Deco Mica Limited is an established Indian manufacturer specializing in high-quality **Decorative Laminate Sheets**. Operating under the flagship brand **Heritage Surfaces**, the company maintains a professional management structure led by the founding family. The company operates as a standalone entity with **no subsidiaries, associates, or joint ventures**, focusing exclusively on the manufacturing and global distribution of laminates. --- ### **Operational Infrastructure & Product Portfolio** The company’s industrial footprint is centered at its manufacturing facility in **Rajpur, Gujarat**. Deco Mica distinguishes itself through a blend of indigenous innovation and a diverse product catalog. * **Manufacturing Hub:** Located at **Plot No. 1195, Rajpur Village, Chhatral Mehsana Highway, Mehsana, Gujarat**. * **Product Range:** Offers a comprehensive selection of colors and high-quality finishes designed for both residential and commercial applications. * **Technological Edge:** Utilizes indigenously developed technologies to enhance production efficiency and mitigate rising manual labor costs. * **Sustainability Initiatives:** Management is currently evaluating **alternate energy sources** and specialized energy conservation equipment to optimize the manufacturing process. * **Digital Strategy:** The company employs a dedicated **Head of Design and Digital Strategy** (with a sanctioned annual salary limit of **₹60,00,000**) to modernize its market presence and product aesthetics. --- ### **Financial Performance & Revenue Streams** Deco Mica maintains a stable revenue profile, though recent years have shown slight fluctuations in profitability and a shift in geographical contribution. | Metric (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Total Revenue** | **7,771.97** | **7,727.18** | **7,830.09** | | **Profit After Tax (PAT)** | **194.80** | **230.98** | **228.22** | | **Domestic Revenue** | *Pending* | **5,165.10** | **5,116.01** | | **Export Revenue** | *Pending* | **2,562.08** | **2,714.08** | **Geographical Dynamics:** * **Domestic Market:** Remains the primary revenue driver, contributing approximately **66-67%** of total turnover. * **Global Footprint:** Exports account for **25% to 35%** of total sales. The company is actively pursuing aggressive business development to penetrate untapped international regions. --- ### **Capital Structure & Solvency Profile** The company maintains a consistent capital base but carries significant debt relative to its equity, primarily to fund working capital. * **Share Capital:** **Authorised Share Capital** stands at **₹5.00 Crore**, with a **Paid-up Capital** of **₹4.20 Crore** (comprising **42,00,000 equity shares** at **₹10** each). * **Dematerialization:** As of March 31, 2024, **87.83%** of equity shares are held in dematerialized form. * **Debt Position (as of March 31, 2024):** * **Total Debt:** **₹2,095.25 Lakhs** * **Net Debt:** **₹1,982.80 Lakhs** (adjusted for cash/bank balances) * **Net Debt to Equity Ratio:** **79.00%** * **Dividend Policy:** The company has recently prioritized **strategic initiatives** and internal accruals over dividend payouts, transferring no amounts to general reserves in the latest cycles. --- ### **Leadership & Corporate Governance** Deco Mica is currently navigating a transition in its governance framework, balancing long-term leadership stability with regulatory compliance challenges. * **Executive Leadership:** **Mr. Vijay Kumar Dindayal Agarwal** was re-appointed as **Managing Director** for a **5-year term** effective **April 1, 2024**. Despite being over **70 years of age**, his continuity is viewed as vital for organizational stability. His remuneration is capped at **₹100 Lakhs per annum**. * **Board Oversight:** **Mrs. Dyuti Vyas** was appointed as an **Additional and Non-Executive Independent Director** in **November 2024** for a **5-year term** to strengthen independent oversight. * **Governance Lapses:** The company recently faced penalties totaling **₹10,79,700** paid to the **BSE** due to non-compliance with **SEBI (LODR) Regulations 17(1) and 18(1)** regarding board and committee composition following a director's demise. * **Director Ineligibility:** As of August 2025, two Independent Directors (**Nupur Bipinchandra Modi** and **Gunjan Yogesh Pandya**) vacated their offices under **Section 167(1)(b)** for failing to attend meetings and failing the **IICA Online Proficiency Self-Assessment Test**. --- ### **Risk Management & Contingent Liabilities** The company operates in a cyclical, commodity-driven industry and manages several financial and legal exposures. **1. Working Capital & Credit Risk:** * **Trade Receivables:** Represent **₹39.18 Crore** (**49.47% of total assets**). This is a **Key Audit Matter** due to the materiality and judgment required for impairment assessments. An impairment provision of **₹72.03 Lakhs** is currently in place. **2. Market & Financial Risks:** * **Currency Exposure:** Moderate risk from both ends; **Exports** (approx. **28.72%** of sales) and **Imports** (approx. **26.82%** of purchases). * **Interest Rate Sensitivity:** A **50 bps change** in interest rates impacts **Profit Before Tax** by approximately **₹9.47 Lakhs**. **3. Legal & Contingent Liabilities (as of March 31, 2025):** | Nature of Liability | Amount (₹ in Lakhs) | Status | | :--- | :---: | :--- | | **Letter of Credit** | **325.50** | Outstanding | | **Customer Claims** | **49.21** | Pending in Consumer Dispute Redressal Committee | | **Income Tax (Disputed)** | **17.84** | Rectification pending | | **Capital Commitments** | **16.73** | For non-current asset acquisitions | | **GST Demand** | **5.28** | Show Cause Notice received | | **Bank Guarantee** | **5.25** | Provided to Customs Department | | **Labor Cases** | **Unascertainable** | Pending litigation | --- ### **Strategic Outlook** Deco Mica’s strategy is focused on **market share protection** and **geographic diversification**. To counter intensifying competition from both organized and unorganized players, the company is adopting aggressive promotional campaigns and focusing on customer retention. While governance hurdles and high receivable levels present challenges, the company’s reliance on indigenous technology and a strong export pipeline provides a foundation for long-term organizational growth.