Santosh Fine Fab Limited is a specialized Indian textile manufacturer listed on the **Bombay Stock Exchange (BSE)**. The company is currently executing a recovery-led growth strategy, transitioning from a period of post-pandemic stabilization to a focus on operational scaling and financial health. --- ### **Core Operations & Industrial Infrastructure** The company operates a streamlined business model focused exclusively on the **manufacturing and trading of fabrics**. It maintains a single reportable operating segment under **Ind AS 108**, ensuring a concentrated management focus on the textile value chain. * **Manufacturing Hub:** The company’s primary production facility is located at **Plot No. L-40, F1/22, M.I.D.C., Tarapur**, District: Thane, Maharashtra. This strategic location provides access to the industrial textile corridors of Western India. * **Corporate Presence:** The registered office is situated in **Mumbai** (Mittal Estate, Andheri East), serving as the hub for administrative and commercial activities. * **Digital Integration:** To ensure data integrity and streamlined reporting, the company utilizes **SAP**, a global **Enterprise Resource Planning (ERP)** system. This platform manages accounting, data consolidation, and management information systems (MIS). * **Revenue Transparency:** In compliance with Indian tax regulations, all revenue from operations since **July 1, 2017**, is reported **net of GST**. --- ### **Strategic Growth Pillars & Market Outlook** Management maintains an **optimistic outlook** for the future, citing a resurgence in **domestic consumption** and **export demand**. The company’s strategy is built upon four key pillars: 1. **Operational Efficiency:** Prioritizing **better working capital management**, effective resource utilization, and improved capacity utilization to sustain the transition from loss to profitability. 2. **Cost Optimization:** Implementation of rigorous **inventory management** protocols and **cost-cutting measures** to enhance cash flow generation. 3. **Human Capital Expansion:** A gradual increase in **human resources** to align with the increasing scale of operations and growth requirements. 4. **Financial Turnaround:** The company successfully achieved a **profit position in FY 2022-23**, reversing previous losses through a rising **top line and bottom line**. --- ### **Capital Structure & Leverage Trends** The company manages its capital to maximize shareholder returns by balancing **debt and equity**. The primary metric for monitoring this balance is the **Debt-to-Equity Ratio**. **Three-Year Financial Position (₹ in Lacs):** | Particulars | As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 | | :--- | :--- | :--- | :--- | | **Net Debt** (Total Debt less Cash) | **594.43** | **397.82** | **463.11** | | **Total Equity** | **573.42** | **574.80** | **640.44** | | **Debt-to-Equity Ratio** | **1.04** | **0.69** | **0.72** | *Note: As of **September 30, 2025**, the company reports **Rs. 9.14 lacs** (plus an equal amount of premium) remains as **call in arrears**.* --- ### **Governance Framework & Leadership Stability** The company has secured its leadership and oversight for the medium term through several key appointments effective from **October 2024**: **Key Governance Appointments (2025–2030)** | Role | Appointee | Tenure | | :--- | :--- | :--- | | **Managing Director** | Mr. Santosh Tulsiyan | **5 Years** (from 05.10.2024) | | **Whole-time Director** | Mr. Subhash Tulsiyan | **5 Years** (from 05.10.2024) | | **Statutory Auditor** | M/s Jhunjhunwala Jain & Associates LLP | **5 Years** | | **Secretarial Auditor** | Lalita Vijay Lath | **5 Years** (FY 2025-30) | * **Internal Controls:** An in-house **Management Audit Division** operates under the **Companies Act 2013**. The **Audit Committee** reviews internal audit reports on a **quarterly basis**. * **Remuneration Policy:** Managed by the **Nomination and Remuneration Committee**. Notably, Directors do not receive remuneration in the form of **commission**. * **Corporate Structure:** The company operates as a standalone entity with **no subsidiaries, joint ventures, or associate companies**. --- ### **Integrated Risk Management Approach** The company employs a board-approved framework to identify and mitigate financial and operational uncertainties. #### **Financial & Market Risk Mitigation** * **Foreign Exchange Risk:** Exposure primarily in **USD** (loans, payables, and receivables) is managed through regular reviews and the use of **derivative instruments**. * **Interest Rate Risk:** The treasury department balances **fixed-rate** and **floating-rate** instruments to protect against market fluctuations. * **Commodity Price Risk:** The company utilizes a **natural hedge** for raw materials (**Yarn & Grey Fabric**); price volatility in inputs is directly passed through to the pricing of **Finished Fabric**. #### **Credit & Liquidity Management** * **Credit Risk:** Classified as **low** due to diversification across industries. Credit is granted based on track records, and high-value sales are secured via **Letters of Credit**. * **Liquidity Risk:** The company maintains **optimum liquidity** to meet all obligations. Funding is secured through **trade receivables** and established **bank facilities**. * **Maturity Profile:** As of the last audit, the company’s **₹476 Lacs** borrowing profile was structured across **0-1 year** and **1-5 year** buckets to ensure manageable repayments. #### **Regulatory & Operational Provisions** * **Gratuity:** Provisions are consistently updated at the end of the **last quarter** of each financial year. * **Compliance Status:** No significant material orders have been passed by regulators or courts that impact the company’s **going concern status**. Management confirms the company is capable of meeting all liabilities falling due within a **one-year period**.