Corporate Insolvency Resolution Process (CIRP) Status

  • The National Company Law Tribunal (NCLT), Mumbai Bench, initiated Corporate Insolvency Resolution Process (CIRP) vide order dated 29th January 2021, based on a petition filed by Anand Rathi Global Finance Limited under section 7 of the Insolvency and Bankruptcy Code, 2016.
  • Ms. Kanak Jani (IBBI Reg. No. IBBI/IPA-001/IP-P-01757/2019-2020/12685) was appointed as the Interim Resolution Professional (IRP) and was confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC) in its first meeting held on 04th March 2021.
  • Pursuant to the NCLT order, the powers of the Board of Directors stand suspended and are exercised by the Resolution Professional under Sections 17, 20, 23, and 25 of the Code.
  • In the 17th meeting of the CoC held on 22nd January 2022, a resolution plan submitted by "Fab Metals Pvt. Ltd. along with the person acting in concert and others" was approved by 92.47% of voting share. The plan is pending approval from the Hon'ble NCLT, Mumbai Bench.
  • The moratorium under Section 14 of the Code remains in effect until the resolution plan is approved.

Key Financial Figures (Standalone) for FY 2025-26

  • Revenue from Operations: ₹0.00 Lakhs (Previous Year: ₹0.00 Lakhs)
  • Other Income: ₹280.14 Lakhs (Previous Year: ₹106.54 Lakhs)
  • Primarily consists of Interest Income on FDs/TDR (₹104.79 Lakhs), Compensation Received (₹88.17 Lakhs), and Interest on that Compensation (₹75.94 Lakhs).
  • Total Expenses: ₹867.15 Lakhs (Previous Year: ₹920.82 Lakhs)
  • Finance Costs: ₹121.89 Lakhs (Interest on lease liability: ₹119.74 Lakhs)
  • Depreciation and amortization: ₹534.18 Lakhs
  • Other Expenses: ₹211.07 Lakhs (Includes rent, professional fees, etc.)
  • Loss before tax: ₹(587.01) Lakhs (Previous Year: ₹(814.28) Lakhs)
  • Net Loss for the period: ₹(587.01) Lakhs (Previous Year: ₹(814.28) Lakhs)
  • Earnings Per Share (EPS): Basic and Diluted EPS of (₹1.93) (Previous Year: (₹2.68))
  • Net Worth: Fully eroded at ₹(37,419.17) Lakhs (Previous Year: ₹(36,832.16) Lakhs)

Balance Sheet Highlights (as of 31st March 2026)

  • Total Assets: ₹17,886.70 Lakhs (Previous Year: ₹18,338.08 Lakhs)
  • Property, Plant and Equipment (Net): ₹2,407.43 Lakhs (Previous Year: ₹2,941.62 Lakhs)
  • Capital Work-in-Progress: ₹351.95 Lakhs (unchanged from Previous Year) - pertains to projects temporarily suspended.
  • Investment Property (Land at Dombivali): ₹8,597.22 Lakhs (unchanged from Previous Year).
  • Cash and Cash Equivalents: ₹1,555.04 Lakhs (Previous Year: ₹1,441.33 Lakhs)
  • Total Equity: ₹(34,379.22) Lakhs (Share Capital ₹3,039.95 Lakhs + Other Equity ₹(37,419.17) Lakhs)
  • Total Liabilities: ₹52,265.92 Lakhs
  • Borrowings: ₹16,711.03 Lakhs (Primarily from Edelweiss ARC Trust ₹14,259.90 Lakhs, assigned from original lenders SBI, SBI Hyderabad, J&K Bank; and Inter-Corporate Deposits ₹2,107.99 Lakhs). These are in default.
  • Lease Liability: ₹777.38 Lakhs (Non-Current: ₹550.67 Lakhs; Current: ₹226.71 Lakhs)
  • Trade Payables: ₹1,510.23 Lakhs (undisputed, primarily overdue >3 years)
  • Other Financial Liabilities: ₹27,851.63 Lakhs (Primarily interest accrued and due on borrowings ₹25,025.40 Lakhs, payable to related party ₹1,156.00 Lakhs, EMD from resolution applicants ₹1,340.00 Lakhs, unclaimed public deposits ₹46.55 Lakhs)
  • Provisions: ₹590.41 Lakhs (Employee benefits and warranties)
  • Other Current Liabilities: ₹4,825.23 Lakhs (Employee dues ₹2,197.36 Lakhs, statutory dues ₹761.81 Lakhs)

Operations & Performance Review

  • The company's operations have remained suspended since 3rd March 2020 due to a shortage of working capital and its inability to complete the installation and commissioning of machines at its Chakan plant.
  • The company operates in a single segment: Engineering (Manufacture of CNC Machines and large mechanical components).
  • There was no revenue from operations, and no new product development during the year under review due to the CIRP and suspended operations.
  • The company's net worth is fully eroded. The auditors have highlighted a material uncertainty related to going concern but the financial statements are prepared on a going concern basis due to the pending resolution plan.

Audit Qualifications

The Statutory Auditors, M/s Jayesh Dadia & Associates LLP, have issued a qualified opinion on the standalone and consolidated financial statements. The key qualifications are:

1. Impairment Assessment: The company has not assessed the impairment of carrying value of tangible assets, capital work in progress, and intangible assets as required by Ind AS 36. The auditors could not determine if any adjustments were necessary.

2. CIRP Claims: The amount of claims admitted by the RP may differ from amounts reflected in the financial statements. The financial impact of any differential is not ascertainable.

3. Employee Benefits: Employee dues were calculated only until the initiation of CIRP (Dec 2020 for actuarial valuations). The impact of new labour codes was not assessed.

4. CoC Approval for Expenses: Relevant records (CoC minutes) approving expenses incurred during the year were not provided for audit.

5. Internal Financial Controls: A disclaimer of opinion was issued on the adequacy and operating effectiveness of internal financial controls due to non-availability of process owners and information post-CIRP.

6. Non-Compliance with Act: The company has not appointed a whole-time Company Secretary (violating Sec 203) and an Internal Auditor (violating Sec 138).

Corporate Governance & Board

  • The powers of the Board of Directors remain suspended during the CIRP.
  • The listed directors (suspended) are: Mr. Maitreya V. Doshi (Chairman & MD), Mrs. Rohita M. Doshi, Mr. S. Padmanabhan, Mr. Dilip J. Thakkar, Mr. Udo Weigel, Mr. Ramesh Adige.
  • No board meetings or committee meetings were held during the financial year 2025-26.
  • The company did not have a whole-time Company Secretary, Chief Financial Officer, or other Key Managerial Personnel during the year.

Annual General Meeting (AGM)

  • The 80th AGM is scheduled to be held on Wednesday, 30th September 2026, at 12:30 PM IST through Video Conferencing (VC) / Other Audio-Visual Means (OAVM).
  • Business to be transacted:

1. To consider and adopt the audited standalone and consolidated financial statements for FY 2025-26.

2. To re-appoint Mrs. Rohita M. Doshi (DIN: 00246388), who retires by rotation. Her appointment is noted to be part of compliance with the Companies Act, but the Board shall remain suspended during CIRP.

  • Record Date: 23rd September 2026.
  • Book Closure: 24th September 2026 to 30th September 2026 (both days inclusive).
  • E-voting: Remote e-voting will be provided by MUFG Intime India Pvt. Ltd. The voting period begins on 26th September 2026 at 9:00 AM and ends on 29th September 2026 at 5:00 PM.

Dividend & Reserves

  • No dividend is recommended for the financial year 2025-26 due to losses and the CIRP.
  • No amount was transferred to reserves during the year.

Other Key Disclosures

  • Unclaimed Dividend: There is a delay in transferring unclaimed matured fixed deposits & interest amounting to ₹46.55 Lakhs to the Investor Education and Protection Fund (IEPF). These funds are held in a separate bank account.
  • Fixed Deposits: The company did not invite, accept, or renew any public deposits during the year.
  • Statutory Auditor: M/s Jayesh Dadia & Associates LLP (FRN: 121142W) continue as auditors, appointed until the AGM in 2027.
  • Secretarial Auditor: M/s Anisha Jhunjhunwala & Associates conducted the secretarial audit. The report notes several non-compliances arising from the CIRP, including non-payment of listing fees, non-maintenance of a functional website, delays in filing quarterly compliances, and non-implementation of a structured digital database for insider trading regulations.
  • Related Party Transactions: There were no materially significant related party transactions during the year. Outstanding balances include loans to associate PAL Credit & Capital Ltd. (provided for) and payables to Shri Lalchand Hirachand Premier Trust.
  • Contingent Liabilities: ₹7,514.77 Lakhs (approx.) in disputed statutory dues (Service Tax, Excise, Sales Tax, FEMA). Potential liabilities related to full wage payments to workmen as per ongoing court cases. Corporate guarantees amounting to approx. ₹1,441.41 Lakhs.
  • Capital Structure: No change in share capital during the year. The issued, subscribed, and paid-up capital is ₹3,039.95 Lakhs, consisting of 3,03,72,570 equity shares of ₹10 each fully paid and 81,610 forfeited shares.

Resolution Professional's Details

  • Name: Ms. Kanak Jani
  • IBBI Reg. No.: IBBI/IPA-001/IP-P-01757/2019-2020/12685
  • Contact No.: 9819875760

Registrar & Transfer Agent

MUFG Intime India Pvt. Ltd. (Formerly Link Intime India Pvt. Ltd.)

C-101, 247 Park, L.B.S. Marg, Vikhroli (W), Mumbai - 400083.

Tel: 022 - 49186270 | Email: rnt.helpdesk@in.mpms.mufg.com

#Tags: #PremierLimited #CIRP #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Negative