Event: Admission of Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code, 2016 against JUD Cements Limited, a customer of the company.
Admitting Authority: Hon'ble National Company Law Tribunal (NCLT), Guwahati Bench
Order Date: 12th October 2026
Company Awareness Date: 21st October 2026
Transaction Details with JUD Cements Limited
Nature of Transaction: Manufacture and supply of a highly customized piece of large machinery for cement plant
Current Asset Status: The machinery remains undelivered and is currently in the safe physical possession and custody of Walchandnagar Industries Ltd.
Legal Status: Prior to CIRP initiation, the matter was subject to active legal proceedings in Guwahati High Court. These proceedings will now be stayed under the statutory moratorium under Section 14 of the IBC.
Financial Impact Assessment
Total Recoverable Value: ₹1,657 lakhs for the custom machinery
Post-Impairment Value: ₹92 lakhs
Impairment Already Taken: ₹1,565 lakhs impaired in previous financial years
Current Book Value: ₹92 lakhs (WIP value)
Mitigating Factors and Company Response
Prior Impairment: The company has already impaired WIP by ₹1,565 lakhs in previous financial years to absorb potential valuation impairments, following prudent accounting policies given the customized nature of the equipment.
Alternative Utilization Plan: Technical, commercial and marketing teams will explore selling this machinery on "as is where is" basis, or through dismantling, modifying, or salvaging components for alternative clients or scrap realization.
Expected Impact: Due to the prior impairment of WIP and physical possession of the machinery with the company, the formal admission of the buyer into NCLT is not expected to have any material incremental adverse impact on the current quarter's profitability or the ongoing financial performance of the company.
