Hisar Spinning Mills Limited is a specialized Indian textile manufacturer dedicated to the production of high-quality **cotton and blended yarns**. Operating from its centralized manufacturing hub in Haryana, the company serves the global apparel industry, positioning itself as a sustainable supplier for international fashion houses. The company operates as a **single-segment entity**, ensuring streamlined decision-making and operational efficiency under a unified management framework. --- ### **Manufacturing Infrastructure & Asset Base** The company’s industrial footprint is concentrated at a single, strategically located works site. The facility is equipped to handle the integrated processes of yarn spinning and distribution. | Feature | Details | | :--- | :--- | | **Location** | 9th K.M. Stone, Hisar-Bhiwani Road, V.P.O. Dabra (Hisar)-125005, Haryana | | **Land Area** | **34 kanals and 14 marlas** (**20,993.5 sq. yards**) | | **Asset Valuation Policy** | PPE stated at cost less accumulated depreciation; **Deemed cost** adopted as of **April 1, 2016** | | **Depreciation Method** | **Diminishing balance method** (Written Down Value) | The company maintains a policy of continuous maintenance and periodic technological assessment of its plant and machinery to ensure competitive manufacturing standards. --- ### **Product Portfolio & Global Market Dynamics** The company’s core business is the manufacturing and sale of **Cotton Yarn Blended** products. As the global textile industry shifts toward **sustainable fashion**, the company’s focus on natural fibers provides a competitive advantage. * **Market Positioning:** India is the **second-largest** textile manufacturer globally. Hisar Spinning Mills leverages this national advantage, utilizing abundant raw materials and labor-intensive manufacturing strengths. * **Sustainability Trends:** Cotton yarn is increasingly viewed as the "excellent choice" for global fashion houses seeking to meet environmental targets, leading to a **significant increase in product demand**. * **Macroeconomic Resilience:** Despite global headwinds such as the Russia-Ukraine war—which caused supply chain disruptions and inflation—the global textile market maintained a **CAGR of 6.6%** through 2023. * **Supply Chain Recovery:** Management notes that supply chains are returning to **normalization**, which is expected to stabilize pricing and margins after a period of high volatility in raw material costs. --- ### **Strategic Leadership & Governance Framework** The company is governed by a Board of **six members**, structured to provide a balance of executive expertise and independent oversight. * **Board Composition:** * **Two Executive Directors:** Including one woman director (**Mrs. Sapna Kansal**, term valid until **December 13, 2025**). * **One Non-Executive Director.** * **Three Non-Executive Independent Directors.** * **Key Leadership:** * **Managing Director:** Mr. Anurag Gupta (Re-appointed for a **3-year term** effective **December 29, 2024**). * **Chief Executive Officer:** Mr. Naveen Kansal. * **Chief Financial Officer:** Mr. Sharad Goel. * **Strategic Continuity:** The Board prioritizes leadership stability. Mr. Anurag Gupta’s remuneration has been periodically enhanced (notably in **2017** and **2021**) to align with performance and statutory standards under **Schedule V** of the Companies Act, 2013. --- ### **Financial Performance & Capital Management** Hisar Spinning Mills maintains a conservative financial profile, characterized by a consistent reduction in leverage and a focus on internal accruals for growth. **Comparative Financial Highlights:** | Metric (₹ in Crore) | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | | **Gross Receipts** | **46.80** | **36.85** | | **Profit After Tax (PAT)** | **3.31** | **4.13** | **Solvency and Liquidity Trends:** The company has successfully optimized its capital structure, resulting in a significantly improved **Net Debt-to-Equity** ratio. | Particulars (₹ in Lakhs) | March 31, 2024 | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | :--- | | **Total Debt** | **308.72** | **294.37** | **463.94** | | **Less: Cash & Equivalents** | **171.72** | **26.42** | **102.58** | | **Net Debt** | **137.00** | **267.95** | **361.36** | | **Total Equity** | **2,226.37** | **2,024.00** | **1,690.99** | | **Net Debt-to-Equity** | **0.06** | **0.13** | **0.21** | * **Dividend Policy:** To support future expansion and maintain liquidity, the Board has opted to retain profits within **Retained Earnings** rather than declaring a dividend. * **Public Deposits:** The company does not accept or renew any public deposits. --- ### **Credit Facilities & Collateral Structure** The company utilizes secured credit lines from **Punjab National Bank (PNB)** and **Small Industries Development Bank of India (SIDBI)** to fund working capital and energy efficiency projects. | Facility Type | Security/Collateral Details | | :--- | :--- | | **Primary Security** | First charge via hypothecation on all movables (plant, machinery, spares, tools). | | **Collateral Security** | First **pari passu charge** (PNB & SIDBI) via equitable mortgage of factory land and building at Hisar. | | **SIDBI Energy Loan** | **₹4.45 crore** (Guaranteed under Partial Risk Sharing Facility for Energy Efficiency). | | **SIDBI Secured Loan** | **₹3.00 crore** (Secured by **₹75.00 lakh** FD pledge). | | **Personal Guarantees** | Irrevocable personal guarantees provided by **Mr. Anurag Gupta**, **Mrs. Sapna Kansal**, and **Mr. Nikhil Goel**. | --- ### **Risk Management & Regulatory Compliance** The company operates a structured risk mitigation framework to address market, financial, and legislative exposures. * **Regulatory Transition:** The company is preparing for the implementation of the **Code on Social Security 2020**. As of **June 2025**, it has recognized **₹13.00 lakhs** as past service cost expenses related to employee benefit plan amendments under **Ind AS 19**. * **Financial Risks:** * **Credit Risk:** Rated as **Low**; managed through individual creditworthiness analysis and monthly sale limit reviews. * **Interest Rate Risk:** The company is exposed to fluctuations through **₹463.94 lakhs** in variable rate borrowings. * **Liquidity Risk:** Managed via rolling cash flow forecasts and committed credit lines. * **Actuarial Risks:** Gratuity plans are subject to **Investment**, **Longevity**, and **Salary risks**. A decline in interest rates specifically increases the present value of these liabilities. * **Governance Standards:** * **POSH:** Maintains a **Zero Tolerance** policy; **zero complaints** reported. * **SEBI Compliance:** While maintaining a risk framework, the company is currently exempt from **Regulation 21 of SEBI (LODR) Regulations, 2015**. * **Subsidiaries:** The company has **no subsidiaries, associates, or joint ventures**, simplifying its risk profile to a single operational entity.