Outcome of Board Meeting held on 26th May, 2025 in terms of Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.
Awaiting price reaction for this filing.
The board of Jiya Eco-Products Ltd met on 26th May 2025 and approved major changes following the NCLT Ahmedabad's approval of the company's Resolution Plan on 11th December 2024. The entire board was reconstituted under the Insolvency and Bankruptcy Code — the previous directors ceased to hold office, and Mr. Pradeep Kisan Khandagale (currently Managing Director of Univastu India Ltd) was appointed as Whole-time Director for 5 years, along with a new team of 3 independent directors. All board committees (Audit, Nomination & Remuneration, Stakeholder Relationship) were reconstituted with immediate effect. The board also approved the audited standalone and consolidated financial results for Q4/FY25, which showed a loss of Rs. 104.05 lakhs (marginally better than the Rs. 114.82 lakhs loss in FY24) with zero revenue from operations, since the company's manufacturing operations have been suspended since 19 May 2021. The auditors (Chandabhoy & Jassoobhoy) issued a Disclaimer of Opinion citing multiple material uncertainties. Additionally, CS Satish Kolhe was appointed as Secretarial Auditor for a 5-year term from FY24-25 to FY28-29.
This marks a fresh start for Jiya Eco-Products after emerging from the insolvency resolution process, with a new promoter-aligned management (Univastu group) taking the reins. However, shareholders should note significant red flags: operations remain suspended, revenue is zero, net worth is deeply negative at Rs. -1854.86 lakhs against share capital of Rs. 300.73 lakhs, cash has nearly dried up to just Rs. 0.90 lakhs, and auditors have flagged material going-concern uncertainty. The stock remains a high-risk bet dependent on the new management's ability to restart operations.