Insilco Ltd has been in voluntary liquidation since 25 June 2021, and its financial statements have been prepared on a non-going-concern basis since FY2022-23. The record is a liquidation, not a business: the auditor has qualified every opinion since FY2020-21, and the dissolution itself is stalled on a tax department that has not filed its report.
Key findings
- Six years of qualified audit opinions and a recurring IFC weakness
Major- Shiv & Associates qualified the FY2025-26 standalone financial statements and internal financial controls opinion, dated 30 May 2026, citing non-going-concern preparation under voluntary liquidation. The internal financial controls opinion has been qualified every year from FY2020-21 through FY2025-26 for the same material weakness: inability to obtain evidence on the operating effectiveness of controls over carrying-value assessment of assets and liabilities under litigation. CARO cash losses were Rs. 27,635 thousand in FY2025-26 and Rs. 414,715 thousand in FY2020-21. - Three unresolved disputes sit between the company and dissolution
Major- The Liquidator filed Dissolution Application CP (IB) No. 87 of 2025 before NCLT Allahabad on 21 July 2025; IBBI, ROC, and SEBI filed no-objection, but the Income Tax Department had not filed its report as of the report date. UPSIDA demanded an amalgamation fee of INR 6,34,46,741.32 and lease rent of Rs. 27,28,893 by letter dated 14 September 2023, both disputed. In the labour dispute, 36 ex-employees seek reinstatement with full back wages and 20% p.a. interest, and the Company's application for refund of VRS amounts was reserved for orders on 3 July 2025. - Operations halted, shares suspended, liquidator suspended
Major- UPPCB rejected Consent to Operate applications on 22 October 2019 and 4 February 2020, halting manufacturing at the Gajraula plant. BSE suspended trading in the equity shares with effect from 7 October 2022 due to voluntary liquidation. The IBBI Disciplinary Committee suspended the registration of the initially appointed liquidator, Mr. Chandra Prakash, for one year by order dated 11 October 2022. - Auditor and liquidator both changed under pressure
Major- Price Waterhouse & Co Chartered Accountants LLP expressed unwillingness to be re-appointed, leading to the appointment of Shiv & Associates for five years from the 34th AGM. The FY2024-25, FY2021-22, and FY2020-21 Corporate Governance reports do not disclose total fees paid to the statutory auditor, stating instead that no demat suspense account is required. Mr. Chandra Prakash was replaced by Ms. Kapila Gupta on 22 November 2022 because IBBI suspended his registration. - Reported profits are not backed by operating cash flow
Major- Standalone cash losses were Rs. 28,292 thousand in FY2025, Rs. 80,747 thousand in FY2022-23, and Rs. 414,715 thousand in FY2020-21. CFO/PAT was -1.43x in FY2024, -1.18x in FY2023, and -0.53x in FY2022. ROCE was -50.15% in FY2026 and -27.99% in FY2025. - Promoter votes 100% of a 73.11% stake; public shareholders barely show up
Minor- The promoter group held 4,58,53,315 shares, 73.11% of outstanding, and voted 100% in favour of every resolution at the 30 March 2026 postal ballot, while public shareholders cast 36,637 votes, 0.2178% of their holding. Evonik India executives have repeatedly served as Managing Director without remuneration: Ms. Chaitali Talele from 10 October 2025 to her resignation on 13 February 2026, and Ms. Shivangi Negi from 14 February 2026. The vacancy left by Mr. Brijesh Arora's resignation on 10 December 2020 was not filled by 31 March 2021, leaving no Executive Director on the Board. - Assets were written to liquidation values in FY2020-21 and never revisited
Minor- An impairment loss of Rs. 14.24 crore on property, plant and equipment and intangibles was recognised in FY2020-21 based on an external valuer's liquidation-value approach. A write-down of stores and spares of Rs. 1.3 crore was recognised in the same year, with specialised-plant spares valued at nil. No impairment or reversal is recorded in the FY2023-24 financial statements; the FY2020-21 charges appear only as prior-year events. - No subsidiaries, JVs, or associates; only a 2025 holding transfer
Clean- Insilco reported no subsidiaries, joint ventures, or associate companies in FY2025-26, and none became or ceased during the year. The only structural change is that Evonik Operations GmbH, Germany transferred its 73.11% holding to Evonik India Private Limited with effect from 27 January 2025. The company has no material subsidiary policy because it has no subsidiary.
What to watch
- NCLT dissolution hearing. Next listed for 12 June 2026, pending the Income Tax Department's report.
- Labour Court orders. Pronouncement on the VRS refund application was reserved on 3 July 2025 with no date notified as of the FY2025-26 report date.
- Ex-employee reinstatement proceedings. Ongoing before the Deputy Labour Commissioner/Assistant Labour Commissioner as of FY2025-26.
Bottom line: This is a disclosed liquidation with a six-year paper trail of qualified opinions, cash losses, and unresolved disputes. The risk is not hidden accounting but stalled process: every path to closing the company runs through a regulator, a court, or a government department that has not yet acted. Watch the NCLT dissolution hearing and the Labour Court orders, because those two dates determine whether this liquidation concludes or drifts further.