💰 Financial Performance

Revenue Growth by Segment

The company reported limited income in FY 2024-25 due to the discontinuance of operational activities; however, it recorded a related party sale of goods to Sunrise Colours Limited amounting to INR 7.69 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company operates from Mumbai, Maharashtra and Ahmedabad, Gujarat.

Profitability Margins

Profitability was severely impacted by a loss of INR 80.76 Lakhs (approx. 44% loss against book value) on the sale of plant and machinery valued at INR 101.14 Lakhs.

EBITDA Margin

Not disclosed in available documents due to the discontinuance of manufacturing operations during the fiscal year.

Capital Expenditure

The company underwent a divestment rather than expansion, selling its plant and machinery for INR 1.01 Cr during FY 2024-25.

Credit Rating & Borrowing

The company has not been sanctioned working capital limits in excess of INR 5 Cr from banks or financial institutions.

⚙️ Operational Drivers

Raw Materials

Polyester yarns (used for texturising, twisting, and dyeing) represent the primary raw material, though specific cost percentages are not disclosed due to operational shutdown.

Capacity Expansion

Current capacity is effectively zero as the company sold its plant and machinery for INR 1.01 Cr in FY 2024-25, resulting in the discontinuance of operational activities.

Raw Material Costs

Not disclosed in available documents for the current period due to the cessation of manufacturing.

Manufacturing Efficiency

Manufacturing efficiency is currently non-existent as operations have been discontinued.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is contingent on the successful completion of the open offer by Tarunkumar Gunvantlal Patel and others to acquire up to 72.55% (31,82,900 shares) and an additional 26% (11,40,646 shares) of the company. The new promoters may inject capital or pivot the business model following the total sale of previous plant and machinery.

Products & Services

Processed polyester yarns including texturised, twisted, high bulk, and dyed yarns used for shirting, suiting, upholstery, and narrow woven fabrics.

Brand Portfolio

Jattashankar Industries.

Strategic Alliances

The company maintains a significant related party relationship with Sunrise Colours Limited, involving sales of INR 7.69 Cr in FY 2024-25.

🌍 External Factors

Industry Trends

The man-made fiber and textile industry is subject to fluctuating demand for processed yarns; however, the company is currently positioned as a shell or asset-light entity following its divestment of machinery.

Competitive Landscape

The company operates in the highly competitive man-made fiber industry, though it is currently non-operational.

Competitive Moat

The company currently lacks a sustainable manufacturing moat as it has sold its core production assets and discontinued operations.

Macro Economic Sensitivity

The company notes sensitivity to economic conditions affecting demand/supply in the textile industry and changes in government tax laws.

Consumer Behavior

Demand is driven by the garment and upholstery sectors (shirting, suiting, curtains).

⚖️ Regulatory & Governance

Industry Regulations

Compliance is required under the Factories Act 1948, Electricity Act 2003, and Energy Conservation Act 2001.

Environmental Compliance

The company is required to comply with the Environment Protection Act, 1986 and Water/Air Pollution Acts, though its current non-operational status reduces immediate environmental impact.

Taxation Policy Impact

The company is subject to standard Indian corporate tax laws and Ind AS accounting standards.

Legal Contingencies

The company has disclosed the impact of pending litigations in its financial statements, but specific case values in INR are not provided in the available documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the future business direction under new promoters following the 72.55% stake acquisition and the lack of existing manufacturing infrastructure.

Geographic Concentration Risk

Operations were primarily centered in Mumbai and Gujarat.

Third Party Dependencies

High dependency on related party Sunrise Colours Limited for historical revenue (INR 7.69 Cr).

Technology Obsolescence Risk

The company was flagged for non-compliance with Rule 3(1) of the Companies (Accounts) Rules, 2014, for failing to use accounting software with an audit trail feature.