IB Infotech Enterprises is a small listed company that spent most of its life dormant, earning nothing but interest on fixed deposits while it searched for a way to restart. That restart came in 2022, when it pivoted sharply from its original IT charter into supplying goods and services to a network of educational trusts and managing a hotel business - both tied to its promoter group. The recurring pattern is simple: the company uses related-party contracts with trusts and firms connected to its directors to generate its income, operating as a trading and services vehicle rather than a manufacturer. # Business segments A single operating engine - supplying goods and services to educational institutions - with a small hospitality side bet that was acquired from related parties. ## 1. Supply of goods and services to educational institutions: the company's sole operating engine **The company earns its income by selling everything from uniforms and stationery to computer hardware and transport services to a closed network of promoter-linked schools and colleges under three-year contracts.** - **One customer group, many items** - it supplies uniforms, stationery, electronic items, furniture, computer hardware and software, and even transport and maintenance services to educational institutions, all under contracts that treat it as a single "Operating Segment". - **Revenue locked in by related-party deals** - the Board approved three-year supply contracts in August 2022 with two charitable trusts: Thakur Educational Trust (worth ₹1.23 crores) and Sheth Vasantben Natwarlal Charitable Trust (worth ₹2.00 crores), making the company's income dependent on a handful of promoter-affiliated institutions. - **It holds inventory, but lightly** - the company carries stock-in-trade valued at the lower of cost and net realisable value on a FIFO basis, and recognises revenue from goods only when the risks and rewards of ownership pass to the institution, net of returns and taxes. - **No manufacturing, no exports** - the company does not make anything itself and has no foreign exchange transactions, so every rupee it earns comes from domestic trading and services within this closed institutional loop. ## 2. Hospitality management: a small related-party side bet **The company bought 81% of a hotel business from relatives of its promoter and signed a management contract to run it, aiming to earn fees from an industry it had never operated in before.** - **Acquired, not built** - in February 2022, the Board agreed to subscribe to 202,500 equity shares of Pearl Leisure Private Limited for ₹20.25 lakhs, giving it 81% ownership of a company incorporated in 2011 in Ahmedabad that had a turnover of roughly ₹131.50 lakhs at the time. - **A management contract layered on top** - simultaneously, the company proposed a five-year agreement with Pearl Leisure to manage its hotel operations - administration, marketing, catering, housekeeping, and lodging - for up to ₹10 crores per annum, creating a fee stream on top of the equity stake. - **Promoter overlap, but not called a related-party deal** - relatives of the promoter director were existing shareholders of Pearl Leisure, yet the acquisition was not classified as a related-party transaction. - **The subsidiary later disappeared from filings** - later annual reports state the company has no subsidiaries, suggesting the stake was sold or restructured, though the details are not disclosed in the available notes. # Group structure and partners **The company is a tightly held promoter vehicle with no operating subsidiaries, run by a husband-and-wife director pair who control nearly two-thirds of the shares.** - **Promoters hold the reins** - as of March 2023, Rita Rajkumar Singh held 45.47% and Rajkumar Singh held 18.49%, giving the promoter family a combined 63.96% stake, with their son Bavel Rajkumar Singh also serving as a Non-Executive Director during FY24. - **A small board with family at the centre** - the Board as of March 2025 comprised Mr. Rajkumar Singh (Non-Executive Director and spouse of Mrs. Rita Singh), Mrs. Rita Singh (Whole Time Director appointed in October 2024), and three other directors including two independents, so executive authority sits with the promoter family. - **No group companies, no holding structure** - the company has no holding company, no Core Investment Company, and no subsidiaries, associates, or joint ventures, making it a standalone listed entity with no corporate group around it. - **Listed but thinly traded** - its equity shares trade on the BSE under Scrip Code 519463, with both CDSL and NSDL connectivity for dematerialised holdings, and its registrar is Link Intime India Pvt Ltd.