Deepa Jewellers holds Rs 43.65 crore director loans beside bank debt

Deepa Jewellers Limited had Rs 43.65 crore of non-current unsecured loans from directors at 31 March 2026, alongside Rs 67.46 crore of YES Bank metal loans repayable on demand. The bank facility had named personal guarantees and security over assets and receivables, while director loans represented 39.3% of Rs 111.12 crore total borrowings.

What financing did Deepa Jewellers have at 31 March 2026?

Deepa Jewellers reported Rs 111.12 crore of borrowings at 31 March 2026, comprising Rs 43.65 crore of unsecured loans from directors and Rs 67.46 crore of secured bank loans repayable on demand. The directors' loans were classified as non-current, while the bank balance was classified as current in the restated financial statements.

The Rs 67.46 crore bank balance was a metal-loan facility and sub-limit sanctioned by YES Bank Ltd. for working capital. The borrowing note distinguishes the metal loan from loans repayable on demand from directors and banks: the latter carry annual interest rates of 6% to 10%, linked to the three-month Treasury Bill rate plus 2.72%, while metal-loan rates are set at disbursement and generally range from 2% to 3% a year.

Deepa Jewellers' director-loan balance increased by Rs 5.44 crore from Rs 38.22 crore at 31 March 2025, but remained above neither the bank facility nor its Rs 41.09 crore level at 31 March 2024. Metal loans rose by Rs 24.89 crore in the year to 31 March 2026, accounting for most of the Rs 30.33 crore increase in total borrowings.

How material were Deepa Jewellers' director loans within borrowings?

Deepa Jewellers' Rs 43.65 crore of director loans represented 39.3% of Rs 111.12 crore total borrowings at 31 March 2026. YES Bank metal loans accounted for the other 60.7%, making bank borrowing the larger reported category at that date.

The funding mix shifted toward the bank facility from 31 March 2025. Director loans then represented 47.3% of Rs 80.79 crore borrowings, compared with 52.7% for metal loans; by 31 March 2026, metal loans had increased to 60.7% of the total, although director loans had also risen in absolute terms.

Revenue from operations increased to Rs 1,926.68 crore in the year ended 31 March 2026 from Rs 1,397.01 crore in the year ended 31 March 2025. Purchases of raw material rose to Rs 1,743.70 crore from Rs 1,231.47 crore over the same period, while the metal-loan balance increased by Rs 24.89 crore.

How does the YES Bank facility rely on guarantees and security?

Deepa Jewellers disclosed personal guarantees from Anish Agarwal, Seema Agarwal and Dev Agarwal for the YES Bank working-capital and metal-loan facilities. The facility also carries an exclusive charge on the company's unencumbered movable fixed assets, according to the borrowings note at 31 March 2026.

Trade receivables were hypothecated to YES Bank by a first charge for cash-credit and metal-loan facilities. Hypothecation is a security arrangement under which a borrower charges assets to a lender while retaining possession; Deepa Jewellers reported Rs 252.36 crore of trade receivables at 31 March 2026, compared with Rs 131.73 crore at 31 March 2025.

Deepa Jewellers stated that the combined receivable balance from its three largest customers, each individually representing more than 10% of trade receivables, was Rs 93.95 crore at 31 March 2026. That was 37.2% of total receivables, and the company stated that its normal customer credit period was 30 to 60 days and that it recorded no expected credit-loss allowance under Indian Accounting Standard 109 at 31 March 2026.

What do related-party disclosures say about Deepa Jewellers' loans?

Deepa Jewellers disclosed Rs 2.53 crore of interest paid during the year ended 31 March 2026 on unsecured loans from named related parties. The disclosed recipients were Ashish Agarwal, Seema Agarwal, Rashi Agarwal, Devak Agarwal, Ashish Agarwal Hindu Undivided Family and Devak Nandan Agarwal Hindu Undivided Family.

The Rs 2.53 crore related-party interest amount rose from Rs 2.39 crore in the year ended 31 March 2025 and Rs 2.41 crore in the year ended 31 March 2024. In the 2026 disclosure, Seema Agarwal received Rs 0.76 crore, Ashish Agarwal Rs 0.70 crore and Devak Agarwal Rs 0.68 crore, the three largest named interest amounts.

The detailed related-party balance-payable table listed six unsecured-loan balances totalling Rs 60.85 crore at 31 March 2026, including Rs 17.08 crore for Rashi Agarwal and Rs 13.69 crore for Ashish Agarwal. That total differs from the Rs 43.65 crore aggregate labelled unsecured loans from directors in the borrowings note; the supplied financial statements do not reconcile the two figures or explain differences in classification or entity coverage.

What operating balances and costs coincide with this funding mix?

Deepa Jewellers' trade receivables increased by Rs 120.63 crore to Rs 252.36 crore at 31 March 2026. Closing finished-goods and stock-in-trade inventory increased to Rs 76.92 crore from Rs 70.38 crore at 31 March 2025, during the same year that metal-loan borrowings increased by Rs 24.89 crore.

Finance costs rose to Rs 6.31 crore in the year ended 31 March 2026 from Rs 4.36 crore a year earlier. Interest expense was Rs 5.85 crore, compared with Rs 4.27 crore in the year ended 31 March 2025, while other borrowing costs were Rs 0.18 crore and interest on lease liabilities was Rs 0.28 crore.

Deepa Jewellers reported restated profit of Rs 104.79 crore for the year ended 31 March 2026, compared with Rs 40.58 crore in the preceding year. The company disclosed no contingent liabilities or commitments requiring disclosure at 31 March 2026, but the financial statements do not set out future repayment schedules for the unsecured director loans or plans for additional related-party lending.

Conclusion

Deepa Jewellers' reported financing at 31 March 2026 combined Rs 43.65 crore of unsecured director loans with Rs 67.46 crore of YES Bank metal loans. Growth in the metal-loan facility made bank debt the larger funding category, but director loans remained nearly two-fifths of Rs 111.12 crore total borrowings and related-party interest payments continued.

The next disclosure to watch is a reconciliation of the Rs 43.65 crore borrowing-note balance with the Rs 60.85 crore total in the related-party unsecured-loan table. Continued operation of the YES Bank facility also depends on its disclosed security package, including the charge over movable fixed assets, the first charge on receivables and the personal guarantees from Anish Agarwal, Seema Agarwal and Dev Agarwal.