Gautam Exim Limited is a specialized **import trader and facilitator** primarily serving the paper, chemical, and metal industries. Established in **1997**, the company acts as a critical intermediary in the industrial supply chain, sourcing raw materials from global markets to supply domestic manufacturers. The company is currently undergoing a transformative phase involving a **complete change in promoter control**, a **strategic pivot** toward integrated paper distribution, and a **major capital restructuring**. --- ### **Core Operational Model: Asset-Light Import Facilitation** The company operates a **zero-inventory trading model**, designed to minimize overhead and eliminate the risks associated with physical warehousing. * **Waste Paper Segment (Import Aggregation):** This is the company's primary business. It procures waste paper and pulp from the **USA, UK, Europe, Middle East, and Australia**. Transactions are structured on a **"High Sea Sale" basis**, where goods are sold to customers while still in transit. This allows the company to operate without maintaining godowns or storage facilities. * **M.S. Metal Scrap Segment:** Active since **2010**, the company procures scrap from local vendors and facilitates delivery to manufacturers on a **"Bill to" and "Ship to" basis**, ensuring direct transit from supplier to end-customer. * **Infrastructure & Technology:** As a pure trading entity, the company has **no manufacturing operations** and **zero capital investment** in energy conservation or technology absorption. --- ### **Product Portfolio and Market Presence** | Segment | Key Products | Primary Customers | | :--- | :--- | :--- | | **Paper Industry** | Imported Waste Paper, Pulp, Indigenous Waste Paper | Gujarat-based mills: **Shah Paper Mills**, **Gajanand Paper Mills**, **Akshat Paper Mills** | | **Chemicals** | Specialty Chemicals | Regional chemical manufacturing units | | **Metals** | M.S. Metal Scrap | TMT bar manufacturers: **Jay Bharat Metcast Pvt. Ltd.** | --- ### **Strategic Pivot and Management Transition (2024–2026)** Following a **September 2024 Share Purchase Agreement (SPA)**, the company has transitioned from its original founders to a new promoter group, triggering a mandatory **Open Offer** and a shift in corporate strategy. * **New Leadership:** **Mr. Raj Kumar Agrawal** and **Mr. Parmeshwar Ojha** acquired **22,46,625** shares (**72.92%** stake) at **₹18.50** per share. Following the Open Offer (priced at **₹43.00**), the new promoters assumed effective control. * **Board Restructuring:** **Mr. Balasubramanian Raman** was appointed as **Whole-time Director** (July 2025 – July 2028). **Mr. Vishad Jaiswal** joined as Company Secretary in **March 2026**. * **Forward Integration:** The company is evolving from a raw material importer into an integrated partner. It is securing distributorships for finished products, including **Kraft paper, writing & printing paper, and newsprint**, targeting the **Middle East** and domestic education sectors. * **Geographic Shift:** The Board has proposed relocating the **Registered Office** from **Gujarat to Rajasthan**. --- ### **Capital Restructuring Plan (April 2026)** To enhance market liquidity and reward shareholders following the change in control, the company is implementing a comprehensive capital expansion: | Action | Pre-Action Status | Post-Action Status | | :--- | :--- | :--- | | **Stock Split** | Face Value **₹10** | Face Value **₹5** | | **Authorized Capital** | **₹5.00 Crore** | **₹13.00 Crore** | | **Bonus Issue Ratio** | N/A | **3:1** (3 new shares for every 1 held) | | **Total Paid-up Shares** | **30,81,000** | **2,46,48,000** | *Note: The company will capitalize up to **₹9.24 Crore** from **Free Reserves** to execute the bonus issue.* --- ### **Financial Performance Trends** The company has faced a severe contraction in scale over the last three fiscal years, which management attributes to a "growing stage" and a focus on internal restructuring. | Metric (Rs. in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Turnover** | **3,530.81** | **16,762.79** | **27,955.34** | | **Net Profit (PAT)** | **13.32** | **14.94** | **37.13** | | **YoY Revenue Growth** | **(78.94%)** | **(40.04%)** | -- | * **Revenue Erosion:** Turnover has declined by approximately **87%** over two years. * **Dividend Policy:** No dividends were recommended for **FY24** or **FY25**, as earnings are being retained for expansion. * **Forex Exposure:** In FY23, the company recorded a foreign exchange outgo of **₹245.42 Crore (USD 30.41 Million)** with **zero** foreign exchange earnings. --- ### **Critical Risk Factors** #### **1. Regulatory and Legal (GST Litigation)** The company is contesting a major tax demand of **₹12.39 Crore** (covering April 2018 – August 2023) before the **Gujarat High Court**. * **The Allegation:** The **DGGI, Surat** alleges the company used "bogus" invoices from non-existent suppliers (**M/s Ganpati Traders**, etc.) to claim **Input Tax Credit (ITC)** without actual receipt of goods. * **Defense:** Management asserts all transactions are backed by **E-way bills** and physical delivery. #### **2. Concentration and Market Risks** * **Customer Concentration:** The **top 5 customers** account for **90%** of total revenue. Metal scrap sales are heavily reliant on a single client, **Jay Bharat Metcast Pvt. Ltd.** * **Contractual Risk:** Business is conducted via **spot purchase orders** rather than long-term contracts, leading to low revenue visibility. * **Macro Volatility:** Profitability is highly sensitive to **international freight rates**, **USD/INR exchange rates**, and global waste paper price cycles. #### **3. Market Liquidity** * **Trading Status:** Shares are listed on the **BSE SME Exchange** but are classified as **infrequently traded**. * **Surveillance:** The stock has been placed under **Enhanced Surveillance Measure (ESM) Stage** by the exchange as of late 2025.