Shakti Press Limited is a **Nagpur-based** industrial enterprise with a legacy spanning over **50 years**. Historically recognized as a specialist in the printing and packaging sector, the company is currently undergoing a radical strategic pivot. Under a new expansion mandate as of **late 2025**, Shakti Press is transitioning into a diversified conglomerate with significant interests in **high-tech agriculture, agri-infrastructure, and public health products**. --- ### **Legacy Manufacturing & Core Industrial Verticals** The company has maintained a stable presence in the specialized printing and packaging industry for five decades, leveraging a diversified product portfolio established over the last **20 years**. | Segment | Key Products & Applications | | :--- | :--- | | **Publishing & Printing** | Educational books and high-precision printed labels. | | **Packaging Solutions** | Industrial-grade corrugated boxes for logistics and retail. | | **Disposable Products** | Eco-friendly paper plates and food-grade disposables. | **Growth Drivers in Core Business:** * **Education Sector:** Sustained demand for textbooks driven by the **Right to Education Act**. * **Financial Markets:** Increased demand for financial printing services resulting from heightened **IPO activity** in India. * **Regulatory Tailwinds:** Stricter government legislation regarding food safety and hygienic packaging is driving a shift toward organized players capable of meeting high standards. --- ### **Strategic Pivot: Agriculture, Technology & Consultancy** As of **November 2025**, Shakti Press has formally expanded its **Memorandum of Association (MoA)** to enter the agricultural value chain. This expansion targets high-margin, technology-driven farming and infrastructure. * **Advanced Cultivation:** Entry into **Hydroponics** and **Aeroponics** farming, alongside traditional cultivation of fruits, vegetables, seeds, and herbal products. * **Agri-Infrastructure:** Installation of large-scale **cold storage**, preservation units, and refrigeration plants to minimize post-harvest losses. * **Public Health & Equipment:** Manufacturing and trading of **agricultural sprayers** and specialized products for pest and insect control. * **Consultancy & Advisory:** * Providing end-to-end advisory on **Government organic policies**. * Assisting farmers in securing institutional financing through bodies like **NABARD**. * Delivering price trend analysis for organic crops to optimize market timing. --- ### **Capital Structure & Aggressive Fundraising Program** To fund its transition and meet working capital needs, the company has initiated a massive capital infusion program between **December 2025 and April 2026**. * **Authorized Capital Expansion:** Increased from **Rs. 16.53 Crore** to **Rs. 31.53 Crore** in **December 2025**. * **Rights Issue (April 2026):** Issuance of **2,46,41,400** Equity Shares at **Rs. 20** per share (including a **Rs. 10 premium**), aggregating to **Rs. 49.28 Crore**. * **Rights Ratio:** Existing shareholders were offered **7 (Seven)** new shares for every **1 (One)** share held. * **Preferential Warrants:** Allotment of **91,50,000** fully convertible warrants at **Rs. 27.25** per warrant to strategic investors. * **Operational Investment:** A significant work order valued at **Rs. 8.5 Crore** was placed in **October 2025** to upgrade the Nagpur facility. --- ### **Financial Performance & Asset Quality Analysis** While the company has remained profitable through **FY 2023-2025**, its balance sheet is characterized by significant liquidity constraints and aging receivables. **Trade Receivables Profile:** The company operates on a **60 to 90-day** credit cycle but faces challenges with collections. Management generally **does not charge interest** on overdue balances, leading to a high concentration of aged debt. | Aging Category | Value (Historical Audited) | % of Total | | :--- | :--- | :--- | | Receivables > **6 Months** | **Rs. 10.40 Crore** | **~83.6%** | | Other Receivables | **Rs. 2.03 Crore** | **~16.4%** | | **Total Receivables** | **Rs. 12.43 Crore** | **100%** | **Audit Qualifications:** Statutory auditors (**M/s D.P. Sarda & Co.**) have issued **Qualified Opinions** for **FY 2024** and **FY 2025**. Key concerns include: * **Impairment Neglect:** Failure to account for discounting and impairment on long-outstanding debts. * **Time-Barred Debt:** Approximately **Rs. 1.73 Crore** in debtors are older than **3 years**; these have not been written off due to ongoing litigation. --- ### **Operational Infrastructure & Governance Framework** * **Location:** Registered office and primary factory located at **Mondha, Nagpur**. * **Leadership Transition:** Following a health crisis involving Managing Director **Mr. Raghav Sharma** in **April 2025**, the company appointed **Mr. Subrat Banerjee** as Executive Director in **September 2025** to manage factory operations. * **Accounting Standards:** Financials are prepared under **Ind AS** (Section 133 of the Companies Act, 2013). * **Auditor Tenure:** The current statutory auditor is appointed through **FY 2026-27**. --- ### **Critical Risk Factors & Contingencies** #### **1. Governance and Compliance Lapses** * **AGM Non-Compliance:** The company failed to hold its **Annual General Meetings** for five consecutive years (**2019-20 to 2023-24**). * **Internal Oversight:** Failure to appoint an **Internal Auditor** for **FY 2024-25**. * **Regulatory Friction:** Trading was previously **suspended by the BSE** due to penal provisions; promoter shares are currently under **SEBI-mandated lock-in**. #### **2. Accounting & Internal Control Weaknesses** * **Inventory Management:** Auditors were unable to physically verify inventory due to **improper records** and missing production/costing data. * **Cash Transaction Irregularities:** Significant unexplained cash deposits (**Rs. 131.72 Lacs**) and collections (**Rs. 67.39 Lacs**) were flagged by auditors. * **Asset Title Risks:** A company building is constructed on land owned personally by a director (**Shri Shantanu Sharma**), creating potential legal entanglements. * **Ind AS Violations:** Non-compliance with **Ind AS 16** (aggregate depreciation rather than component-wise) and **Ind AS 12** (deferred tax recognition). #### **3. Legal and Financial Liabilities** * **Tax Disputes:** Contesting **GST** demands of **Rs. 76.08 Lakhs** and **Income Tax** demands of **Rs. 24.70 Lakhs**. * **Statutory Dues:** Persistent irregularities in depositing **PF, ESIC, and TDS** (e.g., **Rs. 7.28 Lakhs** in unpaid TDS for FY24). * **Unrefunded Monies:** **Rs. 4.13 Lakhs** in share application money remains unrefunded. #### **4. Market and Macroeconomic Risks** * **Input Volatility:** High sensitivity to **petrochemical-based raw material** prices. * **Competitive Pressure:** The industry is fragmented with **1,30,000 units**, leading to aggressive pricing and margin erosion. * **Key Person Risk:** The operational stability of the firm is heavily dependent on the health of the Managing Director, which remains a concern following his **2025 medical emergency**.