SKIL Infrastructure: What the September 2025 Numbers Say Inside CIRP

SKIL Infrastructure Limited is not reporting a normal quarterly story. The company has been under the Corporate Insolvency Resolution Process following an NCLT Mumbai order dated February 1, 2024, and its board is suspended. Financial decisions are being taken through the Resolution Professional committee and disclosures are being filed under SEBI LODR Regulations 30 and 33.

In the RP committee meeting held on September 8, 2026, the company took on record the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, along with the statutory auditor’s limited review reports. The results show small reported operating income, outsized exceptional movements tied to impairment and capital reduction events, and very large balance sheet liabilities. The auditor’s reports also highlight multiple areas where recoverability, claims, and completeness of evidence remain uncertain while CIRP is ongoing.

CIRP timeline and what changed operationally

The current disclosure sits within a long procedural arc. The company was admitted into CIRP by the NCLT Mumbai on February 1, 2024, and an Interim Resolution Professional was appointed. A related appeal led to an NCLAT interim stay on constitution of the Committee of Creditors on February 12, 2024. That stay was later vacated by the NCLAT on October 15, 2025, and the appeal was withdrawn. After that, the CoC was constituted and approved by the NCLT, and in the first CoC meeting held on November 3, 2025, the members approved the appointment of Mr. Purusottam Behera as Resolution Professional.

This governance context matters because it affects both process and accounting. The auditors explicitly note that the RP relied on assistance from existing staff and key management personnel for preparation of the statements. More importantly, the auditor draws attention to the gap between claims admitted or to be admitted in CIRP and the liabilities reflected in the books, with no adjustments made pending the final outcome.

The quarter’s reported income is narrow, but exceptional items dominate the narrative

For the standalone statement for the quarter ended September 30, 2025, revenue from operations was reported at ₹263.37 lakh. Expenses were comparatively low in the quarter as presented, with employee benefits of ₹9.04 lakh, depreciation of ₹0.08 lakh, other expenses of ₹1.18 lakh, and a provision for CIRP cost of ₹2.22 lakh. This produced a reported profit before tax of ₹250.65 lakh for the quarter.

The half year ended September 30, 2025 shows total revenue of ₹4,556.14 lakh and a profit for the period of ₹4,474.13 lakh, as per the standalone table. But the documents repeatedly flag that comparability across periods is weak because of CIRP impacts and exceptional movements.

On the consolidated side, the statement shows other income of ₹263.37 lakh for the quarter ended September 30, 2025, but the presentation is inconsistent across periods and columns. The wider narrative in the disclosure and notes indicates that a large part of the reported performance in this timeframe is driven by non-operating movements such as impairments, deconsolidation impacts, and capital reduction receipts. The cash flow statements reinforce this, showing large swings attributable to working capital and other non-cash adjustments.

Financial summary (as disclosed)

Balance sheet scale: large liabilities, negative equity, and concentration of financial uncertainty

The balance sheet disclosures show that the company’s reported financial position is heavily shaped by large current liabilities and negative equity.

In the consolidated statement of assets and liabilities as at September 30, 2025, total assets are reported at ₹19,464.50 lakh (vs ₹19,467.00 lakh at March 31, 2025). Current assets include other bank balances of ₹16,472.13 lakh and other current financial assets of ₹1,072.77 lakh. Cash and cash equivalents are ₹6.26 lakh, while the cash flow statement separately shows closing cash and cash equivalents of ₹16,477.39 lakh, reflecting classification differences within the disclosure set.

On the liabilities side in the consolidated statement, current borrowings are reported at ₹1,68,756.87 lakh, trade payables at ₹65,782.02 lakh, other current financial liabilities at ₹2,32,358.99 lakh, other current liabilities at ₹23,037.05 lakh, and provisions at ₹9,531.01 lakh. The consolidated statement also shows other equity at negative ₹2,57,856.88 lakh and a negative non-controlling interest line item, indicating the balance sheet is deeply impaired as presented.

The standalone statement of assets and liabilities also shows a similar theme. As at September 30, 2025, other bank balances are ₹16,477.29 lakh and other current financial assets are ₹1,290.96 lakh. Standalone current borrowings are reported at ₹1,66,756.87 lakh and other current liabilities at ₹22,528.60 lakh, while other equity is negative ₹2,57,936.59 lakh.

These figures set the investor context: even when a quarter shows positive reported profit, the balance sheet leverage and accumulated negative equity dominate solvency considerations, and the outcome of CIRP becomes the key variable.

Auditor’s limited review: qualified conclusions and evidence gaps investors should track

The limited review reports for both consolidated and standalone results include a basis of qualified conclusion that is extensive. Several points stand out because they directly affect valuation, recoverability, and the reliability of specific balances.

First, claims admitted under CIRP may differ from book liabilities, including claims arising from invoked corporate guarantees. Pending final outcome, no book adjustments have been made for any differential amounts. This is a fundamental uncertainty because the resolution plan process can crystallize obligations differently from the historical accounting.

Second, the auditor draws attention to the capital reduction of 99.76 percent approved in Urban Infrastructure Holdings Pvt. Ltd. and sanctioned by the NCLT Mumbai on March 24, 2025. The investment in that entity has been impaired. These events and conditions are described as indicating a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern. Despite that, the financial results have been prepared on a going concern basis.

Third, intercompany differences are identified between the holding company and its subsidiary SKIL Advanced Systems Pvt. Ltd. In the consolidated report, an unrecognized difference of approximately ₹16.19 lakh is described, linked to expenses incurred by the subsidiary on behalf of the holding company that were not recognized in the holding company’s books. The difference was adjusted through reserves and surplus, and the auditor notes that if it were accounted, losses and liabilities would increase to that extent.

Fourth, the consolidated report discusses deconsolidation of a subsidiary in the previous year, SKIL Shipyard Holdings Pvt. Ltd., on account of loss of control, but notes that the deconsolidation was not carried out on the exact date required under Ind AS 110. It also flags an unrecognized balance of ₹9 lakh derecognized without adequate supporting documentation. The auditor states they are unable to determine the impact on the consolidated financial statements for current and previous periods.

Fifth, recoverability concerns appear in a large receivable: other current financial assets include ₹1,028.69 lakh receivable from SKIL Group Employees Welfare Trust 2011. The trust’s main asset is stated as 72,36,842 equity shares of the company. Realization of the receivable depends on the outcome of CIRP and the value ultimately realizable from those shares. The company has not recognized an impairment, and the auditor states they cannot obtain sufficient evidence to satisfy themselves about recoverability.

Sixth, there is a scope limitation related to bank accounts: for certain bank accounts, complete bank statements and direct confirmations were not available. The auditor states review procedures were restricted, and the possible effects of undetected misstatements in cash and cash equivalents could be material.

Seventh, the auditor highlights a related party security deposit of ₹54.02 lakh included in other financial assets, with no formal agreement. The company continues to occupy related party premises without rental payments for a prolonged period. The auditor states they cannot comment on appropriateness, recoverability, or completeness of related party disclosures.

For investors, these points are not minor footnotes. They indicate where reported balances could move sharply depending on CIRP outcomes, documentation availability, and the eventual resolution plan.

Cash flow picture: large operating inflows, but driven by working capital shifts and impairments

The standalone cash flow statement for the period ended September 30, 2025 reports net cash used in operating activities of ₹16,353.81 lakh. The statement shows operating profit before working capital changes of ₹4,025.81 lakh and a large increase or decrease in current assets of ₹12,391.81 lakh. Closing cash and cash equivalents are reported at ₹16,477.29 lakh.

The consolidated cash flow statement for the period ended September 30, 2025 shows net cash used in operating activities of ₹16,474.49 lakh, with cash and cash equivalents closing at ₹16,477.39 lakh. Adjustments include a provision for impairment of ₹3,05,43.65 lakh, an impact due to deconsolidation of ₹44,723.68 lakh, and a provision for CIRP cost of ₹17.22 lakh, highlighting how non-cash and structural changes dominate the cash flow bridge.

The direction of operating cash flow appears positive in absolute terms in these statements, but investors should read it alongside the auditor’s limitation on bank confirmations and the balance sheet scale of current liabilities.

What to take away: the quarter is less about performance and more about resolution mechanics

These results are best read as a compliance snapshot during a restructuring process, not as a clean measure of ongoing earnings power. The reported standalone revenue for the quarter is modest at ₹263.37 lakh, while the broader financial story is defined by capital reduction impacts, impairments, and classification and consolidation changes. The balance sheet carries very large current liabilities and deeply negative equity lines, and the auditors explicitly identify multiple uncertainties that can change the numbers.

The clearest investor takeaway is that the most important catalyst is not a margin trend or a new project announcement. It is the eventual outcome of CIRP and the way admitted claims, recoveries, and asset realizations are settled. Until that resolution is visible, quarterly profit figures will remain difficult to interpret in isolation.

In the meantime, investors should track a short list of practical signals embedded in this disclosure set: whether claims reconciliation progresses and is reflected in books, whether the receivable from the Employees Welfare Trust sees impairment or recovery evidence, whether bank confirmations and statements become available for audit comfort, and whether related party balances are formalized and supported. Those elements, more than any single quarter’s reported profit, will shape the credibility of the financial statements and the eventual recovery framework under the insolvency process.