Kabra Commercial Ltd has had multiple demat accounts frozen by India's major depositories following regulatory orders from Gujarat State Tax authorities. The freeze orders, implemented on December 11, 2025, affect the company's ability to conduct debit transactions across these accounts.

Account Freeze Details

CDSL has frozen two separate beneficial owner accounts belonging to Kabra Commercial Ltd, while NSDL has frozen an additional account. The freeze orders were executed based on instructions from the Office of the Assistant Commissioner of State Tax Unit-103, Gandhidham, Gujarat.

Regulatory Authority Details

The freeze orders originated from the Gujarat State Tax Department, specifically from the Office of the Assistant Commissioner of State Tax Unit-103, Gandhidham. The regulatory reference number for the order is ACST/U-103/STO-5/2025-26/O.W.3321/22, dated November 12, 2025.

Contact Details for Resolution:

• Contact Persons: R N Gauswami / Paras V Gojiya
• Office: Assistant Commissioner of State Tax Unit-103, Gandhidham
• Address: Plot No. 123, Sector-9, B/H. Krishna (HP) Petrol Pump, Gandhidham-Kachchh, Gujarat-370201
• Email: ac-104-ct@gujarat.gov.in , stoSunt103-gstd-rjt2@gujarat.gov.in
• Phone: 02836-225497

Impact on Trading Activities

The freeze restricts Kabra Commercial Ltd from conducting debit transactions, which means the company cannot sell or transfer securities from the affected demat accounts. However, credit transactions such as receiving securities may still be permitted. The company's registered address is listed as 2, Brabourne Road, Kolkata, West Bengal, 700001.

Next Steps for Resolution

Both CDSL and NSDL have indicated that their role is limited to implementing freeze or unfreeze orders as per regulatory instructions. For resolution of the freeze, Kabra Commercial Ltd must directly contact the Gujarat State Tax authorities mentioned above, quoting the respective freeze IDs and client IDs when communicating about the matter.

The depositories have clarified that the advisory received from regulatory authorities is confidential in nature and may contain details of other entities, hence copies of the original orders cannot be shared with the affected company.

Kabra Commercial Limited , a company operating in coal/coke transportation services and investment & finance segments, has reported its financial results for the second quarter, revealing a shift from profit to loss and raising concerns about outstanding receivables.

Financial Performance

The company's financial results for Q2 and H1 show a significant change in performance compared to previous periods:

Kabra Commercial Limited reported a net loss of ₹16.17 lacs for the quarter, a stark contrast to the profit of ₹49.29 lacs in the previous quarter. Despite the quarterly loss, the company managed to maintain a profit of ₹33.12 lacs for the half-year period. However, this represents a significant decrease from the ₹291.09 lacs profit reported in the same period last year.

Revenue from operations showed an increase, rising to ₹365.25 lacs from ₹237.89 lacs in the previous quarter. This growth in revenue, despite the reported loss, suggests potential challenges in managing costs or other factors affecting profitability.

Auditor's Concern

A significant issue highlighted in the financial report is the presence of ₹2.66 crores in sundry debtors outstanding for more than three years. These receivables are currently under legal proceedings, and the company has not made any impairment provision for them.

The management considers these amounts fully recoverable based on legal opinion. However, the auditors have expressed their inability to comment on the carrying value of these receivables due to delays in court processes. This situation presents a potential risk to the company's financial position and warrants close monitoring by investors and stakeholders.

Corporate Governance

As part of its commitment to regulatory compliance, Kabra Commercial Limited held a board meeting on November 13 to approve the unaudited financial results for the quarter and half-year. The company has assured that these results will be published in newspapers as required by SEBI regulations and will be made available on the company's website.

Conclusion

While Kabra Commercial Limited has shown an increase in revenue from operations, the shift from profit to loss in Q2 and the significant year-over-year decline in half-yearly profit indicate challenges for the company. The unresolved issue of long-standing receivables adds an element of uncertainty to the company's financial health. Investors and stakeholders may need to closely monitor future developments, particularly regarding the resolution of the outstanding receivables and the company's strategies to return to profitability.