Niraj Ispat Industries Limited (Established **1985**) is an Indian-listed entity specializing in the manufacturing of textile accessories and industrial components. With a legacy spanning nearly **40 years**, the company has transitioned from a traditional trading background into a specialized manufacturer of **Polyester Buttons**, while maintaining a strategic presence in the domestic metals and trading sector. --- ### **Core Manufacturing Operations & Product Portfolio** The company operates a single reportable business segment: **Manufacturing of Poly Buttons**. These products are essential components for the global garment industry, utilized in dresses, sweaters, shirts, and pouches. * **Product Specifications:** The portfolio includes buttons with **two or four thread holes**, offered in a diverse array of colors, sizes, and aesthetic designs. * **Market Positioning:** Niraj Ispat positions itself as a high-quality, cost-effective provider. Products undergo rigorous quality checks on multiple parameters to ensure flawlessness before reaching the market. * **Value-Added Strategy:** A core pillar of the current strategy is the **up-gradation** of existing lines and the development of **new value-added products** to enhance profit margins and market competitiveness. * **R&D Integration:** The company maintains an in-house **Research and Development (R&D)** framework focused on process optimization and "cost-effective manufacturing techniques" to improve operational efficiency. --- ### **Financial Performance & Capital Structure** The company is currently navigating a period of top-line contraction while maintaining a focus on capital health and debt management. **Comparative Financial Highlights** | Metric (₹ in Lakhs) | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Total Revenue from Operations** | **408.33** | **627.38** | | **Net Profit** | **81.02** | **166.80** | | **Earnings Per Share (EPS)** | **10.86** | **22.68** | | **Cost of Raw Materials** | **169.14** | **272.91** | | **Trade Receivables** | **38.95** | **74.48** | **Capital Management Strategy** * **Funding Mix:** As a **capital-intensive** business, funding is primarily derived from **internal cash accruals**, supplemented by bank borrowings and capital markets. * **Gearing Ratio:** Management utilizes a gearing ratio (**Net Debt divided by Total Equity**) to monitor capital health and maximize stakeholder returns. * **Asset Integrity:** All immovable properties, including land and buildings, are **freehold** and held directly in the company’s name. * **Banking Facilities:** Short-term limits are provided by the **Bank of India**, secured by a **first charge** on all current assets and an **equitable mortgage** of the company’s property at **B.S. Road Industrial Area, Ghaziabad**. --- ### **Supply Chain & Operational Shift** A significant strategic shift occurred in the company’s procurement strategy during the last fiscal year, moving from international to domestic sourcing. | Sourcing Origin | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Imported Raw Materials** | **0%** | **100%** | | **Indigenous Raw Materials** | **100%** | **0%** | This transition to **100% indigenous sourcing** (totaling **₹169.14 Lakhs** in FY24) suggests a move toward reducing foreign exchange exposure and streamlining the supply chain within the Indian market. --- ### **Sustainability & Energy Efficiency Initiatives** Niraj Ispat is actively modernizing its infrastructure to reduce its carbon footprint and lower operational overheads. * **Solar Integration:** The company has installed a **40.8 KW solar panel system**, generating approximately **180 units of energy per day**. * **Energy Cost Reduction:** This transition has led to a reported reduction in overall energy costs for the **2024-25** period. * **Modernization:** Conventional equipment is systematically being replaced with energy-efficient alternatives to optimize the **Rs. 22.72 Lakh** annual electricity expenditure. --- ### **Risk Management & Sensitivity Analysis** The company operates under a structured risk framework overseen by a Board-appointed committee, focusing on three primary financial risks: **1. Market & Commodity Risk** The company is exposed to price volatility in **Resin, Styrene, Pigment, and Chemicals**. It does **not hedge** commodity risk, relying on the natural correlation between input costs and button selling prices. * **Sensitivity:** A **5% movement** in raw material prices impacts profit by approximately **₹9.02 Lakhs** (as of March 2025 projections). **2. Credit & Liquidity Risk** * **Concentration:** Risk is mitigated by ensuring **no single customer** accounts for more than **10% of total revenue**. * **Verification:** Credit quality is assessed via an **external credit scoring system** reviewed annually. Receivables are often secured by **Letters of Credit**. * **Liquidity:** Management maintains a profile where financial assets match the maturity of liabilities, ensuring all obligations falling due within **one year** can be met. **3. Interest Rate Risk** The company’s exposure is linked to **MCLR** and **LIBOR** rates. * **Sensitivity:** A **100 basis point (1%)** change in interest rates impacts profit by approximately **₹40,903** (FY 2024-25). --- ### **Governance, Leadership & Compliance** The company is currently strengthening its corporate governance to align with **SEBI (LODR) Regulations, 2015**. * **Board Reconstitution:** In September 2025, the company appointed **Mr. Vikas Tyagi** and **Mr. Manoj Kumar Singhal** as **Non-Executive and Independent Directors** to enhance oversight. * **Regulatory Rectification:** Following a **₹61,360 penalty** imposed by SEBI in June 2025 for the delayed appointment of a Company Secretary, the company has restored full compliance with **Regulation 6(1)**. * **Audit Framework:** **M/s V Kumar & Associates** have been appointed as Secretarial Auditors for **FY 2025-26**. * **Exemptions:** Due to a paid-up capital of **₹0.60 Crore** and net worth of **₹12.97 Crores**, the company remains exempt from the mandatory **Annual Secretarial Compliance Report** (thresholds are ₹10Cr/₹25Cr respectively). * **Status:** There are currently **no qualifications or adverse remarks** from auditors, and no material orders impacting the company’s **Going Concern** status.