**Afloat Enterprises Limited** (formerly known as **Adishakti Loha and Ispat Limited**) is a diversified trading and financial services house listed on the **BSE SME Platform** (**Script Code: 543377**). Originally incorporated in **2015**, the company has undergone a significant strategic pivot, transitioning from a specialized metals trader to a broad-based multi-commodity intermediary and financial services provider. --- ### **Corporate Identity & Strategic Evolution** The company has evolved through three distinct phases to align its corporate identity with its expanding operational scope: 1. **Aawas Infratech Private Limited (2015):** Initial incorporation and foundational phase. 2. **Adishakti Loha and Ispat Limited (2020):** Focused primarily on the trading of iron and steel. 3. **Afloat Enterprises Limited (October 2023–Present):** Current identity reflecting a diversified mandate including precious metals, agricultural commodities, and financial services. --- ### **Diversified Business Verticals** Afloat Enterprises operates as a multi-commodity intermediary, providing value-added services including **trading, distribution, processing, and market-making**. Its operations are organized into four primary pillars: * **Precious Metals & Stones:** A core focus on the procurement and sale of **gold bars and coins**, alongside dealings in **carbon (diamonds)** and other non-ferrous materials. * **Metals & Industrial Scraps:** Trading and processing of **iron and steel** products, including **tin plates, ETP Sheets, TFS, mild steel, carbon steel, and stainless steel**. The company also manages industrial **scraps**. * **Agricultural Commodities:** A newly integrated vertical focused on the import, export, and domestic trading of food grains, including **wheat, rice, paddies, corn, and cereals**. * **Financial Services (Emerging):** Management has identified a growth gap in **Small Business and Industrial Loans**. The strategy targets micro and small businesses (Handicrafts, Livestock, Services) that lack the collateral required by traditional banking systems. --- ### **Financial Performance & Capital Structure** The company has demonstrated a notable turnaround in profitability, transitioning from a pre-tax loss to a positive bottom line through enhanced operational efficiencies, despite a contraction in top-line revenue. #### **Comparative Financial Summary** | Metric | FY 2022-23 (INR) | FY 2021-22 (INR) | | :--- | :--- | :--- | | **Total Revenue from Operations** | **4,05,94,620** | **6,35,06,904** | | **Profit / (Loss) Before Tax** | **9,67,693** | **(2,00,525)** | | **Profit After Tax (PAT)** | **7,30,142** | **92,593** | #### **Capital Infusion & Liquidity** To fund its expansion and working capital needs, the company executed a major capital raising exercise in **2025**: * **Preferential Allotment:** Issued **80,00,000 Equity Shares** (converted from warrants) at **Rs. 12.80 per share** (including a **Rs. 2.80 premium**). * **Total Funds Raised:** **Rs. 10.24 Crores**, allotted on **May 16, 2025**, with BSE listing approval received in **July 2025**. * **Authorized Capital Expansion:** Increased from **Rs. 4.66 Crores** to **Rs. 19.56 Crores** to facilitate growth. * **Debt Profile:** The company maintains a clean record with **no public deposits** accepted under **Section 73** and no outstanding unclaimed deposits. --- ### **Operational Infrastructure & Governance** Afloat Enterprises operates with a lean corporate structure designed for agility in the SME segment. * **Leadership:** **Ms. Anshu Aggarwal** was appointed as **Chief Executive Officer** in **June 2023** to spearhead the strategic diversification. * **Compliance Status:** As a BSE SME-listed entity, the company is currently exempt from **Regulation 15(2) of SEBI LODR** (Paid-up capital **<₹10 Crores**; Net worth **<₹25 Crores**). * **Audit & Oversight:** **M/s G Aakash & Associates** has been appointed as Secretarial Auditor for a **5-year term** (April 2025 – March 2030). * **Asset Base:** The company maintains a portfolio of **Property, Plant, and Equipment** but holds **no intangible assets** or immovable property as of recent filings. It maintains investments under **Section 186** of the Companies Act. --- ### **Risk Management Framework** The company employs a systematic approach to identify and mitigate risks inherent in commodity trading and micro-lending. | Risk Category | Key Focus Areas | | :--- | :--- | | **Business Risk** | Operating environment, management quality, and **System & Policy** implementation. | | **Financial Risk** | **Asset Quality**, liquidity management, and maintaining **Capital Adequacy**. | #### **Critical Challenges & Threats** * **Funding Constraints:** The primary identified threat is the potential inability to **raise future funds** at a scale necessary to support the expanded business objects. * **Credit Appraisal Complexity:** Moving into financial services for **Micro and Small Businesses** requires high-risk credit assessment, particularly for loans lacking **collateral security**. * **Macroeconomic Sensitivity:** The company is exposed to global volatility and the specific health of the **Agriculture, Livestock, and Handicraft** sectors. * **Market Disconnect:** Management notes a potential risk in the current disconnect between market confidence and underlying **economic fundamentals** in emerging markets. --- ### **Investment Outlook** Afloat Enterprises is positioned as a high-growth, high-agility SME. By diversifying away from a pure-play steel trading model into **Precious Metals** and **Agri-commodities**, the company has de-risked its revenue streams. The recent **Rs. 10.24 Crore** capital infusion provides the necessary runway to execute its new mandate in the **Food Industry** and **Financial Services** sectors. Investors should monitor the company's ability to scale its loan book while maintaining asset quality in the uncollateralized micro-business segment.