Ashiana Ispat Limited has announced its annual financial results for FY25, revealing a substantial net loss of ₹4,669.38 crores compared to a profit of ₹147.18 crores in the previous fiscal year. The company's statutory auditors, Khiwani Sood & Associates, issued a qualified audit opinion under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company's financial performance deteriorated significantly during FY25, with total income declining to ₹14,597.86 crores from ₹32,446.87 crores in the previous year. Revenue from operations dropped substantially to ₹14,153.53 crores compared to ₹32,181.60 crores in FY24.

Operational Challenges and Asset Impairment

The company faced significant operational disruptions during FY25, with production coming to a complete standstill at the end of the second quarter. This shutdown resulted from the relocation of certain plant sections to the company's own land, requiring substantial modifications that disrupted iron bar production.

Due to the prolonged production disruption, the company assessed the recoverable value of its plant and machinery under Indian Accounting Standard (Ind AS) 36. A registered valuer determined the fair value at ₹908.00 lakhs against a book value of ₹2,677.06 lakhs. Subsequently, the company entered into an agreement to sell the entire plant and machinery for ₹710.00 lakhs, resulting in an impairment loss of ₹1,967.06 lakhs recognized during FY25.

Debt Settlement and Banking Issues

A significant development during the year was the company's successful settlement with State Bank of India (SBI) under a One-Time Settlement (OTS) scheme. The outstanding loan of ₹4,749.47 lakhs was settled at ₹4,310.00 lakhs, with the company recognizing ₹439.47 lakhs as "Other Income" in the Statement of Profit and Loss.

The company's loan accounts were classified as Non-Performing Assets (NPA) by lenders due to default on repayment obligations. This classification resulted in the loss of access to banking facilities, forcing the company to route payments through group companies for day-to-day operations.

Audit Qualifications and Concerns

The statutory auditors highlighted several material concerns in their qualified opinion:

Unconfirmed Balances: The company failed to receive confirmations for trade payables of ₹1,910.06 lakhs, trade receivables of ₹3,706.42 lakhs, and advances to suppliers of ₹3,396.98 lakhs. The auditors were unable to verify the completeness, existence, and accuracy of these balances.

Inventory Verification Issues: While the company conducted physical verification of inventory as of March 31, 2025, no stock movement reconciliations or independent verification arrangements were provided to auditors.

Going Concern Uncertainty: The auditors expressed material uncertainty about the company's ability to continue as a going concern, particularly given the sale of substantial assets including factory land, buildings, and plant & machinery.

Legal and Regulatory Challenges

The company faces multiple legal and regulatory issues:

• Trade receivables of ₹660.80 lakhs are due from companies under Corporate Insolvency Resolution Process (CIRP) with NCLT
• A creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code seeking recovery of ₹187.00 lakhs
• Kotak Mahindra Bank filed a case alleging fraudulent activities, which the company firmly denies
• SEBI complaints regarding preferential allotment of equity shares amounting to ₹211.75 lakhs
• Ongoing trademark litigation with Kamdhenu Limited

Compliance and Statutory Issues

Due to financial constraints, the company faced several compliance challenges:

• Non-deposit of statutory dues including EPF (₹6.76 lakhs), ESI (₹1.62 lakhs), and TDS/TCS (₹11.76 lakhs)
• Acceptance of short-term loans of ₹211.75 lakhs in contravention of Companies Act provisions
• Non-compliance with Companies Act requirements including appointment of audit committee and women director

Balance Sheet Position

The company's financial position weakened considerably, with total assets declining to ₹10,763.69 crores from ₹17,336.79 crores in the previous year. The net worth turned negative at ₹795.13 crores compared to positive ₹3,869.39 crores in FY24.

Management's Response

Despite the challenges, management expressed confidence in the company's ability to continue as a going concern through various strategic initiatives including restructuring of existing loan terms, monetization of non-core assets, inventory liquidation, and mobilization of additional funds. The company is actively pursuing legal remedies for trademark disputes and expects favorable outcomes in pending litigations.

The audited financial results were approved by the Board of Directors at their meeting held on November 22, 2025, following review and recommendation by the Audit Committee.

Source: Exclusive content

Ashiana Ispat Limited has announced key leadership appointments and corporate governance changes following its board meeting conducted on December 23, 2025. The meeting, held at the company's corporate office in New Delhi, resulted in several strategic appointments and audit committee reconstitution aimed at strengthening the organization's management structure and regulatory compliance.

Key Board Appointments

The board meeting approved multiple significant appointments that will shape the company's leadership going forward. The company formally communicated these decisions to BSE Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Audit Committee Reconstitution

The board approved the reconstitution of the Audit Committee to ensure compliance with Section 177 of the Companies Act, 2013 and Regulation 18 of the SEBI (LODR) Regulations, 2015. The changes involved removing Mr. Puneet Jain, Promoter Executive Director, from the committee and appointing Ms. Darshan, Non-Independent Non-Executive Director, as a new member.

Chairman Appointment Details

Mr. Kamal Wadhwani's appointment as Chairman of the Board represents a significant development in the company's governance structure. As an existing Independent Director, Wadhwani brings continuity while assuming enhanced leadership responsibilities for both the board's strategic direction and the audit committee.

Key Managerial Personnel Appointment

Ms. Swati Dhruv Aggarwal's appointment as Company Secretary and Compliance Officer represents a significant addition to the company's Key Managerial Personnel (KMP). Her appointment strengthens the company's compliance framework and governance structure.

Corporate Governance and Compliance

The appointment of Mr. Kamal Wadhwani as Chairman ensures that he will preside at all General Meetings of the members, including Annual General Meetings and Extraordinary General Meetings, in accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company. The reconstituted Audit Committee is now duly constituted in compliance with the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Additionally, the appointment of Mr. Chetan Gaur as consultant specifically for revocation of trading suspension indicates the company's focused efforts to address regulatory matters and restore normal trading operations. The board meeting was held at the company's corporate office located at C-103, First Floor, Tower-C, Ansal Plaza, Khelgaon, HUDCO Place, New Delhi, with decisions formally communicated to BSE Limited under scrip code 513401.