Corporate Insolvency Resolution Process (CIRP) Status

  • The Hon'ble NCLT, Mumbai Bench admitted the company under Section 7 of the IBC on February 1, 2024, commencing CIRP.
  • Mr. Purusottam Behera was appointed as Interim Resolution Professional (IRP).
  • An appeal was filed before NCLAT (Company Appeal (AT) (Ins.) No. 244 of 2024), which stayed the constitution of the Committee of Creditors (CoC) on February 12, 2024.
  • The NCLAT vacated the stay and allowed withdrawal of the appeal on October 15, 2025.
  • The CoC was constituted and approved by NCLT thereafter.
  • In the 1st CoC meeting on November 3, 2025, Mr. Purusottam Behera was approved as the Resolution Professional (RP).

Financial Results Approval

The Audited Financial Results (standalone and consolidated) for the quarter and year ended March 31, 2025, were taken on record at the RP Committee meeting held on July 29, 2026, which commenced at 6:00 PM and concluded at 7:30 PM.

Key Financial Figures (Standalone)

Profit & Loss (Rs. in Lakhs)

  • Total Revenue (Q4 FY25): ₹0.22
  • Total Expenses (Q4 FY25): ₹19.08
  • Loss from Operations before Exceptional Items (Q4 FY25): (₹18.86)
  • Loss for the period from continued operations (Q4 FY25): (₹18.86)
  • Total Comprehensive Income for the period (Q4 FY25): (₹369.84)
  • Earnings Per Share - Basic & Diluted (Q4 FY25): (₹0.17)

Balance Sheet (as of March 31, 2025, Rs. in Lakhs)

  • Total Assets: ₹14,362.07
  • Equity Share Capital: ₹21,657.12
  • Other Equity: (₹2,62,438.32)
  • Total Liabilities: ₹2,55,143.27 (Current: ₹2,32,538.89 + ₹22,604.38)

Key Financial Figures (Consolidated)

Profit & Loss (Rs. in Lakhs)

  • Net Loss attributable to owners (FY25): (₹2,59,684.19)
  • Earnings Per Share - Basic & Diluted (FY25): (₹120.06)
  • Paid-up Equity Share Capital: ₹21,657.12
  • Other Equity: (₹2,62,330.16)

Auditor's Report - Qualified Opinion

GPS & Associates, Chartered Accountants, issued a qualified opinion on both standalone and consolidated financial results dated July 29, 2026. The basis for qualification includes:

1. Claims Admitted during CIRP: Unable to verify details of claims admitted by the RP totaling ₹35,16,74,90,595 lakhs from financial creditors. The amounts are not fully aligned with disclosed contingent liabilities.

2. Material Uncertainty - Going Concern: Financial results prepared on a going concern basis but do not adequately disclose material uncertainties related to the ongoing CIRP.

3. Borrowings and Defaults: Defaults in repayment of borrowings and interest; ultimate settlement amount dependent on CIRP outcome.

4. Defined Benefit Obligation - Gratuity: No actuarial valuation obtained; liability based on management's calculation.

5. Bank Balances: Certain bank balances not confirmed; no alternative audit procedures possible.

6. Difference in Balances with SKAD: Difference of ₹216.49 lakhs in transactions with SKIL Advanced Systems Pvt. Ltd.; lack of documentary evidence for approval/ratification by CoC/RP.

Emphasis of Matter

Auditor drew attention to Note 7/8 regarding the pledge created over the company's investment in Urban Infrastructure Holdings Pvt. Ltd. (UIHPL) and a substantial capital reduction.

  • UIHPL undertook a capital reduction pursuant to NCLT order dated March 24, 2025.
  • Consequent to the reduction, the company received ₹16,003.34 lakhs (Net of TDS of ₹408.38 lakhs) in April 2025.
  • This consideration represents 12,38,58,516 shares and remains subject to existing encumbrances.
  • Post-reduction, the investment stands at 297,984 equity shares of UIHPL.
  • Prior to CIRP, 10,64,00,000 shares were pledged to J C Flowers ARC and all 12,41,56,500 shares were pledged to Sunstar Holdings & Finance Ltd.

Notes to Financial Results

1. The company has only one business segment.

2. The RP has relied on existing staff and KMPs for result preparation without independent verification.

3. Claims admitted by RP may differ from books; no adjustments made pending CIRP outcome.

4. CIRP costs, including RP fees, are subject to CoC approval. IRP/RP fees of ₹11.91 lakhs booked from March-June 2024 were reversed.

5. Material uncertainty exists regarding going concern due to CIRP.

6. Details of admitted financial claims as of March 31, 2025:

  • Amluckie Investment Co. Ltd.: ₹409.10 lakhs
  • Bank of India: ₹90,826.49 lakhs
  • Edelweiss ARC - Trust 35: ₹110,349.65 lakhs
  • Edelweiss ARC - Trust 428: ₹19,089.80 lakhs
  • Jammu & Kashmir Bank Ltd.: ₹57,466.19 lakhs
  • UCO Bank: ₹73,533.67 lakhs
  • Total: ₹351,674.91 lakhs

7. SKIL Shipyard Holdings Pvt. Ltd. (subsidiary) is under CIRP since May 2023 and has been deconsolidated based on loss of control.

8. Accrued interest of ₹2,259.10 lakhs booked during Feb-Mar 2024 was reversed as it is no longer payable post-CIRP initiation; disclosed as an exceptional item.

9. Investment in associate Rosoboronservices (India) Ltd. was written off in FY23 but reinstated at a nominal value of Re. 1 in FY25 after its liquidation application was rejected by NCLAT.

10. Administrative expenses of ₹243.78 lakhs incurred by SKAD on behalf of the company; only ₹27.58 lakhs accounted for, resulting in a difference of ₹216.19 lakhs.

Management's Response to Audit Qualifications

In the Annexure, management stated that the financial impact of the audit qualifications is unascertainable due to the ongoing CIRP and significant uncertainties. The impact is dependent on the outcome of the CIRP, completion of reconciliations, receipt of confirmations, and pending approvals.

Cash Flow Statements

Included for both standalone and consolidated entities, showing minimal operating, investing, and financing activities consistent with a company under moratorium.