Master Trust Limited
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Briefing
Master Trust Limited — the brief
Forensic posture: Serious flags. The auditor signed off clean, but Master Trust has ₹605 Cr in guarantees and substantial intra-group lending (36% of the loan book), plus ₹508 Cr in contingent liabilities at 79% of net worth — the disclosures are transparent, but the concentration risk is material.
Auditor’s report (CARO 2020)
Auditor’s assessment Clean. Auditor: Bhushan Aggarwal & Co.. Opinion: Unqualified. Fiscal year FY24-25.
Related-party transactions
Assessment Notable. Disclosed volume of ₹83 Cr across 38 related parties. Fiscal year FY24-25.
- ₹605 Cr corporate guarantee for wholly-owned subsidiary: Master Trust Ltd has given a corporate guarantee of ₹6,050 million (₹605 Cr) to banks on behalf of its wholly-owned subsidiary Master Capital Services Limited, representing a very large contingent liability relative to the standalone compan
- Material loans outstanding to KMP-controlled entities: Loans and advances of ₹94.59 million (₹9.46 Cr) outstanding as at 31st March 2025 to entities owned or significantly influenced by KMP, up sharply from ₹28.38 million in the prior year, with interest received of only ₹0.09 million — implyin
- Borrowings from KMP and relatives outstanding at year-end: Master Trust Ltd has ₹9.05 million (₹0.905 Cr) of loans taken from KMP and their relatives outstanding as at 31st March 2025 (down from ₹64.67 million prior year), with interest paid of ₹1.71 million to this category, indicating the company
- Intra-group exposures at 36% of total borrower exposure: Total intra-group exposures of ₹576.63 million represent 36% of the NBFC's total exposure to borrowers/customers, indicating high concentration of the lending book within the related-party group.
Contingent liabilities
Assessment Concerning. Total disclosed: ₹508 Cr (79.4% of net worth). Fiscal year FY24-25.
- Bank guarantees issued by Master Capital Services Ltd to NSE Clearing Ltd (₹4738.00 mn vs ₹4591.00 mn prior year)
- Bank guarantee issued to Multi Commodity Exchange of India Ltd (₹340.00 mn vs ₹130.00 mn prior year — 2.6x jump)
“Loan & Advances Given As at 31st March, 2025 478.10 [Subsidiaries] 94.59 [Associates/Enterprises owned or significantly influenced by the key Management Persons or their Relatives]”
What retail misses·The ₹605 Cr guarantee to the subsidiary and the ₹474 Cr NSE clearing guarantee do not sit on Master Trust's own balance sheet as liabilities — they are 'contingent' (triggered only if the subsidiary or exchange defaults) — so a casual reader of the P&L sees a smaller company than the true contingent exposure suggests.
Strengths noted in disclosures: Auditor issued unqualified (clean) opinion with zero high or material flags — all disclosures properly audited. · Earnings quality composite scores 77 (good range); cash flow matches reported profit, and profitability metrics are above-average for the sector. · Related-party transactions clearly disclosed across 38 counterparties; no hidden or undisclosed exposures.
Forensic signal
From the company's own filingsStrong: Valuation · Weak: 52-Week · Yield · Size