Axel Polymers Ltd

Filing context

• Revised Annual Report for FY2025-26 filed due to Board's report typographical error.
• Filed revised Annual Report on 25 August 2026 for record dissemination.

AGM & governance

• 34th AGM via VC/OAVM on 11 September 2026 at 11:30 AM.
• Venue: Registered Office, S No 309, Mokshi, Vadodara.
• Attendance via VC/OAVM; 1,000 members access cap.
• Mr. Yogesh Keshariya appointed Independent Director for three-year term.

Financial snapshot FY2025-26

• Revenue from operations: ₹4,439.52 Lakhs.
• Total Income: ₹4,451.27 Lakhs.
• Net loss after tax: ₹112.64 Lakhs.
• Basic EPS: ₹-1.22.
• Borrowings: ₹2,983.95 Lakhs; Share capital: ₹1,100.11 Lakhs.
• Total equity: ₹2,524.40 Lakhs.
• Cash and cash equivalents: ₹330.84 Lakhs.
• Single segment: Engineering polymers in India.

Capital structure & liquidity

• Debt-to-equity ratio: 1.12x; Current ratio: 1.4579x.
• Credit rating IVR B+/Stable.
• Net debt service coverage: 0.7672x.

Dividend & capital raise

• Dividend for FY2025-26 not recommended.
• Preferential issue: 24,84,444 shares at ₹45; ₹11.18 Cr raised.
• Funds used for working capital and capex; some balance unutilised.

Audit & governance

• Auditors: Mukund & Rohit; Secretarial: Devesh Pathak; Internal: Chirag Bhatt.
• Auditors' report: unmodified; Emphasis on GST ITC contingent liability.

Risks & outlook

• GST ITC dispute; SEBI/IT investigations ongoing; contingent liabilities disclosed.
• Inventory ageing concerns; management actions to improve recoverability.
• New Labour Codes being evaluated; financial impact not yet quantified.
• Management remains positive on going concern and profitability improvement.

AGM details

• 34th AGM on 11 September 2026 at 11:30 IST via VC/OAVM.
• Cut-off for e-voting eligibility: 4 September 2026.
• Remote e-voting window: 8–10 September 2026, 9:00–17:00 IST.
• Voting results to be announced on or before 14 September 2026.
• Register of members closed from 5 to 11 September 2026.

Ordinary resolutions

• Adopt Audited Financial Statements for year ended 31 March 2026.
• Re-appoint Gaurav Thanky as Director, retiring by rotation.

Special resolutions

• Appoint Yogesh Keshariya as Non-Executive Independent Director for three years starting 12 June 2026.
• Re-appoint Gaurav Thanky as Managing Director for five years from 1 October 2026.
• Remuneration of Gaurav Thanky as MD: Rs 8,50,000 per month; perquisites as statement.
• Continuation of Aarasp Bejan Bodhanwala as Non-Executive Non-Independent Director from 1 Oct 2026.
• Remuneration to Aarasp Bodhanwala: Rs 12,00,000 per annum for three years.

Financial performance

• Revenue from operations: ₹4,439.52 lakh for FY2025-26.
• Total income: ₹4,451.27 lakh.
• Net loss after tax: ₹112.64 lakh.
• EPS: ₹-1.22 (basic/diluted).
• PBT: ₹-125.49 lakh.
• Depreciation and amortisation: ₹72.53 lakh.

Capital actions and equity

• Preferential issue: 24,84,444 shares at ₹45; paid-up capital ₹11.00 crore.
• Funds raised ₹11.18 crore; utilised ₹9.37 crore; ₹1.81 crore unutilised.
• Paid-up capital after issue: ₹11.00 crore.
• Credit rating: IVR B+/Stable.
• Dividend: No dividend declared.

Operations and segments

• Segment revenue: Compounds ₹4,315.89 lakh; Toll ₹3.20 lakh; Trading ₹120.43 lakh.
• Segment volume: 2,238 MT; 6 MT; 68 MT.
• Total segment revenue: ₹4,439.52 lakh; total volume: 2,312 MT.
• Closing inventories: Raw ₹955.36 lakh; WIP ₹28.24 lakh.
• Finished goods ₹3,057.64 lakh incl. transit ₹57.64; Stores ₹55.78.
• Year-end cash: ₹330.84 lakh.

Regulatory and contingencies

• GST show cause: ₹31.57 crore; contingent liability.
• Nine post-dated cheques ₹18 crore under NI Act; contested.
• SEBI/Income Tax investigations ongoing; contingencies not quantified.
• Inventory ageing noted; no impairment recognised.

Governance and board changes

• Yogesh Keshariya appointed Independent Director for 3 years from 12.06.2026.
• Gaurav Thanky reappointed MD for 5 years from 01.10.2026.
• MD remuneration: ₹8.50 lakh per month; 3-year term; min remuneration in loss years.
• Aarasp Bodhanwala reappointed Non-Executive Non-Independent for 3 years from 01.10.2026; ₹1.00 lakh/month.
• Remuneration for Bodhanwala: ₹12 lakh per annum; three-year term.

Audit, internal controls and compliance

• Statutory auditors: Mukund & Rohit; unmodified opinion for FY2025-26.
• Secretarial auditors: Devesh Pathak & Associates; five-year appointment.
• Internal auditors: Chirag Bhatt & Associates.
• CFO certificate under Regulation 17(8) of LODR dated 02 June 2026.
• Going concern: GST liability contingent; board optimistic.

Liquidity and cash flow

• Net cash from operating activities: ₹-261.54 lakh.
• Net cash from investing activities: ₹-42.93 lakh.
• Net cash from financing activities: ₹417.00 lakh.
• Net increase in cash and cash equivalents: ₹112.54 lakh.
• Cash at year-end: ₹330.84 lakh.

Outlook and strategy

• Management focuses on product mix, cost optimization, and working capital discipline.
• Aims to improve capacity utilisation and customer acquisition.
• Impact of New Labour Codes to be evaluated from April 2026.

Shareholders and AGM

• 34th AGM scheduled 11 Sep 2026 via VC/OAVM.
• Dividend not declared for FY2025-26.

Financials

• Revenue from operations: Rs 1619.84 lacs; Total revenue (net): Rs 1622.09 lacs.
• PAT: Rs 17.70 lacs; Basic & Diluted EPS: Rs 0.02 for the quarter.
• Total comprehensive income: Rs 9.67 lacs; Tax expense: Rs 0.00.
• One segment of operations disclosed; no segment diversification reported.
• GST and SEBI investigations ongoing; summons issued to directors & others.
• Funds raised via preferential issue: Rs 11.18 crores; utilization mostly per allocations.
• Capex utilized: Rs 75.59 lacs; allocated for capex was Rs 223.60 lacs.
• Working capital utilization: Rs 6.71 crores; fully utilized as per allocation.

Financial results and segment

• Unaudited financial results for quarter ended 30 June 2026 approved; limited review conducted.
• Single-segment operations disclosed.

Director appointments and remuneration

• Gaurav Thanky reappointed as MD from 01 Oct 2026; shareholder approval pending.
• Remuneration for Gaurav Thanky from 01 Oct 2026; shareholder approval pending.
• A.B. Bodhanwala reappointed as Non-executive Director from 01 Oct 2026; shareholder approval pending.
• Remuneration for A.B. Bodhanwala from 01 Oct 2026; shareholder approval pending.

Regulatory and legal matters

• GST show-cause notice; interim reply submitted; SEBI investigation ongoing.
• Income Tax investigation initiated; no amount determined yet.
• Inventory ageing; carrying value unchanged; no provision for obsolescence.
• Vendor NI Act 138 case for Rs 18 crore; crystallisation not probable.

Fund raising and utilisation

• Preferential issue on 13 Dec 2025 raised Rs 11,17,99,980.
• Utilisation till 30 Jun 2026: Working capital Rs 6,70,79,988.
• Utilisation till 30 Jun 2026: Capital expenditure Rs 75,59,444.
• Utilisation till 30 Jun 2026: General purpose Rs 2,23,59,996.
• Total utilised ~Rs 9.70 crore; unutilised ~Rs 1.48 crore.
• No material deviation in fund utilisation for the quarter.

Meeting Details

• Board meeting on 14 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider unaudited financial results for Q1 ended 30 June 2026.

Other Notes

• Trading window closed till 48 hours after results declaration.

Dematerialisation processing and dematerialised securities listing

• Dematerialisation requests for the quarter ended 30 June 2026 were processed and confirmed to depositories.
• Securities dematerialised have been listed on the stock exchanges where earlier issues are listed.
• Physical certificates received for dematerialisation were mutilated and cancelled after due verification.
• Depository's name substituted as registered owner in the records within prescribed timelines.

Appointment

• Mr. Yogesh Keshariya appointed Additional Director as Non-Executive Independent Director.
• Effective 12 June 2026; appointed for three years, subject to shareholder approval.
• He will not retire by rotation.
• Chartered Accountant, B.Com., DISA (ICAI); practices since 1993.
• IDT Partner at CNK, Vadodara; experienced in indirect taxes, internal audits, GST, and compliance.
• Disclosure states he is not related to other directors.