Mishka Exim Limited is a Delhi-based multi-product trading house specializing in the sourcing, distribution, and wholesale of lifestyle products and financial instruments. Operating on an entrepreneur-driven model, the company serves as a critical link in the Indian domestic supply chain for high-end textiles and jewellery. As of **FY2025**, the company remains focused exclusively on the Indian market, reporting no **foreign exchange earnings or expenditure**. --- ### **Core Business Verticals & Revenue Streams** The company’s operations are diversified across three primary reportable segments, catering to high-net-worth individuals (HNIs) and retail showrooms: * **Ornaments & Jewellery:** The primary revenue driver. The company engages in the wholesale trading of **gold and diamond jewellery**, featuring traditional, contemporary, and combination designs. These are supplied to jewellery retailers across India. * **Fabrics & Textiles:** Trading and distribution of a diverse portfolio including **silk, polyester, sarees, lace, net, coarse cotton, suiting, shirting, linen, and jute**. The company sources high-grade materials from both **domestic and international markets**. * **Financial Services & Share Trading:** Active engagement in the sale, purchase, and trading of **securities and shares**. This segment leverages the company's capital to generate returns from market volatility. --- ### **Group Structure & Strategic Consolidation** Mishka Exim is currently undergoing a significant corporate restructuring to streamline its interests and achieve **economies of scale**. In **January 2024**, the Board approved a draft scheme of amalgamation to merge several entities into **Cunning Ways Limited** (the Transferee). **Current Group Interests:** | Entity Name | Relationship | Ownership % | Principal Activity | | :--- | :--- | :--- | :--- | | **Mishka Capital Advisors Limited** | Subsidiary | **93.33%** | Capital advisory and financial services | | **Cross River Securities Limited** | Associate | **49.00%** | Securities and commodities brokerage | **Amalgamation Profile (Key Entities):** | Entity | Paid-up Capital (INR) | Turnover (Audited) | | :--- | :--- | :--- | | **Mishka Capital Advisors Ltd** | **1,50,00,000** | **209.03 Lacs** | | **Cunning Ways Limited** | **2,00,00,000** | **98.22 Lacs** | | **Varun Commtrade Pvt Ltd** | **50,00,000** | **1.97 Lacs** | The merger is designed to reduce **regulatory compliance costs**, eliminate redundant legal layers, and improve **organizational capability** for both organic and inorganic growth. --- ### **Financial Performance & Recovery Trajectory** After a period of revenue contraction, the company has demonstrated a successful pivot toward profitability. While revenue remains below historical peaks, the bottom line has transitioned from a loss to a steady profit. **Consolidated Financial Summary:** | Metric (INR Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **467.20** | **407.00** | **1,367.00** | | **Net Profit After Tax (PAT)** | **33.54** | **25.47** | **(40.78)** | | **Revenue Growth (YoY)** | **14.75%** | **(70.21%)** | — | **Liquidity and Capital Management:** * **Dividend Policy:** Management has elected to **skip dividends** for the recent financial cycles to prioritize **working capital requirements** and internal growth. * **Trade Receivables:** The company maintains a tight credit cycle, generally **30 to 45 days**. Receivables improved to **INR 92.81 Lakhs** in March 2025 (down from **INR 136.84 Lakhs** in 2024). * **Cash Position:** Consolidated **Cash & Cash Equivalents** stood at **INR 5.42 Lakhs** as of March 31, 2025, held with high-net-worth, reputed banks. * **Asset Integrity:** All title deeds for immovable properties are held in the company’s name; no **revaluations** or **Benami proceedings** are reported. --- ### **Future Roadmap: Retail Expansion & Market Positioning** Mishka Exim is shifting from a pure wholesale model toward a more integrated retail presence: * **Physical Footprint:** Plans are underway to establish dedicated **showrooms and outlets** across India to scale the Gems and Jewellery business. * **Textile Sector Tailwinds:** The company aims to capitalize on the Indian textile industry’s projected growth to **US$ 200 billion** by **2025**, supported by a **10.25% CAGR**. * **Target Demographic:** Increasing focus on **HNI clients** and premium retail showrooms to improve margins in the fabric and ornament segments. --- ### **Risk Factors & Contingent Liabilities** Investors should note the following competitive and legal pressures: **1. Market Competition:** The company faces **stiff competition** from both organized and unorganized sectors. In the jewellery segment, this includes **branded e-retailers**, while the fabric segment is dominated by manufacturers with **substantially larger capital bases** and broader product ranges. **2. Tax Litigation (Assessment Year 2017-18):** The company is currently contesting a significant tax demand. * **Nature:** Income Tax Demand under **Section 143(3)**. * **Amount:** **Rs. 14,897.65 (in thousands)**. * **Status:** While the **CIT (Appeals)** deleted the demand in **August 2024** (leading to the removal of liens on **HDFC** and **IndusInd** bank accounts), the Department has appealed to the **ITAT, Delhi Benches**. * **Exposure:** This remains a **Contingent Liability** on the balance sheet. --- ### **Leadership & Governance** The company has secured long-term leadership to oversee its restructuring and expansion: * **Managing Director:** Mr. Rajneesh Gupta has been re-appointed for a **3-year term** (extending to **September 2028**). * **Independent Oversight:** Mr. Naresh Kumar Garg serves as **Non-Executive Independent Director** (term up to **2030**), chairing the Nomination and Remuneration Committee. * **Audit:** M/s. Parveen Rastogi and Co. has been re-appointed as **Secretarial Auditor** for a **5-year term**.