Please find attached EXCEPTION REPORT by Auditors
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Awaiting price reaction for this filing.
The statutory auditors of The Swastik Safe Deposit & Investments Limited have issued an Exception Report for FY ending March 31, 2025, flagging that the company no longer meets the Principal Business Criteria (PBC) required to operate as a Non-Banking Financial Company (NBFC) under RBI regulations. Specifically, the company's financial income has fallen below 50% of its gross income, and financial assets do not constitute more than 50% of total assets. As a result, the company is no longer eligible to continue as an NBFC and will approach the RBI to surrender its NBFC licence. The exception will also be reported to the RBI for necessary regulatory review.
This is a material negative development for shareholders — the company is losing its NBFC status and the regulatory licence that comes with it, which could significantly affect its business model, revenue streams, and future operations. The stock may see pressure as investors digest the loss of NBFC identity, though surrender of the licence could also reduce regulatory burden.