Detailed Summary

Financial Performance Highlights

For the financial year ended March 31, 2026, Asian Fertilizers Limited reported:

  • Revenue from operations: ₹6,823.78 lakhs, representing a 4.40% increase from previous year's ₹6,536.39 lakhs
  • Other income: ₹104.45 lakhs (previous year: ₹64.43 lakhs)
  • Total expenditure: ₹6,873.58 lakhs (previous year: ₹6,564.73 lakhs)
  • Profit before interest, depreciation, and tax (PBDIT): ₹242.45 lakhs (previous year: ₹209.64 lakhs)
  • Finance costs: ₹147.76 lakhs (previous year: ₹131.87 lakhs)
  • Depreciation & amortization: ₹40.04 lakhs (previous year: ₹41.68 lakhs)
  • Profit before tax: ₹54.65 lakhs, a 51.51% increase from previous year's ₹36.08 lakhs
  • Tax expense: ₹15.47 lakhs (previous year: ₹11.78 lakhs)
  • Net profit: ₹39.18 lakhs, a 61.23% increase from previous year's ₹24.30 lakhs

Dividend Declaration

The Board of Directors decided not to recommend any dividend for the financial year 2025-26 to conserve the company's resources.

Transfer to Reserves

The Board decided to transfer the profit of the year to reserves account.

Operational Performance

The company manufactures single super phosphate (SSP) in powder and granule forms and sulphuric acid:

  • SSP production: 25,567.80 MT (55.58% of targeted production, 38.74% of installed capacity of 66,000 MT)
  • SSP dispatches: 25,422.10 MT
  • Sulphuric acid production: 14,393.17 MT (43.62% of installed capacity of 33,000 MT)
  • Captive consumption of sulphuric acid for SSP production: 7,270.91 MT
  • Sale of sulphuric acid (including trading): 14,154.858 MT

The company sells fertilizers under its brand name "PASHUPATI" and has a marketing contract with Matix Fertilizers and Chemicals for sales in UP, Bihar, and West Bengal.

Corporate Governance

Board Composition:

  • Mr. Amod Agarwal: Chairman/Independent Director
  • Mr. Ashok Kumar Matanhelia: Managing Director
  • Mr. Dinesh Agarwal: Independent Director
  • Mr. Sunil Kedia: Independent Director
  • Mr. Somil Matanhelia: Whole Time Director
  • Mr. Shobhit Matanhelia: Whole Time Director & CFO
  • Mrs. Usha Matanhelia: Women Director
  • Mrs. Kunika Meghani: Company Secretary & Compliance Officer

Board Meetings: Four meetings were held during the year on May 29, 2025; August 14, 2025; November 13, 2025; and February 13, 2026. All directors attended all meetings.

Committees:

  • Audit Committee: 4 meetings held
  • Nomination & Remuneration Committee: 1 meeting held
  • Stakeholders Relationship Committee: 1 meeting held

Related Party Transactions

All related party transactions were conducted at arm's length basis in the ordinary course of business. Key transactions included:

  • M/s Pashupati Enterprises: Leasing of property - ₹3,00,000 yearly
  • M/s Pashupati Roadways: Transportation services - ₹190.34 lakhs
  • Mrs. Usha Matanhelia: Office building rent - ₹26.58 lakhs
  • M/s Poorvanchal Acid Pvt Ltd.: Trading business - Purchase ₹353.51 lakhs, Sale ₹61.88 lakhs
  • M/s Ahana Traders: Trading business - Purchase ₹341.57 lakhs, Sale ₹480.46 lakhs

Total related party transactions amounted to ₹1,103.87 lakhs.

Auditors and Reports

Statutory Auditors: M/s Kapoor Tandon & Associates, Chartered Accountants, were appointed for a term of five years until the conclusion of the 43rd AGM in 2027. Their report contained no adverse comments.

Secretarial Auditor: Mr. Awashesh Dixit, Practicing Company Secretary, conducted the secretarial audit. The report contained two qualifications:

1. Dematerialization of shares including promoters' holdings is in progress

2. Need to comply with SEBI (Prohibition of Insider Trading) Regulations 2015 regarding Structured Digital Database

Cost Auditor: M/s K.S. Bhatnagar and Associates, Cost Accountants, were appointed as Cost Auditor for FY26 and re-appointed for FY27. Remuneration ratification is sought from members.

Key Management Personnel

No changes in Directors or KMP during FY26. Mr. Shobhit Matanhelia retires by rotation and is eligible for re-appointment.

Employee Strength

The company's headcount stood at 15 as of March 31, 2026.

Capital Structure

  • Authorized share capital: 10,000,000 equity shares of ₹10 each (₹1,000 lakhs)
  • Issued, subscribed, and paid-up capital: 7,901,500 equity shares of ₹10 each (₹790.15 lakhs)
  • Promoter holding: 31.85% (2,516,620 shares)

Loans and Advances

The company granted loans to:

  • Vibrant Laminate Pvt. Ltd.: ₹951.45 lakhs (maximum outstanding ₹1,120.82 lakhs)
  • Aditya Enterprises: ₹5.03 lakhs
  • Uttarak Industries Pvt. Ltd.: ₹83.36 lakhs
  • Poorvanchal Acid Pvt. Ltd.: ₹56.46 lakhs (maximum outstanding ₹80.73 lakhs)

Borrowings

  • Secured borrowings: ₹1,828.41 lakhs (including working capital loans of ₹1,625.15 lakhs)
  • Unsecured loans from directors: ₹264.89 lakhs
  • SBI Guaranteed Emergency Credit Line (GECL): ₹155.68 lakhs

Contingent Liabilities

  • Excise duty including penalty (under litigation): ₹5.00 lakhs
  • Commercial tax (Entry Tax): ₹5.55 lakhs
  • Others: ₹14.88 lakhs
  • Bank guarantees: ₹100.00 lakhs

AGM Matters

The 41st Annual General Meeting is scheduled for September 30, 2026, to consider:

1. Adoption of financial statements

2. Re-appointment of Mr. Shobhit Matanhelia as Director

3. Ratification of Cost Auditor remuneration

4. Re-appointment of Managing Director and Whole Time Directors

5. Approval of related party transactions