Company Overview
Aban Offshore Limited, an offshore oil drilling services company, is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by NCLT Chennai on September 1, 2025, based on an application filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016.
CIRP and Management Changes
Mr. Shailesh Desai was appointed as Interim Resolution Professional (IRP) on October 10, 2025, and confirmed as Resolution Professional (RP) by the Committee of Creditors on November 26, 2025. The powers of the Board of Directors have been suspended under Section 17 of IBC, and a moratorium under Section 14 is in effect from the CIRP commencement date.
Financial Performance FY 2025-26
The company reported a consolidated net loss of ₹5,288.95 million for FY26 (improved from ₹8,893.92 million loss in FY25), with revenue from operations declining to ₹4,096.17 million from ₹4,756.55 million. Standalone performance showed a net profit of ₹316.83 million, down significantly from ₹1,678.20 million in FY25.
Critical Financial Position
The company faces severe financial distress with negative net worth of ₹282,407.24 million (consolidated) and net current liabilities of ₹294,097.47 million. All bank borrowings of ₹170,841.21 million have been recalled by lenders and classified as current due to default. Trade receivables of ₹7,291.78 million are considered doubtful with significant credit risk.
Auditor Qualifications and Going Concern
Auditors Ford Rhodes Parks & Co. LLP issued a disclaimer of opinion due to non-receipt of bank confirmations for deposits of ₹592.98 million and term loans of ₹4,148.03 million, and material uncertainty regarding going concern due to accumulated losses, negative net worth, and current liabilities exceeding current assets.
Operational and Corporate Details
The company operated rigs Aban II, Aban III and Aban IV on bareboat hire charges. The 40th AGM is scheduled for November 16, 2026 via video conferencing to adopt financial statements and appoint director P. Venkateswaran who retires by rotation.
Contingent Liabilities and Subsidiaries
Total contingent liabilities stand at ₹15,796.19 million, including income tax disputes of ₹8,647.19 million and various tax disputes. The group includes multiple subsidiaries through Aban Holdings Pte Ltd, Singapore, and an associate Belati Oilfield Sdn Bhd, Malaysia (49% ownership).
Regulatory Compliance and Shareholding
The annual report was submitted pursuant to SEBI LODR Regulations. Promoters hold 19.33% while public shareholders hold 51.13% of the equity. Despite the CIRP and financial distress, management asserts going concern status citing the moratorium period and ongoing resolution process.