RBI cancels registration of UP-based Margdarshak Financial Services over payment defaults
Reserve Bank of India (RBI) has cancelled the registration of Lucknow-headquartered Margdarshak Financial Services Ltd over high net NPAs and defaults on repayment to lenders. As on March 31, 2021, the company failed to maintain the minimum regulatory net owned fund of Rs 5 crore and minimum capital adequacy ratio of 15 per cent stipulated for NBFC-MFI, the RBI said, while cancelling its certificate of registration.
As per the statutory audit, as on March 31, 2021, the NBFC was facing cash flow issues and defaulted on repayment of Rs 49.27 crore to its lenders.
«Further, the auditors have observed that due to losses (Rs 187 crore) and high net NPAs (Rs 82.37 crore) there is material uncertainty which casts significant doubt on the company's ability to continue as a going concern,» the central bank said.
Further, delay was observed in finalising the balance sheet for the year ending March 31, 2021, as the same was finalised after nearly seven months, on October 22, 2021.
The RBI said there was considerable delay in submission of supervisory returns.
«There are net cumulative negative mismatches in the various maturity buckets of 1-30 days in excess of the prescribed threshold limits,» the RBI said.
The company failed to submit the required information sought by the bank and refused to cooperate and produce books of accounts or other documents during on-site inspection, the RBI added.
Meanwhile, the RBI
