LKP Finance Ltd — Others, 05-07-2025: AGM/EGM

LKP Finance Ltd. has announced a board meeting on July 28, 2025, to consider the financial results for the quarter and half-year. The 41st Annual General Meeting will be held via video conferencing, with book closure from July 22 to July 28, 2025. Remote e-voting will be enabled from July 25 to July 27, 2025.

The company reported a significant decline in standalone revenue from operations, down to Rs. 737.52 lakhs from Rs. 8,256.87 lakhs, while profit after tax fell to Rs. 1032.34 lakhs from Rs. 5505.51 lakhs. Consolidated revenue similarly dropped to Rs. 1414.25 lakhs from Rs. 8988.86 lakhs, with profit after tax of Rs. 181.88 lakhs versus Rs. 5944.90 lakhs previously. The company transferred Rs. 206.47 lakhs to a special reserve as per RBI regulations. No dividend has been declared.

There was a change in management following acquisition of a controlling stake by Hindon Mercantile Limited and Mr. Kapil Garg, leading to new appointments on the Board and key management. The wholly owned subsidiary, Bond Street Capital Private Limited, ceased to be a subsidiary as of March 26, 2025 after being sold to related parties, generating a gain recorded as an exceptional item.

Audit observations include the absence of confirmatory balances/term sheets from two lenders with Rs. 3596.65 lakhs outstanding, impacting borrowings disclosure and interest provision. A garnishee order related to Kingfisher Finvest India Limited’s dues is under dispute, with funds deposited and investments attached pending legal resolution. The internal financial controls are adequate but qualified due to missing confirmations.

The company maintains a strong capital base with a net worth of Rs. 34,679.99 lakhs and reduced gearing ratio at 4.72%. CSR spending of Rs. 95.57 lakhs focused on education, healthcare, and environmental sustainability. Employee benefit obligations, including gratuity, are actuarially accounted.

Shareholding pattern reflects majority ownership by Hindon Mercantile Limited and significant promoter shareholdings. The company complies with corporate governance norms, with no reported frauds or penalties. No dividend is recommended for the financial year ended March 31, 2025.