The following discussion is intended to convey the managements perspective on our financial condition and results of operations for Fiscal 2025, Fiscal 2024, and Fiscal 2023 and should be read in conjunction with ‘Restated Financial Information on page 315. This Red Herring Prospectus may include forward-looking statements that involve risks and uncertainties, and our actual financial performance may materially vary from the conditions contemplated in such forward-looking statements as a result of various factors, including those described below and elsewhere in this Red Herring Prospectus. For further information, see ‘Forward-Looking Statements on page 34. The following discussions on our financial condition should be read in conjunction with ‘Risk Factors and ‘Our Business, on pages 36 and 238, respectively.
Our Companys financial year commences on April 1 and ends on March 31 of the immediately subsequent year, and references to a particular financial year or a ‘Fiscal are to the 12 months ended March 31 of that particular year. Unless otherwise indicated or the context otherwise requires, the financial information for Fiscal 2025, Fiscal 2024, and Fiscal 2023 included herein is derived from the Restated Financial Information, included in this Red Herring Prospectus. For further information, see ‘Restated Financial Information on page 315. Ind AS differs in certain respects from Indian GAAP, IFRS and U.S. GAAP and other accounting principles with which prospective investors may be familiar. Also see ‘Risk Factor - Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and IFRS, which may be material to the Restated Financial Information prepared and presented in accordance with SEBIICDR Regulations contained in this Red Herring Prospectus on page 72.
We have, in this Red Herring Prospectus, included various operational and financial performance indicators and certain non-GAAP measures, some of which may not be derived from our Restated Financial Information and may not have been subjected to an audit or review by our Statutory Auditor, and each of which is a supplemental measure of our performance and liquidity and not required by, or presented in accordance with Ind AS, IFRS or U.S. GAAP. Furthermore, such measures and indicators are not defined under Ind AS, IFRS, U.S. GAAP or other accounting standards, and therefore should not be viewed as substitutes for performance, liquidity or profitability measures under such accounting standards. The manner in which such operational and financial performance indicators are calculated and presented, and the assumptions and estimates underlying or used in such calculation, may vary from that used by other similarly placed companies in India and other jurisdictions. Investors are accordingly cautioned against placing undue reliance on such information in making an investment decision and are cautioned that they should consult their own advisors and evaluate such information in the context of the Restated Financial Information and other information relating to our business and operations included in this Red Herring Prospectus.
Unless otherwise indicated, industry and market data used in this section has been derived from the F&S Report. A copy of the F&S Report is available at https://regaalresources.com/industry-report/. Unless otherwise indicated, all industry and other related information derivedfrom the F&S Report and included herein with respect to any particular year refers to such information for the relevant calendar year. See ‘Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation - Industry and Market Data and ‘Risk Factors - This Red Herring Prospectus contains information from an industry report prepared by F&S which we have commissioned and paid for. on pages 31 and 66, respectively.
Overview
According to F&S Report, we are one of the largest manufacturers of maize based specialty products in India, in terms of crushing capacity, with a total installed crushing capacity of 750 tonnes per day (TPD). We manufacture:
(i) Native maize starch and modified starch - a plant-based natural starch that is produced from maize;
(ii) Co-products - includes gluten, germ, enriched fiber and fiber; and
(iii) Value added products - food grade starches such as maize flour, icing sugar, custard powder and baking powder.
Our Company is headquartered in Kolkata and our manufacturing plant with zero liquid discharge (ZLD) maize milling plant (Manufacturing Facility) spread across 54.03 acres is located in Kishanganj, Bihar. According to F&S, we have strategically situated our plant in Bihar since it is one of Indias major hubs for maize cultivation. According to F&S Report, we are the first maize milling company to have established its plant in Kishanganj district of Bihar which is the maize catchment area and has a bumper harvest in Rabi season (i.e. an increase of in maize production
from 91,680 MT in Fiscal 2023 to 417,511 MT in Fiscal 2024) which ensures smooth supply of maize during the season. The strategic location of our Manufacturing Facility is heightened by the proximity to our market for the sale of our products i.e., the East and North India, and according to F&S Report, our key export markets i.e. Nepal and Bangladesh - the Nepal and Bangladesh borders are only 24 kms and 235 kms by road from our Manufacturing Facility.
We cater to domestic and international customers across diverse industries including food products, paper, animal feed, and adhesives. Our business model is structured around catering to 3 broad segments of customers viz.,
(i) Manufacturers of end products;
(ii) Manufacturers of intermediate products; and
(iii) Distributors / Wholesale traders.
Some of our more prominent customers include Emami Paper Mills Limited, Manioca Food Products Private Limited, Century Pulp & Paper, Kush Proteins Private Limited, Shri Guru Oil Industries, Mayank Cattle Food Limited, Aarnav Sales Corporation, AMV Sales Corporation, Eco Tech Papers, Genus Paper Board Private Limited, Krishna Tissues Private Limited, Maruti Papers Private Limited, and M/s Vasu and Sons.
Set out are details of our top 3, 5 and 10 customers, based on our Restated Financial Information.
Particulars |
Fiscal 2025 |
Fiscal 2024 |
Fiscal 2023 |
|||
| Amount (in Rs. million) | % of Contract Price* | Amount (in Rs. million) | % of Contract Price* | Amount (in Rs. million) | % of Contract Price* | |
Top 3 customers |
1,522.06 | 16.80 | 1,238.45 | 20.71 | 1,389.63 | 28.87 |
Top 5 customers |
2,468.82 | 27.26 | 1,913.95 | 32.00 | 1,902.19 | 39.51 |
Top 10 customers |
4,117.38 | 45.46 | 3,009.27 | 50.32 | 2,653.10 | 55.11 |
*Contract price represents sale ofproducts before deducting discounts and incentives but net of returns.
We commenced our operations in 2018 with an installed capacity of 180 TPD. We have over the years augmented our operations and undertaken multiple capacity expansions. In Fiscal 2025, we increased our capacity further with the installation of a starch dryer. As on May 31, 2025, our installed crushing capacity was 750 TPD.
Our Manufacturing Facility also comprises large warehouses and 4 humidity-controlled storage silos of 10,000 MT each for storage of maize. As on May 31, 2025, we had an aggregate storage capacity of 65,000 tonnes of maize. According to F&S Report, our Manufacturing Facility is one of the few maize wet milling facilities with a Zero Liquid Discharge (ZLD) plants in India. For further details of our Manufacturing Facility and manufacturing capacity, see
‘Strengths - Strategic locational advantage of our Manufacturing Facility close to raw material and end consumption markets and ‘Sustainability driven Manufacturing Facility with high levels of utilization, on pages 243 and 246.
Set out below are details of our raw material storage capacity (in metric ton):
Particulars |
As on March 31, 2025 | As on March 31, 2024 | As on March 31, 2023 |
| Silos | 40,000 | 10,000 | 10,000 |
| Warehouses | 25,000 | 7,000 | 7,000 |
Total |
65,000 | 17,000 | 17,000 |
We source maize directly from the cultivators, through aggregators, with whom we have long-standing relationships and from traders in Bihar and West Bengal amongst other sources. According to F&S Report, we are the only maize milling plant in Bihar. This gives us a significant competitive advantage. Establishing direct relation with farmers ensures smooth supply of raw material and this direct procurement strategy also aids in lowering procurement cost and getting access to good quality material. Diversifying our sources of maize ensures that we are not overly dependent
on any one source, we are able to negotiate the best available rates and have access to an uninterrupted supply of raw material thereby enabling us to de-risk our supply chain.
Our products range may broadly be classified as set out in the schematic representation below.
Set out below are certain products in our portfolio and their applications.
| Product Category | Products* | Applications* |
| Native Maize Starch | Used in various industries, such as food and beverage, pharmaceuticals, paper and packaging, textiles, adhesives, industrial applications, and cosmetics. | |
| Modified Starch | Yellow Dextrin | Derivative are used as binder in adhesive applications, widely used as extenders in dyes and as a binder in abrasive industry, adhesive for envelopes, corrugation, gummed labels, and tapes along with others. |
| White Dextrin | Textile finishing and coating agent, thickening, and binding agent in pharmaceuticals and paper coatings, stabilizing agent for certain explosive metal azides. | |
| Oxidized Starch | Used for coating applications for their adhesion ability. It is used in fabric and textile industry for yarn smoothing and flattering. | |
| Co-products | Germ | It is mostly used in the production of feed supplements and the extraction of maize oil. |
| Fiber | It is used in production of ethanol, sweeteners and animal feed. | |
| Maize steep liquor | It is used as a feed additive for live stock and used in food production of yeasts leavened dough products and beer. | |
| Enriched maize fiber | It is valuable source of energy for cattle and poultry. | |
| Gluten | It is used as feed additive in cattle diets as a source of energy and protein. | |
| Value added products | Maize Flour | Derivatives of maize flour are used in bakery industry to produce breads, muffins, pancake mixes, infant foods, biscuits, wafers, doughnuts, |
| breakfast cereals along others. It is also used as filler, binder and carrier in meat products. | ||
| Baking powder | It is used in various industrial applications including baking and cooking, metal polishing, water treatment, meat curing, personal care products and pharmaceuticals. | |
| Custard powder | The sauce produced using custard powder is used for the preparation of cakes, puddings, ice-creams, sweet pies among other deserts. It finds major application in making cookies and instant puddings. | |
| Icing sugar | It is used in preparation of bakery and confectionery products such as cakes, chocolates, fudge among other desserts. It is also used in frostings and coatings as it does not produce a grainy texture. |
* Source: F&S Report
Set out below is a break-up of revenue from the sale of products across our bouquet of products during Fiscal, 2025 Fiscal 2024, and Fiscal 2023, based on our Restated Financial Information.
| Product category | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount (in Rs. million) | % of Contract Price* | Amount (in Rs. million) | % of Contract Price* | Amount (in Rs. million) | % of Contract Price* | |
| Native maize starch | 5,369.87 | 59.29 | 3,552.98 | 59.41 | 2,916.53 | 60.58 |
| Modified Starch# | 45.11 | 0.50 | 46.12 | 0.77 | 26.18 | 0.54 |
| Co-products | 1,973.46 | 21.78 | 1,272.93 | 21.28 | 1,258.48 | 26.14 |
| Value added products | 143.67 | 1.59 | 28.86 | 0.48 | 18.45 | 0.38 |
| Others## | 1,525.49 | 16.84 | 1,079.72 | 18.06 | 594.32 | 12.36 |
| Total | 9,057.60 | 100.00 | 5,980.61 | 100.00 | 4,813.96 | 100.00 |
*Contract price represents sale ofproducts before deducting discounts and incentives but net of returns.
# We commenced production of white dextrin in May 2022 and yellow dextrin in July 2022.
Co-products include gluten, germ, enriched fiber, and corn steep liquor.
##Others include traded maize
Native maize starch is the underlying ingredient of our speciality products and ingredient solutions. Our speciality products and ingredient solutions are designed to add taste, texture, nutrients and increased functionality to:
(i) foods as ingredients, thickening agents, stabilizers, sweeteners, emulsifiers and additives (in bakery products), confectionery, pastas, soups, ketchups, sauces, creams, deserts, amongst others);
(ii) animal nutrition products as nutritional ingredients;
(iii) paper industry to improve bonding strength of paper and paperboards; and
(iv) other industrial products as disintegrants, excipients, supplements, coating agents, binders, smoothing & flattering agents, finishing agents, among others.
Our products are sold across various states in India directly to the end customers and through distributors and dealer. We also have an FSSAI license. Our products are also sold overseas in countries such as Bangladesh, Nepal, and Malaysia. Set out below are our revenue from operation from our domestic and export sales, based on our Restated Financial Information.
Particulars |
Fiscal 2025 |
Fiscal 2024 |
Fiscal 2023 |
|||
| Amount (in Rs. million) | % of contract price * | Amount (in Rs. million) | % of contract price * | Amount (in Rs. million) | % of contract price * | |
Domestic |
8,402.76 | 92.77 | 5,551.67 | 92.83 | 4,479.40 | 93.05 |
Export |
654.84 | 7.23 | 428.94 | 7.17 | 334.56 | 6.95 |
Particulars |
Fiscal 2025 |
Fiscal 2024 |
Fiscal 2023 |
|||
| Amount (in Rs. million) | % of contract price * | Amount (in Rs. million) | % of contract price * | Amount (in Rs. million) | % of contract price * | |
Total |
9,057.60 | 100.00 | 5,980.61 | 100.00 | 4,813.96 | 100.00 |
* Contract price represents sale ofproducts before deducting discounts and incentives but net of returns.
We have registered consistent growth across various financial parameters such as revenue from operations and net worth, and operational parameters such as total installed capacity and the number of customers. Between Fiscal 2023 and Fiscal 2025, based on our Restated Financial Information, our revenue from operations have grown at a CAGR of 36.95%. Some of our key performance indicators are set out below.
Particulars |
Unit |
As on and for the financial year ended | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | ||
Financial KPI |
||||
| Revenue from Operations(1) | (in Rs. million) | 9,151.61 | 6,000.23 | 4,879.55 |
| Revenue from Operations CAGR (%)(2) | % | 36.95 | ||
| EBITDA(3) | (in Rs. million) | 1,127.90 | 563.65 | 406.73 |
| EBITDA Margin (%)(4) | % | 12.32 | 9.39 | 8.34 |
| PAT(5) | (in Rs. million) | 476.68 | 221.42 | 167.58 |
| PAT Margin (%)(6) | (%) | 5.19 | 3.68 | 3.43 |
| Total Borrowings(7) | (in Rs. million) | 5,070.48 | 3,572.13 | 1,889.32 |
| Net worth(8) | (in Rs. million) | 2,354.10 | 1,266.09 | 1,044.11 |
| Return on Equity (ROE) (%)(9) | % | 20.25 | 17.49 | 16.05 |
| Return on Capital Employed (ROCE) (%)(10) | % | 14.17 | 10.07 | 10.99 |
| Debt to Equity Ratio(11) | In times | 2.08 | 2.65 | 1.68 |
| Gross Block(12) | (in Rs. million) | 4,129.08 | 3,283.94 | 1,950.83 |
| Addition to Property, Plant and Equipment(13) | (in Rs. million) | 848.44 | 1,335.60 | 287.87 |
| Fixed Assets Turnover Ratio(14) | In times | 2.46 | 2.00 | 2.78 |
| Cash Conversion Cycle(15) | In days | 93 | 79 | 43 |
Operational KPI |
||||
| Total installed capacity in MT per day (TPD)(16) | MT per day (TPD) | 750 | 650 | 370 |
| No. of employees(17) | Number | 469 | 410 | 372 |
| No. of customers(18) | Number | 261 | 195 | 182 |
Notes:
1. Revenue from Operations is the revenue from operations as per the Restated Financial Information.
2. Revenue from Operation CAGR (%) provides information regarding the growth of revenue from year ended March 31, 2023 to March 31, 2025.
3. EBITDA (f million) is calculated as restated profit before tax, plus finance costs, depreciation, and amortisation expenses, minus other income.
4. EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations, multiplied by 100.
5. PAT is the restated profit/ (loss) for the year after tax as per Restated Financial Information.
6. PAT Margin (%) is calculated as restated profit for the year divided by Total Income.
7. Total Borrowings represent sum of current and non-current borrowings.
8. Net Worth is aggregate value of the paid up share capital and all reserves created out of the profits and securities premium account and debit or credit balance ofprofit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, but does not include reserves created out of revaluation of assets / fair value gain of Freehold land on transition to Ind AS of Rs. 80.98 million, and write back of depreciation and amalgamation, in accordance with Regulation 2(1)(hh) of the SEBIICDR Regulations.
9. Return on Equity (%) is calculated as PAT divided by net worth.
10. Return on Capital Employed (RoCE) is calculated as EBIT divided by capital employed where (i) EBIT means EBITDA minus depreciation and amortisation expense and (ii) Capital employed means total equity + total current & non-current borrowings minus cash and cash equivalents and other bank balances.
11. Debt to Equity Ratio is calculated as total borrowings divided by total equity.
12. Gross Block represents the gross value of all property plant and equipment as per Restated Financial Information.
13. Addition to Property, Plant and Equipment represents the addition to the Gross Block in the period as per Restated Financial Information.
14. Fixed Assets Turnover Ratio is calculated as revenue from operations for the year divided by net block ofproperty, plant and equipment.
15. Cash Conversion Cycle (in days) is calculated as inventory days plus trade receivable days minus trade payable days. Inventory days are calculated as Inventory divided by cost of goods sold multiplied by 365 days. Trade receivable days are calculated as Trade receivables divided by Revenue from operations multiplied by 365 days. Trade payable days are calculated as Trade payable divided by cost of goods sold multiplied by 365 days.
16. Total installed capacity is the maize crushing capacity of our Company in metrics tonnes per day.
17. No. of employees is the aggregate number of employees employed during the year by our Company.
18. No. of customers is the aggregate customers served by our Company.
SIGNIFICANT FACTORS AFFECTING OUR FINANCIAL CONDITION AND RESULT OF OPERATIONS
Cost and availability of our key raw material
We are a maize based specialty products manufacturer. We are amongst the top 10 largest maize milling companies in terms of capacity and the second largest in Eastern India. According to F&S Report, we have strategically situated our plant in Bihar since it is one of Indias major hubs for maize cultivation. Our ability to utilise our manufacturing capacity is dependent on our ability to source our key raw materials i.e. Maize, in required quantities and ensure a consistent supply of the same at commercially acceptable prices. We procure maize through various sources including directly from farmers through aggregators and from traders. The sowing and harvesting seasons have a significant impact on supply and demand of maize. Maize is supplied from March to May and harvested from September to December. Demand spikes normally from January to March. Maize starch millers stock maize for 3- 5 months. Purchase of maize usually happens during peak arrival season at low prices for stocking purpose. According to F&S Report, the inventory is maintained to tide over the peak price months, and buying for regular requirement continues in parallel. Accordingly, if we are unable to procure and store maize during the peak arrival season in a timely manner or at all which could have an adverse impact on our manufacturing capacity and output. Further, we do not enter into any forward contracts or other derivative arrangements in this respect. Accordingly, if we are not able to procure maize at the appropriate times at commercially acceptable prices, we may have to incur additional procurement costs which would increase our manufacturing costs and adversely impact our profitability.
Set out in the table below is our cost of materials consumed in the immediately preceding 3 Fiscals, based on our Restated Financial Information.
Particulars |
Fiscal 2025 |
Fiscal 2024 |
Fiscal 2023 |
|||
| Amount (in Rs. million) | % of Revenue from operations | Amount (in Rs. million) | % of Revenue from operations | Amount (in Rs. million) | % of Revenue from operations | |
Cost of Goods Sold (COGS) |
6,646.01 | 72.62 | 4,321.23 | 72.02 | 3,480.96 | 71.34 |
COGS is calculated as sum of cost of materials consumed, purchases of stock-in-trade and changes in inventories.
According to F&S Report, our ability to procure maize is affected by a number of factors including external factors such as demand from other industries such as ethanol and animal feed industries and the production and availability of maize can be impacted by changes in agricultural yields, weather patterns, which could result in price volatility and shortages. Therefore, any inability to procure sufficient quantities of quality maize at acceptable prices will have an adverse impact on our financial condition and profitability.
We depend on few Customer Industries for majority of our revenue from operations and our continued success will depend on our ability to retain and augment our customer base
We cater to customers across diverse industries including food products, paper, animal feed, and manufacturing (Customer Industries).
Set out below is the breakup of our revenue from operations from food products, paper, animal feed, oil extraction and manufacturing industries during Fiscal 2025, Fiscal 2024, and Fiscal 2023, based on our Restated Financial Information.
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Revenue(Rs. in million) | % of contract price* | Revenue(Rs. in million) | % of contract price* | Revenue(Rs. in million) | % of contract price* | |
| Paper industry | 2,482.33 | 27.41 | 1,557.92 | 26.05 | 1,396.09 | 29.00 |
| Feed industry | 1,194.74 | 13.19 | 1,295.72 | 21.67 | 1,193.51 | 24.79 |
| Food Manufacturing | 678.62 | 7.49 | 516.59 | 8.64 | 260.01 | 5.40 |
| Other Manufacturing | 1,489.74 | 16.45 | 263.46 | 4.41 | 212.78 | 4.42 |
| Others# | 3,212.17 | 35.46 | 2,346.92 | 39.23 | 1,751.57 | 36.39 |
| Total | 9,057.60 | 100.00 | 5,980.61 | 100.00 | 4,813.96 | 100.00 |
*Contract price represents sale ofproducts before deducting discounts and incentives but net of returns.
#Others include sale to dealers and distributors where we have no visibility of the end customer and trading income.
As certified by Independent Chartered Accountant, pursuant to a certificate dated August 6, 2025.
Our business model is structured around catering to 3 broad segments of customers viz.,
(i) Manufacturers of end products;
(ii) Manufacturers of intermediate products; and
(iii) Distributors / Wholesale traders.
Our commercial success also depends to a large extent on the success of our customers and continued growth of the industries in which they operate. Therefore, our revenues and financial condition may be adversely affected, as a result of, inter alia, decline in demand of our products including due to the emergence of low cost products and, or, if entities in the Customer Industries move towards other customers, macro-economic conditions affecting these Customer Industries, increase in competition, pricing pressures, and change in government policies and regulatory action. Any or all of these factors may have an adverse effect on our business prospects, and sales of our solution offerings could decline substantially. Further, we cannot assure you that the sales to the other Customer Industries will increase or be sufficient to off-set any reduction in revenue from our currently largest revenue generating Customer Industries.
While we have consistently maintained our relationship with our existing customers, we have also consistently increased our customer base. Set out in the table below are the details of our revenue from repeat customers and unique customers (i.e. customers whom we have not catered to previously) in Fiscal 2025, Fiscal 2024, and Fiscal 2023, based on our Restated Financial Information.
Particulars |
As at and for the financial year ended March 31, 2025 | As at and for the financial year ended March 31, 2024 | As at and for the financial year ended March 31, 2023 | |||
| Customer (nos.) | Contract Price* (Rs. million) | Customer (nos.) | Contract Price* (Rs. million) | Customer (nos.) | Contract Price* (Rs. million) | |
Repeat customers# |
153 | 8,068.19 | 121 | 4,906.04 | 85 | 3,307.57 |
| Unique customers# | 108 | 989.41 | 74 | 1,074.57 | 97 | 1,506.39 |
| Total | 261 | 9,057.60 | 195 | 5,980.61 | 182 | 4,813.96 |
*Contract price represents sale ofproducts before deducting discounts and incentives but net of returns # includes distributors and dealers.
Certified by the Independent Chartered Accountant, pursuant to a certificate dated August 6, 2025.
Accordingly, our continued success will depend on our ability to consistently retain and continually augment our customer base.
Augmenting our manufacturing capacity and maintaining operating efficiencies
A significant factor that affects and will continue to affect our revenues and results from operations is the capacity and utilisation of our manufacturing facility. Our Manufacturing Facility is spread across an area of 54.03 Acres are located at Galgalia in the state of Bihar. Our Manufacturing Facility is strategically located with regards to both its proximity to our primary sources of raw materials, such as maize harvesting regions, thus giving us an edge in our business operations.
Our business is dependent upon our ability to effectively manage our Manufacturing Facility, which is subject to various operating risks, including those beyond our control, such as the breakdown, failure of equipment or industrial accidents, severe weather conditions, fire, power interruption and natural disasters, however our Company maintains comprehensive insurance coverage to mitigate the risk arising out of such event. While there have been no such instances during Fiscals 2025, 2024, and 2023, any significant malfunction or breakdown of our machinery, equipment, automation systems, IT systems or any other part of our manufacturing processes or systems may entail significant repair and maintenance costs and cause delays in our operations. If we are unable to repair or properly maintain manufacturing assets in a timely manner or at all, our operations may need to be suspended until we repair or procure the appropriate manufacturing assets to replace them and there can be no assurance that the new manufacturing assets will be procured and/or integrated in a timely manner. In addition, we may be required to carry out planned shutdowns of our Manufacturing Facility for maintenance, statutory inspections, customer audits and testing if any, or we may shut down one or more of our Manufacturing Facility for capacity expansion and equipment upgrades.
We commenced our operations in 2018 with an installed capacity of 180 TPD. We have over the years augmented our operations and undertaken multiple capacity expansions. In Fiscal 2025, we increased our capacity further with the installation of a starch dryer. As on May 31, 2025, our installed crushing capacity was 750 TPD. Our continual effort towards augmenting our process efficiencies is reflected in our high levels of capacity utilisation. Further, we have set up a dual feed co-generation power plant for captive power generation and utilisation. Our captive plant has the dual feed plant and is able to switch between coal and husk.
Our installed capacity, actual production, capacity utilisation and captive power usage, during the periods set out below:
| Particular | As on and for two months ended May 31, 2025* | As on and for financial year ended March 31, 2025* | As on and for financial year ended March 31, 2024* | As on and for financial year ended March 31, 2023* |
Wet milling |
||||
| Installed capacity# (TPA) | 40,875 | 246,475A | 169,750aa | 129,500 |
| Actual production## (TPA) | 40,690 | 245,824 | 160,749 | 125,084 |
| Capacity utilisation (%) | 99.55 | 99.74 | 94.70 | 96.59 |
Power |
||||
| Total usage of power (MW) | 7,548 | 46,729 | 31,937 | 23,845 |
Wet milling |
VI. Wi, | |||
| Usage of captive power (MW) | 6,172 | 41,243 | 25,758 | 18,426 |
| Captive power usage (%) | 81.77 | 88.26 | 80.65 | 77.27 |
A The installed capacity increased to 750 TPD from October 16, 2024.
AA The installed capacity increased to 650 TPD from November 2023.
* Installed capacity is ‘as on , and actual production and capacity utilisation as for the period ended.
# Time weighted average
## This also factors in the periods for which the manufacturing facility was non-operational on account of the upgradation in capacity.
As certified by the Independent Chartered Engineer, pursuant to a certificate dated August 6, 2025.
We have over the years adopted various techniques that we have developed to streamline and maximise the efficiency of our production processes. Our Company proposes to augment our manufacturing capacity by undertaking brownfield expansion to capitalise on anticipated growth in our end-user industries. Therefore, our ability to grow our business and strengthen our financial position and our competitiveness, will depend on our ability to augment our manufacturing capabilities and maintain our operating efficiencies.
Delays or defaults in customer payments and receivables may have an adversely impact our profits and cash flows.
Our operations involve the practice of extending credit to our customers. Set out below is our outstanding trade receivables in Fiscal 2025, Fiscal 2024, and Fiscal 2023:
Particulars |
As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
| Trade Receivables (in Rs. million) | 1,368.72 | 1,267.35 | 719.37 |
| Trade Receivable Days* | 55 | 77 | 54 |
* Trade receivable days are calculated as Trade receivables divided by Revenue from operations multiplied by 365 days As certified by, Independent Chartered Accounts, pursuant to a certificate dated August 6, 2025.
During Fiscal 2025, Fiscal 2024, and Fiscal 2023, there have been bad and doubtful debts written off amounting to Rs. 0.17 million, Rs. 0.27 million, and Rs. 0.46 million, respectively. Our ability to accurately access the creditworthiness of our customers in the future and consistency of our recovery of payments in the future, would have a significant aspect of our profit margins and cash flows.
Maintaining our relationship with our key maize suppliers
Our principle raw material i.e. maize is a seasonal crop. Sowing and harvesting seasons have a significant impact on supply and demand of maize. Maize is supplied from March to May and harvested from September to December. Demand spikes normally from January to March. Accordingly, we are heavily reliant on key suppliers for a vast majority of our maize supply. Set out in the table below are details of our concentration of our top 3, top 5 and top 10 vendors for the years indicated:
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount (in Rs. million) | % of cost of purchase of maize | Amount (in Rs. million) | % of cost of purchase of maize | Amount (in Rs. million) | % of cost of purchase of maize | |
| Top 3 vendors | 5,178.25 | 72.11 | 3,112.59 | 68.36 | 1,484.44 | 46.63 |
| Top 5 vendors | 5,973.27 | 83.18 | 3,696.13 | 81.18 | 1,922.80 | 60.40 |
| Top 10 vendors | 6,788.11 | 94.53 | 4,266.23 | 93.70 | 2,656.00 | 83.43 |
Government subsidies
Our manufacturing unit is situated in Kishanganj district of Bihar. Bihar Industrial Investment Promotion Policy, 2016 (which was extended upto 2020 and then 2025) (BIIPP) provides provisions for interest subvention to the eligible units with installed capacity of more than 100 TPD including units for manufacturing starch and cattle and/or poultry feed on the term loan availed by the unit from a bank/ financial institution registered by RBI/SEBI. According to F&S Report, under the BIIPP, (a) the interest subvention of 10% or actual rate of interest on term loan, whichever is lower subject to maximum limit of Rs. 200 million; (b) 100% reimbursement against the admitted State GST for a period of 5 years from the date of commencement of commercial production is given to starch manufacturers. The benefits provided under the BIIPP is one of the reasons for us having established our manufacturing operations in Bihar. The continuance of the benefits under the BIIPP is a key aspect of business.
The prevailing rate of interest on the outstanding secured borrowings of our Company, as on June 30, 2025, ranged from 7.70% p.a. to 11.00% p.a. In terms of BIIPP, though, our Company is entitled to interest subvention on ‘term loans of 10% or the actual rate of the loan, subject to a maximum of Rs. 200 million. The policy is valid till 2025.
Further, based on our Restated Financial Information, the subsidy received from the government in terms of the BIIPP as a percentage of our total finance cost was as follows:
(Rs. in million, unless otherwise stated)
Particulars |
For the financial year ended | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | |
| Interest subsidy from the Government (Rs. million) | 38.86 | 37.94 | 67.28 |
| Interest on borrowings (Rs. million) | 451.43 | 294.44 | 165.86 |
| Interest subsidy as a % of interest on borrowings (%) | 8.61 | 12.89 | 40.56 |
As can be noticed above, the interest subsidy available to our Company has reduced in Fiscal 2024 as compared to Fiscal 2023. Additionally, a significant number of loans identified by our Company to repay from the Net Proceeds are working capital loans which are not eligible for the interest subsidy.
Out of the fresh issue of up to Rs. 2,100.00 million, up to Rs. 1,590.00 million is proposed to be utilized for the purpose of repayment of borrowings and the incremental increase of equity and securities premium to the tune of Rs. 510.00 million in the capital employed would have reduced the existing ROCE of 14.17% as on March 31, 2025.
MATERIAL ACCOUNTING POLICIES
Regaal Resources Limited (Formerly Known as Regaal Resources Private Limited)
CIN U15100WB2012PLC171600
Notes forming part of the Restated Financial Information 1. Corporate and General Information
Regaal Resources Limited ("the Company") was originally incorporated as a Private Limited Company domiciled in India under the provisions of the Companies Act, 1956, on 2nd January, 2012, having its registered office at 113, Park Street, 10th Floor, Poddar Point, Kolkata- 700016. With effect from 30th March, 2022, it was converted into a Public Limited Company, i.e. Regaal Resources Limited and further, with effect from 16th April, 2022, its registered office was shifted to D2/2, Block-EP & GP, 6th Floor, Sector V, Kolkata- 700091. The Company is engaged in the business of manufacturing of Starch and its derivatives.
2.1. Basis of Preparation
The Restated Statement of assets and liabilities of the Company as at March 31, 2025, March 31, 2024 and March 31, 2023 and the related Restated Statements of Profit & Loss, Changes in Equity and Cash Flows for each of the years ended March 31, 2025, March 31, 2024 & March 31, 2023 and accompanying notes to the aforesaid restated financial information (hereinafter collectively called “Restated Financial Information ”) have been prepared specifically for inclusion in the Offer documents to be filed by the Company with the Securities and Exchange Board of India (“SEBI”) and Registrar of Companies (“ROC”) in connection with proposed initial public offer of equity shares of the Company (the “Offering”).
The Restated Financial Information have been prepared to comply in all material respects with the requirement of:
a. Relevant Provisions of Section 26 of Part I of Chapter III Companies Act, 2013 (the “Act”)
b. Relevant provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“the SEBI ICDR Regulations”) issued by the Securities and Exchange Board of India (“SEBI”) on September 11, 2018 as amended from time to time in pursuance of the Securities and Exchange Board of India Act, 1992.
c. Guidance Note on reports in Company Prospectus (Revised 2019) (“Guidance Note”) issued by the Institute of Chartered Accountants of India (“ICAI”).
The Act and the SEBI ICDR Regulations require the information in respect of the Assets and Liabilities and Profit and Loss of the Company for each of the three years immediately preceding the date of issue of prospectus. In accordance with the relevant SEBI circular, the Company has applied the accounting framework described by Indian Accounting Standard (Ind AS) as notified by Ministry of Corporate affairs pursuant to Section 133 of the Act read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 as amended for three annual years ended March 31, 2025, 31 March 2024 and 31 March 2023.
The Restated Financial Information has been compiled from:
a. The audited financial statements of the Company as at and for the years ended March 31, 2025, March 31, 2024 and March 31, 2023 prepared in accordance with Indian Accounting Standard (“Ind AS”) as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standard) Rules, 2015 and other accounting principles accepted in India (“Audited Financial Statements”).
b. The Restated Financial Statements have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financial years ended March 31, 2025, 2024 and 2023 to reflect the same accounting treatment as per the accounting policy and grouping/classifications followed as at year ended March 31, 2025.
The Restated Financial Information for three years ended March 31, 2025, March 31,2024 and March 31, 2023 were approved for issue in accordance with resolution of the Board of Directors on July 24, 2025.
2.2. Basis of measurement
The Company maintains accounts on accrual basis following the historical cost convention, except for the followings:
> Certain Financial Assets and Liabilities are measured at Fair value/ Amortized cost (refer accounting policy regarding financial instruments);
> Freehold Land - Fair value considered on transition to Ind AS.
2.3. Functional and Presentation Currency
The Restated Financial Statements are presented in Indian Rupee (INR), which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates. All amounts disclosed in restated financial statements and notes have been rounded off to the nearest million (with two places of decimal) unless otherwise stated.
2.4. Use of Estimates and Critical Accounting Judgements
The preparation of financial statements in conformity with Ind AS requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.
2.5. Operating Cycle for current and non-current classification
All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1. The Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.
An asset is classified as current when it is:
> Expected to be realized or intended to sold or consumed in normal operating cycle;
> Held primarily for the purpose of trading;
> Expected to be realized within twelve months after the reporting period; or
> Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All the other assets are classified as non-current.
A liability is current when:
> It is expected to be settled in normal operating cycle;
> It is held primarily for the purpose of trading;
> It is due to be settled within twelve months after the reporting period; or
> There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current. Deferred Tax Assets and Liabilities are classified as non-current assets and liabilities respectively.
2.6. Measurement of Fair Values
A number of the Companys accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
> In the principal market for the asset or liability, or
> In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the special purpose financial statements are categorised within the fair value hierarchy, described as follows, based on the input that is significant to the fair value measurement as a whole:
> Level 1 —Quoted (unadjusted) market prices in active markets for identical assets or liabilities
> Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable and
> Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
External valuers are involved for valuation of significant assets & liabilities. Involvement of external valuers is decided by the management of the company considering the requirements of Ind AS and selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.
3. SUMMARY OF MATERIAL ACCOUNTING POLICIES
3.1 INVENTORIES
Raw materials, packaging materials and stores and spare parts are valued at lower of cost and net realizable value. However, material and other items held for use in production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.
Cost includes purchase price, (excluding those subsequently recoverable by the enterprise from the concerned revenue authorities), freight inwards and other expenditure incurred in bringing such inventories to their present location and condition.
Finished Goods are valued at lower of cost and net realisable value. Cost includes cost of direct materials and direct labour and a proportion of manufacturing overhead based on the normal operating capacity. Cost is determined on weighted average basis.
Scrap and other items are valued at net realisable value.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.
3.2 CASH AND CASH EQUIVALENTS
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of change in value.
For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term deposits and other short-term highly liquid investments, net of bank overdrafts as they are considered an integral part of the Companys cash management. Bank overdrafts are shown within short term borrowings in the balance sheet.
3.3 INCOME TAX
The income tax expense or credit for the period is the tax payable on the current periods taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Current and deferred tax is recognized in the statement of profit & loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
3.3.1 Current Tax:
Current tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the taxation authorities using the tax rates (and tax laws) that have been enacted or substantively enacted, at the end of the reporting period.
3.3.2 Deferred Tax
> Deferred Tax assets and liabilities is measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
> Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e., tax base). Deferred tax is also recognized for carry forward of unused tax losses and unused tax credits.
> Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
> The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The Company reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or that entire deferred tax asset to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available.
> Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized either in other comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.
> Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
3.4 PROPERTY, PLANT AND EQUIPMENT
3.4.1 Tangible Assets
3.4.1.1 Recognition and Measurement:
> Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost, less any accumulated depreciation and accumulated impairment losses (if any), except for freehold land which are carried at fair value on transition date as deemed cost.
> Cost of an item of property, plant and equipment acquired comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting any trade discounts and rebates, any directly attributable costs of bringing the assets to its working condition and location for its intended use and present value of any estimated cost of dismantling and removing the item and restoring the site on which it is located.
> If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.
> Profit or loss arising on the disposal of property, plant and equipment are recognized in the Statement of Profit and Loss.
> On transition to Ind AS, the Company has elected to measure its freehold land at fair value and use that fair value as deemed cost of such freehold land.
3.4.1.2 Subsequent Measurement:
> Subsequent costs are included in the assets carrying amount, only when it is probable that future economic benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced.
> Major Inspection/ Repairs/ Overhauling expenses are recognized in the carrying amount of the item of property, plant and equipment as a replacement if the recognition criteria are satisfied. Any Unamortized part of the previously recognized expenses of similar nature is derecognized.
3.4.1.3 Depreciation and Amortization:
> Depreciation on Property, Plant & Equipment is provided on straight line method in terms of life span of assets prescribed in Schedule II of the Companies Act, 2013 or as reassessed by the Company based on the technical evaluation.
> Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to) the date on which asset is ready for use (disposed of).
> Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
3.4.1.4 Derecognition of Assets
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognized in the statement of profit and loss.
3.4.1.5 Capital Work in Progress
Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial production.
3.5 LEASES
3.5.1 Determining whether an arrangement contains a lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
3.5.2 Company as lessor
> Finance Lease
Leases which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership of the leased item are classified and accounted for as finance lease. Lease rental receipts are apportioned between the finance income and capital repayment based on the implicit rate of return. Contingent rents are recognized as revenue in the period in which they are earned.
> Operating Lease
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease except where scheduled increase in rent compensates the Company with expected inflationary costs.
3.5.3 Company as lessee
The Companys lease asset classes primarily consist of leases for Buildings and Plant & Machinery. The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset;
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and;
(iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short term leases) and leases of low value assets. For these short term and leases of low value assets, the Company recognises the lease payments as an operating expense on a straight line basis over the term of the lease.
The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.
A lease liability is re-measured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The re-measurement normally also adjusts the leased assets.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.
3.6 REVENUE RECOGNITION
Revenue from contracts with customers is recognized on transfer of control of promised goods or services to a customer at an amount that reflects the consideration to which the Company is expected to be entitled to in exchange for those goods or services.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract. This variable consideration is estimated based on the expected value of outflow. Revenue (net of variable consideration) is recognized only to the extent that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved.
3.7 Other Income Interest Income
Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.
Rental Income
Rental income is accounted on straight line basis over the lease term and is included in revenue in the statement of profit and loss. The company has determined that it does not need criteria for recognition of lease rental income on a basis other than straight line basis.
Export incentives
Export entitlements is recognized when the right to receive credit as per the terms of schemes is established in respect of the exports made by the company and when there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.
Insurance claim receivable
Insurance and other claims are accounted on the basis of claims admitted/ expected to be admitted and to the extend that there is no uncertainty in receiving the claims.
3.8 EMPLOYEE BENEFITS
3.8.1 Short Term Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees services up to the end of the reporting period.
3.8.2 Other Long Term Employee Benefits
The liabilities for leave that are not expected to be settled wholly within twelve months are measured as the present value of the expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation. Remeasurements as the result of experience adjustment and changes in actuarial assumptions are recognized in statement of profit and loss.
3.8.3 Post-Employment Benefits
The Company operates the following post-employment schemes:
> Defined Contribution Plan
Defined contribution plans such as Provident Fund etc. are charged to the statement of profit and loss as and when incurred and paid to Authority.
> Defined Benefit Plans
The liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The Company s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods. The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.
The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation.
Remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurements recognized in other comprehensive income are reflected immediately in retained earnings and will not be reclassified to the statement of profit and loss.
3.9 BORROWING COSTS
> Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing costs also includes foreign exchange difference to the extent regarded as an adjustment to the borrowing costs.
> Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use or sale.
> Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using Effective Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of profit and loss in the period in which they are incurred.
3.10 GOVERNMENT GRANTS
Government grants are recognized at their fair value, where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.
The grant relating to the acquisition/ construction of an item of property, plant and equipment, the same is presented by deducting the grant from the carrying amount of the asset.
3.11 FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
3.11.1 Financial Assets
> Recognition and Initial Measurement:
All financial assets are initially recognized when the company becomes a party to the contractual provisions of the instruments. A financial asset is initially measured at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
> Classification and Subsequent Measurement:
For purposes of subsequent measurement, financial assets are classified in four categories: o Measured at Amortized Cost;
o Measured at Fair Value Through Other Comprehensive Income (FVTOCI); o Measured at Fair Value Through Profit or Loss (FVTPL); and
o Equity Instruments designated at Fair Value through Other Comprehensive Income (FVTOCI).
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.
o Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the following conditions are met:
The asset is held within a business model whose objective is achieved by both collecting contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the statement of profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade receivables, cash and b ank balances, loans and other financial assets of the company.
o Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following conditions are met:
The objective of the business model is achieved by both collecting contractual cash flows and selling the financial assets; and
The assets contractual cash flows represent SPPI.
Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently measured at fair value with any gains or losses arising on remeasurement recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains or losses. Interest calculated using the effective interest method is recognized in the statement of profit and loss in investment income.
o Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition, the company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss. Equity instruments which are, held for trading are classified as at FVTPL.
o Equity Instruments designated at FVTOCI: For equity instruments, which has not been classified as FVTPL as above, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The company makes such election on an instrument-byinstrument basis. The classification is made on initial recognition and is irrevocable. In case the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment.
> Derecognition:
The Company derecognizes a financial asset on trade date only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
> Impairment of Financial Assets:
The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS - 109 requires expected credit losses to be measured through a loss allowance. The company recognizes impairment loss for trade receivables that do not constitute a financing transaction using expected credit loss model, which involves use of a provision matrix constructed on the basis of historical credit loss experience. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
3.11.2 Financial Liabilities
> Recognition and Initial Measurement:
Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
> Subsequent Measurement:
Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.
> Financial Guarantee Contracts:
Financial guarantee contracts issued by the company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirement of Ind AS 109 and the amount recognized less cumulative amortization.
> Derecognition:
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
3.11.3 Foreign Currency transactions
Foreign currency (other than the functional currency) transactions are translated into the functional currency using the prevailing rate of exchanges at the dates of transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the rate of exchanges prevailing at the reporting date.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are generally recognize in the statement of profit and loss in which they arise except for exchange differences on foreign currency borrowing relating to assets under construction for future productive use, which are included in the cost of those qualifying assets when they are regarded as adjustment to interest cost on those foreign currency borrowing, the balance is presented in the statement of profit and loss within finance costs.
Non-monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at the transaction date).
3.11.4 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.
3.12 Earnings Per Share
Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.
3.13 Impairment of Non-Financial Assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful lives of the assets. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (Cash Generating Units - CGU).
An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been an improvement in recoverable amount.
3.14 Provisions, Contingent Liabilities and Contingent Assets
3.14.1 Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.
3.14.2 Contingent Liabilities
Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events but is not recognized because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in Other Notes to Special Purpose Financial Statements.
3.14.3 Contingent Assets
Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is probable.
3.15 Intangible Assets
3.15.1 Recognition and Measurement
Intangible asset are stated at cost on initial recognition and subsequently measured at cost less accumulated amortization and accumulated impairment loss, if any.
3.15.2 Amortization
> Softwares are amortized over a period of three years.
> The amortization period and the amortization method are reviewed at least at the end of each financial year. If the expected useful life of the assets is significantly different from previous estimates, the amortization period is changed accordingly.
3.16 Operating Segment
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the chief operating decision maker.
The Company has identified one reportable segment i.e., Manufacturing of Starch and its derivatives based on the information reviewed by the CODM.
3.17 Recent accounting pronouncement
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. The Company has assessed that there is no significant impact on its financial statements. On 9th May 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim to provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable. The amendments are effective for annual periods beginning on or after 1st April 2025. The Company is currently assessing the probable impact of these amendments on its financial statements.
4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES
Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about Significant judgements and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the special purpose financial statements is included in the following notes:
> Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Companys future taxable income against which the deferred tax assets can be utilized. In addition, significant judgement is required in assessing the impact of any legal or economic limits.
> Right-of-use assets and lease liability: The Company has exercised judgement in determining the lease term as the non-cancellable term of the lease, together with the impact of options to extend or terminate the lease if it is reasonably certain to be exercised. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right of-use asset in a similar economic environment. Determination of the incremental borrowing rate requires estimation.
> Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.
> Provisions and Contingencies: The assessments undertaken in recognising provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ‘Provisions, Contingent Liabilities and Contingent Assets. The evaluation of the likelihood of the contingent events is applied best judgement by management regarding the probability of exposure to potential loss.
> Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.
> Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.
> Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
NON-GAAP MEASURES
Earnings before Interest, Taxes, Depreciation and Amortization Expenses (EBITDA)/ EBITDA Margin/ / PAT Margin / Return on Equity, ROCE, Fixed Asset Turnover Ratio, Cash Conversion Cycle
In addition to our results determined in accordance with Ind AS, we believe the following Non-GAAP measures are useful to investors in evaluating our operating performance and liquidity. We use the following Non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Non-GAAP financial information, when taken collectively with financial measures disclosed in the financial statements prepared in accordance with Ind AS, may be helpful to investors because it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies in our industry because it provides consistency and comparability with past financial performance. However, our management does not consider these Non-GAAP measures in isolation or as an alternative to financial measures.
(in Rs. million unless otherwise specified)
Particulars |
Unit |
As on and for the financial year ended |
||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | ||
Financial KPI |
||||
Revenue from Operations(1) |
(in Rs. million) |
9,151.61 | 6,000.23 | 4,879.55 |
Revenue from Operations CAGR (%)(2) |
% |
36.95 |
||
EBITDA(3) |
(in Rs. million) |
1,127.90 | 563.65 | 406.73 |
EBITDA Margin (%)(4) |
% |
12.32 | 9.39 | 8.34 |
PAT(5) |
(in Rs. million) |
476.68 | 221.42 | 167.58 |
PAT Margin (%)(6) |
(%) |
5.19 | 3.68 | 3.43 |
Total Borrowings(7) |
(in Rs. million) |
5,070.48 | 3,572.13 | 1,889.32 |
Net worth(8) |
(in Rs. million) |
2,354.10 | 1,266.09 | 1,044.11 |
Return on Equity (ROE) (%)(9) |
% |
20.25 | 17.49 | 16.05 |
Return on Capital Employed (ROCE) (%)(10) |
% |
14.17 | 10.07 | 10.99 |
Debt to Equity Ratio(11) |
In times |
2.08 | 2.65 | 1.68 |
Gross Block(12) |
(in Rs. million) |
4,129.08 | 3,283.94 | 1,950.83 |
Addition to Property, Plant and Equipment(13) |
(in Rs. million) |
848.44 | 1,335.60 | 287.87 |
Fixed Assets Turnover Ratio(14) |
In times |
2.46 | 2.00 | 2.78 |
Cash Conversion Cycle(15) |
In days |
93 | 79 | 43 |
Operational KPI |
||||
Total installed capacity in MT per day (TPD)(16) |
MT per day (TPD) |
750 | 650 | 370 |
No. of employees(17) |
Number |
469 | 410 | 372 |
No. of customers(18) |
Number |
261 | 195 | 182 |
Notes:
1. Revenue from Operations is the revenue from operations as per the Restated Financial Information.
2. Revenue from Operation CAGR (%) provides information regarding the growth of revenue from year ended March 31, 2023 to March 31, 2025.
3. EBITDA (t million) is calculated as restated profit before tax, plus finance costs, depreciation, and amortisation expenses, minus other income.
4. EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations, multiplied by 100.
5. PAT is the restated profit/ (loss) for the year after tax as per Restated Financial Information.
6. PAT Margin (%) is calculated as restated profit for the year divided by Total Income.
7. Total Borrowings represent sum of current and non-current borrowings.
8. Net Worth is aggregate value of the paid up share capital and all reserves created out of the profits and securities premium account and debit or credit balance ofprofit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, but does not include reserves created out of revaluation of assets / fair value gain of Freehold land on transition to Ind AS of Rs. 80.98 million, and write back of depreciation and amalgamation, in accordance with Regulation 2(1)(hh) of the SEBIICDR Regulations.
9. Return on Equity (%) is calculated as PAT divided by net worth.
10. Return on Capital Employed (RoCE) is calculated as EBIT divided by capital employed where (i) EBIT means EBITDA minus depreciation and amortisation expense and (ii) Capital employed means total equity + total current & non-current borrowings minus cash and cash equivalents and other bank balances.
11. Debt to Equity Ratio is calculated as total borrowings divided by total equity.
12. Gross Block represents the gross value of all property plant and equipment as per Restated Financial Information.
13. Addition to Property, Plant and Equipment represents the addition to the Gross Block in the period as per Restated Financial Information.
14. Fixed Assets Turnover Ratio is calculated as revenue from operations for the year divided by net block ofproperty, plant and equipment.
15. Cash Conversion Cycle (in days) is calculated as inventory days plus trade receivable days minus trade payable days. Inventory days are calculated as Inventory divided by cost of goods sold multiplied by 365 days. Trade receivable days are calculated as Trade receivables divided by Revenue from operations multiplied by 365 days. Trade payable days are calculated as Trade payable divided by cost of goods sold multiplied by 365 days.
16. Total installed capacity is the maize crushing capacity of our Company in metrics tonnes per day.
17. No. of employees is the aggregate number of employees employed during the year by our Company.
18. No. of customers is the aggregate customers served by our Company.
Our average procurement price of maize decreased by 11.61% between Fiscal 2023 and Fiscal 2024 and increased by 8.56% between Fiscal 2024 and Fiscal 2025 which impacted the cost of procurement.
Further, our Companys outstanding borrowings increased from Rs. 1,889.32 million as on March 31, 2023, to Rs. 5,070.48 million as on March 31, 2025, which resulted in an increase in finance cost from Rs. 112.45 million to Rs. 373.50 million. Further, our employee benefits expense increased from Rs. 175.10 million during Fiscal 2023 to Rs. 246.44 million during Fiscal 2025 due to an increase in the number of employees from 372 to 469. Due to aforementioned reasons our total expenses increased at a CAGR of 35.34%. During the same period, the revenue from operations increased at a CAGR of 36.95%.
Accordingly, the expenditure increase was disproportionate to the revenue increase, which has resulted in lower profitability.
For detailed comparison please refer the sub-head ‘Fiscal 2025 compared with Fiscal 2024 and ‘Fiscal 2024 compared with Fiscal 2023 under the chapter ‘Managements Discussion and Analysis of Financial Condition and Results of Operations on page number 409 and 411, respectively.
Our ROCE marginally decreased from 10.99% in Fiscal 2023 to 10.07% in Fiscal 2024. The reasons observed for ebbs in ROCE (%) is due to the increase in our total borrowings by 89.07% from Rs. 1,889.32 million in Fiscal 2023 to Rs. 3,572.13 million in Fiscal 2024.
Non-GAAP Measures are not standardised terms, hence a direct comparison of Non-GAAP Measures between companies may not be possible. Other companies may calculate the Non-GAAP Measure differently from us, limiting its usefulness as a comparative metric. Although Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that it is useful to an investor in evaluating us because it is a widely used measure to evaluate a companys operating performance. See ‘Risk Factors - Certain non-GAAP financial measures and certain other statistical information relating to our operations and financial performance such as EBITDA, EBITDA margin, return on capital employed, PAT margin and return on equity, fixed asset turnover ratio and inventory turnover ratio have been included in this Red Herring
Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable. on page 66.
PRINCIPAL COMPONENTS OF OUR STATEMENT OF PROFIT AND LOSS Income
Income comprises revenue from operations and other income.
Revenue from operations Revenue from operations comprises:
(i) Sale of products; and
Set out below is a reconciliation of revenue from sale of products with contract price.
(in Rs. million)
| Particulars | Financial year ended | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | |
| Contract Price (Gross) | 9,107.78 | 6,009.88 | 4,832.09 |
| Less: Trade Discount on sales return | 50.18 | 29.27 | 18.13 |
| Contract Price (Net of Return)* | 9,057.60 | 5,980.61 | 4,813.96 |
| Less: Discounts and Incentives | 77.38 | 73.98 | 64.62 |
| Revenue from Sales of Goods | 8,980.22 | 5,906.63 | 4,749.34 |
* Represents sale ofproducts before deducting discounts and incentives but net of returns.
(ii) Other operating revenue:
a. Sales of scrap and other items;
b. Export incentives; and
c. Reimbursement of GST as subsidy.
Other income
Other income comprises (i) interest income (ii) rent income, (iii) insurance claims, (iv) gain on restatement of investments measured at FVTPL (v) gain on foreign exchange transactions (net), (vi) gain on sale of fixed assets, (vii) gain on sale of mutual funds, (viii) liabilities no longer required to be written back, (ix) commission from financial guarantee, (x) miscellaneous income, and (xi) reversal of expected credit loss.
Expenses
Our total expenses comprise (i) Cost of materials consumed (ii) Purchase of stock in trade, (iii) changes in inventories of finished goods and stock in trade, (iv) employee benefits expense, (v) finance costs, (vi) depreciation and amortization expense and (vii) other expenses.
Cost of materials consumed
Cost of materials consumed comprises the cost of raw material i.e. maize.
Purchase of stock-in-trade
Purchase of traded goods consists primarily of bulk volumes of maize that we purchase that we sell to traders and Customers.
Changes in inventories of finished goods and stock-in-trade
Changes in inventories of finished goods and stock-in-trade consists of net increases or decreases in inventories of finished goods, stock in trade and scrap and other items.
Employee benefits expense
Our employee benefits expenses consist of salaries, wages and bonus (including Directors remuneration), contributions to provident and other funds, expenses on ESOP Scheme, gratuity expenses and staff welfare expenses.
Other expenses
Our other expenses comprises of stores and spares consumed, packing material consumed, labour charges, power and fuel (Net of subsidy), freight and forwarding charges, rent and hire charges, repairs and maintenance of plant & machinery, building & others, insurance, rates and taxes, travelling and conveyance expenses, payment to auditors, legal and professional charges, commission, advertisement and publicity, business promotion expenses, donation, CSR expenses, bad and doubtful debt written off, provision for expected credit loss (including against credit impaired), security and housekeeping and miscellaneous expenses.
Results of Operations
The following table provides certain information with respect to our results of operations for Fiscal 2025, Fiscal 2024, and Fiscal 2023 from our Restated Financial Information and each item as a percentage of total income for the years indicated.
Particulars |
Fiscal 2025 |
Fiscal 2024 |
Fiscal 2023 |
|||
| (Rs.) in million | (%) of Total Income | (Rs.) in million | (%) of Total Income | (Rs.) in million | (%) of Total Income | |
INCOME |
||||||
Revenue from operations |
9,151.61 | 99.74 | 6,000.23 | 99.82 | 4,879.55 | 99.85 |
Other income |
24.15 | 0.26 | 10.54 | 0.18 | 7.19 | 0.15 |
Total income |
9,175.76 | 100.00 | 6,010.77 | 100.00 | 4,886.74 | 100.00 |
EXPENSES |
||||||
Cost of materials consumed |
5,308.85 | 57.86 | 3,270.28 | 54.41 | 2,926.81 | 59.89 |
Purchase of Stock in Trade |
1,400.49 | 15.26 | 1,321.83 | 21.99 | 581.32 | 11.90 |
Changes in inventories of finished goods and Stock in trade |
(63.33) | (0.69) | (270.88) | (4.51) | (27.17) | (0.56) |
Employee benefits expense |
246.44 | 2.69 | 203.72 | 3.39 | 175.10 | 3.58 |
Finance costs |
373.50 | 4.07 | 194.65 | 3.24 | 112.45 | 2.30 |
Depreciation and amortisation expense |
140.56 | 1.53 | 88.27 | 1.47 | 75.53 | 1.55 |
Other expenses |
1,131.26 | 12.33 | 911.63 | 15.17 | 816.76 | 16.71 |
Total expenses |
8,537.77 | 93.05 | 5,719.50 | 95.15 | 4,660.80 | 95.38 |
Profit before tax |
637.99 | 6.95 | 291.27 | 4.85 | 225.94 | 4.62 |
Tax expense |
||||||
- Current tax |
106.60 | 1.16 | 28.53 | 0.47 | 37.74 | 0.77 |
- Deferred tax |
54.71 | 0.60 | 41.32 | 0.69 | 20.62 | 0.42 |
Total Tax Expense |
161.31 | 1.76 | 69.85 | 1.16 | 58.36 | 1.19 |
Profit for the year |
476.68 | 5.19 | 221.42 | 3.68 | 167.58 | 3.43 |
Other comprehensive income/(loss) for the year |
||||||
Item that will not be subsequently reclassified to profit or loss |
||||||
(a) Re-measurement gains/(losses) on defined benefit obligations |
2.11 | 0.02 | 0.75 | 0.01 | 0.62 | 0.01 |
(b) Income tax effect on above |
(0.53) | 0.01 | (0.19) | 0.00 | (0.16) | 0.00 |
Total other comprehensive income/(loss), net of tax |
1.58 | 0.02 | 0.56 | 0.01 | 0.46 | 0.01 |
Total comprehensive income for the year |
478.26 | 5.21 | 221.98 | 3.69 | 168.04 | 3.44 |
Fiscal 2025 compared with Fiscal 2024 Total income
Our total income increased by 52.66% from Rs. 6,010.77 million in Fiscal 2024 to Rs. 9,175.76 million in Fiscal 2025 primarily due to an increase in our revenue from operations from Rs. 6,000.23 million to Rs. 9,151.61 million.
Revenue from operations
Our revenue from operations increased by 52.52% from Rs. 6,000.23 million in Fiscal 2024 to Rs. 9,151.61 million in Fiscal 2025 primarily on account of an increase in sale of products from Rs. 5,906.63 million to Rs. 8,980.22 million. The aforementioned increase was on account of an increase in the sale of (i) manufactured goods from Rs. 4,826.94 million in Fiscal 2024 to Rs. 7,454.73 million in Fiscal 2025, and (ii) traded goods from Rs. 1,079.69 million in Fiscal 2024 to Rs. 1,525.49 million in Fiscal 2025.
Other income
Our other income increased from 129.13% from Rs. 10.54 million in Fiscal 2024 to Rs. 24.15 million in Fiscal 2025. Total expenses
Our total expenses increased by 49.27% from Rs. 5,719.50 million in Fiscal 2024 to Rs. 8,537.77 million in Fiscal 2025 primarily due to an increase in our (i) cost of materials consumed from Rs. 3,270.28 million in Fiscal 2024 to Rs. 5,308.85 million in Fiscal 2025, (ii) purchase of stock-in-trade from Rs. 1,321.83 million in Fiscal 2024 to Rs. 1,400.49 million in Fiscal 2025, (iii) finance costs from Rs. 194.65 million in Fiscal 2024 to Rs. 373.50 million in Fiscal 2025, and (iv) other expenses from Rs. 911.63 million in Fiscal 2024 to 1,131.26 million in Fiscal 2025.
Cost of materials consumed
Our cost of materials consumed increased by 62.34% from Rs. 3,270.28 million in Fiscal 2024 to Rs. 5,308.85 million in Fiscal 2025 due to an increase in consumption of our primary raw material i.e. maize, commensurate with the increase in our revenue from manufactured goods.
Purchases of stock-in-trade
Our purchases of stock-in-trade marginally increase by 5.95% from Rs. 1,321.83 million in Fiscal 2024 to Rs. 1,400.49 million in Fiscal 2025 due to increase in purchase of our primary raw material maize, commensurate with the increase in sale from traded goods.
Changes in inventories of finished goods and stock-in-trade
Our change in inventories of finished goods and stock-in-trade moved from Rs. (270.88) million in Fiscal 2024 to Rs. (63.33) million in Fiscal 2025. The table below depicts the movement in our inventories of finished goods and stock- in-trade.
Inventory at the end of the year
Particulars |
Fiscal 2025 | Fiscal 2024 |
| Finished goods | 207.96 | 60.80 |
| Stock in trade | 180.97 | 266.84 |
| Scrap and Other Items | 2.62 | 0.58 |
| 391.55 | 328.22 | |
Inventories at the beginning of the year |
||
| Finished goods | 60.80 | 55.60 |
| Stock in trade | 266.84 | - |
| Scrap and Other Items | 0.58 | 1.74 |
| 328.22 | 57.34 | |
Changes in inventories |
(63.33) | (270.88) |
Employee benefits expense
Our employee benefits expense increased by 20.97% from Rs. 203.72 million in Fiscal 2024 to Rs. 246.44 million in Fiscal 2025 primarily due to an increase in salaries, wages and bonus (including directors remuneration) from Rs. 176.27 million in Fiscal 2024 to Rs. 206.26 million in Fiscal 2025 due to an increase in the number of employees from 410 to 469, and expenses on ESOP Scheme (which was approved by our Board and our shareholders on November 4, 2024) of Rs. 12.23 million during Fiscal 2025.
Finance costs
Our finance costs increased by 91.88% from Rs. 194.65 million in Fiscal 2024 to Rs. 373.50 million in Fiscal 2025 due to (i) increase in interest expense on borrowing from Rs. 294.44 million in Fiscal 2024 to Rs. 451.43 million in Fiscal 2025; (ii) increase in interest expenses to others (i.e. Interest paid to MSME creditors for delay in payment) from Rs. nil in Fiscal 2024 to Rs. 0.52 million in Fiscal 2025; (iii) increase in other borrowing costs from Rs. 24.37 million in Fiscal 2024 to Rs. 29.04 million in Fiscal 2025; and (iv) decrease in interest capitalised from Rs. 95.32 million in Fiscal 2024 to Rs. 75.12 million in Fiscal 2025. This was partially offset by (i) increase in interest subsidy from Government from Rs. 37.94 million in Fiscal 2024 to 38.86 million in Fiscal 2025; (ii) decrease in interest on lease liabilities from Rs. 5.16 million in Fiscal 2024 to Rs. 4.82 million in Fiscal 2025; and (iii) decrease in interest expense on income tax from Rs. 3.94 million in Fiscal 2024 to Rs. 1.67 million in Fiscal 2025. The increase in interest expense on borrowings was on account of increase in (i) secured term loans from banks and non-banking financial companies from Rs. 1,367.36 million as at March 31, 2024 to Rs. 2,652.19 million as at March 31, 2025, and (ii) working capital loan from Rs. 739.51 million as at March 31, 2024 to Rs. 1,528.90 million as at March 31, 2025.
Depreciation and amortization expense
Our depreciation and amortization expense increased by 59.24% from Rs. 88.27 million in Fiscal 2024 to Rs. 140.56 million in Fiscal 2025. This was primarily due to an increase in gross value of (i) plant and equipment from Rs. 1,928.25 million as at March 31, 2024 to Rs. 2,412.49 million as at March 31, 2025, and (ii) buildings from Rs. 839.43 million as at March 31, 2024 to Rs. 1,165.53 million as at March 31, 2025, resulting in increase in depreciation on tangible assets from Rs. 83.09 million in Fiscal 2024 to Rs. 135.34 million in Fiscal 2025.
Other expenses
Our other expenses increased by 24.09% from Rs. 911.63 million in Fiscal 2024 to Rs. 1,131.26 million in Fiscal 2025 primarily due to an increase our (i) power and fuel expense (net of subsidies from the government) from Rs. 471.70 million in Fiscal 2024 to Rs. 503.12 million in Fiscal 2025, (ii) freight and forwarding charges from Rs. 190.18 million in Fiscal 2024 to Rs. 269.29 million in Fiscal 2025, (iii) stores and spares consumed from Rs. 34.10 million in Fiscal 2024 to Rs. 45.88 million in Fiscal 2025, (iv) labour charges from Rs. 52.54 million in Fiscal 2024 to Rs. 85.72 million in Fiscal 2025, (v) packing material consumed from Rs. 55.27 million in Fiscal 2024 to Rs. 97.43 million in Fiscal 2025, (vi) repairs and maintenance (on plant and machinery, building and others) from Rs. 25.44 million in Fiscal 2024 to Rs. 43.98 million in Fiscal 2025, and (vii) legal and professional charges from Rs. 12.81 million in Fiscal 2024 to Rs. 16.19 million in Fiscal 2025, which was partially offset by a decrease primarily due to decrease in (i) rates and taxes from Rs. 4.95 million in
Fiscal 2024 to Rs. 4.35 million in Fiscal 2025, (ii) commission from Rs. 9.58 million in Fiscal 2024 to Rs. 7.82 million in
Fiscal 2025, and (iii) business promotion expenses from Rs. 4.10 million in Fiscal 2024 to Rs. 3.08 million in Fiscal 2025.
Profit before tax
On account of the foregoing our profit before tax increased by 119.04% from Rs. 291.27 million in Fiscal 2024 to Rs. 637.99 million in Fiscal 2025.
Tax expense
Our tax expense increased from Rs. 69.85 million in Fiscal 2024 to Rs. 161.31 million in Fiscal 2025 due to an increase in current tax expense from Rs. 28.53 million in Fiscal 2024 to Rs. 106.60 million in Fiscal 2025 and deferred tax expense from Rs. 41.32 million in in Fiscal 2024 to Rs. 54.71 million in Fiscal 2025.
Profit after tax for the year
As a result of the foregoing our profit after tax for the year increased by 115.28% from Rs. 221.42 million in Fiscal 2024 to Rs. 476.68 million to Fiscal 2025.
Fiscal 2024 compared with Fiscal 2023
Total income
Our total income increased by 23.00% from Rs. 4,886.74 million in Fiscal 2023 to Rs. 6,010.77 million in Fiscal 2024 primarily due to an increase in our revenue from operations from Rs. 4,879.55 million to Rs. 6,000.23 million.
Revenue from operations
Our revenue from operations increased by 22.97% from Rs. 4,879.55 million in Fiscal 2023 to Rs. 6,000.23 million in Fiscal 2024 primarily on account of an increase in sale of products from Rs. 4,749.34 million to Rs. 5,906.63 million. The aforementioned increase was on account of an increase in the sale of (i) manufactured goods from Rs. 4,155.25 mill ion in Fiscal 2023 to Rs. 4,826.94 million in Fiscal 2024, and (ii) traded goods from Rs. 594.09 million in Fiscal 2023 to Rs. 1,079.69 million in Fiscal 2024.
Other income
Our other income increased by 46.59% from Rs. 7.19 million in Fiscal 2023 to Rs. 10.54 million in Fiscal 2024.
Total expenses
Our total expenses increased by 22.71% from Rs. 4,660.80 million in Fiscal 2023 to Rs. 5,719.50 million in Fiscal 2024 primarily due to an increase in our (i) cost of materials consumed from Rs. 2,926.81 million in Fiscal 2023 to Rs. 3,270.28 million in Fiscal 2024, and (ii) purchase of stock-in-trade from Rs. 581.32 million in Fiscal 2023 to Rs. 1,321.83 million in Fiscal 2024.
Cost of materials consumed
Our cost of materials consumed increased by 11.74% from Rs. 2,926.81 million in Fiscal 2023 to Rs. 3,270.28 million in Fiscal 2024 due to an increase in consumption of our primary raw material i.e. maize, commensurate with the increase in our revenue from manufactured goods.
Purchases of stock-in-trade
Our purchases of stock-in-trade increase by 127.38% from Rs. 581.32 million in Fiscal 2023 to Rs. 1,321.83 million in Fiscal 2024 due to increase in purchase of our primary raw material maize, commensurate with the increase in sale from traded goods.
Changes in inventories of finished goods and stock-in-trade
Our change in inventories of finished goods and stock-in-trade moved from Rs. (27.17) million in Fiscal 2023 to Rs. (270.88) million in Fiscal 2024. The table below depicts the movement in our inventories of finished goods and stock- in-trade.
(in Rs. million)
Particulars |
Fiscal 2024 | Fiscal 2023 |
Inventory at the end of the year |
||
| Finished goods | 60.80 | 55.60 |
| Stock in trade | 266.84 | - |
| Scrap and Other Items | 0.58 | 1.74 |
| 328.22 | 57.34 | |
Inventories at the beginning of the year |
||
| Finished goods | 55.60 | 30.17 |
| Stock in trade | - | - |
| Scrap and Other Items | 1.74 | - |
| 57.34 | 30.17 | |
Changes in inventories |
(270.88) | (27.17) |
Employee benefits expense
Our employee benefits expense increased by 16.34% from Rs. 175.10 million in Fiscal 2023 to Rs. 203.72 million in Fiscal 2024 primarily due to an increase in salaries, wages and bonus (including directors remuneration) from Rs. 157.75 million to Rs. 176.27 million due to an increase in the number of employees from 372 to 410.
Finance costs
Our finance costs increased by 73.10% from Rs. 112.45 million in Fiscal 2023 to Rs. 194.65 million in Fiscal 2024 due to (i) increase in interest expense on borrowing from Rs. 165.86 million in Fiscal 2023 to Rs. 294.44 million in Fiscal 2024; (ii) decrease in interest subsidy from government from Rs. 67.28 million in Fiscal 2023 to Rs. 37.94 million in Fiscal 2024. This was partially offset by increase in Interest capitalised from Rs. 21.21 million in Fiscal 2023 to 95.32 million in Fiscal 2024. The increase in Interest expense on borrowings was on account of increase in (i) secured term loans from banks and non-banking financial companies from Rs. 992.51 million as at March 31, 2023 to Rs. 1,367.36 million as at March 31, 2024, (ii) unsecured loans from related parties from Rs. 270.37 million as at March 31, 2023 to Rs. 1,460.24 million as at March 31, 2024, and (iii) working capital loan from Rs. 421.96 million as at March 31, 2023 to Rs. 739.51 million as at March 31, 2024.
Depreciation and amortization expense
Our depreciation and amortization expense increased by 16.87% from Rs. 75.53 million in Fiscal 2023 to Rs. 88.27 million in Fiscal 2024. This was primarily due to an increase in gross value of (i) plant and equipment from Rs. 998.74 million as at March 31, 2023 to Rs. 1,928.25 million as at March 31, 2024, and (ii) buildings from Rs. 525.93 million as at March 31, 2023 to Rs. 839.43 million as at March 31, 2024, resulting in increase in depreciation on tangible assets from Rs. 67.91 million in Fiscal 2023 to Rs. 83.09 million in Fiscal 2024.
Other expenses
Our other expenses increased by 11.62% from Rs. 816.76 million in Fiscal 2023 to Rs. 911.63 million in Fiscal 2024 primarily due to an increase our (i) power and fuel expense (net of subsidies from the government) from Rs. 447.47 million in Fiscal 2023 to Rs. 471.70 million in Fiscal 2024, (ii) freight and forwarding charges from Rs. 140.95 million in Fiscal 2023 to Rs. 190.18 million in Fiscal 2024, (iii) stores and spares consumed from Rs. 19.93 million in Fiscal 2023 to Rs. 34.10 million in Fiscal 2024, and (iv) labour charges from Rs. 42.11 million in Fiscal 2023 to Rs. 52.54 million in Fiscal 2024, which was partially offset by a decrease primarily repairs and maintenance expense of plant and machinery from Rs. 24.08 million in Fiscal 2023 to Rs. 12.24 million in Fiscal 2024, and travelling and conveyance expense from Rs. 11.95 million in Fiscal 2023 to Rs. 9.71 million in Fiscal 2024.
Profit before tax
On account of the foregoing our profit before tax increased by 28.91% from Rs. 225.94 million in Fiscal 2023 to Rs. 291.27 million in Fiscal 2024.
Tax expense
Our tax expense increased from Rs. 58.36 million in Fiscal 2023 to Rs. 69.85 million in Fiscal 2024 due to an increase in deferred tax expense from Rs. 20.62 million to Rs. 41.32 million which was partially offset by a decrease in our current tax from Rs. 37.74 million to Rs. 28.53 million.
Profit after tax for the year
As a result of the foregoing our profit after tax for the year increased by 32.13% from Rs. 167.58 million in Fiscal 2023 to Rs. 221.42 million to Fiscal 2024.
Liquidity and capital resources
As on March 31, 2025, our Company had a sum aggregating Rs. 537.88 million in cash and cash equivalents (balance with banks in current accounts/cash credit accounts) and earmarked deposits with bank in form of debt service reserve account and fixed deposits equivalent to 3 months of debt obligations.
Historically, our Company has been able to finance the growth of our business through the funds generated from our operations, debt facilities from banks, and equity infusion. Our Company believes that it will have sufficient capital to meet its anticipated capital requirements for working capital requirements for the 12 months following the date of this Red Herring Prospectus.
The following table sets forth certain information concerning our cash flows for Fiscal 2025, Fiscal 2024, and Fiscal 2023:
(Rs. in million)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Net cash flow from / (used in) operating activities (A) | (112.01) | (225.14) | 346.29 |
| Net cash (used in) investing activities (B) | (1,279.92) | (1,063.08) | (693.78) |
| Net cash flow from financing activities (C) | 1,723.12 | 1,485.06 | 347.56 |
| Net increase/(decrease) in cash and cash equivalents (A+B+C) | 331.19 | 196.84 | 0.07 |
Cash flow from operating activities
Fiscal 2025
Our net cash flow used in operating activities in the Fiscal 2025 was Rs. 112.01 million. While our profit before tax was Rs. 637.99 million, our operating profit before working capital changes was Rs. 1,149.47 million primarily due to depreciation and amortisation expense of Rs. 135.51 million, depreciation on right to use assets Rs. 5.05 million, finance cost of Rs. 368.68 million, and expenses on ESOP Scheme of Rs. 12.23 million. Working capital changes included an increase primarily in (i) trade receivables of Rs. 91.70 million, (ii) inventories of Rs. 612.67 million, (iii) other financial and non financial assets of Rs. 391.52 million, and decrease in (i) trade payables of Rs. 63.18 million, and (ii) decrease in other financial and non financial liabilities of Rs. 10.81 million. This was further adjusted by taxes paid (net of refund) of Rs. 91.60 million.
Fiscal 2024
Our net cash flow used in operating activities in the Fiscal 2024 was Rs. 225.14 million. While our profit before tax was Rs. 291.27 million, our operating profit before working capital changes was Rs. 572.21 million primarily due to depreciation and amortisation expense of Rs. 83.22 million, depreciation on right to use assets Rs. 5.05 million and finance cost of Rs. 189.49 million. Working capital changes included an increase in Fiscal 2024 primarily in (i) trade receivables of Rs. 548.67 million, (ii) inventories of Rs. 265.66 million, and (iii) other financial and non-financial assets of Rs. 83.84 million, and due to decrease in other financial and non financial liabilities of Rs. 4.68 million which was partially offset by an increase in trade payables of Rs. 141.14 million. This was further adjusted by taxes paid (net of refund) of Rs. 35.64 million.
Fiscal 2023
Our net cash flow generated from operating activities in the Fiscal 2023 was Rs. 346.29 million. While our profit before tax was Rs. 225.94 million, our operating profit before working capital changes was Rs. 413.78 million primarily due to depreciation and amortisation expense of Rs. 68.05 million, depreciation on right to use assets t7.48 million and finance cost of Rs. 107.87 million. Working capital changes included an increase in Fiscal 2023 primarily in (i) trade receivables of Rs. 376.41 million and (ii) other financial and non financial assets of Rs. 75.96 million which was partially offset by an increase inter alia in trade payables of Rs. 247.46 million, decrease in inventories of Rs. 219.76 million and increase in other financial and non financial liabilities of Rs. 9.84 million. This was further adjusted by taxes paid (net of refund) of Rs. 92.18 million.
Cash flow from investing activities
Fiscal 2025
Our net cash flow used in investing activities in Fiscal 2025, was Rs. 1,279.92 million which comprised payment for acquisition of property, plant and equipment, CWIP and intangible assets of Rs. 1,280.91 million and investment in fixed deposit of Rs. 8.93 million which was partially offset by proceeds from redemption of mutual funds of Rs. 9.24 million and interest received of Rs. 0.68 million.
Fiscal 2024
Our net cash flow used in investing activities in Fiscal 2024, was Rs. 1,063.08 million which comprised primarily payment for acquisition of property, plant and equipment, CWIP and intangible assets of Rs. 1,049.74 million and investment in mutual fund of Rs. 14.92 million which was partially offset by proceeds from sale / disposal of fixed assets of Rs. 1.34 million and interest received of Rs. 0.24 million.
Fiscal 2023
Our net cash flow used in investing activities in Fiscal 2023, was Rs. 693.78 million which comprised primarily payment for acquisition of property, plant and equipment, CWIP and intangible assets of Rs. 695.89 million which was partially offset by proceeds from sale / disposal of fixed assets of Rs. 0.02 million, capital subsidy of Rs. 1.84 million and interest received of Rs. 0.25 million.
Cash flow from financing activities
Fiscal 2025
Our net cash from financing activities for Fiscal 2025 was Rs. 1,723.12 million which comprised primarily proceeds from (i) non-current borrowings from banks and NBFCs, (ii) non-current borrowings from related parties and others (net), and (iii) current borrowing from banks and NBFCs (net), of Rs. 1,621.09 million, Rs. 24.13 million and, Rs. 789.39 million, respectively, which was partially offset by repayment of (i) non-current borrowings from banks and NBFCs of Rs. 336.26 million, and (ii) interest paid of Rs. 366.58 million.
Fiscal 2024
Our net cash from financing activities for Fiscal 2024 was Rs. 1,485.06 million which comprised primarily proceeds from (i) non-current borrowings from banks and NBFCs, (ii) non-current borrowings from related parties and others (net), and (iii) current borrowing from banks and NBFCs (net), of Rs. 790.42 million, Rs. 1,030.61 million and, Rs. 317.55 million, respectively, which was partially offset by repayment of (i) non-current borrowings from banks and NBFCs of Rs. 455.78 million, and (ii) interest paid of Rs. 189.09 million
Fiscal 2023
Our net cash from financing activities for Fiscal 2023 was Rs. 347.56 million which comprised primarily proceeds from (i) non-current borrowings from banks and NBFCs, (ii) current borrowing from banks and NBFCs (net) and (iii) issue of equity shares (Including share premium) of Rs. 369.12 million, and Rs. 190.34 million and Rs. 40.46 million, respectively, which was partially offset by (i) repayment of non-current borrowings from banks and NBFCs of Rs. 97.28 million, (ii) interest paid of Rs. 109.16 million, and (iii) dividend paid of Rs. 28.76 million.
Capital Expenditure
Set out below are the details of the capital expenditure of our Company during Fiscal 2025, Fiscal 2024, and Fiscal 2023:
(Amounts in f million)
Particulars |
Fiscal 2025 |
Fiscal 2024 |
Fiscal 2023 |
| Capital Expenditure | 1,156.29 | 1,290.75 | 624.01 |
| Nature and Purpose | Capital Expenditure for freehold land, buildings, plant and machinery, office equipment, electrical installation | Capital Expenditure for freehold land, plant and machinery and electrical and other expenditures, building, electrical equipment, silos, plant infrastructure and dryer. | Capital expenditure for freehold land, plant and machinery and electrical and other expenditures, building, electrical equipment, preliminary and preoperative expenditures. |
| Justification | Capacity building, increase storage, infrastructure and purchase of additional assets | Capacity building, increase storage, infrastructure and purchase of additional assets. | Capacity building and purchase of additional assets. |
| Board Approval date | November 4, 2024 | April 1, 2021, and December 21, 2023 | April 1, 2020, and April 1, 2021 |
FINANCIAL INDEBTEDNESS
As of June 30, 2025, our total sanctioned and outstanding indebtedness was Rs. 8,734.60 million and Rs. 5,611.53 million, respectively. For further details of our indebtedness, see ‘Financial Indebtedness on page 378.
CONTINGENT LIABILITIES AND COMMITMENTS
Set out below are the contingent liabilities and capital commitments as on March 31, 2025, March 31, 2024, and March 31, 2023.
(in Rs. million)
Particulars |
As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
Contingent Liabilities |
|||
Demands/claims by various government authorities and other claims not acknowledged as debts: |
|||
| - Goods and Service Tax | - | - | 1.62 |
| - Income tax | 23.29 | 23.29 | 23.29 |
Guarantee |
|||
| Guarantees to financial institutions against credit facilities extended to third parties | - | 232.14 | - |
Total |
23.29 | 255.43 | 24.91 |
Particulars |
As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
Capital commitments |
|||
Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) |
1,169.12 | 71.03 | 208.28 |
JCT ITEMS FROM OUR STATEMENT OF ASSETS AND LIABILITIES
(in Rs. million)
Particulars |
As at | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | |
| (a) Inventories | 1,183.45 | 570.78 | 305.12 |
| (b) Financial assets | |||
| (i) Investments | - | 11.19 | - |
| (ii) Trade receivables | 1,368.72 | 1,267.35 | 719.37 |
| (iii) Cash and cash equivalents | 528.95 | 197.76 | 0.92 |
| (iv) Bank Balances other than (iii) above | 8.93 | - | - |
| (v) Other Financial Asset | 125.14 | 58.36 | 115.77 |
| (c) Current tax assets | 3.17 | 3.17 | 0.52 |
| (d) Other Current Assets | 562.92 | 244.33 | 105.00 |
Total Current Assets |
3,781.28 | 2,352.94 | 1,246.70 |
Current Liabilities
(in Rs. million)
Particulars |
As at | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | |
| (a) Financial liabilities | |||
| (i) Borrowings | 2,027.01 | 1,059.81 | 637.29 |
| (ii) Lease liabilities | 4.22 | 3.83 | 1.18 |
| (iii) Trade payables | |||
| - total outstanding dues of micro enterprises and small enterprises | 0.75 | 14.00 | 8.71 |
| - total outstanding dues of creditors other than micro enterprises and small enterprises | 479.32 | 533.03 | 398.51 |
| (iv) Other Financial Liabilities | 327.74 | 174.10 | 71.41 |
| (b) Other current liabilities | 15.10 | 19.60 | 30.53 |
| (c) Provisions | 0.97 | 0.42 | 0.32 |
| (d) Current Tax Liability (Net) | 16.38 | 1.38 | 5.84 |
Total current liabilities |
2,871.49 | 1,806.17 | 1,153.79 |
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or which we believe are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenue or expenses, operating results, liquidity, capital expenditure or capital resources.
We have engaged in the past, and may engage in the future, in transactions with related parties, including with our Promoters, Directors, KMP and Group Companies on an arms length basis, in compliance with applicable law. Such transactions could be for remuneration to directors and KMP, loans availed from such related parties, rent, purchase of land etc. For further details of our related party transactions, please see ‘Restated Financial Information - Note 46 - Related Party Disclosures on page 364.
Summary of reservations or qualifications or matters of emphasis or adverse remarks of auditors
Except as set out below there are no reservations, qualifications or matters of emphasis in our Restated Financial Information.
Matter of Emphasis
We draw attention to Note 55 of the financial statements which states that the Company has not complied with the provisions of section 149, 177 and 178 of the Act with respect to appointment of Independent Directors, constitution of audit committee and remuneration committee during the year ended March 31, 2023. However, as stated in the note the same has been complied with by the company subsequently on appointment of requisite number of Independent Directors on April 10, 2023 and constitution of the committees with effect from May 23, 2023 and July 17, 2023.
Our opinion on the financial statements is not modified in respect of the above matter.
Change in accounting policies
Other than as disclosed in the Restated Financial Information, there have been no changes in accounting policies in immediately preceding last 3 Fiscals.
Quantitative and Qualitative Disclosures about Financial Risk
Financial management of our Company has been receiving attention of our top management. Our management considers finance as the lifeline of the business and, therefore, financial management is carried out meticulously on the basis of detailed management information systems and reports at periodical intervals extending from daily reports to long-term plans. Importance is laid on liquidity and working capital management with a view to reduce overdependence on borrowings and reduction in interest cost. Various kinds of financial risks and their mitigation plans are as follows:
A. Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Our Company is exposed to credit risk from its operating activities (primarily trade receivables). On account of adoption of Ind AS 109, our Company uses an expected credit loss model to assess the impairment loss.
a. Trade Receivables
Customer credit risk is managed by our Companys established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and reconciled. Based on historical trend, industry practice and the business environment in which we operate, an impairment analysis is performed at each reporting date for trade receivables.
b. Other Financial Assets
Credit risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions who have been assigned high credit rating by international and domestic rating agencies.
B. Liquidity Risk
Our Companys objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. Our Company relies on a mix of borrowings and excess operating cash flows to meet the need for funds. Our Company monitors rolling forecasts of liquidity requirements to ensure we have sufficient cash to meet operational needs.
For maturity analysis for our financial liabilities see ‘Restated Financial Information - Note 47 - Financial Risk Management, on page 367.
C. Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of foreign exchange risk and interest rate risk.
a. Foreign Exchange Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Our Companys exposure to the risk of changes in foreign exchange rates relates primarily to our Companys operating activities. Our Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on our Company.
Set out in the table blow is our exposure to foreign currency in USD at the end of the reporting period expressed in Rs..
(in Rs. million)
| Particulars | As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
| Financial Assets | |||
- Trade Receivables |
17.45 | 101.65 | 14.76 |
| Net Exposure | 17.45 | 101.65 | 14.76 |
b. Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates. Our Companys exposure to the risk of changes in market interest rate relates primarily to our borrowing with floating interest rates. Set out in the table below is a break-up of our exposure to interest rate risk. (in Rs. million)
| Particulars | As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
| Financial Liability | |||
- Fixed rate instruments |
889.39 | 1,465.26 | 474.85 |
- Variable rate instruments |
4,181.09 | 2,106.87 | 1,414.47 |
Seasonality / Cyclicality of business
The primary raw material required for the manufacturing of our products i.e., maize, is seasonal. The sowing and harvesting seasons have a significant impact on the demand and supply of maize. We purchase and stock maize during the harvesting season when its available in abundance. Our raw material inventory as at March 31, 2025, March 31, 2024, and March 31, 2023, which was Rs. 672.42 million, Rs. 141.99 million, and Rs. 161.52 million, respectively. Please see ‘Restated Financial Information - Note W at page 344.
Unusual or infrequent events or transaction
Except as set out in this Red Herring Prospectus, there have been, to our knowledge, no unusual or infrequent events or transactions that have in the past, or may in the future, affect our business operations or future financial performance.
Extent to which material increases in net sales or revenue are due to increased sales volume, and increased sales prices
The reasons for the increase in revenue from operations and total income has been described above under ‘Fiscal 2025 compared with Fiscal 2024 and ‘Fiscal 2024 compared with Fiscal 2023 , on pages 409 and 411, respectively.
Total turnover of each major industry segment in which our Company operated
We are a maize based specialty products manufacturer and we operate only in one segment viz., ‘manufacture of maize starch.
Significant dependence on a single or few suppliers or Customers
For details of our dependence on a few suppliers or customers see ‘Risk Factors - We cater to diverse set of customers, however, our top 10 customers contribute a majority of our sales, and the loss of such customers or a substantial reduction in purchases by such customers will have a material adverse impact on our business, results of operations and financial condition and ‘Purchase of maize from our top 10 vendors constituted more than 83% of our total cost ofpurchase of maize, in each of the financial periods disclosed, and we typically do not enter into long-term contracts or arrangements with such vendors. Any loss of such vendors/suppliers or any increase in the price could have adverse impact on our business and our revenue. on pages 42 and 36, respectively.
Significant economic changes that materially affect or are likely to affect income from continuing operations
Other than as described above, and in the chapters ‘Risk Factors and ‘Our Business on pages 36 and 238, respectively, to the best of the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations.
Known Trends or Uncertainties
Our business has been, and we expect will continue to be, subject to trends and factors identified above in this chapter under the sub-heading ‘Significant factors affecting our financial condition and results of operations on page 387 and the uncertainties described in the section ‘Risk Factors on page 36.
Future Relationships between Costs and Income
Other than as described in ‘Risk Factors , ‘Our Business and in this chapter ‘Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 36, 238 and 382, respectively, to our knowledge, there are no known factors that may have a material adverse impact on our business, results of operations and financial condition.
New Services or Business Segments
Except as disclosed in this Red Herring Prospectus, we have not announced and do not expect to announce any new services or business segments in the near future.
Significant Developments after April 1, 2025 that may affect our results of operations
Except as disclosed in this Red Herring Prospectus, there are, to our knowledge, no significant developments after the date of the last financial statements contained in this Red Herring Prospectus which materially and adversely affects, or is likely to affect, our operations or profitability, or the value of our assets, or our ability to pay our material liabilities within the next 12 months.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.