💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for both FY25 and FY24 was INR 0, representing a 0% growth rate as the company has not been in active operations. Other income grew by 11.46% from INR 57.34 lakhs in FY24 to INR 63.91 lakhs in FY25.

Geographic Revenue Split

Not disclosed in available documents as the company reported zero income from operations across all regions.

Profitability Margins

Gross and Operating margins are not applicable due to zero operating revenue. Net profitability is driven entirely by other income. EBDIT decreased by 20.45% from INR 42.00 lakhs in FY24 to INR 33.41 lakhs in FY25 due to rising administrative costs.

EBITDA Margin

EBDIT margin relative to total income was 52.28% in FY25, down from 73.25% in FY24, primarily due to a 116.23% spike in administrative and other expenses.

Capital Expenditure

Gross Block increased by 7.45% from INR 2.28 lakhs in FY24 to INR 2.45 lakhs in FY25, primarily consisting of office equipment. Intangible assets under development of INR 6.99 Cr have remained stagnant for over two years.

Credit Rating & Borrowing

Not disclosed in available documents. The company reported a finance cost of INR 0.25 lakhs in FY25, representing 0.82% of total expenditure.

⚙️ Operational Drivers

Raw Materials

Not applicable as the company has zero operating revenue and no active manufacturing; however, historical inventory of INR 22.50 lakhs (1.5% of fixed assets) remains idle.

Import Sources

Not disclosed in available documents due to lack of current manufacturing operations.

Key Suppliers

Not disclosed in available documents; Sundry Creditors include amounts payable to vendors for supply of goods and services, but specific names are not provided.

Capacity Expansion

Current installed capacity is not applicable as the company is non-operational. The company is pivoting toward Information Technology and Advertisement services through a proposed acquisition of a tech company.

Raw Material Costs

Raw material consumption was INR 0 in FY25 and FY24 (0% of revenue) because the company has not been in operations for several years.

Manufacturing Efficiency

Capacity utilization is 0% as the company has not been in operations for the past few years.

Logistics & Distribution

Distribution costs were 0% of revenue as there were no sales of goods or services during the period.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company plans to achieve growth by acquiring a technology company and pivoting its business model to Information Technology and Advertisement-based activities. It has amended its Memorandum of Association to facilitate this shift and intends to use a merger to consolidate operations and reduce costs.

Products & Services

Currently none; the company is transitioning to provide Information Technology (IT) services and Advertisement-based activities.

New Products/Services

New services in the IT and Advertising sectors are planned following the acquisition of a tech company, though specific revenue contribution percentages are not yet determined.

Market Expansion

The company is exploring new markets aligned with its new IT and Advertising objects, aiming to initiate these ventures as early as possible.

Market Share & Ranking

Not applicable due to lack of current operations.

Strategic Alliances

The company is in the process of acquiring a tech company and filing for a merger to consolidate operations and leverage infrastructure.

🌍 External Factors

Industry Trends

The industry is shifting toward digital and IT-based services. The company is positioning itself for this future by exiting its subsidiary (100% exit on Jan 2, 2024) and moving into the IT and Advertising space to counter cut-throat competition in its previous segments.

Competitive Landscape

The company faces intense competition from both domestic and international players, especially as FDI limits are relaxed in various sectors.

Competitive Moat

The company currently lacks a durable moat as it has been non-operational. The sustainability of its future pivot depends on the successful integration of the target tech company and the execution of its new IT strategy.

Macro Economic Sensitivity

The company is sensitive to global recessionary conditions, US tariffs on India, and the Russian Federation’s invasion of Ukraine, which affect general business sentiment and inflation.

Consumer Behavior

The company notes that domestic consumption in India remains robust, which it hopes to leverage through its new service-oriented business model.

Geopolitical Risks

Geopolitical tensions and sharp tightening of monetary policy are cited as risks that could impact the success of the company's planned pivot into the IT sector.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with the Companies Act, 2013 and Ind AS. It failed to use accounting software with an audit trail (edit log) feature for the entire year, violating Rule 11 of the Companies (Audit and Auditors) Rules, 2014.

Taxation Policy Impact

The company continues to recognize MAT credit of INR 35.38 lakhs as an asset, which auditors believe is not prudent given the history of losses.

Legal Contingencies

Pending disputes include: Excise Duty penalty of INR 1,88,319 (FY 1997-98) at CESTAT; Custom Duty of INR 3,15,664 (FY 2003-04) at Commissioner of Customs; and Income Tax of INR 2,04,500 (FY 2011-12) at the Assessing Officer level.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Going Concern' assumption, as the company has not operated for several years and has significant idle assets (INR 6.99 Cr intangibles and INR 22.50 lakhs inventory).

Geographic Concentration Risk

Not applicable as there is no current revenue.

Third Party Dependencies

The company is highly dependent on the successful completion of its proposed merger and acquisition to restart operations.

Technology Obsolescence Risk

High risk of obsolescence for the INR 6.99 Cr intangible assets under development, as they have shown no progress for over two years.

Credit & Counterparty Risk

The company has provided an unsecured loan of INR 7.15 Cr to its erstwhile subsidiary, representing a significant counterparty credit exposure.