Independent Auditor's Limited Review Report on Unaudited Financial Results
Corporate Insolvency Resolution Process (CIRP) Status
The National Company Law Tribunal (NCLT), Kolkata Bench admitted the CIRP application filed by an operational creditor and appointed Mr. Rajiv Kumar Agarwala as Interim Resolution Professional (IRP) vide order dated May 2, 2024. Mr. Ashok Kumar Sarawagi was appointed as Resolution Professional (RP) by the Committee of Creditors (COC) in its 2nd meeting held on June 14, 2024, approved by NCLT order dated July 12, 2024. Management powers are vested with the RP during CIRP.
Financial Results Summary (Quarter Ended June 30, 2026)
- Revenue from Operations: ₹0.00 lakh
- Other Income: ₹0.64 lakh
- Total Income: ₹0.64 lakh
- Finance Cost: ₹0.10 lakh
- Depreciation and Amortization: ₹162.38 lakh
- Other Expenses: ₹14.88 lakh
- Total Expenses: ₹177.26 lakh
- Loss from Operations before Tax: ₹(176.62) lakh
- Tax Expense: ₹0.00 lakh
- Net Loss for the Period: ₹(176.62) lakh
- Total Comprehensive Loss: ₹(176.62) lakh
- Paid-up Equity Share Capital: ₹8,793.16 lakh (Face Value ₹10 per share)
- Basic EPS: ₹(0.20)
- Diluted EPS: ₹(0.20)
Creditor Claims Status (as of September 20, 2025)
- Secured Financial Creditors: Submitted ₹91,068.97 lakh, Admitted ₹91,068.97 lakh
- Unsecured Financial Creditors: Submitted ₹6,153.88 lakh, Admitted ₹0.00 lakh, Not Admitted ₹6,153.88 lakh
- Operational Creditors (Employees): Submitted ₹11.54 lakh, Admitted ₹11.54 lakh
- Operational Creditors (Others): Submitted ₹39,712.42 lakh, Admitted ₹39,228.67 lakh, Under Verification ₹483.76 lakh
Auditor's Qualified Conclusions
1. Creditor Claims Reconciliation: Claims submitted by financial and operational creditors exceed amounts appearing in books of account. No accounting impact made for excess/shortage/non-receipt of claims. Consequential impact on financial results not ascertained.
2. Unprovided Interest Expense: Cumulative interest expense of ₹63,020.22 lakh on borrowings not provided, contrary to IND AS 109 requirements. This amount was admitted by RP in claims list dated September 20, 2025.
3. Payables Confirmation: Balances of Trade Payables, Advances from Customer, Other Payables outstanding for substantial period subject to confirmation/reconciliation. Impact unascertained.
4. Expected Credit Loss Provisions: Company recognized ECL provision of ₹804.52 lakh (₹23.10 lakh against Capital Advances, ₹411.00 lakh against Trade Receivables, ₹370.43 lakh against Advances Recoverable). Auditor unable to comment on recoverability without corroborative evidence.
5. Confidential CIRP Information: Certain COC meeting minutes and CIRP procedures not shared with auditor, limiting ability to comment on financial impact.
6. GST Input Tax Credit Reconciliation: ITC as per books ₹19.39 lakh vs. GST portal ₹387.82 lakh, resulting in unreconciled difference of ₹368.43 lakh. No reconciliation provided by management.
Material Uncertainty Relating to Going Concern
Company incurred loss of ₹176.62 lakh for quarter ended June 30, 2026, with accumulated losses of ₹46,529.94 lakh exceeding entire net worth. Financial statements prepared on going concern basis subject to receipt of necessary approvals. COC approved resolution plan of Ankoor Distillers Private Limited on July 24, 2026, pending NCLT approval.
Emphasis of Matter
1. Manufacturing Operations: Temporarily shut down since October 2022 due to power disconnection by Damodar Valley Corporation (DVC). Security deposit of ₹950 lakh in bank guarantee invoked and other deposit of ₹748 lakh adjusted during FY 2022-23.
2. Statutory Dues: Undisputed statutory dues of ₹292.13 lakh in arrears as of June 30, 2026 for more than six months. Interest/penalty unascertained.
3. Bank Reconciliation Issues: Management not provided bank statements for several accounts (Indian Bank, Axis Bank, SBI accounts). Several bank accounts with nil balances not reflected in books.
4. Axis Bank Lien: ₹50 lakh in Axis Bank account under lien following NCRP complaint with Telangana police. Outstanding ₹36.89 lakh frozen and unavailable for operational use.
5. Gratuity Valuation: No actuarial valuation for gratuity carried out during FY 2025 and FY 2026. Impact unascertained.
6. PMLA Attachment: Assets attached by Directorate of Enforcement vide Provisional Attachment Order No. 07/2021 dated March 31, 2021 for ₹660.45 lakh under Prevention of Money Laundering Act. Special Court allowed restitution subject to deposit of residual amount after creditor disbursal.
7. Insurance Coverage: Insurance coverage for Fixed Assets and Plant & Machinery expired on June 13, 2023.
8. Transaction Audit: Transaction audit conducted for period April 1, 2022 to May 2, 2024 by J Singh & Associates. Application filed with NCLT on June 27, 2025 pending adjudication.
9. PPE and Tax Depreciation Difference: Property, Plant and Equipment recorded in books but not considered in depreciation schedule on Income-tax portal, creating deferred tax recognition differences.
10. Charge Details: Various charges created/modified in favor of lenders per MCA records, but company lacks details and unable to link with borrowings.
11. Resolution Plans: Received six resolution plans with five Earnest Money Deposits aggregating ₹5 crore and one Bank Guarantee of ₹1 crore.
12. CIRP Extension: CIRP period extended by 60 days to August 7, 2026 vide NCLT order dated June 10, 2026.
Additional Information
- Business activity falls within single primary segment "Ferro Alloys"
- Previous period figures regrouped/reclassified where necessary
- Financial results prepared under IND AS 34 and approved by Resolution Professional