Raghunath International Limited is an Indian public entity primarily engaged in **Real Estate Development** and **Trading and Agency** services. The company is currently undergoing a strategic transition, pivoting toward large-scale financial flexibility to support its real estate ambitions while maintaining a diversified revenue stream through its trading operations. --- ### **Core Business Segments & Revenue Streams** The company’s operations are organized into reportable segments identified by the **Chief Operating Decision Maker (CODM)**, which is the Board of Directors. * **Real Estate Development:** This is the primary growth engine. The company is focused on establishing a "vivacious presence" in the industry, though it currently navigates a landscape of **increased inventory stock**, **reduced transaction volumes**, and **rising costs of land and construction**. * **Trading and Agency Services:** An indispensable segment that provides revenue diversification across various industrial genres and fosters overall corporate growth. * **Pan Masala and Allied:** Historically identified as a reportable segment (FY23); however, recent management focus has shifted predominantly toward the Real Estate and Trading divisions. #### **Revenue Concentration by Client** The company relies on a core group of major customers. The following table outlines the contribution from key clients: | Major Customers | March 31, 2024 (₹ in Lakhs) | March 31, 2023 (₹ in Lakhs) | | :--- | :---: | :---: | | **Makkahan Lal Ganeriwal & Sons** | **12.32** | **12.62** | | **Bajaj Capital Insurance Broking Ltd.** | **8.54** | **7.24** | | **Nawabs Restaurant** | **1.95** | **4.96** | | **Vinayak Shree Real Estate P Ltd.** | **-** | **6.53** | | **Total** | **22.81** | **31.35** | --- ### **Strategic Financial Expansion & Capital Allocation** Raghunath International is aggressively enhancing its **financial flexibility** to act as a strategic investor and financier for its subsidiaries and other corporate bodies. The Board has authorized significant limits to support this expansion: | Category | Limit / Target | Purpose | | :--- | :--- | :--- | | **Inter-corporate Investments** | Up to **₹100.00 Crores** | Loans, guarantees, or security for bodies corporate and subsidiaries (including **overseas subsidiaries**). | | **Borrowing Limit** | Up to **₹100.00 Crores** | Total outstanding borrowings (excluding temporary bank loans) exceeding paid-up capital and free reserves. | | **Asset Monetization/Security** | Up to **₹100.00 Crores** | Authority to sell, lease, mortgage, or hypothecate assets to secure rupee/foreign currency loans and debentures. | **Key Growth Drivers:** * **Capital Deployment:** The Board is authorized to exceed standard statutory limits (60% of paid-up capital/reserves or 100% of free reserves) to deploy up to **₹100 Crores** in securities, equity shares, and preference shares of other entities. * **Global Support:** Strategic provisions specifically include the ability to fund and support **overseas subsidiaries**. * **Funding Diversification:** The company is actively seeking to engage with domestic and foreign financial institutions, mutual funds, and private placements of debentures and bonds. --- ### **Financial Performance Trends** The company demonstrated a significant surge in performance in the fiscal year ending **March 31, 2025**, driven by its strategic shift toward real estate. #### **Three-Year Standalone Financial Summary** | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Total Income / Turnover** | **389.71** | **83.33** | - | | **Net Profit / (Loss)** | **303.95** | **14.50** | **123.92** | | **Paid-up Equity Capital** | **500.02** | **500.02** | **500.02** | | **Net Worth** | **1,186.72** | **958.42** | **943.92** | | **Earnings Per Share (₹)** | **4.57** | - | **2.47** | | **Total Assets** | **1,326.62** | - | - | **Key Performance Indicators:** * **Revenue Growth:** Standalone and Consolidated Sales and Other Income rose to **₹3.9 crore** in FY25, up from **₹83.33 lakhs** in FY24. * **Profitability:** Consolidated Profit for FY25 reached **₹2.53 crore**, a sharp increase from **₹13.06 lakhs** in the previous year. * **Associate Performance:** As of December 31, 2024, the company’s associate, **Raghunath Builders Private Limited**, held total assets of **₹16.82 crore** and generated year-to-date revenue of **₹70.95 Lakh**. --- ### **Operational Structure & Governance** * **Shareholding & Liquidity:** The company has **5,000,200** total shares (nominal value **₹10.00**). As of March 31, 2025, **64.65%** of shares are dematerialized. * **NSDL:** **2,374,910** shares (**47.50%**) * **CDSL:** **857,810** shares (**17.15%**) * **Physical Segment:** **1,767,480** shares (**35.35%**) * **Leadership:** Recent appointments include two **Independent Directors**, Ms. Asha Mittal and Mr. Manoj Kumar Pandey, for a **5-year term** ending **March 31, 2029**, to oversee governance during the current expansion phase. * **Risk Oversight:** A **Risk Management Committee** oversees the **Business Risk Management (BRM)** policy and ensures compliance with **SEBI (LODR) Regulations**. --- ### **Critical Risk Factors & Audit Qualifications** Investors should note persistent audit qualifications and regulatory challenges that impact financial transparency. #### **1. Financial Reporting & Audit Qualifications** Statutory auditors have issued **Modified Opinions** for several consecutive years due to: * **Ind AS 109 Non-compliance:** For the **fifth consecutive time**, non-current investments in equity shares (totaling **₹0.45 lakhs**) are recognized at **Cost** rather than **Fair Value**. The impact on "Other Equity" and "Deferred Tax" is unascertainable. * **Unprovisioned Debtors:** As of December 31, 2024, the company had outstanding debtors of **₹22.94 lakhs** (modified to **₹22.30 lakhs** in some reports) due for more than six months without provision. * **Verification Gaps:** Auditors were unable to comment on the quantity, pricing, and valuation of **Inventory** or the existence of **Property, Plant & Equipment (PPE)** due to a lack of physical verification reports. * **Unconfirmed Balances:** Balances for debtors, creditors, and loans remain subject to reconciliation. #### **2. Contingent Liabilities & Litigation** The company is involved in a long-standing dispute with tax authorities: * **Income Tax Act (AY 2005-06):** A claim of **₹1.96 crore** (Principal) plus **₹65.49 lakhs** (Accrued Interest) is currently pending before the **Commissioner of Income Tax (Appeals)**. #### **3. Industry & Market Risks** * **Regulatory Delays:** High dependence on government authorities for **approvals, permits, and licenses**. * **Input Cost Volatility:** Exposure to "exorbitant" price increases in **land, cement, steel, and labor**. * **Liquidity & Capital:** The capital-intensive nature of real estate requires constant management of the **net debt to equity ratio** to maintain credit ratings. * **Market Cyclicality:** Exposure to the volatile nature of the Indian real estate market and stiff competition from established players.