IMP Powers Limited Submits Audited Results with Qualifications

BJS and Associates, Chartered Accountants, issued a qualified audit opinion with six specific qualifications:

Trade Receivables: Gross trade receivables of ₹39.86 Crore are outstanding since prior to Corporate Insolvency Resolution Process (CIRP) commencement, remaining unpaid for over three years. No Expected Credit Loss (ECL) has been recognized against these receivables, potentially overstating trade receivables and understating losses. Impact not quantified.

Bank Balances and Other Current Assets: Balances aggregating ₹0.95 Crore (bank balances) and ₹22.93 Crore (other current assets) lack independent confirmations and adequate documentation. These pertain to pre-CIRP periods and remain unreconciled. Recoverability and carrying value could not be substantiated. Impact not determined.

Impairment Assessment: The Group has not conducted impairment assessment of assets despite prolonged suspension of production activities during CIRP and subsequent liquidation process. Potential impairment loss under Ind AS 36 not determined.

Sale Proceeds Distribution: After e-auction proceedings where ₹78 Crore was received from successful bidders (Electrify Energy Pvt Ltd in consortium with Mr. Rakesh R Shah), NCLT awarded relief to new management on November 5, 2024. STCI Finance Limited challenged this in NCLAT, which dismissed appeals and empowered NCLT to decide on distribution. STCI has further appealed to Supreme Court. Pending final distribution order, appropriate accounting treatment of write back/write off of dues cannot be determined.

Deferred Tax: The Group has not recognized deferred tax expense/income and corresponding deferred tax liability/asset arising from temporary differences as required under Ind AS 12. Impact not determined.

Employee Benefits: The Group has not carried out actuarial valuation of employee benefit obligations (gratuity and leave encashment) as at March 31, 2026, as required under Ind AS 19. Impact on employee benefit obligations, expense, and deferred tax not determined.

For the year ended March 31, 2026:

Assets:

Non-current Assets: ₹4317.63 lakhs (Property, Plant and Equipment: ₹4124.27 lakhs; Right of use Assets: ₹80.99 lakhs; Intangible Assets: ₹38.38 lakhs; Goodwill: ₹276 lakhs; Investments: ₹0.02 lakhs; Deferred Assets: ₹13.02 lakhs; Other Non-current Assets: ₹37.18 lakhs)
Current Assets: ₹22,252.12 lakhs (Inventories: ₹3764.41 lakhs; Trade Receivables: ₹3985.73 lakhs; Cash and Cash Equivalents: ₹96.21 lakhs; Bank Balance other than Cash: ₹7884.84 lakhs; Loans: ₹2106.63 lakhs; Other Financial Assets: ₹1840.21 lakhs; Other Current Assets: ₹2293.50 lakhs; Assets held-for-sale: ₹280.60 lakhs)
Total Assets: ₹26,569.74 lakhs

Liabilities & Equity:

Equity: Negative ₹27,088.06 lakhs (Equity Share Capital: ₹863.88 lakhs; Other Equity: Negative ₹27,944.63 lakhs; Minority Interest: Negative ₹7.30 lakhs)
Non-current Liabilities: ₹219.32 lakhs (Lease Liability: ₹45.61 lakhs; Provisions: ₹173.71 lakhs)
Current Liabilities: ₹53,438.48 lakhs (Borrowings: ₹25,728.80 lakhs; Lease Liabilities: ₹42.00 lakhs; Trade Payables: ₹9963.48 lakhs [Micro/Small Enterprises: ₹270.56 lakhs; Others: ₹9343.04 lakhs]; Other Financial Liabilities: ₹9663.48 lakhs; Other Current Liabilities: ₹8337.36 lakhs; Provisions: ₹53.24 lakhs)

Net cash flow from operating activities: ₹651.95 lakhs
Net cash used in investing activities: ₹(742.96) lakhs (Purchase of property, plant and equipment)
Net cash used in financing activities: ₹(56.93) lakhs
Net decrease in cash and cash equivalents: ₹(147.95) lakhs
Cash and cash equivalents at beginning: ₹244.15 lakhs
Cash and cash equivalents at end: ₹96.21 lakhs

The financial results were reviewed by the Audit Committee and approved by the Board of Directors on May 26, 2026.
The company was under Liquidation Process under Section 33 of the Insolvency and Bankruptcy Code, 2016, with Mr. Ravindra Kumar Goyal appointed as Liquidator (Order dated December 19, 2023).
The company was sold to the highest bidder on a going concern basis, with new management taking over from the liquidator following NCLT order dated November 5, 2024.
The company is primarily engaged in electrical products (Power & Distribution Transformers, parts) and Hydro projects, constituting a single segment.
Provision for interest and finance charges on outstanding finance liability has not been provided except for fresh loans taken post change in management.
The results are prepared on a going concern basis considering receipt of ₹78 Cr from the successful bidder, disclosed under other current liabilities.
Management states that detailed verification, reconciliation and assessment of historical balances from pre-resolution period are under progress. Appropriate accounting adjustments will be considered upon completion of verification and receipt of final distribution order.

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