Bloom Industries Limited is an Indian public limited company headquartered in **Rourkela, Odisha**, specializing in the **Trading of Iron & Steel** and related products. Listed on the **BSE Limited**, the company operates as a pure-play trading entity, leveraging an asset-light model that prioritizes process efficiency and strategic sourcing over manufacturing infrastructure. --- ### **Core Business Model & Revenue Recognition** The company operates within a **single reportable segment**: **Iron & Steel Trading**. Its business activities are conducted exclusively within the **geographical territory of India**, focusing on the industrial hubs of Odisha. * **Revenue Framework:** In accordance with **Ind AS 115**, the company utilizes a **control-based revenue recognition model**. Revenue is recognized at the point in time when control of the goods is transferred to the customer. * **Reporting Standards:** Financials are prepared net of **discounts** and exclude **Goods and Service Tax (GST)**. * **Asset-Light Strategy:** The company maintains no internal **Research and Development (R&D)** activities or associated expenditures, focusing instead on trading margins and supply chain management. * **Operating Cycle:** The company has identified its primary operating cycle as **12 months**. --- ### **Financial Performance & Capital Structure** Bloom Industries has experienced significant volatility in its top-line performance over the last three fiscal years, characterized by a sharp peak in **FY 2023-24** followed by a correction in **FY 2024-25**. #### **Comparative Financial Summary (Rs. Lakhs)** | Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Income from Operations** | **2,356.26** | **3,007.73** | **1,345.32** | | **Other Income** | **17.65** | **49.98** | **2.12** | | **Profit Before Tax (PBT)** | **60.18** | **63.22** | **49.99** | | **Profit After Tax (PAT)** | **49.41** | **56.53** | **45.50** | | **Depreciation** | **0.70** | **--** | **--** | #### **Debt and Equity Management** The company utilizes a **gearing ratio** (net debt divided by total equity) to monitor its capital structure, aiming to balance shareholder value with the cost of capital. * **Equity Capital:** The **Paid-up Equity Capital** stands at **₹6.96 Crore** (including forfeited shares) and has remained stable for three reporting periods. * **Debt Reduction:** Net debt was successfully reduced to **Rs. 512.24 Lakhs** in **FY 2024-25**, down from **Rs. 699.34 Lakhs** the previous year. * **Secured Borrowings:** The company services a **Term Loan** from **New India Co-op Bank Ltd** at an interest rate of **10.25% p.a.**, secured by land and buildings in **Sundargarh, Odisha**. * **Dividend Policy:** Currently, the company **does not distribute dividends**, reinvesting all surplus capital into operational needs and strategic stability. --- ### **Governance, Leadership & Compliance Strategy** The company is currently undergoing a systematic refreshment of its leadership to align with **SEBI (LODR) Regulations, 2015** and enhance corporate oversight. * **Board Restructuring:** Recent key appointments include **Mr. R P Gupta** as **Chairman** (Non-Executive, Non-Independent) and **Mr. Ajay Kumar Sinha** as an **Independent Director** (effective August 2023). * **Audit Continuity:** Shareholders have approved the appointment of **M/s. Gopinath Nayak & Associates** as **Secretarial Auditor** for a **5-year term** (extending to **FY 2029-30**). * **Transparency:** The company consistently maintains **Unmodified Opinions** from statutory auditors, signaling rigorous adherence to **Regulation 30** and **Regulation 33** of Listing Regulations. #### **Key Leadership & Remuneration (FY 2024-25)** | Position | Appointee | Remuneration | | :--- | :--- | :--- | | **Chairman** | Mr. R P Gupta | -- | | **Whole Time Director** | Mr. Akash Gupta | **Rs. 12,00,000/-** | | **Company Secretary** | Ms. Priya Bhatter | **Rs. 2,18,500/-** | | **Independent Director** | Mr. Ajay Kumar Sinha | Appointed Aug 2023 | *Note: There was **nil percentage increase** in the remuneration of Directors, CFO, and CS during the 2024-25 period.* --- ### **Operational Risk Framework & Mitigation** The **Executive Director**, acting as the **Chief Operating Decision Maker (CODM)**, oversees a risk management framework designed to address the inherent volatility of the steel sector. #### **Financial Risk Management** * **Credit Risk:** Managed via **Expected Credit Loss (ECL)** measurements. Current assets are classified as **good quality**. * **Liquidity Risk:** Management monitors cash flows to prevent credit rating impairment. There are currently **no Insolvency (IBC) proceedings** or one-time settlement proposals pending. * **Market Risk:** While the company uses derivatives to manage interest and price risks, it reports **zero foreign currency risk** as all operations are domestic. #### **Strategic & Operational Challenges** * **Reputation & Human Capital:** The company identifies **Reputation Risk** as a "very high" risk factor. With a lean workforce of only **2 employees** (as of March 2025), the company is highly dependent on the availability of **qualified and trained manpower**. * **Regulatory Compliance:** The company maintains a **Structured Digital Database** to track **Unpublished Price Sensitive Information (UPSI)** in compliance with **SEBI (Prohibition of Insider Trading) Regulations**. * **External Volatility:** The business remains vulnerable to fluctuations in **Government policies**, global demand/supply cycles, and volatile input costs. * **Legal Contingencies:** Provisions are recognized for present legal obligations, while **Contingent Liabilities** (detailed in Note 27 of the financial statements) are disclosed for potential past-event obligations. --- ### **Human Resources & Organizational Structure** Bloom Industries operates with a highly concentrated workforce. * **Employee Growth:** The headcount increased from **1 employee** in 2024 to **2 employees** in 2025. * **Median Remuneration:** The median employee remuneration for **FY 2024-25** was **Rs. 3,08,506/-**. * **Investor Protection:** The company reports no delays in transferring required amounts to the **Investor Education and Protection Fund (IEPF)** and no material foreseeable losses on long-term contracts.