Independent Auditor's Report for Ushdev International Limited (In Liquidation)

Disclaimer of Opinion

The auditors, SGN & CO Chartered Accountants, issued a disclaimer of opinion on the financial statements due to inability to obtain sufficient appropriate audit evidence regarding:

  • Completeness and accuracy of underlying books, records and claim data
  • Competence, scope, valuation dates, methodologies, assumptions and inputs underlying asset valuation reports
  • Legal ownership, encumbrances, recoverability and ultimate realisability of assets
  • Completeness, validity, security, priority and ultimate settlement of liabilities and claims

Financial Position Highlights

As at 15 October 2025 (Pre-liquidation):

  • Net Loss: ₹1573.31 lakhs
  • Negative Net Worth: ₹3,22,333.14 lakhs
  • Net Current Liabilities: ₹3,28,133.34 lakhs

As at 31 March 2026 (Post-liquidation):

  • Total Assets: ₹21,975.80 lakhs
  • Total Current Liabilities: ₹12,48,969.60 lakhs
  • Negative Net Worth: ₹12,26,993.80 lakhs
  • Deficit on Restatement: ₹12,30,378.74 lakhs

Corporate Insolvency Resolution Process (CIRP) History

  • CIRP initiated on 14 May 2018 by Mumbai Bench of NCLT
  • Resolution Plan approved by CoC on 24 June 2021
  • NCLT approved plan on 3 February 2022
  • NCLAT approved plan on 11 March 2022
  • Resolution Applicant: Taguda Pte Ltd failed to implement plan
  • Secured financial creditors invoked bid bond and performance security totaling ₹1,813.46 lakhs (including interest of ₹160.74 lakhs)
  • Liquidation ordered with effect from 16 October 2025

Liquidation Basis Accounting

The financial statements comprise three distinct parts:

1. Part I: Financial statements up to 15 October 2025 prepared on going concern basis

2. Part II: Statement of Affairs as at 16 October 2025 prepared on liquidation basis

3. Part III: Statement of Affairs and financial results as at and for period ended 31 March 2026

Asset Valuation and Liability Recognition

  • Assets valued based on valuation reports from independent Registered Valuers
  • Liabilities recognized based on Stakeholders Consulting Committee List dated 9th June 2026
  • Adjustment surplus/deficit recorded for difference between carrying amounts and liquidation values

Major Creditors and Admitted Claims (₹ in Lakhs)

| Creditor | Claim Admitted |

| State Bank of India | 2,54,114.86 |

| IDBI Bank | 1,70,628.75 |

| Bank of Baroda | 1,14,944.16 |

| ICICI Bank Limited | 1,10,961.94 |

| Punjab National Bank | 65,659.14 |

| Bank of Maharashtra | 57,467.55 |

| Indian Overseas Bank | 53,758.63 |

| Central Bank of India | 49,948.18 |

| Union Bank of India | 44,784.67 |

| UCO Bank | 30,995.84 |

| Indian Bank | 11,780.02 |

| Total Financial Creditors | 9,65,043.75 |

Operational and Other Creditors

  • Government Dues: ₹1,44,954.49 lakhs (including Income Tax: ₹46,770.69 lakhs, Maharashtra VAT: ₹98,154.71 lakhs)
  • Employees: ₹99,981.20 lakhs
  • Other Operational Creditors: ₹~70,000 lakhs (including Euler Hermes Singapore: ₹29,401.24 lakhs, Gunvor Singapore: ₹38,845.49 lakhs)

Asset Details (as at 31 March 2026)

  • Property, Plant & Equipment: ₹7,301.72 lakhs (liquidation value)
  • Investments: ₹7,568.07 lakhs (primarily Uttam Galva Ferrous Ltd: ₹7,523.15 lakhs)
  • Trade Receivables: ₹63.02 lakhs
  • Cash and Cash Equivalents: ₹6,686.12 lakhs
  • Other Current Assets: ₹347.08 lakhs

Secured Assets Not Forming Part of Liquidation Estate

  • Canara Bank: 0.90 MW windmill with land at Theni, Tamil Nadu (against claim of ₹13,602.00 lakhs)
  • State Bank of India: 8.00 MW windmills with land at Satara, Maharashtra (against claim of ₹6,097.11 lakhs)

Liquidation Process Details

  • Liquidator: Mr. Trupal Kumar Patel (IBBI REG.NO: IBBI/IPA-001/IP-P01186/2018-2019/11907)
  • Distribution to follow waterfall mechanism under Section 53 of IBC
  • Expected completion timeframe: 12-15 months
  • Stakeholders Consultation Committee formed with admitted claims totaling ₹12,27,582.38 lakhs

Investigation Matters

  • CBI search conducted on 7 July 2022
  • ED search conducted on 2 February 2023
  • Company's server containing accounting system up to FY 2017-18 seized by CBI
  • Matter still pending conclusion

Other Compliance Matters

  • Unpaid dividend of ₹9.78 lakhs outstanding for transfer to IEPF
  • Company fulfilled CSR criteria but spending not complied with as required
  • No fraud reported during the period
  • No whistle-blower complaints received
  • Internal financial controls audit also received disclaimer of opinion

Significant Accounting Policies on Liquidation Basis

  • Assets stated at net realizable value per valuation reports
  • Liabilities recognized at claim values accepted by liquidator
  • No depreciation provided post-liquidation commencement
  • Trade receivables from power business continued at carrying amount due to ongoing operations
  • All assets reclassified as current assets