Williamson Magor reports Rs 199.42 crore negative equity

Williamson Magor & Co. Limited reported negative total equity of Rs 199.42 crore at 30 September 2026, although it generated Rs 4.71 crore of operating cash in the six months ended that date. Its reported total assets were Rs 416.76 crore, while financial liabilities stood at Rs 6,149.51 crore.

How large was Williamson Magor’s equity deficit at September 2026?

Williamson Magor reported total negative equity of Rs 199.42 crore at 30 September 2026, compared with negative equity of Rs 215.91 crore at 31 March 2026. The Rs 16.49 crore movement reflected other equity improving to negative Rs 210.37 crore from negative Rs 226.86 crore, while equity share capital was broadly unchanged at Rs 10.96 crore.

The balance sheet showed total assets of Rs 416.76 crore at 30 September 2026 and total liabilities of about Rs 616.18 crore when financial and non-financial liabilities are combined. The gap between assets and liabilities is reflected in the negative equity balance, rather than in a positive residual value attributable to shareholders.

Financial liabilities declined by Rs 16.44 crore over the six months, from Rs 6,165.95 crore at 31 March 2026. Borrowings other than debt securities accounted for Rs 5,155.28 crore at 30 September 2026, alongside debt securities of Rs 335.09 crore and other financial liabilities of Rs 605.88 crore.

What assets did Williamson Magor report against its liabilities?

Williamson Magor reported financial assets of Rs 307.66 crore and non-financial assets of Rs 105.10 crore at 30 September 2026. Its listed financial assets included other receivables of Rs 62.75 crore, investments of Rs 24.56 crore and trade receivables of Rs 9.33 crore.

The company reported a deferred tax asset of Rs 108.40 crore at 30 September 2026. The statutory auditor’s qualified conclusion said the reasonable-certainty requirement for recognising that asset under Indian Accounting Standard 12, Income Taxes, had not been met, and stated that deferred tax assets and total comprehensive income for the quarter were overstated by that amount.

Cash and cash equivalents were Rs 26.95 lakh at 30 September 2026, while other bank balances were Rs 1.37 lakh, taking the cash-flow statement balance to Rs 28.32 lakh. The auditor said the HDFC Bank statement for the first six months was unavailable because the account was not operational, so management’s information, notional entries and proposed adjustments were used pending verification.

Did Williamson Magor generate operating cash in the half year?

Williamson Magor generated Rs 4.71 crore of cash from operating activities in the six months ended 30 September 2026. Cash generated from operations was Rs 4.84 crore before direct taxes paid or refunded of Rs 12.98 lakh, and the cash-flow statement recorded profit before tax and exceptional items of Rs 3.09 crore.

Working-capital and liability movements were material to the operating cash result. Loans decreased by Rs 2.72 crore and other financial liabilities increased by Rs 2.94 crore, while other receivables increased by Rs 1.18 crore, other payables declined by Rs 18.65 lakh and other non-financial assets increased by Rs 5.96 lakh.

The comparative cash-flow figure is for the full year ended 31 March 2026 rather than a corresponding six-month period. Operating cash flow for that full year was Rs 1.05 crore, compared with Rs 4.71 crore for the six months ended 30 September 2026, so the two periods are not directly comparable.

How did debt repayments affect Williamson Magor’s cash balance?

Williamson Magor used Rs 4.71 crore in financing activities during the six months ended 30 September 2026, nearly offsetting the Rs 4.71 crore operating inflow. The outflow comprised repayment of short-term borrowings of Rs 4.43 crore and interest payments on short-term borrowings of Rs 27.81 lakh, with no proceeds from borrowings recorded in the period.

Cash and cash equivalents rose by Rs 8,000, from Rs 28.24 lakh at the beginning of the period to Rs 28.32 lakh at 30 September 2026. The small increase followed the near-offset between the operating inflow and financing outflow, while borrowings other than debt securities remained Rs 5,155.28 crore on the balance sheet.

The qualified review also identified unrecognised interest expense of Rs 10.86 crore on inter-corporate borrowings for the quarter ended 30 September 2026. Williamson Magor said it was negotiating with lenders for a waiver, while the auditor said finance cost, total comprehensive loss and the related interest liability were understated by that amount.

What going-concern and settlement issues remain for Williamson Magor?

Williamson Magor prepared its 30 September 2026 standalone results on a going-concern basis, saying management expected support from lenders and promoters, profitable operations and other measures to generate cash inflows. The auditor identified material uncertainty over going concern, citing fully eroded net worth, dependence on continuing finance and future profitability, and inadequate disclosure of the matter.

The auditor also cited defaults involving secured and unsecured loans, debt securities, principal repayments and interest. It said interest on HDFC Bank borrowings had not been provided from April 2021 through September 2026, while balances of receivables, loan creditors and other liabilities remained subject to reconciliation and confirmation.

A one-time settlement agreement dated 5 May 2023 covered non-convertible debentures, and the company said a group company had paid Rs 496.70 crore in cash consideration on behalf of the company and other borrowers. A sale certificate for Neemrana land was issued on 9 May 2026 with proceeds of Rs 902.50 crore, which Williamson Magor said would be used to settle outstanding dues after the settlement procedure is completed.

Conclusion

Williamson Magor’s Rs 4.71 crore operating cash inflow for the six months ended 30 September 2026 provides a cash-flow measure alongside a balance sheet showing negative equity of Rs 199.42 crore and financial liabilities of Rs 6,149.51 crore. Repayment of Rs 4.43 crore of short-term borrowings and Rs 27.81 lakh of interest left cash only Rs 8,000 higher over the period.

The next disclosed milestones are completion of the Neemrana-land settlement procedure, which management says will lead to further accounting adjustments, and the lender discussions on liquidity and interest waivers. The company’s writ petition, filed at the Calcutta High Court on 4 January 2024 seeking restoration of its non-banking financial company registration, also remains sub judice.