Company borrowings total Rs 119.35 crore, led by cash credit

Company reported total outstanding borrowings of Rs 119.35 crore as of June 30, 2026, and cash-credit loans of Rs 39.87 crore were its largest funded facility. The borrowing schedule shows Rs 67.24 crore of secured fund-based facilities, while Rs 32.38 crore of secured non-fund-based facilities consisted of bank guarantees and letters of credit.

What makes Company cash credit its largest borrowing facility?

Company’s cash-credit loans were Rs 39.87 crore at June 30, 2026, exceeding term loans of Rs 23.62 crore and all other individual funded categories in the borrowing schedule. Cash credit is a working-capital bank facility that is generally repayable on demand, unlike a term loan that has a defined repayment period. The Rs 39.87 crore cash-credit balance represented about 46% of Company’s Rs 86.96 crore total fund-based borrowings.

Company’s cash-credit facility had a sanctioned amount of Rs 44 crore, compared with its Rs 39.87 crore outstanding balance. The schedule identifies four cash-credit lenders: Canara Bank, HDFC Bank, State Bank of India and Kotak Mahindra Bank Limited. Their disclosed interest rates ranged from 9.00% per annum to 10.10% per annum as of June 30, 2026, and the Canara Bank, HDFC Bank and State Bank of India facilities were repayable on demand subject to annual review or a review determined by the lender.

The reliance on cash credit follows Company’s stated funding approach. Company says it has historically financed business expansion and operations primarily through debt financing and funds generated from operations, and has obtained loan facilities from time to time for short-term working-capital requirements. Continued availability of the Rs 39.87 crore facility therefore depends on lender reviews, compliance with financing terms and Company’s ongoing working-capital needs.

How were Company borrowings split between funded and non-fund facilities?

Company’s Rs 119.35 crore June 30, 2026 borrowing total comprised Rs 86.96 crore of fund-based facilities and Rs 32.38 crore of non-fund-based facilities. Fund-based facilities are arrangements under which funds have been drawn or lent, while non-fund-based facilities support obligations without necessarily providing cash at inception. The source’s total includes both categories, which is important when interpreting the headline borrowing amount.

Secured fund-based limits totalled Rs 67.24 crore. Within that figure, Company reported Rs 23.62 crore of term loans, Rs 1.51 crore of working-capital term loans under the Guaranteed Emergency Credit Line, or GECL, Rs 2.24 crore of loans from other parties and Rs 39.87 crore of cash-credit loans. The sanctioned amount for all secured fund-based limits was Rs 88.57 crore, leaving a difference of Rs 21.33 crore between sanctioned and outstanding amounts at June 30, 2026.

Company’s secured non-fund-based limits consisted of Rs 20.90 crore of bank guarantees and Rs 11.49 crore of letters of credit. A bank guarantee is an undertaking by a bank to meet an obligation if the customer does not, while a letter of credit supports payment to a supplier subject to its terms. The source also says Rs 10.99 crore of sanctioned bank-guarantee capacity was completely interchangeable with letter-of-credit capacity, meaning the two sanctioned figures should not be treated as wholly separate available capacity.

How much of Company borrowing was secured and unsecured?

Company reported Rs 99.62 crore of secured loans and Rs 19.73 crore of unsecured loans at June 30, 2026. Secured loans made up about 83% of the Rs 119.35 crore total reported in the financial indebtedness schedule. That secured total includes both the Rs 67.24 crore funded balance and the Rs 32.38 crore non-fund-based balance.

Company’s unsecured fund-based borrowings comprised Rs 23.53 lakh of sales-tax deferment liabilities, Rs 1.90 crore of loans from shareholders and Rs 17.59 crore of loans from other parties. Loans from other parties were therefore the largest unsecured component, representing about 89% of the Rs 19.73 crore unsecured total. The schedule reported no unsecured non-fund-based limits at June 30, 2026.

The June 30, 2026 financial indebtedness figure should not be directly equated with Company’s March 31, 2026 capitalisation-statement debt figure of Rs 87.42 crore. The capitalisation statement classified debt as Rs 41.93 crore of short-term debt and Rs 45.49 crore of long-term debt including current maturities. By contrast, the June borrowing schedule separately includes Rs 32.38 crore of secured bank guarantees and letters of credit, so the two disclosures use different dates and category definitions.

What do Company’s recent liquidity figures show?

Company reported Rs 49.10 crore of current borrowings and Rs 38.31 crore of non-current borrowings in its liquidity and capital-resources table for 2026. The same table reported cash and cash equivalents of Rs 16.55 lakh and bank balances other than cash and cash equivalents of Rs 7.58 crore. These balance-sheet categories are reported for 2026 and are not stated as the same June 30, 2026 borrowing-date measurement used in the financial indebtedness schedule.

Company generated net cash from operating activities of Rs 27.15 crore in the fiscal year ended March 31, 2026, compared with Rs 38.20 crore in Fiscal 2025 and Rs 27.73 crore in Fiscal 2024. The Fiscal 2026 operating-cash-flow figure was reduced by increases of Rs 16.23 crore in trade receivables, Rs 8.77 crore in other current assets and Rs 2.47 crore in current inventories. Those working-capital movements matter because cash credit is specifically used to finance short-term working-capital requirements.

Company used Rs 22.06 crore in financing activities in the fiscal year ended March 31, 2026, compared with Rs 14.38 crore in Fiscal 2025. The Fiscal 2026 outflow included Rs 15.09 crore of interest paid on borrowings and trade payables, Rs 5.53 crore of repayment of non-current borrowings, Rs 61.47 lakh of repayment of current borrowings and Rs 81.95 lakh of lease-liability payments. Finance cost was Rs 15.04 crore in Fiscal 2026, compared with Rs 14.22 crore in Fiscal 2025.

What terms and conditions affect Company’s borrowing capacity?

Company’s financing agreements contain covenants and, in some cases, require lender consent before Company carries out specified activities or enters into specified transactions. Company states that failing to meet conditions or obtain required consents could have significant consequences for its business. It also states that it obtained necessary consents under relevant loan documentation for activities connected with the offer, including changes in shareholding pattern, board management and constitutional documents.

Repayment structures differ across Company’s facilities. The cash-credit loans were repayable on demand or, for the Kotak Mahindra Bank Limited cash-credit loan, over 12 months or on demand. Term and equipment loans disclosed in the schedule generally had repayment periods ranging from 24 months to 180 months, while vehicle loans had periods of 59 or 60 months. The different maturities mean the Rs 23.62 crore term-loan category and Rs 39.87 crore cash-credit category have different renewal and repayment mechanisms.

Company also reported contingent liabilities and commitments of Rs 21.87 crore as of March 31, 2026 under Indian Accounting Standard 37, or Ind AS 37. This included Rs 20.02 crore of bank guarantees and Rs 1.84 crore of claims against Company not acknowledged as debt. Company stated that it had no off-balance-sheet arrangements reasonably likely to have a material effect on financial condition, revenue, expenses, liquidity, capital expenditure or capital resources.

Conclusion

Company’s June 30, 2026 borrowing structure was anchored in bank-linked working-capital funding, with Rs 39.87 crore of cash credit as the largest funded facility within Rs 119.35 crore of total reported borrowings. The total also included Rs 32.38 crore of non-fund-based bank guarantees and letters of credit, so funded debt of Rs 86.96 crore is the more relevant measure for assessing cash drawn or funded exposure.

What to watch next is the use and renewal of demand-based cash-credit facilities, Company’s compliance with lender covenants and the movement in working capital. Company disclosed Rs 27.15 crore of operating cash flow in Fiscal 2026 but also reported higher receivables, inventories and other current assets, while its cash-credit facilities remain subject to periodic lender review.