**Starlite Components Limited**, headquartered in **Nashik, Maharashtra**, is an Indian electrical and lighting manufacturer currently undergoing a strategic and financial transformation. Following a period of financial distress, the company successfully emerged from the **Corporate Insolvency Resolution Process (CIRP)** on **March 14, 2024**, under a resolution plan approved by the **Hon’ble NCLT, Mumbai Bench**. The company is now operating as a **going concern** under the stewardship of its new parent entity, **Solar Copyer Limited**, and a court-mandated **Monitoring Committee**. --- ### **Core Manufacturing Capabilities & Product Portfolio** Starlite has consolidated its operations into a single primary business segment—**LED Products**—to streamline its recovery and focus on high-demand electrical infrastructure components. Its manufacturing unit in **Satpur, Nashik**, produces a diverse range of apparatus for power distribution and control. * **Lighting Solutions:** Manufacturing and trading of **LED Products** and **Electronic Ballasts**. * **High-Voltage Apparatus:** Distribution and control equipment for voltages exceeding **1000 volts**, including: * Switches, fuses, and voltage limiters. * Surge suppressors and junction boxes. * **Low-Voltage Components:** Electrical apparatus for circuits under **1000 volts**, such as relays and sockets. * **Control Systems:** Design and assembly of control boards, panels, consoles, cabinets, and power capacitors. --- ### **Post-Insolvency Corporate Structure** The company’s ownership has been reconstituted to align with the **Approved Resolution Plan**. The transition from the **Resolution Professional (RP)** to the **Monitoring Committee** (constituted **April 9, 2024**) ensures oversight during the implementation phase. | Entity | Relationship | Shareholding (Post-Resolution) | | :--- | :--- | :--- | | **Solar Copyer Limited** | Parent Company / Resolution Applicant | **28.71%** | | **Starlite Components Limited** | Reporting Entity | - | * **Subsidiary Status:** The company operates as a standalone entity with **no joint ventures or wholly-owned subsidiaries**. * **Governance:** A **three-member Monitoring Committee** (comprising the RP and representatives from Solar Copyer Ltd and Rutwik Sales Pvt Ltd) manages affairs. A **new Board of Directors** will be formally appointed upon the final allotment of equity shares. --- ### **Strategic Revival & Capital Restructuring Plan** The company is executing a comprehensive overhaul of its balance sheet to settle legacy debts and resume active trading on the **BSE**. The total resolution plan outlay is valued at approximately **INR 224.00 lakhs to INR 269.00 lakhs**. * **Equity Reset:** The existing paid-up share capital is being reduced to **Zero** without payout to previous shareholders to eliminate legacy equity overhang. * **Debt-to-Equity Conversion:** To settle financial debt of **INR 1.60 crore**, the company is issuing new equity shares. * **Fresh Capital Infusion:** Funding for the turnaround is sourced via fresh equity, Inter-Corporate Deposits (ICDs), or unsecured loans from the Resolution Applicant. **Proposed Share Issuance Schedule:** | Recipient | Initial Shares | Subsequent Debt Settlement Shares | | :--- | :--- | :--- | | **Solar Copyer Limited** | **35,000** | **13,27,500** | | **Rutwik Sales Private Limited** | **15,000** | **2,22,500** | | **Total** | **50,000** | **15,50,000** | --- ### **Financial Performance & Exceptional Adjustments** Recent financials reflect the accounting impact of the insolvency resolution rather than organic operational growth. The company reported a significant net profit in **FY 2023-24** due to the write-back of liabilities and asset impairments. | Particulars (INR Lakhs) | FY 2024-25 (Prov.) | FY 2023-24 (Audited) | FY 2022-23 (Audited) | | :--- | :--- | :--- | :--- | | **Total Turnover** | - | **313.40** | **214.12** | | **Net Profit / (Loss)** | - | **1,035.97** | **(64.54)** | | **Exceptional Items** | **0.00** | **1,010.70** | **0.00** | | **Cash Losses** | **3.33** | - | **9.99** | * **Exceptional Items:** An impairment of **INR 10.11 crore** was recognized in **FY24** following a comprehensive review of assets and liabilities under the resolution framework. * **Dividend Policy:** No dividends have been recommended as the company prioritizes resource conservation for operational restarts. --- ### **Operational Deployment of Funds** The resolution plan prioritizes the settlement of human capital and operational readiness over secondary creditors. * **Workforce Retention:** **INR 24.00 lakhs** allocated to employees, payable in **8 equal quarterly installments** of **INR 3.00 lakhs**. * **Statutory Settlements:** **INR 13.15 lakhs** earmarked for outstanding Gratuity and Provident Fund dues. * **Growth Capital:** **INR 55.00 lakhs** dedicated to **Working Capital and Capex** to resume commercial production. * **Insolvency Costs:** **INR 30.00 lakhs** for **CIRP** expenses. * **Operational Creditors:** Settlement for general operational creditors and government dues is proposed at **NIL**. --- ### **Critical Risk Factors & Regulatory Hurdles** #### **1. Listing & Public Shareholding Compliance** The **BSE** has currently suspended trading of Starlite securities. A conflict exists between the **Approved Resolution Plan** and **SEBI** mandates (June 2021) requiring a **5% Minimum Public Shareholding (MPS)**. The company has filed an **Interlocutory Application (IBC)** with the **NCLT** to modify the plan to include a **5%** public float. Implementation is stalled pending a hearing scheduled for **March 7, 2026**. #### **2. Legal & Contractual Disputes** The company is engaged in **commercial arbitration** with the **Ambernath Municipal Corporation (AMC)** regarding an **LED & maintenance contract** that ended on **December 31, 2025**. Realization of dues depends on the outcome of these proceedings and an existing escrow arrangement. #### **3. Governance & Internal Control Weaknesses** Auditors have flagged several material deficiencies: * **Key Personnel:** Failure to appoint a **Whole Time Company Secretary**, resulting in **BSE penalties** and the **freezing of promoter shareholding**. * **Statutory Dues:** Outstanding **TDS** of **INR 32.96 lakhs** for over six months as of **March 2025**. * **Audit Qualifications:** Previous concerns regarding non-provision of interest on borrowings (**INR 69.31 lakhs**) and deviations from **Ind AS 23** and **Ind AS 36**. * **Insider Trading Compliance:** The company is currently flagged as **"SDD Non-Compliant"** by the **BSE**. #### **4. Going Concern Uncertainty** While the company is operational, auditors maintain a note of **material uncertainty** regarding its status as a **going concern**. This status is contingent upon the successful NCLT-approved modification of the resolution plan and the subsequent resumption of trading and production.