Priya Limited (ISIN: INE686C01014) is grappling with significant financial difficulties, as revealed in its latest quarterly report for the period ending June 30, 2025. The company has received an adverse audit opinion, highlighting a series of critical issues that paint a grim picture of its financial health and operational status.

Key Financial Challenges

Non-Performing Asset (NPA) Status

Priya Limited's account has been declared a Non-Performing Asset, a significant red flag for its financial stability.

Property Attachment Notice

The company has received a notice under Section 13(4) for symbolic attachment of properties, indicating potential legal actions against its assets.

Negative Net Worth

Priya Limited has reported net losses in the current period and previous years. The accumulated losses have surpassed its net worth, resulting in a negative net worth position.

Operational Halt

Due to blocked bank accounts, the company's revenue from operations during the current year has come to a complete standstill.

Operational Downsizing and Asset Liquidation

The company has taken drastic measures in response to its financial crisis:

• Closed all branches except Mumbai during FY 2020-21
• Wrote off fixed assets
• Laid off the majority of its employees
• Properties in Mumbai, Kolkata, and Chennai were auctioned by banks due to non-payment of dues

Banking Relationships and Default Status

Priya Limited's relationships with its banking partners have severely deteriorated:

• Bank of Maharashtra and Union Bank have declared the company, its promoters, directors, and corporate guarantors as willful defaulters.
• As part of a proposed settlement of Rs. 22.81 crores, the company has deposited Rs. 175.00 lakhs in a non-lien account with Indian Bank.

Financial Data Overview

Additional Concerns

• Two related parties, VXL Instruments Limited and VXL Software Solutions Pvt. Ltd., have initiated Corporate Insolvency Resolution Process.
• The substantial provision for doubtful debts related to export sales (Rs. 3,269.64 lakhs) raises concerns about the recoverability of these amounts.

The adverse audit opinion and the multitude of financial challenges faced by Priya Limited underscore the company's precarious financial position. Stakeholders, including investors and creditors, may need to closely monitor the situation as the company navigates through these severe financial difficulties.

Priya Limited , a company facing severe financial distress, has released its unaudited financial results for the quarter and nine months ended September 30, revealing a deepening crisis. The company's board approved these results, which paint a grim picture of its financial health and operational status.

Financial Performance

The company reported a net loss of Rs 94.56 lakh for the quarter, contributing to a negative net worth of Rs 5,084.66 lakh. This financial deterioration is part of a continuing trend, with the company incurring losses in both current and past periods.

Banking Issues and NPA Status

Priya Limited's accounts have been declared Non-Performing Assets (NPAs) by three major banks:

1. Indian Bank
2. Bank of Maharashtra
3. Union Bank of India

All three banks have taken the severe step of declaring the company, its promoters, directors, and corporate guarantors as willful defaulters. The management has reportedly contested these declarations.

Operational Challenges

The company's operational status has significantly deteriorated:

• Ceased all business operations due to blocked bank accounts
• Closed all branches except for Mumbai
• Laid off the majority of its employees across branches
• Revenue from operations during the current year is nil

Property Auctions and Debt Settlement Attempts

In an attempt to recover dues, the banks have taken several actions:

• Properties in Mumbai, Kolkata, and Chennai were auctioned
• The company voluntarily handed over possession of one Mumbai property to the bank
• A one-time settlement proposal was submitted, with Rs 175 lakh deposited against a proposed settlement of Rs 22.81 crore

Audit Concerns

The company's auditors, M/s. JM & Associates, have issued an adverse opinion, citing multiple concerns:

1. A provision of Rs 3,269.64 lakh for doubtful debts related to export sales
2. Vacancy in the Chief Financial Officer position since November 2022
3. Related party transactions not conducted at arm's length, including rent income receivable of Rs 74.86 lakh from a group company

Insolvency Proceedings of Related Parties

Two related parties of Priya Limited have initiated Corporate Insolvency Resolution Process:

1. VXL Instruments Limited (CIRP commencement date: 26.11.2024)
2. VXL Software Solutions Pvt. Ltd. (CIRP commencement date: 26.02.2025)

Change in Registered Office

The board has approved changing the company's registered office address within Mumbai, moving from Sharda Chambers to Chartered House in Dhobi Talao.

Conclusion

Priya Limited's financial results and accompanying disclosures reveal a company in deep financial distress, grappling with operational cessation, asset auctions, and significant banking issues. The adverse audit opinion and ongoing challenges paint a concerning picture for the company's future prospects.

Investors and stakeholders should closely monitor further developments, particularly regarding the company's debt settlement efforts and any potential restructuring plans.