Corporate Insolvency Resolution Process Context

The company has been under CIRP since 29th January 2021 pursuant to NCLT Mumbai Bench order C.P. (IB) 1224/MB/2020. The powers of the Board of Directors are suspended and vested with Resolution Professional Ms. Kanak Jani (IBBI Reg. No. IBBI/IPA-001/IP-P-01757/2019-2020/12685). The company is being managed as a going concern during CIRP.

Financial Results Summary (Standalone)

Quarter Ended 30th September 2026:

  • Total Income: ₹30 lakhs (Other Income only)
  • Total Expenses: ₹145 lakhs
  • Finance Costs: ₹24 lakhs
  • Depreciation: ₹87 lakhs
  • Other Expenses: ₹34 lakhs
  • Net Loss: ₹115 lakhs
  • Basic EPS: (₹0.38)
  • Diluted EPS: (₹0.38)

Half Year Ended 30th September 2026:

  • Total Income: ₹53 lakhs (Other Income only)
  • Total Expenses: ₹344 lakhs
  • Finance Costs: ₹50 lakhs
  • Depreciation: ₹212 lakhs
  • Other Expenses: ₹82 lakhs
  • Net Loss: ₹291.07 lakhs
  • Basic EPS: (₹0.96)
  • Diluted EPS: (₹0.96)

Comparative Figures:

  • H1 FY26 Net Loss: ₹236 lakhs
  • FY26 Net Loss: ₹587.01 lakhs

Operational Status

Manufacturing activities at the company's plant in Chakan remain suspended since 3rd March 2020 due to lack of working capital. Operations remain affected due to inability to function normally and continuing production suspension.

Capital Structure

Paid-up Equity Share Capital remains unchanged at ₹3,039.95 lakhs (face value ₹10 each) across all periods presented.

Balance Sheet Position (Standalone as at 30th September 2026)

  • Total Assets: ₹17,676.70 lakhs
  • Non-current Assets: ₹15,349.48 lakhs
  • Property, Plant and Equipment: ₹2,195.57 lakhs
  • Capital work-in-progress: ₹351.95 lakhs
  • Investment Property: ₹8,597.22 lakhs
  • Other Financial Assets: ₹291.02 lakhs
  • Other Non-Current Assets: ₹3,718.73 lakhs
  • Current Assets: ₹2,327.22 lakhs
  • Cash and cash equivalents: ₹1,552.86 lakhs
  • Bank balances: ₹58.80 lakhs
  • Loans: ₹648.38 lakhs
  • Other Financial Assets: ₹0.12 lakhs
  • Other Current Assets: ₹67.06 lakhs
  • Equity and Liabilities:
  • Equity: Negative ₹34,670.33 lakhs (Share Capital: ₹3,039.95 lakhs + Other Equity: Negative ₹37,710.28 lakhs)
  • Non-current Liabilities: ₹935.93 lakhs
  • Current Liabilities: ₹51,411.05 lakhs
  • Borrowings: ₹16,711.03 lakhs
  • Lease Liability: ₹242.44 lakhs
  • Trade Payables: ₹1,513.20 lakhs
  • Other Financial Liabilities: ₹27,856.40 lakhs
  • Provisions: ₹79.86 lakhs
  • Other Current Liabilities: ₹5,008.11 lakhs

Cash Flow Statement (Standalone)

For H1 FY27:

  • Net Cash Flow from Operating Activities: Negative ₹50.48 lakhs
  • Net Cash Flow from Investing Activities: ₹48.29 lakhs
  • Net Cash Flow from Financing Activities: ₹0
  • Net decrease in Cash: ₹2.19 lakhs
  • Opening Cash Balance: ₹1,555.04 lakhs
  • Closing Cash Balance: ₹1,552.86 lakhs

Resolution Plan Update

The Committee of Creditors (CoC) approved the resolution plan submitted by Fab Metals Pvt Ltd with 92.47% assent in its 17th meeting held on 22nd January 2022. The approval from NCLT Mumbai Bench is still pending.

Auditor Qualifications and Emphasis of Matter

Jayesh Dadia & Associates LLP issued a qualified review report with the following key concerns:

1. Going Concern Uncertainty: Net worth completely eroded with further losses incurred, operations suspended

2. Asset Impairment: Company has not assessed impairment of PPE, CWIP, and intangible assets as per Ind AS 36

3. Creditor Claims: Amount of claims admitted by RP may differ from financial statement amounts pending CIRP outcome

4. Employee Records: Personnel records updated based on available documents, employee dues calculated only till CIRP initiation

5. Expense Approval: Records of CoC approval for expenses/payments not provided for verification

6. Compliance Issues: No whole-time Company Secretary appointed for over 6 months, no internal auditor appointed

7. IEPF Transfer Delay: ₹46.55 lakhs of unclaimed matured fixed deposits & interest due for transfer to IEPF as at 30th September 2026

Consolidated Results

Consolidated results include associate PAL Credit & Capital Limited. The consolidated financial results mirror the standalone results exactly as the associate company has not been operational, has not filed annual returns for over five years, and its net worth has been eroded with no carrying value of investment.

Segment Information

The company is engaged in only one business segment i.e. Engineering, with only one reportable segment as per Ind AS 108.