Kiran Syntex submitted the draft Scheme of Merger with Gujarat Kiran Polytex Limited to the Bombay Stock Exchange on September 11, 2026. The filing advances the consolidation process between the two entities.

The company filed the application under Regulation 37 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This submission follows the Board of Directors' approval of the merger scheme on June 30, 2026.

Merger Structure and Regulatory Framework

Kiran Syntex Limited acts as the Transferee Company in the arrangement. Gujarat Kiran Polytex Limited is designated as the Transferor Company. The scheme involves their respective shareholders and creditors as per Section 230-232 of The Companies Act, 2013.

The application was routed through the BSE Listing Centre. The filing adheres to the SEBI Master Circular on Scheme of Arrangement by Listed Entities. No financial metrics or valuation details were disclosed in this specific intimation.

Kiran Syntex posted a net loss of ₹72.43 lakh for the financial year ended March 31, 2026, an improvement from the ₹77.46 lakh loss recorded in FY25. The Surat-based textile trader saw its turnover jump to ₹14.89 crore, up from ₹85 lakh in the prior year, driven by the resumption of core business operations.

The company, which had been largely dormant in the preceding year, restarted trading activities in January 2025. This operational restart explains the significant variance in financial metrics and working capital ratios compared to FY25, where there were no significant trading transactions.

Financial Performance

Revenue from operations stood at ₹14,89,45,240 for FY26, compared to ₹84,99,581 in FY25. Despite the top-line growth, the company remained in the red, with a profit before tax of ₹19.82 lakh offset by a tax expense of ₹74.41 lakh.

Finance costs rose to ₹1.80 lakh from ₹49,000 in the previous year, reflecting increased borrowing activity to support operations. Depreciation expenses decreased slightly to ₹64,300 from ₹80,000.

Balance Sheet Signals

Total assets expanded significantly to ₹9.85 crore from ₹24.69 lakh in FY25. Current assets dominated the balance sheet at ₹8.40 crore, primarily driven by trade receivables of ₹8.00 crore. Cash and cash equivalents increased sharply to ₹36.13 lakh from ₹25.93 thousand, indicating improved liquidity position post-restart.

Trade payables surged to ₹7.65 crore from ₹38.80 lakh, aligning with the higher procurement volumes associated with resumed trading. The debt-equity ratio rose to 0.109 times from 0.046 times, though absolute debt levels remain manageable relative to equity of ₹1.93 crore.

What the Numbers Show

The tax expense of ₹74.41 lakh exceeded the profit before tax of ₹19.82 lakh, resulting in the net loss. This suggests the utilization of deferred tax assets or adjustments related to prior periods rather than current operational taxation alone. Additionally, trade receivables constitute roughly 95% of total current assets, highlighting a heavy reliance on customer collections for working capital management in this early phase of operational restart.

Corporate Developments

The Board approved a merger with Gujarat Kiran Polytex Limited during the year. At the Extra Ordinary General Meeting held on December 22, 2025, shareholders altered the main business objects to include additional activities. The 40th Annual General Meeting is scheduled for September 12, 2026, to adopt these audited financial statements and re-appoint director Ami Jigar Godiwala.