Insilco Management Discussions


Overall Review

Due to refusal of "Consent to Operate" by Uttar Pradesh Pollution Control Board (UPPCB) vide its orders dated October 22, 2019, the Company filed fresh Applications dated November 21, 2019, for Consent to Operate, however, the same were dismissed by the UPPCB vide order dated February 4, 2020. The Board of your Company, after due consideration, unanimously agreed not to pursue the matter any further.

With effect from June 25, 2021, the Company is under Voluntary Liquidation Process and Mr. Chandra Prakash (having registration no. IBBI/IPA-002/IP-N00660/2018-2019/12023) was appointed as the Liquidator of the Company.

Subsequently, consent of the members of the Company was accorded on 22nd November 2022 to replace Mr. Chandra Prakash as the Liquidator of the Company and appoint Ms. Kapila Gupta, being an Insolvency Professional and duly registered with the Insolvency and Bankruptcy Board of India and holding Registration Number: IBBI/IPA-001/IP-P-02564/ 2021-2022/13955, as the Liquidator of the Company for the purpose of its voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016 ("Code") and VL Regulations on the terms and conditions as placed before the Board.

Industry Structure and Developments

Sales of Precipitated Silica during the year were Nil (previous year Nil). The Production during the year was Nil (previous year Nil).

Discussion on financial performance with respect to operational performance

The Board of Directors are of the view that the use of the going concern basis of accounting in the preparation of the financial statements is not appropriate and therefore, the financial statements for the year ended March 31, 2023 have not been prepared on a going concern basis. The Company management has assessed carrying value of assets and liabilities and based on current estimates, certain adjustments have been made in the books of account during the year ended March 31, 2023.

A. Financial Position

1. Non-Current Assets:

(i) Property, Plant and Equipment (PPE) & Other Intangible Assets

The Property, plant and equipments aggregating to Rs. 0.19 Millions as on March 31, 2023 as compared to Rs. 0.30 Millions in the previous year. It includes for IT and Lab assets, which is not part of sales list. Rest of the assets transferred to Assets classified as held for sale.

2. Current Assets (i) Inventories

Inventories amount to Rs. 2.37 Million as on March 31, 2023 as compared to Rs. 2.64 Million as on March 31, 2022. Inventory consists of only H.S.D. inventory as at March 31, 2023.

(ii) Financial Assets

Cash and Cash Equivalents and Other Bank Balances

As at March 31, 2023, the Company had a Cash and Cash Equivalents and Other Bank Balances of Rs. 469.08 Million. This represents ~ 86% of total assets.

Loan and Other Financial Assets

Loan and Other Financial Assets amount to Rs. 1.98 Million as on March 31, 2023 as compared to Rs. 3.94 Million as on March 31, 2022. It includes Rs. 1.82 Million towards interest accrued on fixed deposits.

(iii) Other Current Assets

Other current assets amount to Rs. 11.06 Million as on March 31, 2023 as compared to Rs. 13.91 Million as on March 31, 2022.

(iv) Assets classified as held for sale

Assets amount to Rs. 61.34 Million as on March 31, 2023 as compared to Rs. 67.24 Million as on March 31, 2022 includes the following:

Particulars As of March 31, 2023
(Rs. in Million)
Property, plant and equipment 46.62
Right of use assets 11.46
Inventory 1.76
Security Deposits 1.50
Total 61.34

3. Equity Share Capital

The Company has one class of shares - equity shares of par value of Rs. 10/- each. The authorized share capital of the Company is Rs. 657.15 Million divided into 65,715,000 equity shares of Rs. 10/- each. The issued, subscribed and paid-up share capital stood at Rs. 627.15 Million as on year ended March 31, 2023.

During the year, there is no change in share capital of the Company.

4. Other equity

Reserves and Surplus

The balance retained in the Profit & Loss Account as on March 31, 2023 is Rs. (544.35) Million as compared to Rs. (463.42) Million as on March 31, 2022. The book value per share at the end of the year is Rs. 1.32 as compared to Rs. 2.61 at the end of previous year.

5. Non-Current Liabilities Financial Liabilities

(i) Lease Liabilities

Lease liabilities as at March 31, 2023 is Rs. Nil Million as compared to Rs. Nil Million as on March 31, 2022. This includes leasehold land of Gajraula.

Employee benefit obligations

Employee benefit obligations as at March 31, 2023 is Rs. Nil Million as compared to Rs. Nil Million as on March 31, 2022.

Deferred Tax Liabilities

Deferred tax liabilities as at March 31, 2023 is Nil.

6. Current Liabilities

The Company owes an amount of Rs. 463.24 Million (mainly includes Rs 420.00 million advance towards sale consideration of assets as on March 31, 2023 as compared to Rs. 270.15 Million as on March 31, 2022. Current liabilities include the following:

Particulars As of March 31, 2023
(Rs. in Million)
Trade Payables 28.90
Employee benefit obligations
Compensated absences 0.06
Provisions 32.02
Other Current Liabilities:
Advance towards sale consideration of assets 420.00
Less: Fee on realizable value (21.00)
Statutory dues 3.16
Liabilities directly associated with assets classified as held for sale 0.10
Total 463.24

B. Results of Operations

1. Turnover

The detail of turnover of the Company is as per table given below:

Particulars Year ended 31.03.2023 Year ended 31.03.2022
Revenue from Operations Nil Nil

2. Net Profit/Loss After Tax

The total comprehensive loss for the year ended March 31, 2023 is Rs. 80.93 Million as compared to loss of Rs. 106.51 Million in previous year.

3. Earnings Per Share

The basic EPS during the year is Rs. (1.29) per share as against Rs. (1.70) per share in the previous year.

4. Employee Benefits Expense

The employees remuneration and benefits for the year ended March 31, 2023 are Rs. 17.44 Million as compared to Rs. 40.14 Million for the year ended March 31, 2022. Employee benefit expense includes retention bonus/ exgratia of Rs. 4.70 Million in the current year and Rs. 16.28 Million in the previous year.

5. Depreciation and impairment

Both current & previous year includes Rs. 0.18 Million towards depreciation of right of use assets.

6. Other Expenses

Other expenses for the year ended March 31, 2023 are Rs. 84.77 Million as compared to Rs. 84.68 Million for the year ended March 31, 2022. The other expenses includes legal & professional expenses, fees paid to UPSIDC for map approval, loss allowance, security expenses, rates & taxes, power and fuel etc.

FINANCIAL DATA FOR THE YEAR ENDED MARCH 31, 2023

[Rs. in Million except per share data and other information]

Description March 2023 March 2022 March 2021 March 2020 March 2019
Financial Performance
Sales - - - 577.47 951.47
Less: Excise duty - - - - -
Turnover (net of excise duty) - - - 577.47 951.47
(Loss)/Profit before Interest, (102.21) (124.82) (581.61) (122.19) (70.89)
Investment Income, Depreciation,
Exceptional Items and Tax
Other Income
(i) Income from Interest & Investment 24.08 16.18 31.63 47.81 37.61
(ii) Other income (other than income 2.42 1.44 15.48 5.70 2.87
from interest and Investment)
Interest Expenses (0.05) (0.42) (6.41) (0.12) (3.24)
Depreciation and Amortization (0.18) (0.18) (20.04) (28.28) (24.64)
Exceptional Items - - - - -
(Loss)/Profit Before tax (75.94) (107.80) (576.43) (102.78) (61.17)
Taxation charge / (Release) (4.99) (1.29) 0.76 1.95 (0.77)
(Loss)/Profit after Tax (80.93) (106.51) (577.19) (104.73) (60.41)
Other comprehensive income - - 5.65 (2.86) (2.41)
Total comprehensive income for the year (80.93) (106.51) (571.54) (107.59) (62.82)
Description March 2023 March 2022 March 2021 March 2020 March 2019
Balance Sheet
Share Capital 627.15 627.15 627.15 627.15 627.15
Reserves and Surpluses (544,35) (463.42) (356.91) 214.63 322.22
(including other reserves)
Net Worth 82.80 163.73 270.24 841.78 949.37
Non-Current Liabilities - - 1.85 4.71 1.09
Non-Current Assets - - 86.41 248.10 258.75
Net Current Assets 82.80 163.73 185.68 598.40 691.71
Total Assets 546.04 433.88 371.55 889.85 1050.53
Per Share Data
Basic EPS (Rs.) (1.29) (1.70) (9.20) (1.64) (0.96)
Book Value per share (Rs.) 1.32 2.61 4.31 13.42 15.14
Other Information
Number of Shareholders 37994 38288 37151 37595 38124

RATIO ANALYSIS FOR THE YEAR ENDED MARCH 31, 2023

Description March 2023 March 2022 March 2021 March 2020 March 2019
Ratios-Financial Performance
Gross Profit/ Total Sales [%] - - - 16% 18%
Profit /(Loss) Before Interest, - - - -21% -7%
Investment Income, Depreciation,
Exceptional Item & Tax/Total Sales[%]
Profit/(Loss) Before Interest, Investment Income, Depreciation & Tax/Total Sales [%] - - - -21% -7%
Ratios-Balance Sheet
Debt Equity Ratio - - - - -
(Long Term Debt : Equity)
Current Ratio 1.18 1.60 2.87 14.80 7.91

For Insilco Limited

(Under Voluntary Liquidation)

Sd/- Sd/-
Vinod Paremal Kapila Gupta
(Managing Director) (Liquidator)
DIN: 08803466 [Registration no. IBBI/IPA-001/
IP-P-02564/2021-2022/13955]