about the company’s financial disclosures. May 2024: The corporation issues revised financial statements within two days, escalating suspicions amongst investors concerning the promoters' intentions and capabilities. The first signs of trouble emerged in late 2024 at the stringent time when Basilic Fly Studio reported a statutory profit of ₹291.8 million for the year ending September 2024. However, a closer look and examination revealed that the company had negative free cash flows (FCF) of ₹187 million in the same period. There need to be stricter and abundant regulations that deviate from the consistent growth. This discrepancy, highlighted by a significant high accrual ratio of 0.40, indicated that the stated earnings and reported profits had been now not supported by actual cash inflows, raising troubles about the business enterprise's financial health. Revised Financial Statements&nbsp; In a surprising turn of events, the enterprise revised its financial statements days after the initial release. This unparalleled do away with and the following revisions induced large speculation about the integrity of the agency's financial reporting. Investors and analysts wondered whether or not the revisions had been an attempt to manipulate stock prices or cowl up deeper financial problems.&nbsp; Stock Performance Following the revelations, Basilic Fly Studio's stock price plummeted by 33% over the past year, which resulted in eroding significant shareholder value. The company's market capitalization, which once stood at ₹610 crore, has been severely impacted.&nbsp; Misrepresentation of Financial Health&nbsp; Debt and Working Capital Issues: The company's financials reveal alarming trends, including high debtor days (229 days) and a sharp increase in working capital days (from 95.7 days to 266 days). These metrics indicate severe liquidity challenges and inefficiencies in managing receivables.&nbsp; Profitability Concerns: Despite reporting repeated profits, Basilic Fly Studio has now not paid dividends to its shareholders. This, coupled with declining running income margins (from 52% in 2023 to 49% in 2024), has similarly further eroded investor confidence.&nbsp; Auditor's Findings The statutory auditors, of their record for the financial year 2022-2023, said that they did not pick out and identify&nbsp; any fraud as specified mentioned underneath Section 143(12) of the Companies Act, 2013. This suggests that, from an external audit point of view, the financial statements have been free from&nbsp; material misstatements due to fraud. Allegations of Fraud&nbsp; The most damning allegations against Basilic Fly Studio involve potential fraudulent activities by its promoters. Critics have pointed to two possible scenarios:&nbsp; Intentional Manipulation: The promoters may have deliberately inflated profits to attract investors and boost stock prices.&nbsp; Incompetence: The promoters may have lacked the expertise to manage the company's financial reporting, leading to unintentional errors.&nbsp;&nbsp; Broader Implications: Impact on the VFX Industry&nbsp; The Basilic Fly Studio scandal has solidified and cast a shadow over India's burgeoning VFX industry. With the authorities imparting incentives like a 30% rebate on qualifying expenses for foreign places productions, the enterprise was poised for growth. However, the scandal has raised concerns about the credibility of Indian VFX organizations, doubtlessly deterring foreign&nbsp; investments.&nbsp; Market Perception and Investor Confidence Despite the allegations, Basilic Fly Studio's&nbsp; overall stock performance remained strong and robust. The company's shares have drastically assured and persevered and continued to attract investor interest, reflecting confidence in its company business model and future prospects. This should continue on the path of strategic deviation and correction.&nbsp; The investment by prominent investors such as <a href="https://www.planify.in/investors/ashish-kacholia/">Ashish Kacholia</a> further bolstered this sentiment, indicating acceptance and trust in the company's leadership and marketplace role and position. The Ace investor ashish kacholia had this SME corporation with 2.35% stake in basilic fly studio which delivered huge and significant returns. Conclusion The Basilic Fly Studio case underscores the complexities of balancing speedy and rapid growth with financial transparency. This&nbsp; financial scam serves as a stark reminder of the risks related to making an investment in&nbsp; companies with vulnerable and weak governance systems. While the company's contributions to the VFX industry are commendable, the worries about its financial practices highlight the need for strong and necessary mandated corporate&nbsp; governance and the significance of due diligence and transparency. Investors need to stay vigilant, and regulators have to put in force stricter compliance to shield the integrity of India's financial markets. As the VFX sector continues to expand, ensuring that innovation is matched with financial integrity will be crucial for sustainable success. As the investigation into Basilic Fly Studio continues, the lessons learned from this case will undoubtedly shape the future of corporate governance in India. For now, the company's once-promising trajectory serves as a cautionary tale for <a href="https://www.planify.in/investors/">investors and industry stakeholders</a> alike.&nbsp;&nbsp;​

In September 2023, Basilic Fly Studio launched an Initial Public Offering (IPO) on the SME platform that was aiming to raise ₹66 crore.

The Basilic Fly Studio Financial Case: A Darling of SME IPOs

The Men in Blue have done it again! With sheer determination, collaboration, and an unshakable team spirit, India lifted the Champions Trophy for the third time, scripting yet another historic chapter in cricket.&nbsp; Dominating the tournament without a single defeat, the team showcased the power of patience, dedication, and unity. From handling pressure moments to New Zealand being bowled out in the final, every player rose to the occasion, proving that greatness is built on teamwork and resilience.&nbsp; Some victories go beyond mere statistics, beyond the numbers that define wins and losses, beyond the scoreboard that records runs and wickets. India’s triumph in the 2025 ICC Champions Trophy is one such victory—a moment in time that will forever be cherished as more than just another piece of silverware in the cabinet.&nbsp;This victory isn’t just about the trophy; it’s a lesson in perseverance, leadership, and the relentless pursuit of excellence.​Thank you, Team India and champions who inspire many.&nbsp;

India’s Hour of Glory: ChampionTrophy2025

​ ﻿The Indian stock market confronted a downturn in 2025, leading to changing investor sentiment due to volatile market outlook and this has been inspired by multiple factors and&nbsp; elements that drove this along with high valuations, a slowing economy, and worldwide trade tensions. This transition further has&nbsp; led to a huge market correction, impacting both listed and <a href="https://www.planify.in/unlisted-shares/">unlisted stocks</a>. Benchmark indices like Sensex and Nifty have fallen by around approximately 4.5%, while broader indices like BSE MidCap and SmallCap have declined even similarly near around 14 and 17 percent respectively, reflecting the severity and ongoing heat of the market conditions. <h2 style="line-height: 1.38;text-align: justify">Recent Performance of Unlisted Shares</h2> Unlisted shares have experienced declines, with some tremendous examples consisting of Metropolitan Stock Exchange of India, Matrix Gas Renewables, and Motilal Oswal Home Finance. Metropolitan Stock Exchange of India, which had an amazing surge in 2024, experienced a widespread correction in 2025. Conversely, some unlisted stocks like <a target="_blank" href="https://www.planify.in/research-report/nayara-energy-ltd/">Nayara Energy</a> and <a target="_blank" href="https://www.planify.in/research-report/ncdex/">NCDEX</a> have defied the broader market trend, posting gains. The year 2025 has been marked with the aid of sizable sell-offs in international markets, and unlisted shares have not been spared. Several excessive and high-profile unlisted corporations have presented marked declines: 1.&nbsp;<a href="https://www.planify.in/research-report/metropolitan-stock-exchange-india-limited/">Metropolitan Stock Exchange of India</a>:&nbsp;&nbsp;After a top notch surge of over 1100% in 2024, the exchange's shares plummeted by greater than 40% in 2025, settling at ₹7.5 per share. 2.&nbsp;<a target="_blank" href="https://www.planify.in/research-report/matrix-gas-renewables/">Matrix Gas Renewables</a>: This organisation's stock declined by way of 31% year-to-date, following a 6% drop in 2024. 3.&nbsp;<a target="_blank" href="https://www.planify.in/research-report/motilal-oswal-home-finance-ltd/">Motilal Oswal Home Finance</a>: Despite a sturdy 50% upsurge in 2024, the firm's stocks have fallen via 26% in 2025. 4.&nbsp;<a target="_blank" href="https://www.planify.in/research-report/hero-fincorp/">Hero FinCorp</a>: After a 45% rally in 2024, the organisation's shares have reduced by value of around&nbsp; 25% this year. 5.&nbsp;<a target="_blank" href="https://www.planify.in/research-report/apollo-green-energy-limited/">Apollo Green Energy</a>: The company's stocks have declined by 13% in 2025, extending a 33% drop from the preceding year. These corrections underscore that unlisted stocks are at risk of broader financial and market forces, challenging the perception that they are insulated from public market volatility. 6.&nbsp;<a target="_blank" href="https://www.planify.in/research-report/hdb-financial-services-limited/">HDB Financial Services</a> has seen an 11 percent drop year to date in spite of a 40 percent growth in 2024, even as each Vikram Solar and <a target="_blank" href="https://www.planify.in/research-report/oyo-share-price/">Oyo</a> have reduced by value of about 10 percent each.&nbsp; Securities have each declined about 7.5 percent year to date after growing by 24 percent and 1 percent, respectively, in 2024. API Holdings has reduced with the aid of 7.2 percent after a 15 percent drop in the last year, while <a target="_blank" href="https://www.planify.in/research-report/cochin-international-airport/">Cochin International Airport</a> has dropped 5.4 percent following an upward thrust of more than 92 percent in 2024.&nbsp; 7.&nbsp;<a target="_blank" href="https://www.planify.in/research-report/orbis-financial-corporation/">Orbis Financial Corp</a> and <a target="_blank" href="https://www.planify.in/research-report/chennai-super-kings-cricket-limited/">Chennai Super Kings</a> have each dropped 4.5 percent after increasing 84 percent and 11 percent, respectively, in the preceding year. <a href="https://www.planify.in/research-report/national-stock-exchange/">India's biggest exchange NSE</a>, has only declined by 3 percent in 2025 after rising more than 143 percent in 2024. <h2 style="line-height: 1.38;text-align: justify">Factors Contributing to Volatility in Unlisted Stocks</h2> Several elements have contributed to the current volatility determined in unlisted stocks: 1. Economic Slowdown: Global economic deceleration has dampened investor sentiment ongoing fluctuations in the prices, which in turn leading&nbsp; to decreased valuations across both listed and unlisted markets. 2. Geopolitical Tensions: Escalating conflicts and massive global trade disputes have resulted in presenting heightened uncertainty, prompting investors to re-evaluate their portfolios and adopt greater conservative strategies.&nbsp; 3. Psychological Factors: Behavioral biases, mainly included in factors of individual personal choices towards investment such as herd conduct and loss aversion, can enlarge volatility in unlisted markets. Investors may additionally rush to sell holdings in response to broader marketplace declines, exacerbating price movements. 4. Global Tariff Wars: The resurgence of world exchange global tensions, particularly following the U.S. election victory of Donald Trump, has introduced uncertainty. 5. Foreign Investor Selling: Foreign Institutional Investors (FIIs) had been net dealers, withdrawing out billions of bucks in terms of dollars from Indian markets. <h2 style="line-height: 1.38;text-align: justify">Stocks Defying the Downturn</h2> Despite the broader marketplace decline, sure unlisted stocks have defied the sample. Nayara Energy has improved via 16 percent, while NCDEX has risen by 5 percent. Last year, Nayara Energy improved by 346 percent, while NCDEX fell by 27 percent. <h2 style="line-height: 1.38;text-align: justify">Expert and Analysts&nbsp; Insights</h2>​&nbsp;1. Sector-Specific Shifts in Investor InterestAnalysts word that sector-precise shifts in investor interest have become evident. Stocks within the solar and inexperienced strength sectors, which have been marketplace favorites in recent quarters, are actually losing some of their luster. In evaluation, there is developing interest in exchange and exchange trade-associated ecosystem stocks, together with NSE and NCDEX. 2.&nbsp; Trading Volumes and LiquidityThe broader marketplace correction has led to a giant lower in trading volumes inside the unlisted space. Unlike listed stocks, unlisted stocks lack liquidity, which means buyers and sellers aren't present without difficulty available. While this reduces volatility, it also poses demanding situations for investors seeking quick exits. Conclusion The unlisted shares market, presenting at the same time as less unstable and volatile than its listed counterpart, is not immune to broader marketplace developments. As the Indian markets navigate a hard and complex environment, unlisted stocks have additionally confronted corrections, with a few sectors and stocks being hit more difficult than others. Investors within the unlisted area need to stay cautious and focus on companies with sturdy basics and growth capacity. While the dearth of liquidity and transparency poses challenges, the unlisted marketplace additionally gives particular opportunities for those inclined to take a long-term time period view. As the marketplace continues to unfold, it will be essential to screen income reports, sector-precise traits, and global tendencies to gauge the direction of unlisted stocks.

huge market correction, impacting both listed and unlisted stocks. Benchmark indices like Sensex and Nifty have fallen by around approximately 4.5%, while broader indices like BSE MidCap and SmallCap have declined even similarly near around 14 and 17 percent respectively, reflecting the severity and ongoing heat of the market conditions.

Unlisted Stocks Also Feel The Heat Of Market Volatility

In a notable episode of Shark Tank India Season 4, Meghalaya-based exceptionally unique startup Eriweave secured an investment of ₹20 lakh for 12% equity from renowned investors Anupam Mittal and Namita Thapar. The investment is not only highlights the potential of Eriweave’s unique business model that stands out&nbsp; and mark promising deal from the meghalaya community but additionally shines a spotlight at the rich cultural history and heritage of Meghalaya and the developing interest of investors in sustainable and socially impactful ventures.&nbsp;&nbsp; This article offers a complete overview of Eriweave, its journey on Shark Tank India, the significance of the investment, and what this indicates for the future of the startup and the handloom industry in India.&nbsp;&nbsp; About the company: Eri Weave Eriweave is a Meghalaya-based startup that specializes in producing Eri silk merchandise, consisting of shawls, stoles, and cloth. Eri silk is kind of&nbsp; called Ahimsa silk, is a kind of silk produced without harming the silkworm, making it a sustainable and green opportunity to standard silk.&nbsp; Eri silk comprises the raw material of the cocoons of the Eri silkworm, which is probably harvested after the moth has left. This process ensures that no silkworms are harmed and makes natural hand-made products, making Eri silk an eco-friendly sustainable green opportunity to conventional silk. Eri silk also appeared for its gentle texture, sturdiness, and thermal properties, making it perfect for quite a few apparel and clothing items.&nbsp; Founded by Iaishah Rymbai, presents leadership with strategic vision, EriWeave makes a speciality of generating organically dyed Eri silk yarn and handwoven fabrics. The corporation's venture is deeply rooted in empowering women and empowering them by becoming artisans and promoting sustainable economic development. The Inception of Eri Weave The artwork of Eri silk weaving in Meghalaya traces its roots to the village of Iapngar, where sericulture turned into to start with restricted to silkworm rearing for food. It wasn't till the Nineteen Seventies that the craft of Eri silk spinning and handloom weaving flourished, thanks to the vision of Kristina Dris Lyngdoh Thaiang.&nbsp; Her passion stimulated generations, which include Kong Prissila Rymbai, who persisted in the subculture. In 2018, a behind schedule headband order due to yarn shortages made Kong Iaishah Rymbai recognise the urgent want for professional spinners and weavers in the place. Determined to bridge this gap, she collected a team and collaborated with the Raid Iapngar Handloom Weaver Cooperative Society, turning a project into an opportunity. About the Founders and Their Vision&nbsp;&nbsp; The startup EriWeave was founded by Iaishah Rymbai,&nbsp; specializing in producing organically dyed Eri silk yarn and handwoven fabrics. The enterprise utilizes locally sourced Eri silk cocoons to create genuine, home made stoles, scarves, and fabric. Their commitment to moral layout and unique coloration combinations sets them aside within the Indian textile enterprise.&nbsp; Iaishah's entrepreneurial journey is both inspiring and poignant. Married at the age of 20 and later divorced, she faced personal challenges that led her to grow to be a single mom of four daughters. Determined to provide for her family and driven by a passion for traditional weaving, she set up EriWeave. In December 2018, Iaishah received an order for fifty Eri silk scarves. Recognizing the potential to restore the diminishing art of Eri silk weaving, she mobilized nearby ladies, encouraging them to learn and participate in the craft.&nbsp; The&nbsp; brand "EriWeave" was formally launched on March 1, 2022, on the PRIME Startup Hub in Shillong. Initially known as Iaishah Ryndia, the startup focused on producing yarn, fabrics, and merchandise made from Eri silk using traditional, eco-friendly, and natural dyeing tactics. EriWeave's project centers on retaining the legacy of Eri silk even as offering sustainable livelihoods to local women artisans. Under Iaishah's leadership, EriWeave has grown right into a collective of passionate artisans committed to crafting hand-spun Eri yarn and hand-woven fabric. The brand strives to provide seamless&nbsp; blends of art and fashion with a vision to presenting and showcasing the artistic finesse of Meghalaya's ladies artisans and reminiscent of way of life. The organisation's commitment to sustainability, community empowerment, and the preservation of cultural historical past has linked&nbsp; it with hand made craftsmanship and proficiency of artisans ideas positioning it as a beacon of traditional craftsmanship within the cutting-edge marketplace. The brand's journey from a village initiative to a recognized entity exemplifies the transformative and unique blending way of weaving subculture with empowerment. EriWeave: Products and Sustainability Eriweave gives handwoven Eri silk products crafted via nearby ladies artisans, combining way of life, sustainability, and fashion. Their merchandise encompass stoles, scarves, and walking fabrics, outstanding by way of ethical designs and particular coloration combos. Eriweave's dedication to sustainability is clear in its use of organic dyes made from herbal substances like lac, turmeric, leaves, and barks.&nbsp; This eco-friendly approach not most effective preserves the environment but also aligns with cultural values. The agency employs more than 100 homemakers, supplying livelihood to faraway villages and generating vegan, handcrafted, premium satisfactory silk fabric and its by using-products. Eri silk is likewise known as peace silk or Ahimsa silk because it is a non-violent silk that doesn’t require killing the moth to extract the fibre. The Shark Tank India Pitch and Investment On Shark Tank India, Iaishah Rymbai sought ₹20 lakh for 12% equity in Eriweave. <a target="_blank" href="https://www.planify.in/investors/anupam-mittal/">Anupam Mittal</a> and <a target="_blank" href="https://www.planify.in/investors/namita-thapar/">Namita Thapar</a> were moved by Iaishah's story and her determination to revive a loss of life tradition while empowering local ladies.&nbsp; Namita Thapar emphasized the importance of supporting entrepreneurs like Iaishah, who function as models for ladies within the united states of america. Anupam Mittal mentioned the demanding situations of building demand in such companies, however he was concerned about the significance of presenting opportunities to individuals who lack them. Ultimately, they invested ₹20 lakh for 12% equity, recognizing Eriweave's capacity and Iaishah's inspiring journey. EriWeave: Traction and Financials Eriweave has proven good sized traction, assisting the livelihood of over 100 families. The organization's first-class-promoting products are stoles, which make contributions to 70% of its total sales. Eri Weave Private Limited generated a revenue of ₹18.3L for the financial year ending on March 31, 2024. Following the airing of <a target="_blank" href="https://www.planify.in/shark-tank/">Shark Tank India</a>, Eriweave obtained about 60,000 orders, indicating an extensive boom in demand for and brand recognition. The investment from Anupam Mittal and Namita Thapar, coupled with the expanded visibility, has placed Eriweave for continued increase and expansion. EriWeave: Recognizing Potential and Impact <ul><li>Social Impact:&nbsp; Eri Weave's commitment to empowering local ladies artisans and promoting sustainable livelihoods aligns with socially responsible investment concepts.</li><li>Sustainable Fashion: The international shift toward sustainable and green products positions Eri Weave favorably within the marketplace.</li><li>Unique Value Proposition: The brand's fusion of traditional weaving techniques with current designs offers a completely unique product line that caters to a gap but developing marketplace section. </li></ul> Shark Tank India's Role in Promoting Regional Startups Shark Tank India has emerged as a pivotal platform for entrepreneurs from numerous backgrounds to exhibit their innovations and steady funding. EriWeave's success tale is particularly widespread as it represents the first employer from Meghalaya to secure a deal on the show. This success not only boosts the morale of entrepreneurs from the Northeast but also encourages the preservation and promotion of indigenous crafts on a national level. Future Prospects With the infusion of capital and mentorship from pro traders, EriWeave is poised for growth. The company aims to enhance its manufacturing talents, attain broader markets, and preserve empowering nearby artisans. The collaboration with Anupam Mittal and Namita Thapar brings precious expertise in scaling agencies, a good way to be instrumental in navigating the challenges of growth even as keeping the brand's middle values of sustainability and culture. Conclusion​In conclusion, EriWeave's journey from the looms of Meghalaya to the country wide spotlight of Shark Tank India exemplifies the transformative power of entrepreneurship rooted in cultural background. The funding via Anupam Mittal and Namita Thapar now not only provides economic aid but also validates the importance of retaining conventional crafts in current markets. As EriWeave embarks on this new chapter, it stands as a beacon of ideas for artisans and marketers across the country.

Meghalaya-based exceptionally unique startup Eriweave secured an investment of ₹20 lakh for 12% equity from renowned investors Anupam Mittal and Namita Thapar.

Anupam Mittal & Namita Thapar Invest ₹20 lakh for 12% equity in Meghalaya Eriweave Startup

<ul><li>Financial Performance (Q3 FY25 vs Q3 FY24): The company delivered a strong financial performance in Q3 FY25, with total revenue increasing by 52.6% year-on-year (YoY) to ₹169.6 Cr from ₹111.1 Cr in Q3 FY24. This growth reflects strong business momentum driven by higher interest income and improved fee-based revenue. Profit Before Tax (PBT) surged 50.7% YoY, reaching ₹37.6 Cr compared to ₹24.9 Cr in Q3 FY24, highlighting better cost management and operational efficiency. Similarly, Profit After Tax (PAT) grew by 50.8% to ₹28.1 Cr from ₹18.6 Cr in the same period last year, reinforcing the company’s consistent profitability. Earnings Per Share (EPS) rose to ₹4.00, marking a 44.4% YoY increase from ₹2.77 in Q3 FY24, reflecting strong shareholder value creation.</li><li>Operational Metrics (Q3 FY25 vs Q3 FY24): The company showcased strong operational efficiency, with net worth increasing 13.1% YoY to ₹962.1 Cr, up from ₹850.9 Cr in Q3 FY24, driven by higher earnings retention and improved capital efficiency. Net profit margin remained steady at 16.6% in Q3 FY25, slightly lower than 16.8% in Q3 FY24, indicating effective cost management amid business expansion. Meanwhile, capital adequacy declined to 23.13% from 30.46% in Q3 FY24, reflecting a shift in the company’s capital structure while maintaining a solid financial position.</li><li>Strategic Developments: The company continues to focus on strengthening its financial position and operational efficiencies. With provision coverage ratio improving to 24.28%, risk management remains a key focus area. The company also enhanced its portfolio quality, with Gross Stage-3 assets reducing to 2.11% from 2.32% YoY, reflecting improved asset quality. With sustained revenue growth and strong risk management, monitoring upcoming results will provide better insights into future expansion and profitability</li></ul>

IKF Finance Q3 FY25 Results Analysis

<ul><li>Financial Performance (Q3 FY25 vs Q3 FY24): The company delivered a strong financial performance in Q3 FY25, with total revenue increasing by 10.6% YoY to ₹44.6 Cr from ₹40.3 Cr in Q3 FY24. This growth underscores robust business momentum and higher operational efficiencies. Profit Before Tax (PBT) registered a 264.4% YoY growth, rising to ₹2.4 Cr compared to ₹0.7 Cr in the same period last year. Similarly, Profit After Tax (PAT) grew by 67.0% YoY to ₹0.7 Cr from ₹0.4 Cr, reflecting the company’s consistent profitability. Earnings Per Share (EPS) stood at ₹0.14, up from ₹0.09 in Q3 FY24. </li><li>Operational Metrics (Q3 FY25 vs Q3 FY24): The company’s operational performance reflected strong growth across key metrics. Loan Book Growth: The company’s loan portfolio expanded by 39.5% YoY, reaching ₹569.8 Cr in Q3 FY25 from ₹408.4 Cr in Q3 FY24. Debt Levels: Total outstanding debt rose 17.8% YoY to ₹568 Cr, up from ₹482 Cr in Q3 FY24, reflecting increased borrowing to fund loan book growth. Asset Quality: Gross Non-Performing Assets (GNPA) improved to 1.27%, down from 1.51% in FY24, indicating better credit risk management. Net NPA (NNPA) reduced to 1.10%, compared to 1.33% in FY24. Provision Coverage Ratio (PCR) increased to 12.93% from 12.19% in FY24, reflecting prudent provisioning. </li><li>Strategic Developments: Capital Adequacy Ratio (CAR) improved to 18.07%, up from 14.99% in FY24, strengthening the company’s financial position. Equity Fundraising: The Board approved a rights issue at a 1:6 ratio, providing capital for further expansion. Debt Issuance: Raised ₹100 Cr through Secured Non-Convertible Debentures (NCDs) to support loan book growth. <a href="https://www.planify.in/research-report/icl-fincorp/">ICL Fincorp’s</a> Q3 FY25 results highlight strong revenue growth, improved profitability, and better asset quality. The company continues to expand its loan book while maintaining a controlled NPA ratio and strong capital position. Future growth prospects remain under close watch, driven by capital infusion and operational expansion strategies.</li></ul>

ICL Fincorp Q3 FY25 Results Analysis

The Nifty Chemicals Index, introduced by <a target="_blank" href="https://www.planify.in/research-report/national-stock-exchange/">NSE</a> Indices, is designed to track the performance of the top 20 stocks in the chemicals sector from the Nifty 500. The index caps the top three stocks at 33% each, with a combined cap of 62%. Launched with a base date of April 1, 2005, and a base value of 1000, it undergoes semi-annual reconstitution and quarterly rebalancing. As of February 28, 2025, the Nifty Chemicals Index has shown a total return of 5.67% over the past year and a Compound Annual Growth Rate (CAGR) of 19.71% since its inception. Key constituents include Pidilite Industries (13.35% weight), SRF (13.24%), UPL (10.45%), PI Industries (7.98%), and Solar Industries India (6.92%). This index is expected to serve as a benchmark for asset managers and a reference for passive investment vehicles like ETFs, index funds, and structured products.​

Much awaited 'Nifty Chemicals' is launched

NSE introduced its Chemical sector Index

The Indian startup ecosystem was surprised by the revelation of financial irregularities in one of the recent EV startups recognized as GoMechanic, a well-known automobile servicing platform. It is one of the eye-opening events recently happening at the leading EV servicing company.&nbsp; What started as a promising venture backed by major investors soon turned into a cautionary tale of corporate misgovernance, leading to mass layoffs and a significant loss of trust in the company. <h3 style="line-height:1.38;text-align: justify">The Rise of GoMechanic</h3>​ GoMechanic was founded in 2016 by extraordinary business-minded leaders, including Amit Bhasin, Kushal Karwa, Nitin Rana, and Rishabh Karwa, GoMechanic came to be a tech-driven solution for getting less cost and transparent car servicing and repairs. The firm grew fast and gained momentum with investments from large <a href="https://www.planify.in/organisations/">venture capital firms</a> like Sequoia Capital and Tiger Global. With a 1,000-plus service station network, the company positioned itself to be the leader in the car repair sector.&nbsp; GoMechanics Rapid Fall: How Things Unfold? From Jan - Feb 22, Softbank, an investment holding company that invests in technology companies and GoMechanic started talking with each other about funding raising. &nbsp;On Feb 22, the Founders of GoMechanic met with Softbank’s CEO Masayoshi Son and finalized the deal. On Mar 22, Softbank was ready to invest at a $850-$900 million valuation but the company asked for a $1.2 billion valuation. The Deal stalled due to the Global Tech Crunch. On Aug 22, the company started running out of cash because of its high burn rate. Then GoMechanic approached Softbank and agreed to raise funds at a lower valuation even further than was offered by Softbank. In Aug - Sept 22, Softbank agreed to invest $30-$35 million and the rest of the capital will come from another fund that is Malaysia’s sovereign fund called Khazanah.&nbsp; On Oct 22, both Softbank and Khazanah on board EY for the Due diligence before investing at $600-$650 million. On Dec 22, EY raised multiple concerns regarding financial reporting. Both the investors have pulled out of the deal as the findings are rational. This is where the things were changed for the GoMechanic. In Jan 2023, the Founders of GoMechanic also admitted the financial misconduct making some grave mistakes that resulted in massive layoffs about 70% of employees were fired to reduce the cost which is about 30% of total expenses. PwC, which is the financial auditor of GoMechanic for FY20, has further found that regulatory filings highlighted the discrepancies identified in their FY20 audit report.&nbsp; Three Big Red Flag Raised<h3 style="line-height:1.38;text-align: justify">Suspicious Expenses: ₹108 Cr. in "Other Expenses"</h3>​ ​The company had classified a huge amount of ₹108 crore under 'Other Expenses' in its FY22 income statement without providing any additional details. <ul><li>Usually, companies give a full breakdown of major expenses, especially concerning their relative materiality (size).</li><li>This non-transparency gives rise to doubts about these being either legitimate operational costs or inflated and false expenses created to hide financial irregularities.</li><li>Such a huge amount under other unclassified expenses strongly indicates embezzlement of funds, fake transactions, and/or manipulation of accounts.&nbsp;</li></ul><h3 style="line-height:1.38;text-align: justify">Inconsistent Numbers in FY21 &amp; FY22 Filings</h3>​ Profit After Tax (PAT) figures changed significantly:<ul><li>FY21 Filings (original): ₹ -27.4 Cr (reported loss)</li><li>FY22 Filings (restated FY21 loss): ₹ -70.0 Cr</li></ul> A restatement of financials is not uncommon, but it usually comes with a clear explanation—which was missing in this case. Possible reasons for such an adjustment could include:<ul><li>Recognition of previously unaccounted losses</li><li>Revenue or cost misstatements in prior filings</li><li>Deliberate efforts to manipulate financial perception</li></ul>Without an explanation, it raises concerns about financial integrity and whether past numbers were falsified. <h3 style="line-height:1.38;text-align: justify">Overstatement of Revenue &amp; Possible Fund Diversion</h3>​ According to a forensic investigation by EY, around 60 centres (out of 1000) are believed to have violated the cost accounting norms to: <ul><li>Inflated revenues, apparently, by posting fictitious sales or premature revenue recognition.</li><li>Divert funds – Indicating that the reported profit might have been inflated while the real cash flow was diverted somewhere else.</li></ul> The implications: <ul><li>It could be a case of so-called "round-tripping" trans-actions-moving cash around in circles to inflate revenue.</li><li>It suggests fraudulent revenue recognition practices to obtain investor funding or conceal ongoing losses from stakeholders.</li></ul>

Impact on Finances and Workforce The exposure of financial misconduct led to immediate and severe consequences: <ul><li style="font-size:15px;color:#000000;background-color:transparent">Mass Layoffs: 70% of employees (around 1,050 people) were fired.</li><li style="font-size:15px;color:#000000;background-color:transparent">Investor Pullout: Sequoia Capital and other backers stop further funding, causing a major liquidity crisis.</li><li style="font-size:15px;color:#000000;background-color:transparent">Debt and Liabilities: The company faced outstanding debts exceeding $20 million, leading to severe cash flow issues. </li></ul>Investors and Regulatory Reactions&nbsp; <ul><li style="font-size: 15px;color: rgb(0, 0, 0);background-color: transparent">Sequoia Capital’s Response: The firm distanced itself from GoMechanic due to lack of transparency and governance failures. </li><li style="font-size:15px;color:#000000;background-color:transparent">Regulatory Scrutiny: India’s Enforcement Directorate (ED) and Securities and Exchange Board of India (SEBI) initiated probes into possible financial misconduct and investor fraud.</li></ul> Aftermath GoMechanic faces a huge liquidity crunch and increasing outstanding debt. As a result, Gomechanic approached car-selling marketplaces such as Cars 24 and Spinny among others for potential sales. Despite these efforts, they don’t find any immediate buyer which leads to a crisis. The lack of timely intervention from the founders, venture capitalists, or early investors further exacerbated the situation. This situation raises critical questions: Could the founders have taken proactive measures to prevent financial mismanagement? Could venture capital firms have been more rigorous in the financial vetting of young startups? Lessons learned emphasize the need for vigilance, financial discipline, and transparency in fast-growing startups.&nbsp; Conclusion&nbsp; Both <a href="https://www.planify.in/investors/">investors and business owners</a> can take a lesson from the GoMechanic financial scams. The business is struggling to rise back in 2024-dipping into rumors of potential mergers and restructuring under fresh management. The case serves to highlight how critical robust audits, financial transparency, and ethical business conduct are to long-term profitability.&nbsp;

The Indian startup ecosystem was surprised by the revelation of financial irregularities in one of the recent EV startups recognized as GoMechanic, a well-known automobile servicing platform.

GoMechanic Financial Fraud: A Cautionary Tale for Startups

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