Shiva Granito Export Limited is an integrated Indian manufacturer and exporter specializing in engineered stone and mineral products. Headquartered in **Udaipur, Rajasthan**, the company has evolved from a partnership firm focused on raw block exports into a vertically integrated manufacturing entity listed on the **BSE SME** platform. --- ### **Corporate Evolution & Historical Milestones** The company’s trajectory reflects a transition from trading and basic exports to sophisticated manufacturing and public listing. | Event | Date / Period | | :--- | :--- | | Incorporation of **Shiva Export Company** (Partnership) | **July 16, 2007** | | Export of **Granite Blocks** | **2007 – 2011** | | Acquisition of Plant & Machinery (Imported from China) | **2012 – 2013** | | Commencement of Full-Scale Production | **2014** | | Conversion to **Limited Company** | **December 31, 2015** | | **BSE SME Listing** Approval | **September 06, 2016** | --- ### **Product Portfolio & Market Positioning** The company operates a manufacturing facility at **Vill. Vana, Udaipur**, producing a diversified range of construction and decorative materials. Its products are **CE Certified (European Standards)**, a critical credential for its primary export markets in **Europe, the United States, and Japan**. **Core Product Mix:** * **Engineered Quartz Stone Slabs:** High-end decorative surfaces for residential and commercial use. * **Resins:** Various grades used in industrial applications. * **Quartz Powder:** A key mineral input for various industries. * **Statues:** Specialized decorative stone products. --- ### **Financial Performance & Growth Metrics** The company has recently demonstrated significant top-line recovery, though bottom-line integrity remains a point of scrutiny due to accounting practices. * **Revenue Growth:** Net Sales increased to **Rs. 860.49 Lacs** in the most recent fiscal year, a **58.2%** jump from the previous year’s **Rs. 543.67 Lacs**. * **Profit Retention:** For FY 2023-24, the company carried a profit of **Rs. 83.17 Lacs** to the balance sheet. * **Dividend Policy:** The Board has maintained a **zero dividend** policy for FY 2022-23 and FY 2023-24, opting to conserve cash for internal expansion and working capital. --- ### **Strategic Capital Infusion & Expansion (2024-2025)** To address liquidity constraints and fund future growth, the company initiated a major capital-raising exercise in late **2024**. **Preferential Allotment Details:** * **Instrument:** **1,16,00,000 convertible warrants** issued to non-promoters. * **Pricing:** **Rs. 15 per warrant** (including a **Rs. 5 premium**). * **Total Target Proceeds:** **Rs. 17.40 Crores**. * **Terms:** **25%** paid upfront; **75%** payable upon conversion within **18 months**. **Authorized Capital Expansion:** To facilitate this issuance, the company significantly increased its capital base in November 2024: | Metric | Pre-Expansion (Oct 2024) | Post-Expansion (Nov 2024) | | :--- | :--- | :--- | | **Authorized Share Capital** | **Rs. 14,00,00,000** | **Rs. 25,00,00,000** | | **Total Equity Shares** | **1,40,00,000** | **2,50,00,000** | | **Face Value per Share** | **Rs. 10** | **Rs. 10** | **Utilization of Funds:** The proceeds are earmarked for **Working Capital** for the company and its subsidiaries, **Capital Expenditure** for infrastructure improvements, and general corporate contingencies. --- ### **Operational Challenges & Asset Management** Despite revenue growth, the company has faced severe operational disruptions and has undergone structural changes to its asset base: * **Factory Downtime:** The manufacturing plant faced prolonged shutdowns, remaining non-operational for **7 months** during FY 2023-24 due to **scarcity of funds**, and another **7 months** during FY 2024-25 for **repairs**. * **Asset Liquidation:** In a move to streamline or raise liquidity, the company sold its **Quartz Powder Plant**, machinery, and factory building for **Rs. 50 Lakhs** during FY 2023-24. * **Related Party Transactions:** Loans to the **Managing Director** saw a sharp increase from **Rs. 1,604.87 (in 100s)** in 2024 to **Rs. 25,313.50 (in 100s)** in 2025. --- ### **Critical Risk Factors & Audit Qualifications** Investors should note that statutory auditors have issued **Qualified Opinions** for the fiscal years ended **March 31, 2024**, and **March 31, 2025**. The reported profits and equity are considered **overstated** due to the following: **1. Financial Reporting Non-Compliance:** * **Expected Credit Loss (ECL):** Failure to provide for doubtful trade receivables of **Rs. 7,68,97,418**, violating **Ind AS 109**. * **Inventory Verification:** Auditors could not verify the existence or valuation of inventories as of March 2025 due to a lack of records. * **Employee Benefits:** Non-provision of **Gratuity Liability**, violating **Ind AS 19**. * **MSME Obligations:** Failure to provide interest on delayed payments to micro and small enterprises under **Section 16 of the MSMED Act, 2006**. **2. Statutory Defaults & Litigation:** * **Income Tax:** Outstanding demands of approximately **Rs. 57.70 Lakhs** for the period **FY 2018-19 to FY 2023-24**. * **Indirect Tax Disputes:** * **RVAT Act:** **Rs. 62.00 Lakhs** demand (2016-17); currently under Amnesty Scheme. * **CGST Act:** **Rs. 18.58 Lakhs** in interest and penalties; appeal pending. * **Regulatory Breach:** A promoter sold over **5% shares** during a **trading restriction period** in October 2023, violating **SEBI Insider Trading Regulations**. **3. External Macro Risks:** * **Geopolitical Impact:** The **Israel-Palestine conflict** has led to increased shipping rates and logistics delays. * **Input Volatility:** Rising costs of **raw materials and energy**, alongside **currency volatility**, continue to pressure margins in the competitive global stone market.