Impex Ferro Tech Limited Reports Quarterly Loss Amid CIRP; Financial Strain and Uncertainties Highlighted in Audit Review

Impex Ferro Tech Limited Reports Quarterly Loss Amid CIRP; Financial Strain and Uncertainties Highlighted in Audit Review​

Impex Ferro Tech Limited reported a net loss of 643.40 lakhs for the quarter ended June 30, 2026. The unaudited financial results for the period reflect significant operational challenges, amidst the company's ongoing Corporate Insolvency Resolution Process (CIRP). These results, which are being prepared under the supervision of the Resolution Professional (RP), highlight substantial liabilities and material uncertainties regarding the company's future viability.

The limited review report reveals that while the company registered Total Income of 99.05 lakhs during the quarter, total expenses amounted to 743.70 lakhs, resulting in a net loss for the period of 643.40 lakhs.

Quarterly Financial Highlights​

Creditor Claims and Debt Obligations​

A review of creditors' claims submitted during the CIRP process revealed that the aggregated claims from both financial and operational creditors exceeded the amounts recorded in the company's books of accounts, meaning consequential impact on the reported finances is currently unascertainable due to these differences.

As of a summary published on September 20, 2025, the status of creditor claims was as follows:


A critical financial note highlights the non-provision of a Cumulative interest expense amounting to Rs. 63,020.22 lakhs on borrowings, an amount that has been admitted by the RP in the claims list dated September 20, 2025.

Operational Risks and Statutory Dues​

The company faces several significant operational and financial risks identified during the review:

• Manufacturing Halt: The manufacturing operation, located in Kalyanesheri, West Bengal, has been temporarily shut down since October 2022 due to a disconnection of power supply by the Damodar Valley Corporation (DVC).
• Statutory Arrears: Undisputed statutory dues amounting to Rs. 292.13 lakhs were in arrears as at June 30, 2026, for over six months, with any potential interest or penalty remaining unascertained.
• Credit Loss Provisions and ITC Discrepancy: The company recognized a provision towards Expected Credit Losses (ECL) aggregating to Rs. 804.52 lakhs across various asset categories. Furthermore, a significant unreconciled difference was noted regarding Input Tax Credit (ITC); the book amount stands at Rs. 19.39 lakhs while the ITC on the GST portal amounts to Rs. 387.82 lakhs.

Going Concern and CIRP Status​

The company’s financial statements are being prepared on a going concern basis, despite evidence that losses have exceeded the entire net worth of the company, and accumulated loss as of June 30, 2026 is Rs. 46,529.94 lakhs. The future viability of the company remains subject to necessary approvals.

In terms of CIRP progression, it was noted that six resolution plans were received from prospective applicants, including one Bank Guarantee worth 21 crore and five Earnest Money Deposits (EMDs) aggregating to 5 crore. Furthermore, the CIRP period for the company has been extended by a period of 60 days until August 7, 2026.

Asset Attachment and Financial Control Issues​

The review also highlighted concerns regarding asset status and bank accounts:

• Asset Attachment: Assets located in Kadavita Dendua Road were attached by the Directorate of Enforcement (ED) vide Provisional Attachment Order dated March 31, 2021, related to an alleged fraud of Rs. 551.13 crores. The ED later applied for restitution of these assets.
• Bank Account Issues: Management failed to provide bank statements for several accounts across multiple banks (including Indian Bank, Axis Bank Ltd., SBI Employee Gratuity), preventing verification of balances as per books with bank statements. Additionally, an amount of Rs. 36.89 lakhs in the company’s Axis Bank account is currently frozen and unavailable for operational use following a complaint lodged under the NCRP.
• Insurance: Insurance coverage for Fixed Assets and Plant & Machinery (Including Stocks) expired on June 13, 2023.

IMPEXFERRO Stock Price Movement​

Impex Ferro Tech Limited shares closed today after edging higher by 1.74% to settle at ₹3.50, marking a significant move as the stock attained its 52-week high. The equity saw robust trading in the post-market session, with a total volume of 33,720 shares traded.