Kreon Finnancial Services Limited has provided clarification to the Bombay Stock Exchange regarding the delayed disclosure of a senior management resignation, following regulatory inquiry about compliance with disclosure timelines.

Regulatory Clarification

The company received an email communication dated December 16, 2025, from BSE seeking clarification about the delay in reporting the resignation of Mr. Madhan Mohan R within the prescribed 24-hour timeline. The company explained that it misinterpreted the 24-hour requirement as working hours rather than calendar hours.

Senior Management Departure

Mr. Madhan Mohan R, who served as Head-Data Analytics, tendered his resignation effective December 12, 2025, citing personal reasons. The resignation letter was formally submitted on November 3, 2025, addressed to Mrs. Henna Jain Tatia at the company's Chennai headquarters.

Compliance Framework Enhancement

The company expressed sincere regret for the disclosure delay, emphasizing that it was neither intentional nor meant to suppress material information. Kreon Financial Services has assured that it has reviewed and strengthened its internal compliance and disclosure framework to ensure strict adherence to all SEBI regulations going forward.

Niharika Goyal, Chief Compliance Officer, signed the clarification communication and resubmitted the required documentation under Regulation 30 of SEBI (LODR) Regulations, 2015, along with compliance to SEBI Circular No. SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123.

Company Information

Kreon Financial Services Limited operates from its registered office at 26, 22nd Street, Rathinam Nagar, Thiruvanmiyur, Chennai-600041. The company trades on the Bombay Stock Exchange under scrip code 530139 with CIN: L65921TN1994PLC029317.

Kreon Finnancial Services has reported a significant financial downturn for the fiscal year ended March 31, while simultaneously pursuing strategic initiatives to expand its service offerings.

Financial Performance

The company disclosed a net loss of Rs 414.14 lakhs, a stark contrast to the profit of Rs 62.32 lakhs recorded in the previous year. Despite the setback, Kreon's total revenue from operations showed robust growth, increasing to Rs 2,332.73 lakhs from Rs 1,616.74 lakhs in the prior year.

Key Financial Highlights

The company's expenses saw a significant rise to Rs 3,072.38 lakhs, primarily driven by bad debts of Rs 1,190.54 lakhs and increased employee benefit expenses of Rs 454.44 lakhs.

Strategic Initiatives

In a move to diversify its service portfolio, Kreon's Board of Directors has approved applications for Payment Aggregator (PA) and Prepaid Payment Instrument (PPI) licenses. This strategic decision aims to position the company in the rapidly evolving digital payments landscape.

Corporate Governance

The Board has taken several key decisions to strengthen its governance structure:

1. Reappointment of auditors:

   • M/s. Lakshmmi Subramanian & Associates as Secretarial Auditor for 5 years
   • M/s. R. Bhaskaran & Associates as Internal Auditor for 5 years

2. Postal Ballot approval for reappointment of two independent directors:

   • Mrs. Rajashree Santhanam (DIN: 07162071)
   • Mrs. Muthusamy Menaka (DIN: 10550690)

Both directors are proposed for reappointment for a term of five consecutive years, effective April 1.

Balance Sheet Strength

As of March 31, Kreon Finnancial Services reported total assets of Rs 6,622.33 lakhs. The company's financial assets, including loans and investments, form a significant portion of its asset base.

Market Impact

The financial results have had a notable impact on the company's market performance. Earnings per share (EPS) declined to negative Rs 2.05, compared to a positive Rs 0.34 in the previous fiscal year.

Despite the challenging year, Kreon Finnancial Services is taking proactive steps to diversify its revenue streams and strengthen its market position. The company's focus on expanding into payment services, coupled with its efforts to maintain strong corporate governance, signals its commitment to long-term growth and stability in the evolving financial services sector.