**Khoobsurat Limited**, incorporated in **1982** and headquartered in **Kolkata, West Bengal**, is a public limited company currently undergoing a fundamental strategic transformation. Historically focused on capital market activities and financial services, the company is aggressively pivoting toward the manufacturing and retail sectors, specifically targeting the alcoholic beverage industry in India. --- ### **Strategic Pivot: The Goa Brewery Project** The company is transitioning from a pure-play financial firm to an industrial operator through a strategic alliance with **Salcete Brewing Limited**. This diversification represents the core of the company’s future growth strategy. * **Facility & Infrastructure:** The project is located at **Cuncolim Industrial Estate, Goa (Plots SA-22 & SA-23)**. The site features a **borewell (85 meters depth)** capable of yielding **10,000 liters/day** and a state-of-the-art **Brew-house and Bottling Plant**. * **Technology & Execution:** The facility will utilize **German-integrated bottling and brewing technology**. A technical team from **Germany** is scheduled for a site visit in **March 2026** to oversee the final stages. * **Regulatory Milestones:** The project has secured **Consent to Establish** from the Goa State Pollution Control Board and received **License approval** from the Government of Goa in **April 2025**. * **Operational Timeline:** * **March 15, 2026:** Completion of Brew-house and Fermentation tank installation. * **April 2026:** Scheduled brewing of the **first test batch**. * **FY 2025-26:** Target for the commencement of **commercial production**. --- ### **Legacy Financial Operations & Asset Management** Despite the pivot, the company continues to manage a legacy portfolio under its **Finance & Investments** segment. * **Financing & Credit:** Providing loans and credit facilities under **Section 186** of the Companies Act, 2013. * **Treasury Management:** Active trading in **Commodities**, **Equity Shares**, and debt instruments to generate interest income and capital gains. * **Asset Portfolio Composition (as of March 31, 2025):** * **Loans Disbursed:** **₹949.25 Lakhs** * **Advances:** **₹1,008.95 Lakhs** * **Deposits:** **₹638.54 Lakhs** * **Trade Receivables:** **₹490.64 Lakhs** --- ### **Capital Structure & Rights Issue Utilization** To fund its industrial expansion, the company has significantly expanded its capital base and successfully tapped the equity markets. | Metric | Details | | :--- | :--- | | **Authorized Capital** | Increased from **₹15.00 Crore** to **₹65.00 Crore** | | **Paid-up Equity Capital** | **₹4,702.73 Crore** (**47,02,73,250** shares at **₹1/-** par) | | **Rights Issue (June 2024)** | Raised **₹33.74 Crore** (Target was **₹49 Crore**) | | **Rights Entitlement Ratio** | **50:19** (50 new shares for every 19 held) | **Reallocation of Rights Issue Proceeds:** The company has dynamically reallocated funds to optimize cash flow for the brewery project: * **Salcete Brewing Investment:** **₹255.00 Lakhs** (Invested in a phased manner). * **Corporate Offices:** Reduced from **₹350.00 Lakhs** to **₹200.00 Lakhs**; geographic scope expanded from Kolkata/Mumbai to **Pan-India**. * **Working Capital/Expansion:** **₹201.00 Lakhs** (Reallocated from unutilized office and issue expense funds). --- ### **Financial Performance Trends** The company’s financials reflect the costs of transition and the impact of conservative accounting standards (**Ind AS 109**). | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Total Revenue** | **118.00** | **120.00** | **73.30** | | **Profit / (Loss) Before Tax** | **(222.51)** | **19.76** | **36.49** | | **Profit / (Loss) After Tax** | **(269.71)** | **(31.40)** | **27.08** | | **Dividend Declared** | **Nil** | **Nil** | **Nil** | * **Profitability Impact:** The recent net loss is primarily attributed to **Expected Credit Loss (ECL)** adjustments and financial valuations rather than a drop in top-line revenue. * **Accounting Adjustments:** The company treated prior period omissions as errors, adjusting retained earnings retrospectively to comply with **Ind AS** requirements. --- ### **Corporate Restructuring & Governance** * **Geographic Shift:** The company is moving its **Registered Office** from **West Bengal** to **Salcete, South Goa**, to ensure direct oversight of the brewery operations. * **Delisting:** The Board approved delisting from the **Calcutta Stock Exchange (CSE)** in June 2024 to streamline listing compliance, while remaining active on the **BSE Limited**. * **Management:** The core team remains stable. Recent board additions include **Mrs. Sudipta Bhattacharya** and **Ms. Haimonti Das** as Independent Directors. * **Related Party Oversight:** An **Independent Chartered Accountant Firm** certifies all **Related Party Transactions (RPT)** before Audit Committee review. * **Inter-company Links:** Shared directorships exist with **NCL Research & Financial Services Limited**, **Tanaya Vincom Private Limited**, and **Durgadevi Raiment Limited**. --- ### **Critical Risk Factors & Regulatory Challenges** Investors should note significant regulatory and valuation risks that could impact the company's stability. **1. Regulatory Non-Compliance:** * **Unregistered NBFC Status:** The company operates as a financial entity meeting **Section 45-IA (RBI Act)** criteria but lacks a formal **NBFC License** from the **RBI**. * **Exchange Penalties:** The company has incurred fines from **CSE (₹2,46,800)** and **BSE (₹35,400)** for delays in financial filings and RPT disclosures. * **Rights Issue Dispute:** The **Rights Issue** was conducted without prior **CSE** approval; the company faces potential penalties for this delayed listing application. **2. Asset Quality & Valuation:** * **Unlisted Investments:** **₹12.22 Crore** is held in unlisted shares. Fair value is only updated annually, leading to potential "cliff-edge" valuation changes. * **Pending Advances:** **₹11.37 Crore** (gross) is tied up in advances for share acquisitions that have not yet materialized. * **Credit Impairment:** **₹49.67 Lakhs** in trade receivables are overdue by more than **3 years**. Furthermore, interest income on several loans is not being recognized as it cannot be "crystallized" from counterparties. **3. Market & Operational Risks:** * **Interest Rate Sensitivity:** As a lender, margins are highly susceptible to **RBI** monetary policy shifts. * **Execution Risk:** The successful launch of the brewery in **FY 2025-26** is critical to offset the current losses in the financial segment.