Northlink Fiscal Reports Rs 76.61 Lakh Loss, Faces SEBI Penalties and Compliance Issues

Northlink Fiscal & Capital Services Limited, an NBFC, has reported significant financial losses and regulatory challenges for the fiscal year ending March 31, 2025. The company's financial performance and compliance issues have raised concerns about its operational health.

Financial Performance

Metric	FY 2024-25	FY 2023-24	Change
Net Loss	Rs 76.61 lakhs	Rs 19.48 lakhs	293.27%

Northlink Fiscal's financial results show a substantial increase in net loss, rising from Rs 19.48 lakhs in the previous year to Rs 76.61 lakhs for the year ended March 31, 2025. This represents a significant deterioration in the company's financial performance.

Regulatory Challenges

The NBFC is facing multiple regulatory issues:

SEBI Penalties: The Securities and Exchange Board of India (SEBI) has imposed penalties totaling Rs 1 lakh on seven individuals, including directors of the company. This action by the market regulator indicates potential non-compliance with securities laws or regulations.
Compliance Issues: The company's auditors have flagged several compliance-related concerns, including:
- Missing internal audit reports
- Pending income tax audits

These compliance issues suggest potential gaps in the company's internal controls and regulatory adherence.

Implications

The combination of mounting financial losses and regulatory challenges paints a concerning picture for Northlink Fiscal & Capital Services Limited. The significant increase in net loss may indicate underlying operational issues or market challenges faced by the company.

The SEBI penalties and compliance issues highlighted by auditors raise questions about the company's governance practices and regulatory compliance framework. These factors could potentially impact investor confidence and the company's standing with regulatory bodies.

Stakeholders, including investors and regulatory authorities, may closely monitor Northlink Fiscal's actions to address these financial and compliance challenges in the coming months. The company may need to implement measures to improve its financial performance and strengthen its compliance mechanisms to regain stakeholder trust and ensure long-term sustainability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-100.00%	-100.00%	-100.00%	-100.00%	-100.00%	-100.00%

Northlink Fiscal & Capital Services Limited , a non-banking financial company (NBFC), has reported a significant increase in net loss for the quarter and year ended March 31, 2025. The company's financial performance has been marred by regulatory penalties and several compliance issues.

Financial Performance

Northlink Fiscal reported a net loss of Rs 78.20 lakh for the quarter and year ended March 31, 2025, compared to a loss of Rs 15.18 lakh in the previous year. This represents a substantial deterioration in the company's financial performance.

SEBI Penalty

The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 1.00 lakh on multiple persons associated with the company, including its directors. The penalty was imposed through an order dated September 13, 2023, in response to a notice issued on October 18, 2022.

Compliance Issues

The company's auditors have highlighted several compliance concerns:

Internal Audit: Northlink Fiscal has failed to appoint an internal auditor as mandated under Section 138 of the Companies Act 2013 and Rule 13 of the Companies (Accounts) Rules, 2014.
Income Tax Audits: The company has not conducted income tax audits under section 44AB of the Income Tax Act, 1961, for the financial years 2022-23 (AY 2023-24) and 2023-24 (AY 2024-25).
Outstanding Dues: Management has initiated legal actions for the recovery of outstanding dues and is actively following up with defaulters. However, no provisions for doubtful debts have been made.
Confirmations Pending: Balances of debtors, creditors, security deposits, and the status and activities of MSMEs are subject to confirmation from the respective parties.

Financial Highlights

Particulars	FY 2025 (Rs in lakhs)	FY 2024 (Rs in lakhs)
Total Income	39.63	50.34
Total Expenses	116.24	50.82
Profit/(Loss) before Tax	(76.61)	(9.48)
Net Profit/(Loss)	(78.20)	(15.18)

The company's total income decreased from Rs 50.34 lakhs in FY 2024 to Rs 39.63 lakhs in FY 2025, while total expenses more than doubled from Rs 50.82 lakhs to Rs 116.24 lakhs.

Management Commentary

The company's management has not provided any specific commentary on the financial results or the compliance issues. However, they have stated that they are confident of recovering outstanding dues and are actively following up with defaulters.

Investors and stakeholders may want to monitor the company's efforts to address these compliance issues and improve its financial performance in the coming quarters.