Corporate Insolvency Status

Arshiya Limited is undergoing Corporate Insolvency Resolution Process (CIRP) pursuant to NCLT order dated April 23, 2024, in CP (IB) 3143/MB/2019 filed by Punjab National Bank under Section 7 of IBC 2016. Mr. Pankaj Mahajan serves as Resolution Professional (IBBI Registration No: IBBI/IPA-001/IP-P00836/2017-2018/11420) with suspended board powers vested in him under Section 17 of IBC.

Financial Results Approval

The Resolution Professional considered, approved, and took on record the unaudited standalone financial results on May 29, 2026, at 8:30 PM to 9:15 PM. Consolidated financial results could not be prepared due to ongoing CIRP in subsidiary companies.

Financial Performance Summary

Quarter Ended December 31, 2025:

  • Revenue from operations: ₹450.00 lakh
  • Other income: ₹12.80 lakh
  • Total income: ₹462.80 lakh
  • Total expenses: ₹469.24 lakh
  • Net loss after tax: ₹(6.44) lakh
  • Basic and diluted EPS: ₹(0.00)

Nine Months Ended December 31, 2025:

  • Revenue from operations: ₹1,350.00 lakh
  • Other income: ₹40.37 lakh
  • Total income: ₹1,390.37 lakh
  • Total expenses: ₹1,511.19 lakh
  • Net loss after tax: ₹(120.81) lakh
  • Basic and diluted EPS: ₹(0.05)

Comparative Figures (Year Ended March 31, 2025):

  • Revenue from operations: ₹1,494.85 lakh
  • Other income: ₹837.68 lakh
  • Net loss after tax: ₹(1,09,446.03) lakh
  • Basic EPS: ₹(41.54), Diluted EPS: ₹(41.37)

Key Financial Position Indicators

  • Paid-up equity share capital: ₹5,269.52 lakh (face value ₹2 per share)
  • Property, Plant & Equipment: ₹56,666.30 lakh (carrying value)
  • Inventory: ₹16,505.97 lakh

Critical Auditor Qualifications

M/s ARTHA & Associates (FRN: 138552W) issued a disclaimer of conclusion citing multiple constraints:

Corporate Guarantee Exposures:

  • ₹28,450.00 lakh guarantee to ANFL lenders (reclassified as secured debt per NCLT order January 12, 2026)
  • ₹75,400.00 lakh guarantee to NCR Rail lenders
  • Total corporate guarantees: ₹1,03,850.00 lakh (excluding interest/penalties)

Investment and Loan Exposures:

  • Investment in ANFTWZ: ₹44,625.29 lakh
  • Loans to ANFTWZ: ₹12,913.66 lakh
  • Total exposure to ANFTWZ: ₹57,538.95 lakh

Accounting Issues Identified:

1. Non-recognition of financial guarantee liability under Ind AS 109

2. Non-assessment of impairment of PPE (₹56,666.30 lakh) and inventories (₹16,505.97 lakh)

3. Revenue recognition of ₹1,350 lakh from Ascendas Panvel without executed contract or customer acceptance

4. Non-recognition of interest on financial liabilities post-CIRP commencement

5. Non-receipt of external confirmations for trade receivables/payables

6. Non-accounting of interest on interim finance of ₹547.27 lakh raised from CoC members

7. Inability to verify ESOP accounting under Ind AS 102

8. Non-determination of employee benefit obligations under Ind AS 19

9. Advance of ₹5,000 lakh to related party for land purchase with fair value adjustment of ₹1,965.15 lakh

10. VAT refund receivable of ₹1,876.65 lakh pending appeals

11. Segment reporting limitations under Ind AS 108

12. Accounting reversal of demerger scheme that became non-est

Operational Challenges

  • Severe manpower shortage: 50 out of 71 employees resigned between July 30-August 2, 2024
  • Current employee strength: 5 employees
  • Key accounting personnel resigned on December 31, 2025
  • Furlough letters issued to remaining employees
  • Termination of sub-lease agreements by Ascendas Panvel FTWZ Limited and Anomalous Infra Private Limited on July 26, 2024, citing event of default

Interim Financing

During Q2 FY25, raised interim finance of ₹547.27 lakh from Committee of Creditors members to meet cash flow deficiency under Section 25 of IBC.

Legal and Regulatory References

  • SEBI Listing Regulations Regulation 33
  • IBC 2016 Sections 7, 14, 17, 20, 22, 25
  • NCLT Order: CP (IB) 3143/MB/2019 dated April 23, 2024
  • NCLAT orders dated April 30, 2024, and July 16, 2024
  • Indian Accounting Standards: Ind AS 34, 109, 115, 102, 19, 36, 108, 37

#Tags: #ArshiyaLimited #CIRP #SEBIDisclosure #FinancialResults #Insolvency #Negative