Astron Paper & Board Mill Ltd , a paper manufacturing company, has received a possession notice from a consortium of banks for multiple properties, signaling potential financial distress for the firm.

Possession Notice Details

The company disclosed that it received a possession notice dated September 23, 2025, from Union Bank of India and member banks including Axis Bank, ICICI Bank, Bank of Maharashtra, and State Bank of Mauritius. The notice was issued under the Securitisation and Reconstruction of Financial Assets and Enforcement Security Interest Act, 2002.

Properties Affected

The possession notice covers six properties totaling approximately 160,015 square meters in Village Sukhpar, Taluka Halvad, District Surendranagar. The affected properties include:

1. A plot of land at Survey No. 55, admeasuring 11,028 sq. meters
2. A plot of land at Survey No. 54, admeasuring 12,950 sq. meters
3. Land and building at Survey No. 52/1, 52/2, 53/1, 53/paiki 2, admeasuring 45,224 sq. meters
4. N.A. land at Survey No. 49 paiki 1 and Survey No. 50, admeasuring 30,049 sq. meters
5. Factory land at Survey No. 49 paiki 2, admeasuring 14,670 sq. meters
6. Factory land at Survey No. 51/1, 51/2, & 51/3, admeasuring 46,094 sq. meters

Company's Response

In its official communication to the stock exchanges, Astron Paper & Board Mill stated that it is evaluating the implications of this action. The company has indicated that it will take appropriate steps based on legal advice.

Regulatory Compliance

The disclosure of this possession notice was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation requires listed entities to inform the stock exchanges about material events that may affect their operations.

Implications for Stakeholders

This development raises concerns about Astron Paper & Board Mill's financial health and its ability to meet its debt obligations. Shareholders and other stakeholders will likely be watching closely for further updates on the company's plans to address this situation and its potential impact on operations.

Astron Paper & Board Mill Ltd. has reported a challenging first quarter for the fiscal year 2026, marked by significant losses and operational hurdles. The company's financial results, approved by the Board of Directors on August 13, 2025, reveal the ongoing struggles faced by the paper manufacturer.

Financial Performance

For the quarter ended June 30, 2025, Astron Paper reported a standalone net loss of Rs 495.61 lakhs, compared to a loss of Rs 889.63 lakhs in the same quarter of the previous year. The company's revenue from operations saw a dramatic decline, falling to Rs 127.88 lakhs from Rs 5,814.67 lakhs in Q1 FY2025.

The consolidated results paint a similar picture:

Operational Challenges

The company's financial performance has been significantly impacted by the closure of its manufacturing facilities:

• The Halved plant has been non-operational since September 8, 2024
• The Bhuj plant remains shut down

These closures have severely affected Astron Paper's production capabilities and revenue generation.

Financial Strain

Astron Paper's financial position has deteriorated, with all bank loan accounts totaling Rs 81.85 crores being declared as Non-Performing Assets (NPAs). This development underscores the company's liquidity challenges and its struggle to meet financial obligations.

Management Changes

In response to the ongoing challenges, the Board of Directors has approved several management changes:

1. Mr. Karshanbhai Hirabhai Patel has been re-designated from Executive Director to Non-Executive Director, effective August 13, 2025.
2. The Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee have been reconstituted.

Auditor's Review

The company's auditors, SNDK & Associates LLP, have issued a disclaimer of opinion on both the standalone and consolidated financial results. The auditors cited concerns about the company's ability to continue as a going concern, given the plant shutdowns, substantial cash losses, and other financial factors that have significantly affected Astron Paper's net worth and business operations.

Looking Ahead

Astron Paper & Board Mill Ltd. faces significant challenges in reviving its operations and improving its financial health. The company has scheduled its Annual General Meeting for September 30, 2025, where shareholders will likely seek clarity on the path forward and strategies for potential turnaround.

As the paper industry continues to evolve, Astron Paper's ability to address its operational and financial challenges will be crucial for its future prospects. Stakeholders will be closely watching the company's efforts to resolve its NPA status, resume plant operations, and return to profitability in the coming quarters.