I Secure Credit and Capital Services Limited Latest Annual Report, Balance Sheet and Financials

I Secure Credit & Capital Services Limited Standalone Balance Sheet (Rs in Lakhs)

I Secure Credit & Capital Services Limited Standalone Profit & Loss Statement (Rs in Lakhs)

I Secure Credit & Capital Services Limited Standalone Cash Flow Statement (Rs in Lakhs) 

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company reported a significant accounting loss before tax of ₹1,564.84 lakh in FY25, compared to a negligible loss in FY24. However, this large loss is largely driven by non-cash adjustments, especially a ₹1,470.42 lakh impairment on financial instruments, which does not involve immediate cash outflow. After adjusting for such items, the operating profit before working capital changes stood at ₹38.82 lakh, slightly lower than last year.

Working capital movements show mixed trends—there was a small increase in loans & advances (-₹15.20 lakh) indicating deployment of funds, while liabilities increased modestly, supporting cash flow. Importantly, despite the accounting loss, the company generated positive operating cash flow of ₹55.11 lakh, a sharp turnaround from the large cash outflow of ₹1,167.72 lakh in FY24. This suggests that core cash operations have stabilized, and FY24’s outflow was likely due to heavy lending expansion.

Cash Flow from Financing Activities

Financing cash flow turned negative at ₹-92.68 lakh in FY25, compared to a strong inflow of ₹1,025.90 lakh in FY24. The key reason is that while the company raised ₹39.59 lakh through borrowings, this was significantly lower than the ₹1,138.51 lakh raised last year. At the same time, interest payments of ₹132.26 lakh exceeded new borrowings, leading to a net cash outflow.

This indicates a shift from aggressive funding in FY24 to cautious or constrained borrowing in FY25. It may also reflect repayment pressure or reduced lender appetite, which is a critical factor to monitor for an NBFC.

Cash Flow from Investing Activities

There was no meaningful investment activity in FY25, compared to a small outflow of ₹0.64 lakh in FY24 for fixed asset purchases. This indicates that the company is not investing in long-term assets or expansion, possibly conserving cash due to financial stress or focusing purely on its lending operations.

Net Change in Cash & Cash Position

Overall, the company reported a net cash outflow of ₹37.57 lakh in FY25, which is an improvement compared to ₹142.46 lakh outflow in FY24. However, cash reserves declined from ₹47.63 lakh to ₹10.07 lakh, which is a very low cash balance for a financial services company.

This raises concerns about liquidity adequacy, as the company has limited buffer to absorb shocks or fund operations without additional borrowing.

Financial ratios of I Secure Credit & Capital Services Limited:

Summary of the Ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined sharply from 11.27 in FY24 to 4.54 in FY25. While a ratio above 1 generally indicates adequate short-term liquidity, this steep drop suggests that the company’s liquidity cushion has reduced significantly. Earlier, the company was holding excess current assets relative to liabilities, but now that buffer has narrowed. Even though 4.54 still appears comfortable on the surface, the declining trend—combined with low cash balances—signals tightening liquidity conditions.

Debt-Equity Ratio

The debt-equity ratio moved from 1.06 in FY24 to -2.39 in FY25, which is a major red flag. A negative ratio typically indicates that the company has negative net worth (erosion of equity), likely due to accumulated losses. This means liabilities exceed shareholders’ funds, reflecting financial stress and weakened capital structure. For an NBFC, this is particularly concerning as it affects borrowing capacity and credibility with lenders.

Operating Profit Ratio

The operating profit ratio deteriorated drastically from -7.75% to -2111.23%. This extreme negative figure is not due to core operations alone but is heavily influenced by large impairments and losses recorded during the year. It indicates that the company’s operating performance has been severely impacted, and expenses (including provisions) far exceed operating income. Such abnormal margins highlight poor asset quality or significant write-offs.

Net Profit Margin

Similarly, the net profit margin fell from -7.87% to -2111.17%, reflecting a massive bottom-line loss relative to income. This again is largely driven by exceptional or non-cash losses (like impairments) rather than just operational inefficiency. Nonetheless, it shows that the company is currently deeply unprofitable, and earnings quality is very weak.

Return on Net Worth

Return on net worth improved from -0.01 in FY24 to 3.18 in FY25, but this figure is misleading due to negative net worth. When equity turns negative, RONW can appear artificially positive or distorted. In reality, this does not indicate improved performance—instead, it reflects capital erosion and accounting distortion, making the ratio less meaningful in this context.