INDUSTRY STRUCTURE AND DEVELOPMENTS
The global minerals and metals industry experienced moderate growth in FY 2024 25. The rebound in global manufacturing, increased infrastructure investments, and the surge in demand for energy-transition minerals such as lithium, copper, and cobalt significantly contributed to sectoral expansion. However, global commodity markets also faced headwinds from volatile pricing, supply chain disruptions, and geopolitical instability.
In India, strong policy support especially the Mines and Minerals (Development and Regulation) Amendment Act, 2021 has positively influenced sectoral growth. Domestic drivers include Indias expanding infrastructure base, the push for renewable energy, and industrialization. India remains a high-potential market with rising demand for power, thereby stimulating the coal and base metal sectors.
Kundan Minerals and Metals Limited (formerly Eastern Sugar & Industries Ltd), now restructured and operating under new management post-CIRP, is aligned with national priorities and global sustainability trends. The Company focuses on integrated operations across mining, refining, and trading with an emphasis on ESG-compliant practices.
(b) OPPORTUNITIES AND THREATS Opportunities
1. Turn around to Profitability:
Revenue rose sharply from 1.11 Lakhs crore in FY 2023 24 to 395608.55 Lakhs in FY 2024 25, with a net profit of 12579.79 Lakhs positioning the Company for improved investor sentiment and access to capital.
2. Sectoral View
Indias infrastructure push, urbanization, and the National Mineral Policy 2019 present sustained demand opportunities.
Threats
1. Commodity
Business performance is sensitive to global demand swings, pricing volatility, and policy changes in international markets.
(c) SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE
Kundan operates in the integrated minerals and metals space. Major revenue contributions stem from:
Trading of metals and minerals Refining and bullion manufacturing
Strategic investments in mining JVs and backward integration
Given the post-CIRP transition and consolidated reporting, performance was not disaggregated into segments, but the core revenue generator remains the gold and precious metal refining division through synergistic operations with Kundan Refinery Pvt. Ltd.
(d) OUTLOOK
Management remains cautiously optimistic for FY 2025 26. Domestic infrastructure development International diversification Planned capital raising and production ramp-up
(e) RISKS AND CONCERNS
Regulatory Risks: Past non-compliance during CIRP may lead to scrutiny. Efforts to restore full compliance are ongoing. Operational Risks: Commodity price volatility, supply disruptions, and dependency on a few key partners. Governance Risks: Related-party transactions could raise concerns if not managed transparently. Financial Risks: Thin operating margins and recovery from insolvency expose the company to liquidity and credit risks.
(f) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has established adequate internal control mechanisms commensurate with the size and nature of operations. Key highlights: Periodic audits and Board oversight Internal audit team restructured post-CIRP Updated compliance tracking system Segregation of duties and authorization protocols in place Internal audit findings are reviewed by the Audit Committee and corrective actions are promptly implemented.
(g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE (Rs. In Lakhs)
Particulars |
FY 2023 24 | FY 2024 25 |
Revenue |
1.11 | 3,95608.55 |
Net Profit/Loss |
(5273.87) | 12579.79 |
EPS (in Rs.) |
(8.72) | 20.80 |
Operational scale-up, synergies from related-party transactions, and increased asset utilization drove financial recovery. Profitability reflects efficient trading and refining performance post-acquisition by the new promoter.
(h) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS
Harmonious industrial relations continued through the year.
The total workforce was realigned post-revival, with strategic hiring across operations, audit, and compliance. Performance-based appraisals linked to KRAs are actively used. Emphasis on training, digital tools, and safety contributed to high employee morale. HR initiatives are being aligned with long-term sustainability goals.
(i) SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS
Details provided in Financials annexed with Annual Report
(j) CHANGE IN RETURN ON NET WORTH
Metric |
FY 2023 24 | FY 2024 25 |
Return on Net Worth |
Negative | Positive |
Explanation:
Elimination of past losses through capital restructuring Substantial revenue and net profit realization Fresh equity infusion by the new promoter group
(k) DISCLOSURE OF ACCOUNTING TREATMENT
The financial statements for the year ended March 31, 2025, have been prepared in accordance with the applicable Indian Accounting Standards (Ind AS) notified under the Companies Act, 2013. No deviation from prescribed accounting standards was made.
CONCLUSION
Kundan Minerals and Metals Limited has witnessed a remarkable revival transitioning from insolvency proceedings to becoming a profitable, high-growth minerals and metals company. With a focus on ESG, governance, backward integration, and tech adoption, the Company is well-positioned to leverage sectoral tailwinds. Sustaining compliance, operational efficiency, and strategic investor engagement will be key to long-term success.
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