Swastik Safe Deposit & Investments Limited has reported its financial results for the quarter ended June 30, 2025, along with several significant corporate developments.

Financial Performance

The company announced a profit after tax of Rs 15.44 lakhs for the quarter ended June 30, 2025, showing a decrease from Rs 23.18 lakhs in the same quarter of the previous year. Despite the decline in profit, the company's revenue from operations increased to Rs 25.35 lakhs, up from Rs 20.58 lakhs year-over-year, indicating a growth in business activities.

The financial highlights for the quarter are as follows:

The company's earnings per share (EPS) stood at Rs 6.43 for the quarter, compared to Rs 9.66 in the same period last year.

Corporate Developments

Management Changes

Mr. Jitesh Agarwal has resigned from his position as Company Secretary and Compliance Officer, effective July 31, 2025. The resignation, attributed to personal reasons, was accepted by the Board of Directors during their meeting held on the same day.

Regulatory Updates

In a significant development, the Reserve Bank of India (RBI) has cancelled the Certificate of Registration (CoR) of Swastik Safe Deposit & Investments Limited. This cancellation comes in response to the company's voluntary application filed on April 30, 2025. The RBI issued the cancellation order on July 24, 2025.

Board Meeting Outcomes

The Board of Directors convened on July 31, 2025, to review and approve the unaudited financial results for the quarter ended June 30, 2025. The meeting, which commenced at 3:40 p.m. and concluded at 4:10 p.m., also addressed the resignation of Mr. Jitesh Agarwal and other corporate matters.

The company has assured that all relevant information, including the financial results and corporate announcements, is available on its official website and the stock exchange website for investors and stakeholders.

As Swastik Safe Deposit & Investments Limited navigates through these changes, including the cancellation of its RBI registration and management restructuring, investors and market watchers will be keen to observe how these developments impact the company's future operations and financial performance.

Swastik Safe Deposit & Investments Limited , a Mumbai-based company, has voluntarily surrendered its Non-Banking Financial Company (NBFC) license, leading to the cancellation of its Certificate of Registration (CoR) by the Reserve Bank of India (RBI). This significant development marks a pivotal shift in the company's business strategy and operational focus.

Key Details of the License Cancellation

• Effective Date: The RBI has cancelled Swastik Safe Deposit & Investments Limited's NBFC registration effective July 24, 2023.
• Original Registration: The company's NBFC license was initially issued on March 24, 1998, with the CoR number 13.00535.
• Voluntary Surrender: The cancellation comes following the company's voluntary application to surrender its NBFC status.
• Cessation of NBFI Activities: The company had already stopped its Non-Banking Financial Institution (NBFI) activities from August 8, 2022.

Reasons for Surrender

The primary reason for Swastik Safe Deposit & Investments Limited's decision to surrender its NBFC license was its inability to meet the Principal Business Criteria (PBC) set by the RBI. As of March 31, 2023:

• The company's financial income was less than 50% of its gross income.
• Financial Assets to Total Assets ratio stood at 97.19%.
• Financial Income to Gross Income ratio was at 28.74%.

These figures indicate that the company no longer met the RBI's requirements for maintaining NBFC status.

Future Plans and Regulatory Compliance

Following the cancellation of its NBFC license, Swastik Safe Deposit & Investments Limited has outlined several steps for its future operations:

1. Business Transition: The company plans to shift its focus to investing in non-financial assets and trading activities.
2. New Registration: It intends to register as a stockbroker, marking a significant change in its business model.
3. Name Change: As per RBI instructions, the company is required to change its name within 30 days to reflect its non-NBFC status.
4. Regulatory Reporting: The company will continue to report credit information to credit bureaus as instructed by the RBI.
5. Memorandum Amendment: Within 30 days of the CoR cancellation, the company will amend its Memorandum of Association to remove clauses related to financial business from its main objects.

Implications and Compliance Measures

The RBI has emphasized that Swastik Safe Deposit & Investments Limited can no longer transact business as an NBFI without obtaining a fresh CoR. The company has been reminded of the penal provisions in the RBI Act for any violations.

This move by Swastik Safe Deposit & Investments Limited represents a strategic shift in its business model, moving away from financial services to focus on other investment and trading activities. The company's compliance with RBI directives and its plans for future operations will be crucial in shaping its new business direction.

Investors and stakeholders of Swastik Safe Deposit & Investments Limited should closely monitor these developments as the company transitions into its new operational framework.