Alps Industries Limited has informed the Exchange regarding ' Alps Industries Limited has informed the Exchange regarding ''. Statement of impact of audit qualification for the FY ended 31-03-2025"'.
Awaiting price reaction for this filing.
Alps Industries has submitted its annual results with a qualified audit opinion from A.S. Goel & Co. The auditor flagged that the company has not provided for a massive liability of Rs. 2,12,917.26 lakh (about Rs. 2,129 crore) towards unpaid interest and waived principal on secured loans, which if recognized would balloon losses from Rs. 6,399 lakh to Rs. 2,19,316 lakh and turn net worth deeply negative. The company is currently under Corporate Insolvency Resolution Process (CIRP) after NCLT Allahabad admitted an insolvency petition filed by Edelweiss Asset Reconstruction Company (EARC), which holds over 99% of the secured debt and has claimed Rs. 6,11,939 lakh. The Board of Directors' powers are suspended and an Interim Resolution Professional is managing the company. Resolution plans have been submitted to the Committee of Creditors for approval. This is the same qualification that has appeared since FY 2017-18, indicating a long-standing unresolved issue.
This is an extremely negative filing for shareholders. The company is under insolvency proceedings with effectively zero operations (revenue of just Rs. 60.85 lakh against liabilities of Rs. 90,765 lakh), and the auditor has essentially confirmed the books understate losses by over Rs. 2,100 crore. Existing equity holders face near-total wipeout risk unless a favorable resolution plan is approved by NCLT.