Minolta Finance Limited has posted a net loss of Rs 1.42 crore for FY26 as against a profit in the previous year. The company is seeking shareholder approval to rebrand as Wagad Finance, shift its registered office to Maharashtra, and appoint Ms. Forum Gada as MD. Shareholders must monitor critical auditor red flags, including non-provisioning of interest and the company's ongoing financing activities despite the RBI rejecting its NBFC registration application.
Minolta Finance Reports FY26 Loss and Proposes Major Rebrand
Net Loss: Rs 142.81 Lakh | Borrowings Surge: Rs 177.93 Crore
Reader Takeaway: Rebranding and management changes face critical pressure from RBI regulatory issues and unresolved auditor qualification concerns.
What just happened
Minolta Finance Limited (MFL) has announced its 34th Annual General Meeting scheduled for September 30, 2026. The board has proposed changing the company name to "Wagad Finance Limited" and shifting its registered office from West Bengal to Maharashtra. Additionally, the company seeks to appoint Ms. Forum Gada as Managing Director for a five-year term ending in 2031. Financially, the company swung to a net loss of Rs 142.81 lakh for FY 2025-26 from a profit of Rs 1.22 lakh in the previous year.
Why this matters
The company faces severe scrutiny from its statutory auditor. Key qualifications include the failure to provide for interest expenses—resulting in an understatement of finance costs by Rs 2.43 crore—and a lack of ownership documentation for investments worth Rs 62.96 lakh. Most pressingly, the auditor flagged that the company continued financing activities after the RBI rejected its NBFC registration application on May 19, 2025, which carries risks of penalties and transaction nullification.
Management Response
Management characterizes the regulatory breach as an administrative oversight and is currently seeking to regularize its status with the RBI. Regarding the auditor's concerns, the company claims it is actively tracking missing ownership documentation and is engaged in settlement negotiations for its loan accounts.
Context Metrics
- Revenue from operations rose significantly to Rs 1,195.83 lakh from Rs 101.88 lakh.
- Total borrowings ballooned to Rs 177.93 crore, largely driven by inter-corporate lending.
- The net loan book expanded to Rs 185.22 crore as of March 31, 2026.
What to track next
Investors should watch for the outcome of the proposed Rs 49.24 crore Rights Issue and any further communication from the RBI regarding the company's status. The resolution of the auditor’s qualifications is essential for the company's financial transparency and future operations.