Corporate Insolvency Resolution Process (CIRP) Background

An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) was filed by JM Financial Asset Reconstruction Company Limited before the National Company Law Tribunal (NCLT), Hyderabad Bench. The NCLT admitted the application on August 13, 2024 (Order in CP (IB) No. 277/7/HDB/2023) and appointed Mr. Ravindra Chaturvedi as the Interim Resolution Professional (IRP).

Pursuant to an order dated January 17, 2025 (IA (IBC) No. 85/2025), Ms. Namrata Amol Randeri (IBBI Registration No. IBBI/IPA-001/IP-P01585/2019-2020/12495) was appointed as the Resolution Professional (RP), replacing Mr. Chaturvedi.

Upon commencement of CIRP, a moratorium under Section 14 of IBC came into effect, and the powers of the Board of Directors were suspended and vested with the IRP/RP. The affairs of the company are being managed by the RP as a going concern under the supervision of the Committee of Creditors (CoC).

The Resolution Plan submitted by Beaufond Industries Limited was approved by the NCLT, Hyderabad Bench, vide order dated May 11, 2026 (copy made available on May 12, 2026). The plan is pending implementation.

Financial Performance (Standalone) for FY 2024-25

  • Other Income: ₹760 thousand (Previous Year: ₹152 thousand)
  • Total Income: ₹760 thousand (Previous Year: ₹152 thousand)
  • Employee Benefits Expense: ₹1,872 thousand (Previous Year: ₹2,480 thousand)
  • Finance Costs: ₹1 thousand (Previous Year: ₹1 thousand); not provided as majority loans assigned to an ARC.
  • Depreciation & Amortization: ₹40,714 thousand (Same as Previous Year)
  • Other Expenses: ₹10,470 thousand (Previous Year: ₹6,245 thousand)
  • Total Expenses: ₹53,057 thousand (Previous Year: ₹49,440 thousand)
  • Loss Before Tax: ₹(52,298) thousand (Previous Year: ₹(49,288) thousand)
  • Loss After Tax: ₹(52,298) thousand (Previous Year: ₹(49,288) thousand)
  • Earnings/(Loss) Per Share (EPS): ₹(2.20) (Previous Year: ₹(2.07))

Operational Review

The management could not resume operational activities at the Solapur Plant due to regulatory and financial issues. The company continues to operate only in the pharmaceuticals segment, with no change in the nature of its business. There has been no business activity since 2016.

Capital Structure

  • Authorised Share Capital: ₹400,000 thousand (40,000,000 Equity Shares of ₹10 each)
  • Issued, Subscribed, and Paid-up Share Capital: ₹238,250 thousand (23,825,000 Equity Shares of ₹10 each). No change during the year.

Key Financial Position Highlights as of March 31, 2025

  • Total Assets: ₹715,901 thousand (Previous Year: ₹713,935 thousand)
  • Property, Plant and Equipment (Net): ₹294,447 thousand (Previous Year: ₹335,160 thousand)
  • Inventories: ₹180,405 thousand (Same as Previous Year; hypothecated against borrowings)
  • Trade Receivables: ₹120,148 thousand (Previous Year: ₹119,654 thousand)
  • Cash and Cash Equivalents: ₹694 thousand (Previous Year: ₹1,377 thousand)
  • Bank Balances (Other): ₹42,863 thousand (Previous Year: ₹429 thousand)
  • Total Equity: ₹(1,381,401) thousand (Previous Year: ₹(1,329,103) thousand)
  • Non-Current Borrowings (Secured): ₹317,140 thousand (Same as Previous Year)
  • Term Loans from Banks: ₹346,757 thousand
  • Deferred Sales Tax Loan: ₹135,427 thousand
  • Less: Current Maturities: ₹(482,185) thousand
  • Short-Term Borrowings (Secured): ₹1,079,771 thousand (Same as Previous Year)
  • Working Capital: ₹597,586 thousand
  • Current Maturity of Long-Term Debt: ₹482,185 thousand
  • Trade Payables: ₹569,039 thousand (Previous Year: ₹557,805 thousand)
  • Other Current Liabilities: ₹81,406 thousand (Previous Year: ₹38,557 thousand)

Corporate Governance and Management

Pursuant to Sections 17 and 23 of the IBC, the powers of the Board of Directors remain suspended and are exercised by the RP, Ms. Namrata Amol Randeri. Provisions of SEBI LODR Regulations relating to the Board and its Committees (Reg. 17-21) are not applicable during CIRP.

The suspended management as of the report date includes:

  • Mr. Ajit Kamath, Non-Executive Chairman & Director
  • Mr. Rajendrakumar Kaimal, Non-Executive Director
  • Dr. Sunil Pitroda, Independent Director
  • Mr. Abhishek Buddhadev, Independent Director (upto May 30, 2024)
  • Ms. Urja Shah, Independent Director & Women Director

Auditors and Reports

  • Statutory Auditors: M/s. A N Shah & Associates, Chartered Accountants. The CoC granted approval for their continuation for the residual term of their appointment.
  • Secretarial Auditor: Ms. Riddhi Shah, Practicing Company Secretary, was appointed by the CoC. The Secretarial Audit Report (Annexure B) noted several non-compliances, including non-payment of statutory dues, non-appointment of Key Managerial Personnel/Internal Auditor, and non-implementation of a Digital Database for insider trading regulations.
  • Auditor's Report: The statutory auditors issued an unqualified opinion with multiple emphases of matter, including reliance on previous audits for opening balances, inability to verify pre-CIRP transactions due to lack of documentation, and subjection of creditor claims to the CIRP process.

Other Key Disclosures

  • Dividend: No dividend recommended for the year due to losses.
  • Reserves: No amount transferred to reserves.
  • Subsidiaries: The company does not have any subsidiary, joint venture, or associate company.
  • Internal Financial Controls: The auditors reported that the company has adequate internal financial controls over financial reporting.
  • Listing Fees: Delay in payment of annual listing fees for FY25-26 to BSE.
  • Employees: No employees were in receipt of remuneration above the prescribed limit. Directors did not draw any remuneration.
  • CSR: No Corporate Social Responsibility (CSR) activity was undertaken.
  • Public Deposits: The company did not accept any public deposits.
  • AGM: The 32nd Annual General Meeting is scheduled to be held on July 24, 2026, through Video Conferencing/Other Audio-Visual Means (VC/OAVM). The sole agenda is to adopt the audited financial statements for FY 2024-25.

Disclaimer by Resolution Professional

The RP has signed the financial statements and reports solely for compliance purposes, exercising powers under Sections 17 and 23 of the IBC. The RP has included extensive disclaimers, stating reliance on available information and assistance from company personnel, and has not accepted any personal liability for the accuracy, authenticity, or completeness of the information contained in the financial statements.