Scarnose International shifts Rs 9.59 crore into inventory

Scarnose International Limited reported a changed working-capital mix at September 30, 2026: the Rs 9.59 crore trade-receivables balance reported at March 31 was no longer shown, while inventories stood at Rs 9.65 crore. Scarnose International recorded net cash used in operating activities of Rs 2.63 lakh for the half year.

Why did Scarnose International’s working capital change?

Scarnose International’s statement of assets and liabilities shows a near one-for-one shift in current assets between March 31 and September 30, 2026. Trade receivables were Rs 9.59 crore at March 31, 2026, but no receivables balance was shown at September 30. Inventories, which were not shown at March 31, were Rs 9.65 crore at September 30.

The cash-flow statement records a Rs 9.59 crore decrease in receivables and a Rs 9.65 crore increase in inventories for the half year ended September 30, 2026. The September inventory balance was Rs 6.55 lakh higher than the receivables balance reported six months earlier. The filing does not provide customer, collection, product, purchase or pricing details to explain the movement.

A trade receivable is an amount due from customers, while inventory is stock held by the company. Both balances are classified as current assets in the filing. Inventories of Rs 9.65 crore represented most of Scarnose International’s Rs 9.81 crore total assets at September 30, 2026.

What was the cash-flow effect of the inventory build?

The inventory increase slightly exceeded the receivables decrease, producing a Rs 6.32 lakh adverse working-capital adjustment for the half year ended September 30, 2026. The cash-flow statement shows the Rs 9.59 crore receivables decrease, the Rs 9.65 crore inventory increase and a Rs 23,000 increase in payables.

Operating profit before working-capital changes was Rs 1.67 lakh in the latest half year, compared with Rs 10.96 lakh in the corresponding half year ended September 30, 2025. After working-capital adjustments, cash generated from operations was negative Rs 4.65 lakh. The filing then records Rs 2.02 lakh of proceeds from an extraordinary item, resulting in net cash used in operating activities of Rs 2.63 lakh.

The corresponding 2025 half-year cash-flow statement recorded a Rs 7.68 crore increase in receivables and a Rs 2.72 lakh decrease in payables. It reported negative working-capital adjustments of Rs 7.71 crore and net cash used in operating activities of Rs 7.60 crore for that earlier period.

The latest filing therefore shows that the cash release recorded from receivables was largely offset by the inventory increase. It does not establish whether the inventory movement arose from raw materials, finished goods, work in progress or stock-in-trade, because no inventory composition is disclosed.

How did Scarnose International’s balance sheet change?

Scarnose International’s total assets rose by Rs 3.46 lakh to Rs 9.81 crore at September 30, 2026, from Rs 9.78 crore at March 31, 2026. The change followed the replacement of the March receivables balance with inventories, while cash and cash equivalents declined to Rs 3.50 lakh from Rs 6.70 lakh.

Other current assets increased to Rs 3.75 lakh at September 30 from Rs 3.20 lakh at March 31. Property, plant and equipment declined to Rs 2.85 lakh from Rs 3.32 lakh, while non-current investments remained Rs 6.05 lakh at both reporting dates. Other non-current assets were also unchanged at Rs 20,000.

Share capital was Rs 3.15 crore at both balance-sheet dates, while reserves and surplus rose to Rs 6.60 crore from Rs 6.58 crore. Deferred tax liabilities increased to Rs 26,000 from Rs 18,000. The filing shows no short-term borrowings and no long-term borrowings at either date.

Trade payables to parties other than micro enterprises and small enterprises rose to Rs 3.75 lakh at September 30 from Rs 1.53 lakh at March 31. Short-term provisions declined to Rs 1.91 lakh from Rs 3.26 lakh, and other current liabilities increased to Rs 68,000 from Rs 47,000. Scarnose International also states that it has no subsidiary company.

What do the half-year results show alongside the cash movements?

Scarnose International reported profit before tax of Rs 3.22 lakh for the half year ended September 30, 2026, compared with Rs 10.81 lakh in the corresponding 2025 half year. The decline was Rs 7.59 lakh. The cash-flow statement begins with the same Rs 3.22 lakh profit-before-tax figure.

The filing records Rs 46,000 of depreciation and Rs 1,000 of interest expense in the latest half year. It also records Rs 2.02 lakh under “others if any” as a deduction in the operating cash-flow reconciliation, against Rs 32,000 in the corresponding 2025 period.

Purchase of stock-in-trade was Rs 25.72 crore for the half year ended September 30, 2026, compared with Rs 7.92 crore in the corresponding 2025 half year. The profit and loss statement also reports a Rs 9.65 crore change in inventory of finished goods, work in progress and stock-in-trade, matching the inventory amount shown in the September balance sheet.

Scarnose International identifies Animal Food Products as its only segment under Accounting Standard 17, the segment-reporting standard. The filing gives no separate customer, geographic or product-category data within that segment, and does not identify the portion of September inventory held in each stock category.

Conclusion

Scarnose International’s September 2026 filing shows that a Rs 9.59 crore trade-receivables balance reported in March was no longer shown six months later, while inventories reached Rs 9.65 crore. The offsetting cash-flow movements limited the net working-capital adjustment to Rs 6.32 lakh, although profit before tax declined to Rs 3.22 lakh from Rs 10.81 lakh a year earlier.

The next financial filing will show whether the Rs 9.65 crore inventory balance converts into receivables, cash or sales and whether cash and cash equivalents recover from Rs 3.50 lakh. Scarnose International disclosed no inventory-reduction plan, collection target or scheduled operational milestone, leaving subsequent balance-sheet and cash-flow disclosures as the stated measures to watch.