Carysil Limited has announced the voluntary closure of its wholly owned Turkish subsidiary, citing persistent market challenges and economic instability that rendered operations financially unviable. The subsidiary, Carysil Ankastre Sistemleri Ticaret Limited Şirket (Carysil Turkey), was officially deregistered on March 04, 2026, following confirmation from the Republic of Turkey Istanbul Trade Registry Directorate.

Subsidiary Closure Details

Carysil Turkey was incorporated as a wholly owned subsidiary to establish the Carysil brand and promote the sale of kitchen sinks and allied products in the Turkish market. However, the operations faced significant challenges that made the business unsustainable.

Financial Impact Assessment

The financial contribution of Carysil Turkey to the parent company's operations was minimal, as evidenced by the subsidiary's performance data as of December 31, 2025.

The subsidiary reported zero revenue and maintained a negative net worth of ₹0.76 crores, representing only 0.13% of the parent company's net worth.

Reasons for Closure

The decision to close Carysil Turkey was driven by multiple factors that affected the subsidiary's viability:

• Persistent financial losses and continuous erosion of net worth
• Economic instability and challenging geopolitical conditions in Turkey
• Limited scalability and minimal business activity
• Absence of viable business prospects for future growth

According to the audited financial statements for the year ended March 31, 2025, the subsidiary had incurred continuous losses, which continued through the current period ended December 31, 2025.

Regulatory Compliance and Next Steps

The voluntary liquidation process is expected to be completed within the next 3-4 months, with Carysil Limited committed to providing updates upon completion. The company will comply with applicable RBI/FEMA regulations regarding the write-off of investment and loan amounts, subject to receiving necessary approvals.

Carysil Limited has confirmed that this closure is not expected to have any material impact on the consolidated financial performance of the company, given the subsidiary's minimal contribution to overall operations.

Carysil Limited has submitted its quarterly monitoring agency report for the utilization of funds raised through its Qualified Institutions Placement (QIP) for the quarter ended December 31, 2025. The report, prepared by ICRA Limited as the appointed monitoring agency, was filed with BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

QIP Issue Details and Fund Utilization

The company's QIP issue was completed between July 01, 2024, and July 03, 2024, raising ₹125.00 crore through equity shares. After accounting for issue-related expenses of ₹3.35 crore, the net proceeds available for utilization stand at ₹121.65 crore, revised from the originally planned ₹121.70 crore due to higher expenses by ₹0.05 crore.

Object-wise Fund Deployment

The monitoring agency report reveals the progress across three main objectives of the QIP issue:

Capital Expenditure for Manufacturing Facilities: Out of the allocated ₹62.50 crore for procurement and installation of machines, equipment, and moulds, the company has utilized ₹23.37 crore by December 31, 2025, leaving ₹39.13 crore unutilized for this purpose.

Working Capital Requirements: The entire allocated amount of ₹31.25 crore has been fully utilized for funding the company's working capital needs.

General Corporate Purposes: The complete allocation of ₹27.90 crore has been utilized across various corporate activities including advertising and publicity expenses (₹2.22 crore), Acrysil USA loan payment (₹2.81 crore), raising funds for right issue CSL (₹4.25 crore), supplier payments (₹18.20 crore), and sales promotion expenses (₹0.42 crore).

Deployment of Unutilized Proceeds

The company has strategically deployed the unutilized funds of ₹39.13 crore in fixed deposits with HDFC Bank across 15 different accounts. These investments are earning returns ranging from 6.25% to 6.35% with maturity dates extending from August 2026 to March 2027. The total earnings from these deployments amount to ₹0.78 crore, bringing the market value of unutilized proceeds to ₹39.91 crore.

Monitoring Agency Assessment

ICRA Limited, in its capacity as the monitoring agency, has confirmed that there is no material deviation from the objects of the issue. The utilization of proceeds remains in line with the disclosures made in the offer document. The agency noted that all government and statutory approvals related to the objects have been obtained, and technical assistance arrangements are operational.

The report emphasizes that while the capital expenditure component shows remaining utilization of ₹39.13 crore, this is expected to be deployed by the fiscal year ending March 31, 2026, as per the company's implementation timeline.