Premier Ltd reported a consolidated net loss of Rs 1,365 lakh for the financial year ended March 31, 2023, as operations remained suspended due to a lack of working capital. The company's net worth has been completely eroded, leading auditors to express significant doubt about its ability to continue as a going concern. Jayesh Dadia & Associates LLP issued a qualified opinion, citing material uncertainties and the absence of impairment assessments for tangible and intangible assets.

The company, currently under the Corporate Insolvency Resolution Process (CIRP) since January 29, 2021, recorded zero revenue from operations for the year. Total income stood at Rs 35 lakh, down from Rs 83 lakh in the previous year. Total expenses decreased to Rs 1,401 lakh from Rs 2,544 lakh in FY22, primarily driven by lower depreciation and amortisation costs. The basic and diluted earnings per share for the year were a loss of Rs 4.49, compared to a loss of Rs 7.41 in the prior year.

Financial Performance

The statement of audited consolidated financial results highlighted the continued financial strain on the entity. Finance costs for the year amounted to Rs 180 lakh, while depreciation and amortisation stood at Rs 1,023 lakh. The company reported other expenses of Rs 197 lakh. The loss before tax for the year was Rs 1,365 lakh, consistent with the net loss as there were no tax expenses recorded.

Audit Qualifications and Compliance Issues

The auditors identified several key issues, including the failure to assess asset impairment under Ind AS 36 and non-compliance with Ind AS 19 regarding employee benefits. The company has not made provisions for employee dues beyond the initiation of the CIRP, and actuarial valuations were last conducted in December 2020. Additionally, the company failed to appoint an internal auditor as required by Section 138 of the Companies Act, 2013, and a whole-time Company Secretary for over six months.

The resolution professional, Kanak Jani, addressed queries from the National Stock Exchange regarding deficiencies in the filing. Jani clarified that segment reporting was not applicable as the company operates in a single business segment. She also confirmed that the Statement of Impact of Audit Qualification was attached to the financial results and that the consolidated reconciliation of profit and loss was uploaded to the BSE portal on June 14, 2023, after two pages were initially missed during scanning.

Resolution Plan Status

The Committee of Creditors approved a resolution plan submitted by Fab Metals Pvt. Ltd. in January 2022, with 92.47% assent. The approval petition for the plan is currently pending before the National Company Law Tribunal, Mumbai Bench. Until the resolution plan is approved, the company continues to be managed as a going concern under the provisions of the Insolvency and Bankruptcy Code.

Premier Limited reported a net loss of ₹587 lakh for the financial year ended March 31, 2026, as operations remain suspended due to a lack of working capital. The company, currently under the Corporate Insolvency Resolution Process (CIRP), disclosed that its net worth has been completely eroded, casting significant doubt on its ability to continue as a going concern. M/s. Jayesh Dadia & Associates LLP, the Statutory Auditors, issued a qualified opinion on the standalone and consolidated financial results, citing material uncertainties and non-compliance with certain accounting standards and regulatory provisions.

Financial Performance

For the year ended March 31, 2026, the company reported a total income of ₹280 lakh, compared to ₹107 lakh in the previous year. Total expenses for the period stood at ₹867 lakh, lower than the ₹921 lakh recorded in FY25. The basic and diluted earnings per share (EPS) for the year were reported at a loss of ₹1.93, an improvement from the loss of ₹2.68 in the prior year. The company’s manufacturing activities at its Chakan plant have been suspended since March 3, 2020.

Audit Qualifications and Compliance Issues

The auditors highlighted several key areas of concern in their report. The company has not assessed the impairment of tangible assets, capital work in progress, and intangible assets in accordance with Indian Accounting Standard 36, nor has it made provisions for employee benefits in compliance with Ind-AS 19. Additionally, the company failed to appoint an internal auditor as required under Section 138 of the Companies Act, 2013, and did not appoint a whole-time Company Secretary for a period exceeding six months, violating Section 203 of the Act.

Going Concern and CIRP Status

The financial statements have been prepared on a going concern basis, as required under Section 20 of the Insolvency and Bankruptcy Code, despite the material uncertainties. The Committee of Creditors (CoC) had previously approved a resolution plan submitted by Fab Metals Pvt. Ltd., with the approval petition currently pending before the National Company Law Tribunal (NCLT), Mumbai Bench. The auditors also noted a delay in transferring unclaimed matured fixed deposits and interest amounting to ₹46.55 lakh to the Investor Education & Protection Fund (IEPF), which was due for transfer as of March 31, 2026.

Key Financial Metrics

The following table summarizes the standalone financial results for the year ended March 31, 2026:

The meeting to approve these results commenced at 02:30 P.M. and concluded at 05:00 P.M. on May 27, 2026. The results were signed by Kanak Jani, the Resolution Professional for the company.