Prag Bosimi Synthetics Limited (**PBSL**) is a public limited company headquartered in **Guwahati, Assam**, with a corporate presence in **Mumbai**. Historically a significant player in the **Polyester Yarn** manufacturing sector in Northeast India, the company is currently navigating a complex turnaround phase following a total suspension of manufacturing operations in **March 2020**. The company’s primary facility is located at **Bijulibari Village, Darrang District, Assam**. While core production is currently halted, management is pivoting toward a diversified model encompassing value-added textiles, renewable energy, and infrastructure development through its associate textile park. --- ### **Core Business Segments & Revenue Composition** PBSL categorizes its operations into four distinct segments. Due to the current suspension of the main plant, recent revenue has shifted away from primary manufacturing toward miscellaneous activities. | Segment | Product Scope | |:---|:---| | **Yarn / Others** | Polyester Yarn, Fabrics, and miscellaneous textile products | | **Packaging** | Corrugated Boxes | | **Garment** | Readymade Garments | | **Knitted Fabrics** | Knitted Fabrics | **Key Financial Performance (FY 2024-25):** * **Total Revenue:** ₹**10,050 thousand** (a significant decline from ₹**28,379 thousand** in the previous year). * **Net Sales:** Reported as **NIL** for the most recent core manufacturing period. * **Inventory Status:** Total inventories dropped to ₹**19,178 thousand** (from ₹**44,634 thousand**), reflecting the liquidation of stores, spares, and finished goods. --- ### **Operational Recovery & Infrastructure Restart Plan** The company’s manufacturing activities were disrupted by a combination of the **COVID-19 pandemic**, labor unrest, and the disconnection of power by **Assam Power Distribution Company Limited (APDCL)** following natural calamities and payment defaults. Management is executing a multi-stage recovery: * **Labor Resolution:** PBSL successfully concluded a **"Golden Handshake Scheme"** to settle all worker debts. This was facilitated by the **Assam Industrial Development Corporation (AIDC)** and the **Government of Assam**, effectively ending years of aggressive labor disputes. * **Power & Substation Restoration:** Negotiations are ongoing with **APDCL** for power reconnection. This is the critical path for refurbishing the **132 KV substation** and restarting plant machinery. * **Asset Monetization:** The Board has authorized the sale of **old, unused Plant, Property, and Equipment**, as well as scrap materials and obsolete spares via public tender, to generate immediate liquidity. * **Phased Production Restart:** Initial maintenance has commenced. The company plans a **phase-wise recruitment** of manpower to align with the gradual restoration of production lines. * **Capital Work-in-Progress (CWIP):** Management aims to complete the **Line No. 1 (Conti Poly) Spinning Line** (valued at ₹**11.85 million**). Completion is slated via internal accruals or a **Joint Venture (JV)** with a third-party partner. --- ### **Strategic Diversification & Circular Economy Initiatives** To mitigate the risks of the volatile polyester market and high fixed energy costs, PBSL is exploring several greenfield and diversification projects: * **Renewable Energy:** The company is evaluating a **Bio-Diesel unit** to provide captive power, with surplus energy to be sold to the grid. Discussions for a **Solar Power Project** are also underway. * **Waste-to-Value:** A new unit is under consideration to convert **plastic scrap into plastic sheets and fabric**, aligning the company with circular economy trends. * **Service Monetization:** During the operational hiatus, the company is leveraging its expertise to secure export orders for readymade garment units and export houses. --- ### **Group Structure & The Prag Jyoti Textile Park** PBSL operates through two wholly-owned subsidiaries and one major associate project. | Entity | Relationship | Status | |:---|:---|:---| | **Prag Bosimi Texurising Pvt Ltd** | **100% Subsidiary** | Non-operational; costs absorbed by PBSL | | **Prag Bosimi Packaging Pvt Ltd** | **100% Subsidiary** | Non-operational; costs absorbed by PBSL | | **Prag Jyoti Textile Park Pvt Ltd** | **16.08% Associate** | Under construction (**~80% complete**) | **Prag Jyoti Textile Park Highlights:** * **Scope:** A greenfield project under the **Scheme for Integrated Textile Park (SITP)**, Ministry of Textiles, spanning **60.08 acres**. * **Financials:** Total project cost is ₹**54.31 Crores** (Approved eligible cost: ₹**47.25 Crores**). * **Current Status:** Construction is currently **demobilized** due to an outstanding balance of ₹**3.45 Cr** to contractors and an **88-month delay** in grant releases from the Ministry. To date, ₹**20.00 Crores** (50% of the total grant) has been received. --- ### **Financial Restructuring & Capital Position** The company is currently characterized by **negative net worth** and a "negative capital" position, though management continues to operate under a **"Going Concern"** assumption. * **Accumulated Losses:** Retained earnings show a deficit of ₹**312.27 Crores** as of 2024. * **Debt Conversion:** To stabilize the balance sheet, the company authorized the issuance of **52,00,000 6% Optionally Cumulative Convertible Debentures (OCCDs)** at ₹**100** each (totaling ₹**52 Crores**) to convert unsecured promoter loans. * **Promoter Support:** The company relies on unsecured loans from private promoters totaling ₹**31.96 Crs** (at **4% interest**) and promoter-arranged market loans (at **6% interest**). * **Share Capital Structure:** * **Authorised Capital:** ₹**250 Crores** (₹150 Cr Equity / ₹100 Cr Preference). * **Paid-up Capital:** ₹**90.153 Crores**. * **Preference Shares:** Includes **15,77,000 Non-Redeemable** and **5,14,000 Redeemable** Preference Shares held by the promoter group. No dividends have been declared due to losses. --- ### **Risk Factors & Contingencies** #### **Financial & Liquidity Risks** * **Cash Losses:** The company incurred cash losses of ₹**73.61 million** in FY 2024-25. * **Subsidy Dependency:** A critical ₹**5.90 Crore** Central Capital Investment Subsidy (CCIS) approved in 2019 remains pending release. * **Audit Qualifications:** Auditors have noted concerns regarding the frequency of physical asset verification, unreconciled **GST Input ledgers**, and a lack of provision for **bad and doubtful debts**. #### **Legal & Litigation Profile** * **3A Capital Private Limited:** A dispute regarding the transfer of **3,000,000 Preference Shares**. While the **NCLAT** set aside a ₹**57.99 million** payment order in May 2024, an execution case remains active in **NCLT Guwahati**. * **Taxation:** Received an **Income Tax Demand Notice (u/s 156)** on March 31, 2026, for Assessment Year 2022-23. * **Labor Appeals:** Four ex-employees are currently appealing a dismissed wrongful termination suit in the **Guwahati High Court**. #### **Market & Macro Risks** * **Input Costs:** Profitability is highly sensitive to the prices of **PTA, MEG, and POY**, which fluctuate with global crude oil prices. * **Competitive Landscape:** The company faces intense competition from natural fibers (cotton) and must manage currency fluctuation risks for raw material sourcing.