Dhruv Wellness Limited is an Indian enterprise primarily engaged in the **trading and distribution** of a diverse range of consumer goods. Historically focused on traditional B2B supply chains in the **Mumbai Metropolitan Region**, the company is currently navigating a critical structural transition under the **Insolvency and Bankruptcy Code (IBC)**. This profile synthesizes the company’s operational framework, financial standing, and the ongoing corporate restructuring process. --- ### **Core Business Operations and Product Ecosystem** The company operates as a diversified distributor and retailer within the consumer goods sector, sourcing and managing a broad portfolio of daily-use items. Its business model focuses on the procurement and supply of high-volume products across four primary categories: * **FMCG (Fast-Moving Consumer Goods):** High-turnover essential goods for daily household consumption. * **Ayurvedic Products:** Traditional Indian medicinal and wellness supplements. * **Cosmetic Products:** Personal care, beauty, and grooming items. * **General Merchandise:** Miscellaneous household and consumer utility goods. **Market Reach and Digital Integration:** The company’s primary network consists of **retailers** predominantly located in **Mumbai and adjacent territories**. To maintain competitiveness against modern trade, the company has integrated **E-business** channels into its traditional distribution framework, diversifying its marketing modes to capture digital demand. --- ### **Corporate Structure and Shareholding** The company’s capital structure consists of equity shares with a face value of **Rs. 10 each**. Ownership is highly concentrated within the promoter group. **Shareholding Pattern (as of March 31, 2023):** | Shareholder Name | Holding (Shares) | % of Total Holding | | :--- | :--- | :--- | | **Anita Prajapati** | **7,141,260** | **67.75%** | | **Pravin N. Prajapati** | **589,190** | **5.59%** | | **Other Shareholders** | **2,809,550** | **26.66%** | **Equity Rights:** * **Voting:** Each share carries **one vote**. * **Dividends:** Subject to **Board recommendation** and shareholder approval. * **Liquidation:** Equity holders possess **residual interest** in assets proportional to their shareholding after all preferential liabilities are settled. --- ### **Financial Performance and Debt Profile** The company has maintained a modest financial trajectory with limited top-line growth. Recent fiscal data indicates a heavy reliance on secured working capital to fund operations. **Standalone Financial Summary:** | Particulars | FY 2022-23 (₹ in Lakhs) | FY 2021-2022 (₹ in Lakhs) | | :--- | :--- | :--- | | **Revenue from Operations** | **38.97** | **37.16** | | **Total Expenses** | **36.88** | **35.12** | | **Net Profit After Tax (PAT)** | **2.08** | **1.52** | **Key Financial Observations:** * **Profitability:** PAT grew by **36.8%** year-on-year, largely due to a reduction in **Current Tax** outgo to **zero**. * **Credit Facilities:** Working capital loans are held with **Axis Bank** and **State Bank of India (SBI)**. * **Collateral:** Loans are secured by a **pari passu charge** on current assets, **Fixed Deposits of ₹25 Lakhs**, and immovable properties in **Malad (Mumbai)**, **Bhayender (Thane)**, and land in **Gandhinagar/Sabarkantha (Gujarat)**. * **Guarantees:** Facilities are supported by the **Personal Guarantees** of two directors. --- ### **Insolvency Status and Resolution Process (CIRP)** Dhruv Wellness Limited is currently undergoing a **Corporate Insolvency Resolution Process (CIRP)** initiated by the **NCLT, Mumbai Bench**. Management control has shifted from the Board of Directors to a **Resolution Professional (RP)**. **CIRP Timeline and Milestones:** | Milestone | Details / Status | | :--- | :--- | | **CIRP Initiation Date** | **18th February, 2025** | | **Resolution Professional** | **Mr. Ashok Mittal** | | **Original Expiry Date** | **17th August, 2025** | | **Current Status** | Seeking **6-month extension** and **20-day exclusion** | **Strategic Focus under CIRP:** * **Going Concern:** The RP is focused on maintaining operational continuity through a dedicated **CIRP account** at **Kotak Mahindra Bank**. * **Resolution Plan:** The primary objective is the approval of a **Resolution Plan** by the **Committee of Creditors (CoC)** to ensure long-term viability. --- ### **Critical Risks and Operational Challenges** The company faces severe headwinds that threaten its status as a going concern. **1. Supply Chain and Liquidity Crisis:** * **Vendor Disruption:** Key vendors have **discontinued supply** due to unpaid dues. * **Payment Defaults:** Out of a recent supply value of **Rs. 5.81 Crore**, the company has an outstanding disputed balance of **Rs. 4.08 Crore**. * **Cash Basis:** Operations have shifted to **100% cash-based** transactions due to a lack of creditworthiness. **2. Creditor and Asset Concerns:** * **NPA Status:** All loan accounts are classified as **Non-Performing Assets**; interest provisioning has ceased. * **Asset Tracing:** **SBI** has raised concerns regarding the existence of secured assets. The CoC has discussed appointing a **detective agency** to trace missing assets after a forensic audit resolution was previously rejected. * **Voting Deadlock:** In August 2025, **98.55%** of the CoC **abstained** from voting on the extension of the CIRP period. **3. Legal and Regulatory Non-Compliance:** * **BSE Suspension:** Trading is **suspended** on the BSE due to non-payment of **Annual Listing Fees (ALF)**. * **Tax Litigation:** A **GST Anti-Evasion** case (FY 2019-20) is pending. * **Statutory Defaults:** Arrears exist in **Provident Fund (PF)** dues (FY 2018-20), **TDS**, and **Income Tax**. * **Governance Vacancies:** The company lacks a **Company Secretary**, and several Directors have **deactivated DINs** due to non-filing of **DIR-3 KYC**. * **Audit Qualifications:** Trade receivables and payables remain unconfirmed and unreconciled. **4. Macroeconomic Impact:** The company attributes its financial failure to the **COVID-19 pandemic**, which led to unsustainable debt levels and disruptions in material access that fundamentally broke its historical credit-based ledger system.