Please find attached herewith Exception report of Statutory Auditor of todays date
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Awaiting price reaction for this filing.
The Swastik Safe Deposit & Investments Limited (BSE: 501386) has been flagged by its statutory auditor, K K Birla & Co., as no longer qualifying as a Non-Banking Financial Company (NBFC) under RBI regulations. The auditor's exception report for FY ended March 31, 2025 found that the company's financial income is below 50% of gross income and it fails the Principal Business Criteria (PBC) test for NBFCs. Consequently, the company is not eligible to continue as an NBFC and plans to approach the RBI to surrender its NBFC licence. The exception has also been reported to the RBI for regulatory review. This marks a fundamental shift in the company's regulatory classification and business identity.
This is materially negative for shareholders — the company is losing its NBFC status, which may restrict its core business activities, affect future revenue, and require strategic restructuring. The stock could see downward pressure as investors reassess the company's business model and earning potential.