Choksi Asia Limited (formerly **Choksi Imaging Limited**) has successfully executed a fundamental strategic pivot, transitioning from a declining medical film trading business to a high-growth, technology-intensive platform focused on **Non-Destructive Testing (NDT)** and industrial services. This transformation was solidified by the amalgamation with **Choksi Asia Private Limited**, effective **April 1, 2023** (formally approved by NCLT in **November 2024**). --- ### **The Strategic Pivot: From Medical Imaging to Industrial NDT** The company has shifted its core focus away from "sunset" medical diagnostic films—which are facing obsolescence due to digitalization—toward the **NDT industry**. This sector serves critical, high-barrier-to-entry industries including **Aerospace, Oil & Gas, Infrastructure, Nuclear Energy, and Defense**. * **Value Proposition Evolution:** Moving from a trading-centric model to a service-driven platform providing inspection, testing, evaluation, and operational diagnostics. * **Core Operations:** Processing and selling **X-Ray films**, **Lead Screens**, **Chemicals**, **Radiation Shielding Materials**, **X-Ray Generators**, **Radiography Cameras**, and **Radioactive Sources**. * **Manufacturing & Processing:** Operates a specialized factory in **Silvassa (Dadra & Nagar Haveli)** focused on the slitting and cutting of **Jumbo Rolls** of X-Ray films into various sizes. * **Human Capital Integration:** Post-merger, the company integrated a specialized workforce of **ASNT Level II & III** certified NDT technicians and engineers, essential for high-stakes industrial inspections. ### **Operational Infrastructure & Certifications** | Feature | Details | | :--- | :--- | | **Factory Location** | Survey No. 121, Plot No 10, Silvassa Industrial Estate, **Dadra & Nagar Haveli** | | **Registered Office** | Shifting from **Mumbai, Maharashtra** to **Silvassa** (Approved **Jan 2026**) | | **Key Certifications** | **ISO 9001:2015**; registrations granted by the **Department of Atomic Energy** | | **Market Reach** | **PAN India** (Domestic revenue accounts for **~99.95%** of turnover) | --- ### **Financial Performance & Scalability** The amalgamation has fundamentally altered the company's financial trajectory, resulting in a significant scaling of both top-line and bottom-line metrics. **Key Financial Indicators (FY 2024-25 vs FY 2023-24):** | Metric (INR Crore) | FY 2024-25 | FY 2023-24 (Restated) | Growth (%) | | :--- | :--- | :--- | :--- | | **Total Turnover** | **36.98** | **18.09** | **104.4%** | | **Net Profit** | **3.10** | **1.39** | **123.0%** | | **Cash & Cash Equivalents** | **9.99** | - | - | | **Long-term Borrowings** | **2.95** | **NIL** | - | * **Profitability Impact:** The merger reversed the standalone entity's historical weakness. For the period ended **March 31, 2024**, the standalone entity showed a **Loss Before Tax of ₹97.47 lakhs**, which was offset by the acquired entity's **Profit Before Tax of ₹247.23 lakhs**, resulting in a combined **Profit Before Tax of ₹149.76 lakhs**. * **Asset Valuation:** **Goodwill of ₹9.29 crore** was recognized following the merger. A fair value of **₹54 per Equity Share** (Face Value **₹10**) was determined during the process using the **Net Assets Value Method**. --- ### **Capital Structure & Shareholding Realignment** Following the merger and subsequent corporate actions in **May 2025**, the company’s capital structure was adjusted to reflect the new ownership and increased scale. * **Equity Share Capital:** The aggregate number of equity shares stands at **57,01,104** (listed on **BSE**). * **27,51,000** new shares were allotted to the transferor company shareholders on **May 29, 2025**. * **9,49,896** shares held as cross-holdings were cancelled to prevent dilution. * **Preference Shares:** Issued **9,97,545 Non-Convertible Redeemable Preference Shares (NCRPS)** at a par value of **₹54**. These are non-cumulative and unlisted. * **Authorised Capital:** Increased to **₹15.01 crore**, divided into **1,50,10,000** equity shares. * **Promoter Dynamics:** Following **BSE** approval in **July 2025**, the promoter group was reclassified. **Yamini Choksi** moved to the 'Public' category, while new family entities were added post-merger. The post-scheme promoter group shareholding is approximately **74.99%**. --- ### **Growth Strategy & Market Expansion** The company is aggressively pursuing diversification to mitigate the risks associated with traditional medical imaging. * **Strategic Partnerships:** In **November 2024**, the company signed a distributor agreement with **Kronix NDT Corporation** to expand its portfolio of NDT products and accessories. * **Expansion of Limits:** In **January 2026**, the Board proposed increasing the investment and loan limit under **Section 186** to **INR 60 Crores**, signaling intent for long-term strategic investments and potential inorganic growth. * **Sectoral Tailwinds:** * **Industrial NDT:** Capitalizing on the expanding industrial base in India and the mandatory nature of preventive inspections in **Power** and **Infrastructure**. * **Healthcare:** Targeting the rising public health spending (target **2.5% of GDP** by **2025**) by pivoting toward high-end diagnostic technology rather than just film. * **Geographic Ambition:** Exploring strategic partnerships in the **Middle East** and **Southeast Asia**. --- ### **Risk Management & Governance Framework** Choksi Asia Limited maintains a structured risk framework to navigate its transition and the inherent volatility of the industrial sector. **Operational & Strategic Risks:** * **Digitalization Risk:** The adoption of **PACS** and cloud-based imaging in healthcare continues to erode the medical film market, making the NDT pivot mission-critical. * **Human Capital Risk:** High dependence on **ASNT Level II & III** certified professionals; the company faces attrition risks due to high industry demand. * **Related Party Transactions:** The company maintains credit facilities with promoters (**Mr. Samir Choksi** and **Mr. Jay Choksi**) for loans/deposits up to **₹5 Crores** each at an interest rate of **7.45% p.a.** **Legal & Contingent Liabilities:** | Nature of Dispute | Amount (**₹ Lakhs**) | Status | | :--- | :--- | :--- | | **Special Additional Duty (SAD)** | **75.00** | Appeal with **CESTAT** (Mumbai) regarding 2011-14. | | **DEPB License Claim** | **18.60** | Appeal against export incentive orders. | | **GST Liability** | **2.55** | Pertaining to the **2018-19** period. | **Leadership:** * **Managing Director:** **Mr. Samir Choksi** (Re-appointed until **July 2028**). * **Whole-time Director:** **Mr. Jay Choksi** (Re-appointed until **August 2028**). * **Independent Oversight:** **Mrs. Shraddha Gandhi** (Appointed for a five-year term starting **November 2024**).