**Spectra Industries Limited** is a Mumbai-based entity currently navigating a terminal phase of corporate existence. Following a period of severe financial distress and the cessation of all core business activities, the company has transitioned from a **Corporate Insolvency Resolution Process (CIRP)** into a formal **Liquidation** mandate. This profile outlines the company’s historical operations, the collapse of its financial structure, and the current legal status of its assets. --- ### **Current Legal Status: Transition to Liquidation** The company is no longer a "going concern." Its management and operations are governed by the **Insolvency and Bankruptcy Code (IBC), 2016**. * **Insolvency Commencement:** The **NCLT Mumbai** initiated the CIRP on **June 16, 2023**, following a petition by the **Bank of India** regarding a default of **₹29.52 Crores** (inclusive of interest). * **Liquidation Order:** Following the failure of debt resolution efforts, the **Committee of Creditors (CoC)** officially approved the **Liquidation** of the company under **Section 33** of the IBC on **September 15, 2025**. * **Management:** Control resides with the **Resolution Professional (RP)**, **Kamal Kishor Gurnani**. * **Moratorium Status:** A legal moratorium is in effect, prohibiting the institution of new suits, the transfer of company assets, or the recovery of property by any owners or lessors. --- ### **Historical Business Verticals and Strategic Pivot Failure** Prior to the cessation of operations in **FY 2022-23**, Spectra Industries operated across two primary segments. While management attempted a strategic pivot to save the company, these efforts did not materialize into a recovery. * **Automobile Dealership:** The core business involved the sale and distribution of **Light Commercial Vehicles (LCV)** and **Heavy Commercial Vehicles (HCV)** under a dealership agreement with **Mahindra & Mahindra Ltd.** * **Commodity Trading:** A secondary vertical focused on the trading of **Textiles** and **Steel items (C.R./H.R. Sheets)**. * **The "Turnaround" Strategy:** Management had proposed a "new thought process" to exit general trading and refocus exclusively on the **Commercial Vehicle Dealership** business. However, this pivot failed to gain traction before the insolvency proceedings reached the liquidation stage. --- ### **Infrastructure and Asset Footprint** The company’s physical assets are concentrated in the state of Maharashtra. Under liquidation, these properties are subject to valuation and sale to satisfy creditor claims. | Facility Type | Location | District | Status/Notes | | :--- | :--- | :--- | :--- | | **Registered Office** | Malad (West), Mumbai | Mumbai | Corporate headquarters. | | **Works - 1 (Factory)** | C-1, MIDC, Murbad | Thane | Primary industrial site. | | **Works - 2** | Ajivali Village, Panvel | Raigad | Subject to **Title Disputes**. | --- ### **Financial Distress and Capital Erosion** The company’s financial position is characterized by a total erosion of net worth and significant unrecorded liabilities. * **Net Worth:** Reported as **Negative**; the company’s capital has been fully depleted by continuous operational losses. * **Debt Profile:** * **Bank Defaults:** Outstanding bank loans of **₹24.77 Crores** are classified as **Non-Performing Assets (NPA)**. * **Uncharged Interest:** An estimated **₹20.26 Crores** in interest (as of March 31, 2023) has not been provided for in the financial statements. * **Related Party Debt:** Outstanding loans from related parties totaled **₹8.37 Crores** as of September 2023. * **Asset Impairment:** * **Receivables:** A provision for doubtful debts is maintained at **₹19.07 Crores**, representing **92%** of total receivables. * **Inventory:** Current inventory is deemed **not realizable**, with no existing marketability assessment. --- ### **Critical Risks and Regulatory Non-Compliance** Investors and creditors face a high-risk environment due to ongoing legal disputes and failures in statutory compliance. #### **1. Legal and Title Risks** * **Ajivali Land Dispute:** The company paid a consideration of **₹2.87 Crores** for land in Raigad but failed to register the sale deed due to pending name changes in land records. Auditors believe the **legal title has not transferred** to the company. * **Tax Demands:** * **Income Tax:** Notices under **Section 270A** involve demands of **₹8.48 Crores**. * **GST:** Notices under **Section 73** involve demands of **₹0.59 Crores**. * **TDS:** Failure to deduct TDS on various expenses during recent reporting periods. #### **2. Governance and Compliance Failures** * **Audit Opinions:** Statutory and Secretarial Auditors issued **qualified opinions** for **FY 2022-23**, citing significant irregularities. * **BSE/SEBI Non-Compliance:** The company received advisory letters from the **BSE** for failing to submit financial results and non-compliance with **SEBI LODR** regulations. * **Insider Trading Controls:** Failure to maintain the **Structural Digital Database (SDD)** as required under insider trading regulations. * **Statutory Dues:** Overdue statutory payments amount to approximately **₹0.56 Crores**. --- ### **Banking and Corporate Structure** * **Banking Partners:** Historically associated with **Bank of India, HDFC Bank, ICICI Bank,** and **Yes Bank**. * **Subsidiaries:** The company operates as a standalone entity with **no subsidiaries, joint ventures, or associates**. * **Contingent Liabilities:** While the company reported no contingent liabilities in its last formal filing, the subsequent tax demands and uncharged interest represent significant off-balance-sheet pressures.