Aban Offshore Limited Releases Financial Results for March 2026 Amid CIRP Status

Aban Offshore Limited Releases Financial Results for March 2026 Amid CIRP Status​

Aban Offshore Limited, a company currently undergoing Corporate Insolvency Resolution Process (CIRP) under the provisions of the IBC, has released its Audited Standalone and Consolidated Financial Results for the year ended March 31, 2026. These results were approved by the Resolution Professional (RP), who is managing the affairs of the Company since the CIRP commenced on September 1, 2025.

The financial reports highlight the operational status of the Group, which operates in only one business segment: Offshore Drilling.

Financial Overview​

The standalone and consolidated statements provide a view of the company's performance during the period. The Standalone results show a net worth deficit, while the Consolidated results reported comprehensive income for the period.

Auditor's Findings and Material Uncertainties​

The Statutory Auditors of Aban Offshore Limited issued a qualified opinion on the standalone financial results for the quarter and year ended March 31, 2026. The qualification is based on several material uncertainties and operational issues within the company:

• Bank Confirmations: There was non-receipt of confirmation for bank accounts, including deposits (INR 592.98 million) and outstanding term loans from two banks (amounting to INR 4,148.03 million).
• Going Concern Issues: The audit noted material uncertainty regarding the company's ability to continue as a going concern, citing accumulated losses resulting in eroded net worth, current liabilities exceeding current assets, and default on interest payments for term loans.
• Accounting Adjustments: Several items led to non-provisioning or specialized accounting treatments, including:

* The lack of provision for interest on bank borrowings and dividend on cumulative redeemable preference shares for the period October 2025 to March 2026, as liabilities were crystallized upon CIRP commencement.
* Accrual of interest income on an inter-corporate loan at a reduced rate reset from October 1, 2025.
* Accruing revenue from support services from its foreign subsidiary at less than the agreed rate.
* No provision for Corporate Social Responsibility (CSR) amounting to INR 4.62 Million due to the CIRP process.
* The transfer of land (INR 123.45 Million), initially listed under 'Assets held for sale,' back into 'Property Plant and Equipment.'

In addition, the auditor’s report on consolidated results issued a disclaimer of opinion, citing uncertainties related to:

• Subsidiary Investments: Uncertainties regarding investments in subsidiary corporations and associated companies, as well as amounts due from these entities.
• Bank Balances: The inability to obtain bank balance confirmations for both the Holding Company and its subsidiaries concerning borrowings and deposits.

The management stated that the company continues to be managed on a going concern basis under the provisions of the IBC, with the ultimate fate of the company dependent on the successful implementation of a resolution plan approved by NCLT.

ABAN Stock Price Movement​

Shares of Aban Offshore Limited slipped by 1.96% to settle at ₹18.46 today, following a soft trading session in the post-market. The stock accounted for a total traded volume of 1,111 shares.