Astron Paper & Board Mill Reports Quarterly Loss Amid Insolvency Proceedings and Plant Shutdown

Astron Paper & Board Mill Limited (ISIN: INE646X01014) has reported a net loss of Rs. 475.43 lakhs for the quarter ended September 30, 2025, as the company grapples with significant operational and financial challenges.

Key Financial Highlights

Metric	Amount
Revenue from operations	Rs. 0.00
Net loss	Rs. 475.43 lakhs

Plants remain shut down since September 2024

Operational Challenges

The company's operations have come to a standstill, with its plants remaining shut down since September 2024. This prolonged closure has resulted in zero revenue from operations for the quarter under review.

Financial Distress

Astron Paper & Board Mill is facing severe financial distress, as evidenced by the following:

Insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) 2016
Enforcement actions under the SARFAESI Act 2002
Default on bank loans totaling Rs. 81.41 crores

Corporate Governance Issues

The company is also facing corporate governance challenges:

Majority of independent directors have resigned
Non-compliance with board composition requirements

Auditor's Observations

The company's auditors, S N D K & Associates LLP, have raised significant concerns in their review report:

Going concern status: The auditors believe the company's ability to continue as a going concern is substantially affected.
Asset valuation: Concerns about the valuation of inventories and property, plant, and equipment (PPE) due to prolonged plant shutdown.
Financial reporting: Issues with the recognition and measurement of various financial items, including trade receivables, loans, and investments.
Compliance: Non-compliance with certain regulatory requirements, including board composition and the absence of a Company Secretary.

Outlook

The company's future remains uncertain as it navigates through insolvency proceedings and attempts to address its financial and operational challenges. Stakeholders should closely monitor further developments and any potential restructuring plans.

Note: This article is based on the unaudited financial results and auditor's review report for the quarter ended September 30, 2025. Investors and stakeholders are advised to exercise caution and seek professional advice before making any investment decisions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.30%	-16.08%	-27.70%	-58.52%	-64.48%	-82.64%

Astron Paper & Board Mill Limited , a paper manufacturing company, has recently received a possession notice from Union Bank of India for multiple properties across Gujarat. This development comes as part of the bank's actions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Details of the Possession Notice

The possession notice, dated October 17, 2025, outlines the bank's intention to take control of nine properties owned by Astron Paper & Board Mill. These properties include factory lands, office spaces, and plots, totaling approximately 178,000 square meters. The affected assets are spread across various locations in Gujarat, including:

Location	Property Type	Area (sq. meters)
Sukhpar village, Halvad	Plot of Land	11,028.00
Sukhpar village, Halvad	Plot of Land	12,950.00
Sukhpar village, Halvad	Land & Building	45,224.00
Ahmedabad	Office Space	333.46
Sukhpar village, Halvad	N.A. Land	30,049.00
Chubadak village, Bhuj	Land & Building	17,600.00
Ahmedabad	Office Space	140.43
Sukhpar village, Halvad	Factory Land	14,670.00
Sukhpar village, Halvad	Factory Land	46,094.00

Company's Response

In response to this notice, Astron Paper & Board Mill has stated that it is currently evaluating the implications of this action. The company has indicated its intention to take appropriate legal steps based on the advice it receives.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. This regulation mandates listed entities to inform stock exchanges about material events that may affect their operations.

Impact on Stakeholders

While the full impact of this development remains to be seen, it could potentially affect the company's operations and financial position. Stakeholders, including investors and employees, will likely be watching closely for further updates from the company regarding its response to this situation and any potential impact on its business activities.

As the situation unfolds, more information may become available about the circumstances leading to this action by Union Bank of India and the company's strategy to address these challenges. Stakeholders are advised to stay informed about any further announcements from Astron Paper & Board Mill Limited or relevant regulatory bodies.