Winsome Yarns Limited has informed the Exchange about General Updates
WINSOME · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Winsome Yarns, which is already under Corporate Insolvency Resolution Process (CIRP), has shared the findings of a Transaction Review Audit conducted under the Insolvency and Bankruptcy Code. The audit flagged transactions worth around Rs. 9.91 crore between December 2020 and December 2022 with related parties, including preferential transactions (Rs. 37.7 lakh), undervalued transactions (Rs. 9.04 crore), and fraudulent/wrongful trading (Rs. 49.7 lakh). The Resolution Professional has filed three applications with the NCLT Chandigarh bench to reverse and recover these amounts. Seven former directors and key persons, including Manish Bagrodia, have been named in the findings. The nature of the fraud includes preferential payments, sale of a land parcel, and erosion of investment. The former management has denied all contentions raised in the audit report.
Negative for shareholders — the company was already in insolvency, and the audit now confirms fraudulent trading and improper transactions by the prior management. The actual financial impact and recovery will only be known after the NCLT gives its final order, so the stock remains highly uncertain.