Promoted by the House of Kumbhats, Kumbhat Financial Services was incorporated as a public limited company in Feb.'93. The company is into lease and hire-purchase. The company came out with a public issue in Feb.'95 to partly meet the working capital requirements of the company and to diversify into other financial services. It proposes to obtain Category-I registration from the SEBI for carrying on the merchant banking activities. It also proposes to become a dealer in OTCEI and to obtain Restricted Money Changer licence from the RBI. During 1996-97, company was not able to achieve the projected profit after tax, due to unfavourable market conditions which prevailed in the primary and secondary market.