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Impex Ferro Tech Ltd

| Quarterly Financial Results Q3 FY 2025-26

BEARISH SENTIMENT

Report Source

⬤19th Feb 26

Summary : Impex Ferro Tech Limited is under CIRP, facing significant financial distress with eroded net worth and suspended operations, while a resolution plan is under NCLT review.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total Expenses for the quarter ended 31st December 2025: Rs.181.14 lakhs.
  2. Depreciation and Amortization expenses for the quarter ended 31st December 2025: Rs.167.02 lakhs.
  3. Finance Cost: Nil for the quarter ended 31st December 2025 (auditor notes non-provision of significant interest).
  4. 100% provision made for trade receivables and advances outstanding for a period exceeding one year (Rs.707.13 lakhs for FY 2023-24).
  5. Revenue from Operations: Nil for the quarter ended 31st December 2025.
  6. Total Income for the quarter ended 31st December 2025: Rs.1.25 lakhs.
  7. Undisputed statutory dues of Rs.292.54 lakhs in arrears, with unascertained interest/penalty.
  8. Claims submitted by creditors (Secured Financial: Rs.91,068.97 lakhs, Unsecured Financial: Rs.6,153.88 lakhs, Operational: Rs.39,712.42 lakhs) which may exceed book amounts.
  9. Paid-up equity share capital: Rs.8,793.16 lakhs.
  10. Accumulated loss as on 31st December 2025: Rs.46,255.07 lakhs.
  11. Liabilities exceeded total assets and net worth was fully eroded as on 31st December 2025.
  12. The financial results are for the standalone entity, 'the Company'.

Corporate Overview

  1. Manufacturing operations located at Kalyanesheri, West Bengal.
  2. Company is under Corporate Insolvency Resolution Process (CIRP).
  3. Material uncertainty exists regarding the company's ability to continue as a going concern.
  4. Incurred cash losses, liabilities exceed total assets, and net worth is fully eroded.
  5. Non-provision of cumulative interest expense on borrowings.
  6. Uncertainty regarding recoverability of trade receivables and advances.
  7. Claims submitted by creditors exceed amounts in the company's books.
  8. Manufacturing operations are temporarily shut down due to power disconnection.
  9. Undisputed statutory dues are in arrears for over nine months.
  10. Insurance coverage for fixed assets and plant & machinery has expired.
  11. Company's going concern status dependent on NCLT approved resolution plan.
  12. Operations impacted by power supply disconnection.
  13. Company is under Corporate Insolvency Resolution Process (CIRP).
  14. Business activity is primarily 'Ferro Alloys'.
  15. The report is an auditor's review, not management's. Tone is factual and highlights significant financial and operational issues.
  16. Single significant primary segment: 'Ferro Alloys'.
  17. Manufacturing operations temporarily shut down since October 2022.
  18. Shutdown due to disconnection of power supply by DVC.

Risk Factors

  1. Company under Corporate Insolvency Process.
  2. Manufacturing operations temporarily shut down.
  3. Liabilities exceed assets, net worth eroded.
  4. Material uncertainty about going concern.

Key Drivers

  1. Resolution plan submitted to NCLT.
  2. H1 bidder declared for company.
  3. Resolution Professional manages company affairs.
  4. Full provision for old trade receivables.

Auditor’s Report

  1. Qualified Opinion
  2. Non-provision of cumulative interest expense of Rs.63,020.22 lakhs on borrowings, not in accordance with IND AS 109.
  3. Inability to comment on the carrying amount of trade receivables and advances due to lack of corroborative evidence and excess ECL provision.
  4. Uncertainty regarding recoverability of outstanding trade receivables, payables, and advances due to lack of confirmation/reconciliation.
  5. Claims submitted by financial and operational creditors exceeding book amounts, with consequential impact on financials unascertained.
  6. Inability to comment on the financial impact of confidential information related to the CIRP process.
  7. Material uncertainty related to going concern due to cash losses, liabilities exceeding assets, eroded net worth, and dependence on NCLT approval of the resolution plan.
  8. Non-deposit of undisputed statutory dues amounting to Rs.292.54 lakhs in arrears for over nine months, with unascertained interest/penalty.
  9. Manufacturing operations at Kalyanesheri, West Bengal, temporarily shut down since October 2022 due to power disconnection.
  10. Sale of previously unrecorded surplus inventory identified and sold during FY 24-25.

Board Commentary

  1. Powers of the Board of Directors are suspended as per IBC Code.
  2. Resolution Professional appointed by NCLT is exercising the powers of the Board.
  3. Material uncertainty related to going concern due to financial distress and dependence on resolution plan.
  4. Non-provision of cumulative interest expense on borrowings.
  5. Uncertainty regarding recoverability of trade receivables and advances.
  6. Claims from creditors exceeding amounts in books.
  7. Manufacturing operations shut down due to power disconnection.
  8. Statutory dues in arrears and expired insurance coverage.
  9. Company is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by NCLT.
  10. Undisputed statutory dues amounting to Rs.292.54 lakhs are in arrears for over nine months.

Corporate Governance

  1. Auditors confirm independence and compliance with ethical requirements as per ICAI.
  2. Board of Directors' powers are suspended.
  3. Resolution Professional manages company affairs.
  4. Committee of Creditors (COC) is involved in the CIRP process.
  5. Company is under Corporate Insolvency Resolution Process (CIRP).
  6. Board powers are suspended and vested with the Resolution Professional.

Management Discussion & Analysis

Future Strategy

  1. Future prospects are subject to the resolution plan submitted before the Committee of Creditors (COC) and NCLT approval.

Operational Focus Areas

  1. Affairs of the company and powers of the Board are vested with the Resolution Professional (RP).

Risk Control Measures

  1. Resolution Professional appointed to manage company affairs.
  2. Resolution plan has been submitted, and an H1 bidder declared.
  3. 100% provision made for trade receivables and advances outstanding over one year.

Critical Risks

  1. Material uncertainty related to going concern.
  2. Non-provision of significant cumulative interest expense.
  3. Uncertainty in recoverability of trade receivables and advances.
  4. Creditor claims exceeding book values, with unascertained impact.
  5. Manufacturing shutdown due to power supply issues.
  6. Undisputed statutory dues in arrears.
  7. Expired insurance coverage for key assets.