Premier Limited’s Chakan plant stays shut, NCLT approval pending

Premier Limited reported no revenue from operations and a Rs 2.91 crore standalone loss for the half year ended September 30, 2026, while its Chakan plant remained suspended since March 3, 2020 and the creditor-approved resolution plan awaited National Company Law Tribunal (NCLT) approval.

Why is Premier’s Chakan plant still closed?

Premier’s manufacturing activities at its Chakan plant remain suspended because the company lacks working capital. The filing says production has been suspended since March 3, 2020, and the plant continued to be affected by Premier’s inability to function normally through the half year ended September 30, 2026.

The extended shutdown was reflected in the standalone statement, which showed no revenue from operations for the September 2026 quarter or the first half. Premier reported Rs 30 lakh of other income in the September quarter, compared with Rs 23 lakh in the June 2026 quarter, but this was not operating revenue from manufacturing.

Premier has prepared its financial results on a going-concern basis during the Corporate Insolvency Resolution Process (CIRP), despite the Chakan plant having been idle for more than six and a half years as of September 30, 2026. The filing says the continuing suspension followed the lack of working capital and impaired the company’s ability to function normally after mid-March 2020.

When did Premier’s CIRP begin and what remains pending?

Premier entered CIRP after the NCLT, Mumbai Bench, admitted the insolvency petition on January 29, 2021, and approval of the resolution plan remains pending before the tribunal. Under that order, the board’s powers were suspended and vested in resolution professional Kanak Jani, who signed the September 2026 results.

The Committee of Creditors (CoC) considered plans from seven prospective resolution applicants at its 17th meeting on January 22, 2022. It approved the plan submitted by Fab Metals Pvt. Ltd., according to the filing, but the application for approval by the NCLT, Mumbai Bench, was still in progress as of November 5, 2026.

The moratorium and CIRP will continue until the NCLT approves the plan accepted by the CoC. Premier said its future prospects would be determined on completion of CIRP, while the auditors said the approved plan’s terms and conditions had not been made available to them for review.

What did Premier report for the September 2026 period?

Premier reported a Rs 2.91 crore standalone loss for the half year ended September 30, 2026, compared with a Rs 2.36 crore loss in the corresponding half of 2025. The loss widened even as total expenses fell, because the company recorded no revenue from operations in either period.

The September-quarter loss narrowed to Rs 1.15 crore from Rs 1.76 crore in the June quarter, alongside a Rs 54 lakh reduction in quarterly expenses. Finance costs were Rs 24 lakh in the September quarter, depreciation and amortisation were Rs 87 lakh, and other expenses were Rs 34 lakh.

Premier’s basic and diluted loss per share was Rs 0.96 for the first half of 2026-27, compared with Rs 0.78 in the first half of 2025-26. Paid-up equity share capital was unchanged at Rs 30.37 crore at September 30, 2026, based on a face value of Rs 10 per share.

What did Premier’s auditors identify as the main uncertainties?

Premier’s auditors issued a qualified conclusion, saying the company’s net worth had been completely eroded as of September 30, 2026 and that conditions created material uncertainty about its ability to continue as a going concern. The review specifically cited the Rs 2.91 crore first-half loss and the suspension of operations because of insufficient working capital.

The auditors were unable to obtain sufficient appropriate evidence on the recoverable value of property, plant and equipment, capital work-in-progress and intangible assets under Indian Accounting Standard 36, the impairment standard. They also could not assess whether adjustments were needed for asset impairment or cessation of liabilities because the terms of the CoC-approved plan had not been provided to them.

The review identified further unresolved accounting and governance matters at September 30, 2026. Claims admitted by the resolution professional may differ from amounts in the financial results, while the auditors said minutes approving CIRP-period expenses and payments had not been provided; Premier also had not appointed a whole-time company secretary for more than six months or an internal auditor during the review period.

What do Premier’s balance sheet and cash flow show?

Premier’s total assets stood at Rs 176.77 crore at September 30, 2026, down from Rs 178.87 crore at March 31, 2026, while total equity and liabilities were also Rs 176.77 crore. Negative net worth widened to Rs 346.70 crore from Rs 343.79 crore over the six months, consistent with the reported first-half loss.

Cash and cash equivalents were Rs 15.53 crore at September 30, 2026, compared with Rs 15.55 crore at March 31, 2026. Net cash used in operating activities was Rs 50.48 lakh in the period ended September 30, 2026, while investing activities generated Rs 48.29 lakh, leaving cash marginally lower without reported proceeds from non-current borrowings.

The balance sheet included Rs 85.97 crore of investment property, Rs 21.96 crore of property, plant and equipment, and Rs 3.52 crore of capital work-in-progress at September 30, 2026. Separately, Premier had Rs 46.55 lakh of unclaimed matured fixed deposits and related interest due for transfer to the Investor Education and Protection Fund (IEPF), and said the amount was funded in designated bank accounts while transfer was being processed.

Conclusion

Premier’s September 2026 filing shows an inactive manufacturing business still within an unresolved insolvency process: the Chakan plant has been shut since March 2020, revenue from operations was nil, and the first-half standalone loss rose to Rs 2.91 crore. The auditors’ qualified conclusion adds uncertainty around going concern, asset recoverability and possible claim-related adjustments.

The next disclosed matter to watch is the NCLT, Mumbai Bench’s decision on the resolution plan approved by creditors on January 22, 2022. Approval would determine the completion of CIRP and, according to Premier, its future prospects; the filing does not disclose a plan to restart production at Chakan or a timetable for doing so.