Laxmi India Finance reports 1.23x cover on Rs 148.26 crore NCDs

Laxmi India Finance Limited reported 1.23x book-value asset cover against Rs 148.26 crore of listed secured non-convertible debentures at September 30, 2026, while its statutory auditor said nothing had come to its attention indicating a breach of the specified covenants. The certificate sets a minimum asset-cover requirement of 1.10x.

What did Laxmi India Finance certify for September 2026?

Laxmi India Finance certified compliance with the terms of issue for its listed non-convertible debentures, or NCDs, outstanding at September 30, 2026. The company disclosed Rs 148.26 crore across four secured, privately placed listed NCD series, an amount that includes accrued interest and effective interest rate, or EIR, impact.

The required covenant was an asset cover of at least 1.10x on the total principal amount outstanding under the NCDs at September 30, 2026. Laxmi India Finance stated that it maintained 1.10x cover or such higher cover as the applicable offer documents, information memorandums and debenture trust deeds required.

The detailed security-cover statement reports a 1.23x cover ratio on book value and also records 1.23x on market value at September 30, 2026. However, the same certificate says the assets offered as security are loans and are not eligible for market valuation, making the book-value measure the relevant disclosed basis.

S.C. Bapna & Associates, the statutory auditor, dated its certificate November 13, 2026. Based on its examination and management representations, the firm said nothing had come to its attention to indicate either that the charged-asset particulars did not agree with the reviewed records or that Laxmi India Finance had not complied with the stated NCD covenants.

How was the Rs 148.26 crore NCD balance split?

Laxmi India Finance’s Rs 148.26 crore listed NCD balance was divided among four secured series at September 30, 2026. ISIN, or International Securities Identification Number, INE06WU07098 was the largest series at Rs 69.88 crore, while INE06WU07064 was the smallest at Rs 7.48 crore.

The Rs 69.88 crore INE06WU07098 series exceeded the Rs 7.48 crore INE06WU07064 series by Rs 62.40 crore. INE06WU07098 therefore represented the largest portion of the four-series balance, whereas INE06WU07080 accounted for Rs 29.85 crore and INE06WU07072 accounted for Rs 41.05 crore.

All four instruments were listed NCDs issued through private placement and secured by a charge, according to the certificate’s exhibit. The series-level amounts, totalling Rs 148.26 crore, include accrued interest and EIR impact, so they are reported outstanding balances rather than a statement of original principal issued.

What does the 1.23x book-value asset cover show?

The 1.23x book-value asset cover shows that the security-cover statement reported Rs 164.23 crore of relevant book-value assets against Rs 148.26 crore of debt securities at September 30, 2026. The disclosed asset value was therefore Rs 15.97 crore above the reported debt-security amount on this calculation.

The reported 1.23x book-value ratio was 0.13x above the stated 1.10x minimum requirement. This comparison is a calculation from the certificate’s disclosed cover ratio and minimum covenant; it does not establish a cushion for changes after September 30, 2026.

Laxmi India Finance’s Annexure A describes the requirement as 1.10x or higher under the relevant debt documents. The certificate’s separate 1.23x figure gives the reported level for the period ended September 30, 2026, while the Rs 148.26 crore outstanding total includes accrued interest and EIR impact.

Which assets and covenants support the cover?

Loans given by Laxmi India Finance were the assets offered as security for the listed NCDs at September 30, 2026. The certificate states that these loan assets are not eligible for market valuations, which is why the security-cover disclosure relies on carrying or book values.

The covenant review covered the obligation to maintain at least 1.10x asset cover on the NCD principal and the other terms contained in the applicable offer documents, information memorandums or debenture trust deeds. Annexure A says Laxmi India Finance complied with those covenants for NCDs outstanding at September 30, 2026.

The certificate also says there was no financial covenant, other than those already stated, in the offer documents or information memorandums that Laxmi India Finance needed to meet for the listed non-convertible debt securities. That statement concerns financial covenants and does not replace the broader contractual terms contained in the debt documentation.

The security-cover statement was prepared from unaudited books, unaudited financial results for the quarter and half year ended September 30, 2026, and other records. Management was responsible for maintaining the asset cover and for the completeness and accuracy of the security-cover and covenant information supplied for the certificate.

How did the auditor scope the certificate?

S.C. Bapna & Associates examined whether the asset-cover particulars agreed with the books, September 2026 financial results and supporting records, and whether Laxmi India Finance complied with the specified issue covenants. The firm provided reasonable assurance in its November 13, 2026 certificate under the applicable Securities and Exchange Board of India, or SEBI, requirements.

The auditor said it had reviewed the financial results for the quarter and half year ended September 30, 2026, and referred to an unmodified audit opinion dated November 13, 2026. Its certificate conclusion was framed negatively: nothing had come to its attention that caused it to believe the asset data disagreed with records or that the stated NCD terms had not been met.

The firm also stated that its work did not evaluate adherence to all applicable SEBI regulations, offer documents, information memorandums and debenture trust deeds beyond the specified certification. The distinction matters because the certificate addresses the reported asset-cover figures and listed covenant terms, rather than every possible regulatory or contractual question.

The certificate was addressed to Laxmi India Finance’s board for submission to SEBI and the debenture trustees, and the auditor restricted its use to that purpose. S.C. Bapna & Associates further said it had no responsibility to update the certificate for events or circumstances occurring after November 13, 2026.

Conclusion

Laxmi India Finance reported Rs 148.26 crore of listed secured NCDs across four privately placed series at September 30, 2026, with a disclosed 1.23x book-value security-cover ratio against a 1.10x minimum requirement. The statutory auditor found no matter suggesting that the reported security-cover data conflicted with the reviewed records or that the specified NCD covenants had not been met.

What to watch next is any subsequent company disclosure that changes the Rs 148.26 crore NCD balance, the 1.23x cover ratio or covenant status. The November 13, 2026 certificate is tied to the September 30, 2026 reporting date, and the auditor expressly said it would not update the certificate for later events or circumstances.