Minolta Finance raises Rs 48 crore, borrowings fall Rs 41.31 crore

Minolta Finance Limited raised Rs 48 crore through a rights issue in the quarter ended September 30, 2026, while reported borrowings fell Rs 41.313 crore to Rs 136.6139 crore. Minolta Finance also increased loans by Rs 15.1411 crore to Rs 200.3597 crore, though cash and cash equivalents closed at Rs 6.24 lakh.

How did the rights issue change Minolta Finance's equity base?

Minolta Finance issued 40 crore equity shares during the September 2026 quarter at Rs 1.20 each, raising Rs 48 crore. Each share had a face value of Rs 1 and included a Rs 0.20 premium, resulting in Rs 8 crore of share premium, according to the limited-review report.

Paid-up equity share capital rose to Rs 49.9996 crore at September 30, 2026, from Rs 9.9996 crore at March 31, 2026. Other equity moved to Rs 9.1418 crore from negative Rs 68.91 lakh, taking total equity to Rs 59.1414 crore from Rs 9.3105 crore over the six-month period.

The cash-flow statement records Rs 1.2327 crore of share-issue expenses as a financing outflow. The reviewer said those expenses were written off against the Rs 8 crore share premium, while the cash-flow statement separately shows the gross Rs 48 crore issue of equity shares.

The rights issue also required Minolta Finance to restate basic and diluted earnings per share for earlier periods for the bonus element under Indian Accounting Standard 33. Basic and diluted earnings per share, not annualised, were Rs 0.09 for the six months ended September 30, 2026, compared with a restated loss per share of Rs 0.55 a year earlier.

Did Minolta Finance reduce borrowings while expanding loans?

Minolta Finance reduced reported borrowings to Rs 136.6139 crore at September 30, 2026, from Rs 177.9269 crore at March 31, 2026, while loans rose to Rs 200.3597 crore from Rs 185.2186 crore. That means borrowings decreased Rs 41.313 crore as the loan book increased Rs 15.1411 crore over six months.

The filing does not allocate the Rs 48 crore rights-issue proceeds to particular uses. Its cash-flow statement nevertheless reports a Rs 41.313 crore decrease in borrowings and a Rs 11.7923 crore increase in loans and advances in the six months ended September 30, 2026, both presented within financing activities.

Financial assets increased to Rs 204.044 crore from Rs 189.069 crore, largely reflecting the higher loans balance. Other investments were unchanged at Rs 61.68 lakh, while other financial assets declined to Rs 2.9961 crore from Rs 3.1226 crore.

Financial liabilities fell to Rs 146.2048 crore from Rs 180.1672 crore. The reduction in borrowings was partly offset by other financial liabilities rising to Rs 9.501 crore from Rs 2.2104 crore, while trade payables to creditors other than micro and small enterprises increased to Rs 9 lakh from Rs 2.99 lakh.

What did Minolta Finance's cash flow show at September 30, 2026?

Minolta Finance ended September 30, 2026 with cash and cash equivalents of Rs 6.24 lakh, down from Rs 9.93 lakh at the beginning of the financial year. The balance was also lower than Rs 11.50 lakh at September 30, 2025.

The September 2026 closing balance consisted of Rs 4.46 lakh in cash in hand and Rs 1.78 lakh in bank current and fixed-deposit accounts. The six-month cash decline of Rs 3.68 lakh reflected net operating cash inflow of Rs 14.4179 crore, investing outflow of Rs 1.64 lakh and financing outflow of Rs 14.4383 crore.

Operating cash flow was supported by profit before tax of Rs 3.6966 crore and an increase of Rs 7.2905 crore in other financial liabilities. Finance costs of Rs 8.1003 crore and a Rs 3.3487 crore impairment reversal were among the adjustments in the indirect-method cash-flow statement prepared under Indian Accounting Standard 7.

In the six months ended September 30, 2025, Minolta Finance reported operating cash inflow of Rs 5.3526 crore and financing cash outflow of Rs 5.279 crore. Cash increased by Rs 31,000 in that earlier period, compared with the Rs 3.68 lakh decline in the 2026 period.

What reporting issues did the limited review identify?

The reviewer issued a qualified conclusion because Minolta Finance had not provided interest expense for certain loan accounts. The potential understatement could not be quantified because loan documents were missing, the review report said.

The reviewer also could not comment on the carrying value of Rs 61.68 lakh of unquoted-share investments and Rs 89,000 of quoted-share stock in trade. Minolta Finance did not have documents supporting ownership of these balances, although management said it was following up with the concerned parties.

The review said Minolta Finance had failed to disclose a Rs 90,000 penalty levied by BSE, which the report described as a deemed material event under the cited Securities and Exchange Board of India listing regulations. It also said the chief financial officer's salary had not been accrued or paid, with no reason available to the reviewer.

Other matters included tax deducted at source of Rs 58.16996 lakh that had not been deducted and paid on an interest-expense provision of Rs 5.8169958 crore. The reviewer also identified Rs 11,600 of professional tax deducted from employees but not remitted, and said Minolta Finance had not obtained mandatory professional-tax registration.

What unresolved events does Minolta Finance disclose?

Minolta Finance reported that a ransomware attack on July 3, 2026 compromised all financial data and backups, which the company said it could not recover. Management's stated view was that the incident caused no financial loss to Minolta Finance.

The reviewer also noted that a non-banking financial company requires prior written permission from the Reserve Bank of India for a takeover or acquisition of control that may result in a management change. Minolta Finance submitted a physical application concerning the 2025-26 change in management in August 2026 and, after being instructed to file online, management was in the process of doing so by the third quarter.

Conclusion

Minolta Finance's September 2026 filing shows a Rs 48 crore equity raise occurring alongside a Rs 41.313 crore decrease in reported borrowings and a Rs 15.1411 crore increase in loans. Total equity increased to Rs 59.1414 crore, while the closing cash balance was Rs 6.24 lakh and the limited review carried qualifications on interest expense and asset-ownership documentation.

The next disclosed matter to watch is Minolta Finance's planned third-quarter online filing with the Reserve Bank of India over the 2025-26 management change. Progress on missing loan documents, support for Rs 62.57 lakh of investments and stock, and the tax and professional-tax matters identified in the review also remains unresolved in the filing.