Kkalpana Plastick Limited reported a decline in financial performance for the fiscal year ended March 31, 2026, with total revenue falling 4% year-on-year to ₹48.44 lakh and profit after tax dropping 31% to ₹5.99 lakh. The Kolkata-based plastic compounding firm continued to operate without core business activity during the period, generating no revenue from operations.

The company’s financial results were driven entirely by other income, primarily interest earned on loans extended to related parties. Total expenses rose slightly to ₹41.05 lakh from ₹41.44 lakh in the previous year, with employee benefit expenses constituting the largest component at ₹25.61 lakh.

Financial Performance

The following table outlines the key financial metrics for FY26 compared to FY25:

Revenue from operations remained at nil for the second consecutive year. Other income, which comprises the entirety of the company’s revenue, decreased by ₹1.95 lakh year-on-year. Interest received on loans contributed ₹48.26 lakh to this figure, while interest on TDS refundable added ₹0.18 lakh.

What the Numbers Show

A critical observation from the financial statements is the complete reliance on non-operating income. With zero revenue from operations, the company’s profitability is entirely dependent on the interest yield from its loan portfolio. The balance sheet reveals that loans to related parties stood at ₹620.39 lakh as of March 31, 2026, representing approximately 97% of total current assets. This concentration indicates that the company’s primary business activity has shifted from plastic compounding to lending to associated entities, specifically Bbigplas Poly Private Limited and Plastic Processors and Exporter Private Limited.

Balance Sheet and Dividend

Total assets increased marginally to ₹641.82 lakh from ₹636.35 lakh in the previous year. Cash and cash equivalents rose to ₹4.50 lakh, while loans to related parties grew by ₹4.45 lakh. The company reported no long-term borrowings or bank guarantees.

The Board of Directors did not recommend any dividend for FY26, citing paucity of funds. Retained earnings increased to ₹62.26 lakh from ₹56.27 lakh in FY25.

Corporate Governance

The company convened its 37th Annual General Meeting on September 23, 2026, via video conferencing. Shareholders approved the re-appointment of Mr. Sajjan Kumar Sharma as Whole-Time Director for five years, effective November 1, 2026. Independent Directors Mrs. Rashi Nagori Mehta and Ms. Shampa Paul were also re-appointed for their respective terms. The Board noted that the company is exempt from certain SEBI Listing Regulations due to its paid-up capital being below ₹10 crore and net worth below ₹25 crore.

Ashish Begwani has launched an open offer to acquire up to 14,37,420 equity shares of Kkalpana Plastick Limited , representing 26% of the company’s total paid-up equity and voting share capital. The offer price is set at ₹28 per equity share, payable in cash. Assuming full acceptance, the maximum consideration payable will be ₹4,02,47,760.

The tendering period commences on Friday, August 21, 2026, and closes on Friday, September 4, 2026. The offer is mandatory under Regulations 3(1) and 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, triggered by a Share Purchase Agreement (SPA) dated July 7, 2026. Under the SPA, Begwani agreed to acquire 40,12,335 equity shares (72.58% stake) from the outgoing promoters, Mrs. Sarla Surana and Bbigplas Poly Private Limited, at the same negotiated price of ₹28 per share.

Offer Structure and Control

Upon completion of the open offer and the underlying SPA transaction, assuming full acceptance, Begwani will hold 54,49,755 equity shares, constituting 98.58% of the total paid-up equity and voting share capital. This acquisition will result in a change in management and control, with Begwani becoming the new and sole promoter of the target company. The outgoing promoters have submitted intent letters to reclassify themselves from the promoter category to the public category.

The offer is not conditional upon any minimum level of acceptance. There are no persons acting in concert (PACs) with the acquirer for this purpose. No competitive bids have been received as of the date of the Letter of Offer.

Financial Arrangements

Begwani has made firm financial arrangements for the implementation of the offer from own sources, with no borrowings envisaged. A Chartered Accountant has certified that sufficient resources are available. An escrow account has been opened with ICICI Bank Limited, and ₹1,01,00,000 (more than 25% of the maximum consideration) has been deposited. The manager to the offer is VC Corporate Advisors Private Limited, and the registrar is MUFG Intime India Private Limited.

What the Numbers Show

The offer price of ₹28 per share represents a significant premium over the fair value of ₹12.71 per share determined by an independent registered valuer. This valuation was based on parameters including book value and comparable trading multiples. The divergence between the negotiated/offer price and the independent fair value suggests a strategic premium paid for control rather than a reflection of current market trading dynamics, given that the shares are infrequently traded on the BSE.

Target Company Profile

Kkalpana Plastick Limited is primarily engaged in dealing in plastic compounds but has not generated any revenue from operations for several years. The company generates income from other sources, primarily interest on loans extended to related parties. For the financial year ended March 31, 2026, the company reported a profit after tax of ₹5.99 lakh, compared to ₹8.74 lakh in FY25 and a loss of ₹3.69 lakh in FY24. The net worth stood at ₹635.11 lakh as of March 31, 2026.

The equity shares are listed on the BSE and CSE. However, trading on the CSE has been inactive for many years, and on the BSE, the shares are under Graded Surveillance Measures (GSM): Stage 4. The closing market price on the BSE on the date of the Letter of Offer (August 7, 2026) was ₹51.81.