Hindon Mercantile Limited (Hindon Mercantile ) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Hindon Mercantile Limited

Hindon Mercantile Limited Consolidated Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Financial Assets
Cash and Cash Equivalents	9,930.32	3,174.77
Bank Balance other than above	17,040.56	11,254.13
Trade Receivbles	84.08	54.46
Other Receivables	3.75	33.60
Loans	65,740.26	29,075.36
Investments	565.18	427.32
Other Financial Assets	3,014.97	258.60
Non-Financial Assets
Current Tax assets	280.89	74.15
Deferred tax assets	205.94	332.37
Property, Plant and equipment	64.05	66.95
Right of use assets	751.78	292.89
Intangible assets under development	698.63	179.12
Goodwill	49.15	49.15
Other Intangible assets	112.65	22.50
Other Non-financial assets	1,522.50	1,364.52
Inventory	1.47	-
Total Assets	1,00,066.18	46,659.89
Financial Liabilities
Debt Securities	7,512.55	5,827.19
Borrowings	60,785.16	20,862.05
Other Financial liabilities	4,542.63	1,431.17
Non-Financial Liabilities
Current Tax liabilities	-	5.63
Provisions	48.50	18.58
Other Non-Financial Liabilities	237.90	792.54
Equity
Equity Share Capital	1,479.26	1,479.26
Other Equity	15,067.16	10,728.62
Non Controlling interest	10,393.01	5,514.85
Total Equity and Liabilities	1,00,066.17	46,659.89

Hindon Mercantile Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from Operations
Interest Income	10,247.68	10,828.07
Net gain on fair value change	9.46	-
Fee & commission income	849.24	141.2
Other Income	931.53	586.78
Total Income	12,037.91	11,556.05
Expenses
Cost of Material Consumed	5.61	-
Finance Costs	5034.79	4,631.82
Fees & commission expenses	969.97	2,477.17
Impairment of financial instruments	341.73	326.65
Employee Benefit expenses	1913.22	1,411.42
Depreciation & amortization	265.53	187.53
Other Expenses	1,100.38	1,027.76
Total Expenses	9,631.23	10,062.35
Profit Before exceptional items & tax	2,406.68	1,493.70
Exceptional items	52.29	-
Profit Before Tax	2,458.97	1,493.70
Current Tax	231.87	455.26
Tax related to earlier year	-5.05	54.63
Deferred Tax	381.44	-248.08
Profit for the Year	1850.7	1231.89
Comprehensive Income
Item that will not be reclassified to profit or loss	4.78	-2.98
Income tax relating to items that will not be reclassified to profit or loss	-1.26	0.76
Total Other Comprehensive Income	3.52	-2.22
Total Comprehensive Income for the year	1,854.22	1,229.67
Profit for the year attributable to:
Owners of the Company	1,290.45	887.16
Non-Controlling interest	560.25	363.60
Other Comprehensive Income attributable to:
Owners of the Company	2.59	-1.36
Non-Controlling interest	0.93	-0.86
Total Comprehensive Income attributable to:
Owners of the Company	1,293.04	885.80
Non-Controlling interest	561.18	362.74
Earnings per Share
Basic	8.72	6.80
Diluted	8.11	6.80

Hindon Mercantile Limited Consolidated Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Profit before Tax	2,458.97	1,493.70
Adjustment for:
Interest expenses on lease liabilities	40.54	15.65
Depreciation & amortization	265.53	187.53
ESOP expenses	4.07	-
Impairment on financial intsruments	341.73	4.87
(Gain)/Loss on sale of fixed assets	-104.16	2.04
Net gain on fair value changes	9.46	-
(Gain)/Loss on sale of investments	-	-5.36
Operating profit before working capital changes	3,016.14	1,698.43
(Increase)/Decrease in Trade receivables	-29.62	67.91
(Increase)/Decrease in Other receivables	29.85	-33.77
(Increase)/Decrease in Bank balances other that cash & cash Equivalents	-5,790.09	-10,664.13
(Increase)/Decrease in Loans	-36,907.95	16,700.93
(Increase)/Decrease in Financial liabilities	3,111.46	323.77
(Increase)/Decrease in provisions	22.90	14.24
(Increase)/Decrease in Other non-financial liabilities	-554.64	767.14
(Increase)/Decrease in Other non-financial Assets	-157.98	35.06
(Increase)/Decrease in Inventories	-1.47	-
(Increase)/Decrease in Other financial assets	-2,756.37	560.71
Cash generated from Operations	-40,017.77	9,470.29
Direct tax paid	-226.82	-584.84
Net Cash From Operating Activates	-40,244.60	8,885.45
Cash Flow from Investing Activities
Purchase of investments	-137.86	-
Sale of investments	-	577.99
Purchase of property, plant & equipment	-811.70	-47.52
Sale of property, plant & equipment	0.32	13.63
Purchase of intangible assets under development	-719.51	-31.97
Proceeds from the sale of intangible assets under development	200.00	-
Purchase of intangible assets	-	-1.10
Net Cash From Investing Activities	-1,468.75	511.03
Cash Flow from Financing Activities
Share issue expenses of subsidiary company	713.73	-
Proceeds from issue of equity shares of subsidiary company	7,264.76	6,275.21
Proceeds from debt securities	732.83	5,827.19
Repayment of debt securities	-125.00	-
Proceeds from borrowings	55,039.38	10,629.09
Repayment of borrowings	-16,476.56	-
Proceeds of Overdraft facilities from banks	1,360.29	-
Repayment of subordinated debts	-	-30,000.00
Payment of lease liabilities	-40.54	-74.30
Net Cash From Financing Activities	48,468.89	-7,342.81
Net Increase/(Decrese) in Cash & Cash Equivalents	6,755.55	2,053.67
Net Increase/(Decrese) in Cash & Cash Equivalents (Opening year)	3,174.77	1,121.09
Cash & Cash equivalents at the end of the Year	9,930.32	3,174.77

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities:

For the year ended 31st March 2024, the company reported a Profit Before Tax of ₹2,458.97 lakhs, up from ₹1,493.70 lakhs in the previous year. Adjustments to this included non-cash expenses like depreciation (₹265.53 lakhs), impairment on financial instruments (₹341.73 lakhs), and interest on lease liabilities (₹40.54 lakhs). There were also losses/gains on asset sales and fair value changes. After these adjustments, the operating profit before working capital changes stood at ₹3,016.14 lakhs (up from ₹1,698.43 lakhs in FY23).

However, the working capital changes significantly impacted the cash flow. The company saw a massive increase in loans disbursed (₹36,907.95 lakhs outflow) and bank balances other than cash & cash equivalents (₹5,790.09 lakhs outflow). These changes, along with movements in other assets and liabilities, led to net cash used in operating activities of ₹40,244.60 lakhs, a sharp drop from a positive inflow of ₹8,885.45 lakhs in FY23.

Cash Flow from Investing Activities:

The company had a net outflow of ₹1,468.75 lakhs in FY24, compared to an inflow of ₹511.03 lakhs in FY23. This was primarily due to higher capital expenditure, including purchase of property, plant & equipment (₹811.70 lakhs) and intangible assets under development (₹719.51 lakhs). Although ₹200 lakhs was recovered from the sale of intangible assets under development, the lack of investment income (unlike FY23 where ₹577.99 lakhs was earned from sale of investments) added to the negative cash flow from investing activities.

Cash Flow from Financing Activities:

Financing activities contributed a significant net inflow of ₹48,468.89 lakhs in FY24, a sharp reversal from an outflow of ₹7,342.81 lakhs in FY23. Major contributors included:

Proceeds from borrowings (₹55,039.38 lakhs),

Equity raised by a subsidiary (₹7,264.76 lakhs),

Proceeds from overdraft facilities (₹1,360.29 lakhs).

These inflows were partly offset by repayment of borrowings (₹16,476.56 lakhs) and repayment of debt securities (₹125 lakhs). Notably, there was no repayment of subordinated debts this year, unlike FY23, where ₹30,000 lakhs were repaid, which contributed to the negative financing cash flow that year.

Net Change in Cash and Cash Equivalents:

As a result of the above activities, the net increase in cash and cash equivalents for FY24 was ₹6,755.55 lakhs, up from ₹2,053.67 lakhs in FY23. The closing cash and cash equivalents at the end of FY24 stood at ₹9,930.32 lakhs, compared to ₹3,174.77 lakhs at the end of FY23.

Financial Ratios of Hindon Mercantile

Particulars	2024	2023
Capital to risk weighted assets ratio (CRAR)	24.98%	65.55%
Tier I CRAR	24.32%	64.94%
Tier II CRAR	0.66%	0.61%

Here is a summary of the financial and operational metrics for Hindon Mercantile Limited for the year 2024 & 2023:

In the financial year 2024, the company reported a Capital to Risk Weighted Assets Ratio (CRAR) of 24.98%, which, while significantly lower than the 65.55% recorded in 2023, still remains well above the regulatory minimum of 15% mandated by the Reserve Bank of India (RBI) for NBFCs. CRAR is a measure of the company 's capital strength relative to its risk-weighted assets and serves as a key indicator of its ability to absorb potential losses without impacting depositors or creditors. The sharp decline in CRAR suggests that the company has significantly increased its risk-weighted asset base—likely due to higher loan disbursements or expansion of credit exposure—without a proportionate increase in its capital base.

The Tier I CRAR, which reflects the core capital of the company (including equity capital and disclosed reserves), stood at 24.32% in 2024, down from an extremely high 64.94% in 2023. Tier I capital is considered the most reliable and permanent form of capital, providing a solid buffer against unforeseen losses. The fall indicates that although the company maintains a strong core capital position, the rapid growth in assets or loan portfolio in 2024 has diluted the ratio.

Meanwhile, the Tier II CRAR—which includes supplementary capital like subordinated debt, loan loss reserves, and hybrid instruments—remained relatively stable at 0.66% in 2024, compared to 0.61% in 2023. Tier II capital is less permanent than Tier I but still contributes to the overall solvency cushion. The slight increase suggests the company has marginally raised supplementary capital or retained some reserves to support its growing operations.