Prashant India Limited is an Indian enterprise historically active in the **Textile**, **Wind Power**, and **Agro** sectors. The company is currently undergoing a fundamental structural transition, pivoting from active manufacturing toward a model of **industrial asset liquidation** and **property leasing**. This strategy is designed to settle decades-old dues with secured creditors and achieve a "clean" balance sheet to facilitate future project launches. --- ### **Strategic Pivot: From Manufacturing to Asset Monetization** Following the cessation of its legacy manufacturing operations, Prashant India Limited has formally shifted its business model. In **September 2025**, the company amended its **Memorandum of Association (MoA)** to include the leasing and renting of immovable properties as a primary business objective. * **Leasing Model:** The company is transitioning into a provider of industrial and commercial space. Portions of the **Palsana** factory are already under **operating leases**. * **Renewable Energy Land Bank:** Management intends to leverage its land holdings in **Dhank, Rajkot** by offering them on long-term leases specifically to **Solar Farm developers** and operators. * **Administrative Relocation:** Reflecting the disposal of its industrial sites, the registered office was moved in **October 2025** from the Palsana plant to the **Union Trade Centre, Surat**, to improve administrative efficiency. --- ### **Divisional Status and Liquidation Progress** The company’s legacy segments are in various stages of decommissioning and asset disposal: | Division | Location | Operational Status | Current Action | | :--- | :--- | :--- | :--- | | **Textile** | Palsana, Surat | **Closed July 2023** | Sale of land/buildings to secured creditors; machinery sold as scrap. | | **Wind Power** | Dhank, Rajkot | **Discontinued** | Decommissioned after **25 years**; turbines being sold as scrap. | | **Agro** | Bhavnagar | **Suspended since 1998** | Machinery already sold; land/buildings awaiting sale permissions. | * **Textile Division:** Operations ceased due to a sector-wide recession and obsolete technology. In **2025**, a material related-party transaction was approved to sell the division’s land and buildings to **M/s Shantilon Poly Private Limited** for **Rs. 10,00,00,000** to settle outstanding debt. * **Wind Power Division:** Previously, power was sold to **DGVCL** at rates lower than standard billing. Following the expiration of the **GETCO** wheeling contract and **GEDA** directives, the unit is being fully dismantled. * **Agro Division:** This unit has been inactive for over two decades. Remaining land sales are subject to profit-sharing agreements and local authority permissions. --- ### **Financial Performance and Segment Data** The company’s revenue has seen a sharp decline as it exits its operational phases. **Revenue Contribution by Segment (Rs. '000):** | Segment | FY 2024-25 | FY 2023-24 | Status | | :--- | :--- | :--- | :--- | | **Textile** | **1,874.07** | **1,951.68** | Assets held for sale | | **Wind Farm** | **1,144.88** | **2,121.32** | Power sales discontinued | | **Total** | **3,018.95** | **4,073.01** | - | The company reported a net loss of **Rs. 2,002.34 thousand** in FY 2024-25. Fixed assets intended for disposal have been reclassified as **"Other Current Assets"** in the financial statements. --- ### **Solvency and Capital Structure** Prashant India Limited is in a state of severe financial distress, with a net worth that has been eroded since **1998**. | Particulars (Rs. in Lakhs) | F.Y. 2022-23 | F.Y. 2023-24 | F.Y. 2024-25 | | :--- | :---: | :---: | :---: | | **Paid-up Equity Share Capital** | **423.54** | **423.54** | **423.54** | | **Net Worth (Negative)** | **(13,662.45)** | **(14,589.63)** | **(14,544.52)** | * **Debt Overhang:** The company has been in default on loan and interest repayments since **December 1998**. * **Unprovisioned Liabilities:** As of March 31, 2025, the company has failed to provide for liabilities totaling **Rs. 11,223.26 Lakhs**. This includes **Rs. 112.14 Crores** in unpaid interest to strategic investors and secured creditors. * **Creditor Charges:** **Shantilon Poly Private Limited (SPL)** holds first charges over the Wind Farm and Textile Division assets. The current strategy involves negotiating **debt waivers** and "haircuts" where the net realizable value of assets is lower than the total debt. --- ### **Critical Risk Factors** #### **1. Going Concern & Audit Qualifications** Statutory auditors have issued a **Modified Opinion (Qualified)** for over a decade. There is material uncertainty regarding the company's ability to continue as a **Going Concern** given that current liabilities exceed current assets by **Rs. 33.82 Crore**. #### **2. Legal and Regulatory Challenges** * **NCLT/NCLAT Litigation:** In **October 2025**, an appeal was filed by **Procon Financial & Investment Pvt. Ltd.** in the **NCLAT** seeking to revive a petition for **Oppression and Mismanagement** (Sections 241/242) that was previously dismissed by the NCLT. * **BIFR Status:** The company is under a restored reference with the **BIFR** under the Sick Industrial Companies Act. * **Accounting Non-compliance:** The company does not provide for gratuity or leave encashment (violating **Ind AS 19**) and accounts for these on a **cash basis** to minimize immediate costs. #### **3. Asset Realization Risks** * **Valuation Gaps:** The fair market value of the Palsana assets is estimated between **Rs. 8.23 Crore** and **Rs. 9.92 Crore**, which is insufficient to cover the total accrued liabilities of over **Rs. 112 Crore**. * **Recovery of Dues:** The company is currently litigating to recover **Rs. 7,33,030** from sundry debtors and **Rs. 1,50,000** from **RIL, Hazira**, with uncertain outcomes. --- ### **Investment Outlook** The management’s current roadmap is focused exclusively on **liquidation and settlement**. The stated goal is to reach a **debt-free status** to attract new investors for unspecified future projects. However, investors should note that the company currently expects **heavy cash losses** due to the closure of all manufacturing divisions and remains exempt from several **SEBI (LODR)** corporate governance regulations (such as **Regulation 23(9)**) due to its low paid-up capital and negative net worth.