(i) Digvijay Finlease Limited is a Non-govt company, incorporated on 05 Nov 2001. It’s a public unlisted company and is classified as ‘company limited by shares’ having a registered office at 21 Strand Road Kolkata WB.
(ii) It is an NBFC( Non-Banking Financial Service) registered with RBI. However, their main source of revenue is:
a) Selling of long-term and short-term investments. The company has the following investment in listed and unlisted shares as of 2019.
b) The second source of income is dividends from above short-term and long-term investments.
c) On Interest income from Fixed Deposit and interest income on loan given to customers.
|Income from FD||17||24||23|
|Income from loans||442||302||28|
|Selling short-term Investment||73||107||93|
|Selling long-term investment||3301||520||7651|
We can see from above, the company has clocked a revenue of Rs. 128 Crores in FY17 which has gone down to 64 Crores in FY19, as their income from selling the long-term investments has reduced. They have sold fewer shares in FY19. So, we can conclude that the company is mainly getting revenue from the sale of its investments only and not from the formal business of loan disbursement being an NBFC company.
(iii) As of 31.03.2019, the company has total outstanding shares of 132,594,20 up by 28,15,528 shares as compared to the last year. In FY18-19, the company had issued 28,15,528 new shares to the shareholders upon the following action on the verdict by NCLT on 11.10.2018, Kolkata Bench.
” Amalgamation of Arham Securities Pvt. Ltd. (Transferor Company) with the Company as per the Scheme of Amalgamation sanctioned by the Hon’ble National Company Law Tribunal, Kolkata Bench as reported in the last Annual Report and 23192 equity shares held by the transferor company in the Company have been canceled as per the sanctioned scheme”
Under this scheme, the shareholders of Arham Securities got 4 shares of Digvijay Finlease on every 5 equity shares held by them.
Arham Securities Limited having total shares outstanding = 35,48,400. After amalgamation, Digvijay Finlease has issued 28,15,528 shares to shareholders of Arham Securities. The calculation follows below.
Total outstanding shares of Arham Securities = 35,48,400
Ratio of Meger= 4:5
Total Shares after the merger to be issued by Digvijay Finlease= (35,48,400/5)*4= 28,38,720.
After the merger, 23192 equity shares held by the transferor company in the Company have been canceled. So total shares issued by Digvijay Finlease are:
|Total Available Shares:||Not Available|
|Face Value:||₹ 10 Per Equity Share|
|Lot Size:||50 Shares|
|Current Unlisted Share Price:||₹ Best in Industry Per Equity Share|
|Retail Discount:||Bulk Deal (1%)|
|Prominent Shareholders( as on 31.03.2019)||No. of Shares||%|
|United India Insurance||128485||0.97%|
|The Orient Insurance Co. Ltd.||27930||0.21%|
|The New India Assurance Co. Ltd.||27805||0.21%|
|National Insurance Co. Ltd||27175||0.20%|