Roopa Screen’s debt decline includes demand-loan reclassification

Roopa Screen Private Limited’s long-term borrowings fell to Rs 74.40 lakh at March 31, 2026 from Rs 5.61 crore a year earlier, but the decline included Rs 3.40 crore of director loans reclassified as short-term because they were payable on demand. The movement therefore did not represent full repayment of director-funded debt.

Why did Roopa Screen’s long-term debt fall in FY26?

Roopa Screen’s long-term borrowings, net of current maturities, declined by Rs 4.87 crore in Fiscal 2026, or FY26, to Rs 74.40 lakh at March 31, 2026 from Rs 5.61 crore at March 31, 2025. The company attributed the reduction primarily to repayments of term loans and vehicle loans, while also disclosing that reclassification affected the reported decline.

The reclassification involved Rs 3.40 crore outstanding from directors during FY26. Roopa Screen classified that amount as short-term borrowing because the loans were payable on demand, meaning the lender could seek repayment without a disclosed fixed maturity date. The company specifically said the long-term borrowing reduction should not be construed as full repayment of the director loans.

Secured long-term borrowings also reduced through scheduled repayments. Secured long-term debt was Rs 74.40 lakh at March 31, 2026, compared with Rs 1.46 crore at March 31, 2025 and Rs 2.24 crore at March 31, 2024. This comparison shows that repayments reduced secured term and vehicle debt, but that the overall long-term-debt change also reflects the transfer of demand loans into the current category.

How much director debt remained payable on demand?

Roopa Screen had Rs 3.40 crore of director loans classified as short-term at March 31, 2026, compared with director and relative borrowings of Rs 4.15 crore reported within long-term borrowings at March 31, 2025. The classification follows the repayment term rather than the identity of the lender: a payable-on-demand loan is current because it can become due on request.

An indebtedness statement dated August 31, 2026 listed Rs 2.87 crore of unsecured business loans from four directors, all carrying interest of 6.50% and all payable on demand. Ghanshyambhai Ranchhodbhai Thakkar accounted for Rs 1.09 crore, Bhartiben Ghanshyambhai Thakkar for Rs 66.46 lakh, Kunal Ghanshyambhai Thakkar for Rs 56.96 lakh and Preksha Kunal Thakkar for Rs 54.52 lakh.

The March 31, 2026 classification and the August 31, 2026 indebtedness statement are separate disclosures. Roopa Screen did not provide a reconciliation between the Rs 3.40 crore classified as short-term at year-end and the Rs 2.87 crore reported five months later. The supplied information therefore establishes that demand loans remained outstanding in August, but does not identify the cause of the difference.

What drove Roopa Screen’s short-term borrowings higher?

Roopa Screen’s short-term borrowings increased to Rs 6.67 crore at March 31, 2026 from Rs 1.41 crore at March 31, 2025. The company attributed the Rs 5.26 crore increase to the Rs 3.40 crore reclassification of director loans and higher use of secured working-capital facilities, rather than solely to new short-term borrowing.

Secured bank overdraft and cash-credit facilities rose to Rs 2.65 crore at March 31, 2026 from Rs 64.11 lakh a year earlier. A cash-credit facility is a revolving bank line used for working-capital needs. Current maturities of long-term secured borrowings fell to Rs 62.52 lakh from Rs 77.32 lakh, reflecting repayment of scheduled instalments due within 12 months.

The FY26 cash-flow statement recorded an increase of Rs 2.01 crore in short-term borrowings, proceeds of Rs 36.19 lakh from long-term borrowings and repayments of Rs 1.98 crore of long-term borrowings. Net cash used in financing activities was Rs 33.89 lakh after finance costs of Rs 73.06 lakh. These cash-flow categories record financing movements during FY26, but they do not identify a cash settlement of the entire director-loan balance reclassified as short-term.

How did working-capital needs affect Roopa Screen’s cash flows?

Roopa Screen generated Rs 2.85 crore of net operating cash in FY26, down from Rs 3.81 crore in FY25 and Rs 5.86 crore in FY24, even as profit before tax increased to Rs 8.69 crore from Rs 6.27 crore. The FY26 operating-cash outcome included a Rs 2.71 crore increase in trade receivables and a Rs 2.89 crore increase in inventories, partly offset by a Rs 41.15 lakh increase in trade payables.

Revenue from operations increased 11.88% to Rs 50.73 crore in FY26 from Rs 45.34 crore in FY25. Trade receivables rose to Rs 12.78 crore from Rs 10.26 crore, while the receivables cycle extended to 92 days from 83 days. Inventory increased to Rs 6.98 crore from Rs 4.09 crore, and inventory holding increased to 83 days from 52 days, linking the larger working-capital requirement to the operating scale and inventory stocking.

Finance costs declined to Rs 73.06 lakh in FY26 from Rs 90.88 lakh in FY25 and Rs 1.29 crore in FY24. Roopa Screen attributed the FY26 decline to lower interest expense on borrowings. Whether that lower expense continues would depend on the level of bank-facility utilisation, the director-loan balance and the 6.50% interest terms on the demand loans disclosed at August 31, 2026.

What security supports Roopa Screen’s bank borrowing?

Roopa Screen reported Rs 8.92 crore of secured Bank of Baroda loans at August 31, 2026, separate from the unsecured director loans. The balances included Rs 4 crore for a solar plant, Rs 3.82 crore of cash credit, Rs 74.61 lakh for plant and machinery, Rs 28.97 lakh for a factory-building loan and Rs 5.56 lakh for a working-capital loan.

The secured facilities are backed by mortgages over specified factory land and buildings, a commercial shop and a residential flat. The security package also includes hypothecation, or a lender’s charge, over inventory, book debts, machinery and other movable fixed assets. The solar loan has a first and exclusive charge over the solar plant and a mortgage over leasehold rights for the project land.

Roopa Screen’s capitalisation statement at March 31, 2026 reported total debt of Rs 7.42 crore and shareholders’ funds of Rs 16.37 crore, producing total debt to shareholders’ funds of 0.45. That statement reported short-term debt of Rs 6.05 crore and long-term debt of Rs 1.37 crore under definitions that exclude term-loan instalments payable within 12 months from short-term debt. Its categories are therefore not directly identical to the Rs 6.67 crore short-term-borrowings figure in the balance-sheet discussion.

Conclusion

Roopa Screen’s FY26 reduction in long-term borrowings combined actual repayment of secured term and vehicle loans with a Rs 3.40 crore shift of director loans into short-term borrowings because those loans were payable on demand. At the same time, greater cash-credit and overdraft utilisation and larger receivables and inventories contributed to lower operating cash generation of Rs 2.85 crore in FY26.

The next disclosed position to watch is the August 31, 2026 indebtedness statement, which reported Rs 2.87 crore of director loans still payable on demand at 6.50%. Roopa Screen has not disclosed a bridge from the March 31 Rs 3.40 crore classification to that later amount, leaving future financial disclosures to clarify changes in demand debt and working-capital facility use.