Rasandik Engineering’s record is one of persistent financial strain, disclosed openly but unresolved for years. The auditor has flagged current liabilities exceeding current assets in every report since FY2021, and the gap has widened to ₹15.68 crore in FY2026. That year also brought defaults on term loans from two lenders and disputed statutory dues that include a ₹13.93 crore EPCG contingent liability, a ₹3.05 crore customs duty demand, and smaller GST demands under appeal. A ₹22.19 crore capital-work-in-progress asset for the stalled Singur project has sat unimpaired since a partial write-down in FY2020, while promoter support arrives in the form of interest-free loans that now total ₹6.53 crore.
Key findings
- Audit opinions have cycled, but financial stress is deepening
Major- The statutory auditor gave an unqualified opinion for FY2026 after two years of qualified opinions, yet the same report carries a material-uncertainty paragraph noting current liabilities exceed current assets by ₹15.68 crore, a gap that has widened from ₹13.72 crore in FY2024. The auditor also reported defaults on term loans from Punjab National Bank and Indian Bank/Punjab National Bank in FY2026, with interest amounts of ₹1.44-4.13 lakhs and principal amounts of ₹7.01-30.73 lakhs, and delay periods of 2-70 days. The auditor’s opinion on internal financial controls was qualified or stated to need improvement in every year from FY2020 through FY2026, specifically regarding recoverability of old balances of advances, trade receivables, and inventories. - A ₹22.19 crore Singur-project asset remains in CWIP
Major- The company impaired plant and equipment for the Singur project by ₹1,100.00 lacs in FY2019-20, reducing its capital-work-in-progress carrying value to ₹2,219.19 lacs. Installation and commissioning could not proceed due to business reasons, and management was considering options to utilise the machinery. The FY2025-26 financial statements disclose that impairment is assessed at each balance sheet date. - Contingent liabilities include a ₹13.93 crore EPCG export-obligation exposure
Minor- As of 31 March 2020, the company disclosed an unprovided ₹13.93 crore contingent liability for possible interest if EPCG export obligations were not met. A separate customs duty demand of ₹3.05 crore on plant and machinery imported under an EPCG licence is under appeal before CESTAT, with potential additional interest, redemption fine, and penalty estimated at ₹7.36 crore if the decision is adverse. Smaller GST demands of ₹22.81 lakhs and ₹59.06 lakhs were raised in FY2025 and are under appeal. - Promoter directors lend interest-free to the company, with the balance at ₹6.53 crore
Minor- The Promoter Managing Director and Director provided interest-free unsecured long-term loans of ₹2.29 crore in FY2024-25 and ₹2.54 crore in FY2023-24, taking the total outstanding to ₹6.53 crore as of 31 March 2025. The difference between fair value and proceeds, ₹30.61 lakhs net of deferred tax, was recognised as deemed equity. The company states that no loans, guarantees, or investments were made under Section 186 in FY2025-26. - Promoter family holds board control with stable 53.10% shareholding and negligible pledge
Minor- Promoter shareholding stands at 53.10% with zero change year-on-year and a pledge of just 0.26%. A 2020 resolution to re-appoint the Chairman & Managing Director and Whole-Time Director drew 32.47% public shareholder dissent, but every subsequent AGM from FY2022 through FY2026 saw over 99.99% votes in favour. The Chairman & Managing Director’s monthly salary rose from nil in FY2022 to ₹700,000 by FY2025, and his re-appointment for five years from October 2025 was approved at the 1 August 2025 AGM. - A single BSE penalty of ₹5.43 lakh was imposed and subsequently waived
Clean- BSE imposed a penalty of ₹542,800 in November 2020 for delay in appointing a sixth director under SEBI LODR. The company appointed the director in September 2020, filed a waiver application, and the penalty was waived. Every annual report from FY2019-20 through FY2025-26 states that no significant regulatory orders were passed impacting going concern, and every corporate governance report confirms no non-compliance penalties in the last three years.
What to watch
- Loan defaults. Resolution of the term-loan defaults to Punjab National Bank and Indian Bank/Punjab National Bank reported in the FY2026 annual report, with delay periods of 2-70 days.
- Customs duty appeal. Resolution of the CESTAT appeal regarding the ₹3.05 crore customs duty demand and associated ₹7.36 crore estimated exposure, as disclosed in the FY2024-25 Annual Report.
- EPCG export obligation. Outcome of the pending EPCG export obligation matter, for which the estimated interest liability of ₹13.93 crore remained unprovided as of the FY2019-20 Annual Report.
- Singur CWIP. Whether the ₹2,219.19 lacs Singur Project CWIP is further impaired, utilised, or disposed of in subsequent reporting periods, given the asset has remained non-commissioned since at least FY2019-20.
Bottom line: This is a disclosed record where the auditor has been explicit about the strain: current liabilities have exceeded current assets for six years, internal-control qualifications over recoverability are annual fixtures, and FY2026 brought defaults on term loans from two lenders. The ₹22.19 crore Singur CWIP and the ₹13.93 crore EPCG contingent liability are old, unresolved, and unprovided. Promoter support flows through interest-free loans, not equity, and the cash flow statement’s net-of-repayment presentation makes it hard to see the full financing picture. Watch whether the loan defaults and disputed dues get resolved, and whether the Singur asset finally gets a write-down or a use.