Rajvir Industries Limited
1. Introduction
Important Note
Rajvir Industries Limited entered CIRP under IBC in FY19. Data shows FY22 as last year with annual financials—no FY23 or FY24 data. The NCLT approved the Resolution Plan April 19, 2024. Report uses FY20–FY22, last three full data years on Screener. RP ran reduced ops during this period.
Rajvir Industries Limited (RAJVIR) lists on BSE and NSE. Incorporated in 2004 in Secunderabad of Telangana. Nandlal Agarwal family promoted it as a specialty yarn maker with exports to 42 countries.
Products spanned cotton, organic, fair-trade, combed yarns, polyester-viscose blends, modal, spun silk, flame-retardant, melange/heather, compact, cashmere, angora, wool blends. FY12 peak: Rs. 302 crore revenue. Fell to Rs. 18 crore FY22. CIRP FY19; resolution approved April 2024. CRISIL/CARE ratings into late 2025 show some activity.
Covers background, promoters, FY20–22 finances from Screener.in and BSE filings.
2. Company Overview
Background and History
Rajvir Industries incorporated in 2004 in Hyderabad (now Secunderabad). Nandlal Agarwal family promoters. Roots to 1962 per Value Research. Built massive yarn ops in Andhra Pradesh 1.11 lakh spindles FY10 plus melange/dyed yarn unit. Exports are strong to the US, Korea, Taiwan, Spain, South Africa, Egypt, Bangladesh, Pakistan. GOTS certified for organic cotton.
Business Collapse — FY14 Onwards
Revenue topped Rs. 302 crore FY12, slid from FY14. FY17: Rs. 153 crore. FY19: Rs. 58 crore—81% peak drop. Debt Rs. 150–200 crore plus ops losses from FY18 killed debt service. CIRP triggered. RP revenue: Rs. 34 crore FY20, 19 FY21, 18 FY22—bare minimum to hold asset value.
CIRP and Resolution Plan
CIRP admitted; RP managed a years-long process. CoC met often through 2021 per BSE. CRISIL/CARE ratings Oct–Dec 2025 signal post-resolution ops. No new BSE results post-FY22.
3. Promoter Introduction
Promoter holding steady at 74.94% from FY17 through June 2021. Key promoters and directors from BSE FY2020 annual report:
Name | Designation | Note |
|---|---|---|
Nandlal Agarwal | Chairman & Promoter | Founder Agarwal family; Secunderabad-based |
Anil Kumar Agarwal | Managing Director & Promoter | Day-to-day management; founding family |
Prem Agarwal | Director & Promoter | Promoter family member |
Resolution Professional | NCLT-Appointed RP | Took board control from CIRP admission |
Independent Directors | Non-Executive | SEBI compliance directors (FY20 report) |
Table 1: Promoters and Directors
Agarwal family's 74.94% stake showed strong control. Unlike the RICHAIND fraud case, Rajvir's issues stem from yarn market crashes, debt buildup, industry pressures—no promoter crime alleged in BSE filings. Resolution Plan approval signals lender faith in salvage value over liquidation. CIRP suspended family control to RP.
4. Financial Statement Analysis
Note
FY20–22 data covers CIRP period. Revenue from Resolution Professional's minimal operations. No FY23–24 annual data.
4.1 Income Statement (FY20–FY22)
Revenue slid Rs. 34 crore FY20 to 19 FY21, 18 FY22. Ops losses Rs. 9 crore FY20, 14 FY21, tiny -0.4 FY22. FY22 loss drop matched expense cuts despite flat OPM. Interest accrued Rs. 20–22 crore yearly on frozen debt no cash outflow in CIRP. Net losses Rs. 33, 71 (Rs. 22 crore dep hit), 29 crore. No dividends since FY11.
Particulars (Rs. Crore) | FY20 | FY21 | FY22 |
|---|---|---|---|
Revenue (Sales) | 34 | 19 | 18 |
Total Expenses | 43 | 33 | 18 |
Operating Loss | -9 | -14 | -0 |
OPM % | -26% | -72% | -2% |
Interest (accrued) | 20 | 21 | 22 |
Depreciation | 3 | 22 | 7 |
Net Loss | -33 | -71 | -29 |
EPS (Rs.) | -82.20 | -177.50 | -73.47 |
Table 2: Income Statement — FY20 to FY22
CIRP period; FY23–FY24 not available
4.2 Balance Sheet (FY20–FY22)
Assets contracted Rs. 181 crore FY20 to 135 FY22 as CIRP wound down ops. Rs. 4 crore equity vs. reserves -98, -169, -198 crore—cumulative losses since FY14. Net worth -94, -165, -194 crore; book value ~Rs. -485/share (Screener). Debt frozen at Rs. 158–175 crore.
Particulars (Rs. Crore) | FY20 | FY21 | FY22 |
|---|---|---|---|
Equity Capital | 4 | 4 | 4 |
Reserves (accum. loss) | -98 | -169 | -198 |
Borrowings | 158 | 175 | 175 |
Other Liabilities | 117 | 130 | 154 |
Total Assets | 181 | 140 | 135 |
Fixed Assets | 28 | 99 | 92 |
Book Value/Share (Rs.) | ~ -235 | ~ -413 | ~ -485 |
Table 3: Balance Sheet Summary — FY20 to FY22
4.3 Cash Flow
Rare for CIRP: ops cash gushed +Rs. 37 crore FY20, 36 FY21, 25 FY22—RP collecting old dues, liquidating working capital, not new sales.
Cash Flow (Rs. Crore) | FY20 | FY21 | FY22 |
|---|---|---|---|
Operating | 37 | 36 | 25 |
Investing | 0 | 0 | 0 |
Financing | -38 | -35 | -22 |
Net Change | 0 | 0 | 3 |
Table 4: Cash Flow Summary — FY20 to FY22
Positive ops CF from collections, not business revival
4.4 Key Ratios
Ratio | FY20 | FY21 | FY22 | Observation |
|---|---|---|---|---|
ROCE % | -12% | -94% | N/A | Buried negative |
OPM % | -26% | -72% | -2% | Losses shrinking |
Debtor Days | 32 | 5 | 13 | RP cash grab |
Days Payable | 510 | 622 | 1,140 | CIRP creditor freeze |
EPS (Rs.) | -82.20 | -177.50 | -73.47 | Per-share disaster |
Promoter Holding | 74.94% | 74.94% | 74.94%* | Suspended in CIRP |
Book Value/Share | ~ -235 | ~ -413 | ~ -485 | Worse yearly |
Table 5: Key Financial Ratios — FY20 to FY22
*Promoter rights suspended under CIRP
5. Key Insights and Interpretation
Days Payable — 1,140 in FY22
Days payable hit 510 FY20, 622 FY21, 1,140 FY22—over 3 years of unpaid suppliers. CIRP froze these claims; Resolution Professional admitted them for the resolution plan. Not smart cash strategy, legal insolvency lockdown.
Positive Operating Cash Flow — A Misleading Positive
Rs. 25–37 crore ops cash FY20–22 looks good but fake recovery signal. RP cashed old receivables, dumped inventory, shrank working capital during wind-down. Used proceeds for debt paydown (-22 to -38 crore financing). Orderly CIRP cleanup, not business bounce-back.
Resolution Plan Approved — Key Positive
NCLT greenlit plan April 2024—buyer committed to revival. CRISIL/CARE 2025 ratings show due diligence on post-resolution setup. No FY23–24 BSE results though; plan rollout unclear publicly.
6. Conclusion
Rajvir Industries Limited, once a specialty yarn exporter, hit CIRP after revenue slide and debt pile-up. FY20–22 (CIRP years): sales Rs. 34 to 18 crore, annual losses Rs. 29–71 crore, book value to Rs. -485/share. Rs. 175 crore debt frozen, Rs. 154 crore creditor dues pending.
Game-changer: NCLT-approved Resolution Plan April 2024 signals rescue vs. liquidation. 2025 CRISIL/CARE ratings hint activity, but no new financials filed.
Sources:
- Screener
- BSE