BF Utilities Limited has disclosed that it has received a Statement of Claim from AIRRO (Mauritius) Holdings V and others, initiating an arbitration process at the Singapore International Arbitration Centre (SIAC). This development marks a significant escalation in an ongoing dispute between the parties.

Details of the Claim

The claim, filed by AIRRO Holdings and other parties, seeks damages and additional reliefs under a Shareholders' Agreement dated December 24, 2010. BF Utilities, in its official statement, has expressed its intention to contest these claims vigorously and defend its position before the SIAC.

Background and Disclosure

This arbitration claim is not an isolated incident but rather a continuation of a previously disclosed litigation. BF Utilities had earlier informed its shareholders about the pendency of this litigation on August 13, 2025. The company's recent disclosure, made on September 30, 2025, serves as an update to this ongoing legal matter, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company's Response

Pragati S. Rai, Company Secretary of BF Utilities Limited, signed off on the regulatory filing, affirming the company's commitment to defend its stance. The company stated, "The Company will contest these claims and will defend its position before Singapore International Arbitration Centre (SIAC)."

Implications and Next Steps

While the specific details of the damages sought or the nature of other reliefs claimed by AIRRO Holdings have not been disclosed, the initiation of arbitration proceedings at an international forum like SIAC suggests the matter is of significant importance. Shareholders and market observers will likely be keeping a close eye on how this arbitration unfolds and its potential impact on BF Utilities' operations and financial position.

BF Utilities has assured that it will continue to provide updates on any further developments in this matter, maintaining transparency with its investors and complying with regulatory requirements.

Investors and stakeholders are advised to monitor official communications from the company for any future updates regarding this arbitration process.

BF Utilities Limited has reported a significant decline in its financial performance, facing challenges in profitability and revenue.

Financial Highlights

The company's latest financial results show:

• Net profit decreased to ₹64.00 million from ₹175.00 million in the same quarter last year, representing a 63% decline.
• Total revenue dropped to ₹173.00 million from ₹250.00 million, marking a 31% decrease year-over-year.

Segment Performance

BF Utilities operates in two segments:

1. Wind Mills
2. Infrastructure

However, specific segment-wise performance details for the current period are not available in the provided information.

Auditor Concerns

The company's statutory auditors, G. D. Apte & Co., have previously issued a qualified review report, highlighting concerns over a ₹370.00 million interest-free advance given to the step-down subsidiary, Nandi Economic Corridor Enterprises Ltd (NECE). This advance, intended for land parcel acquisition, has been outstanding for over fifteen years.

Ongoing Arbitration

BF Utilities is facing arbitration proceedings at the Singapore International Arbitration Centre (SIAC). AIRRO (Mauritius) Holdings V, an investor in NECE, has initiated these proceedings against BF Utilities and its subsidiaries, alleging failure to provide an exit from NECE as per a 2010 shareholders' agreement.

Subsidiary Issues

Three out of four subsidiaries of BF Utilities, namely Nandi Infrastructure Corridor Enterprise Ltd. (NICE), Nandi Economic Corridor Enterprises Ltd. (NECE), and Nandi Highway Developers Ltd. (NHDL), have previously not submitted their unaudited financial results for a quarter. This delay has prevented the company from publishing its consolidated financial results in the past.

Toll Operations Conclusion

The toll operations of Nandi Highway Developers Limited (NHDL), a material subsidiary of BF Utilities, are scheduled to conclude on September 7, 2024, due to the end of the concession agreement term.

BF Utilities' management faces significant challenges in reversing the declining financial trends and addressing ongoing issues with subsidiaries and arbitration proceedings. The company will need to focus on improving its operational efficiency and resolving pending matters to enhance its financial performance in future quarters.