Unitech International Limited is a Mumbai-based public entity characterized by a unique dual-identity structure, operating both as a manufacturer of high-purity polymers and a registered **Non-Banking Financial Company (NBFC)**. The company is currently at a critical juncture, undergoing a **Corporate Insolvency Resolution Process (CIRP)** under the **Insolvency and Bankruptcy Code, 2016 (IBC)**, as it seeks to restructure its debt and revitalize its industrial operations. --- ### **Industrial Specialization and Manufacturing Footprint** The company’s primary industrial focus is the production and export of regenerated acrylic products. It positions itself as a high-purity manufacturer catering to both domestic and international polymer markets. * **Product Portfolio:** * **100% Cast Grade Regenerated PMMA Sheets**: High-quality acrylic sheets derived from recycled materials. * **Acrylic MMA Monomer**: Produced with a purity level exceeding **98%**. * **General Polymers**: Various other polymer-based materials. * **Operational Segments:** Under **Ind AS 108**, the company reports through two distinct segments: **Manufacturing/Trading** and **Financial Services**. * **Manufacturing Infrastructure:** Commercial production at the current facilities commenced on **April 1, 2019**. | Facility | Location | | :--- | :--- | | **Registered Office** | D-714, Neelkanth Business Park, Vidyavihar (West), Mumbai | | **Factory I** | 186/2, Surangi Village, Dadar Nagar Haveli, Silvassa (U.T.) | | **Factory II** | Plot No. 42, 43 & 44, Achad Industrial Estate, Talasari, Dist. Thane | --- ### **Dual Regulatory Identity: NBFC Status** Unitech International maintains a specialized regulatory status as an **NBFC**, registered under **Section 45-IA** of the Reserve Bank of India Act, 1934. * **Certification:** Holds a valid Certificate of Registration (**CoR**) to conduct non-banking financial activities. * **Exclusions:** The company does not engage in housing finance and is not classified as a Core Investment Company (CIC). * **Current Role:** While the NBFC status remains part of its corporate identity, the financial services segment has been impacted by the broader liquidity crisis affecting the group. --- ### **Financial Distress and Solvency Status** The company is currently facing a severe financial crisis, characterized by a total **erosion of net worth** and persistent operational losses. * **Recent Earnings Performance:** * **Quarter ended Dec 31, 2023**: Net Loss of **₹72.09 Lakhs**. * **Nine Months ended Dec 31, 2023**: Net Loss of **₹2.32 Crore**. * **Fiscal Year ended March 31, 2024**: Cash losses of **₹66.87 Lakhs**. * **Debt and Credit Profile:** * **NPA Classification**: Borrowings from banks and financial institutions have been officially classified as **Non-Performing Assets (NPA)**. * **Interest Suspension**: Due to the NPA status, lenders have ceased charging interest on outstanding principal, though the debt remains due. * **Settlement Efforts**: Promoters have initiated negotiations with lenders to reach settlements and clear outstanding dues. --- ### **Corporate Insolvency Resolution Process (CIRP)** Following a default on operational debt, the company entered the CIRP framework. The process is currently managed by a **Resolution Professional (RP)** and the **Committee of Creditors (CoC)**. * **The Triggering Default:** The insolvency was triggered by an application under **Section 8** of the IBC regarding unpaid invoices for acrylic raw materials. | Metric | Details | | :--- | :--- | | **Default Amount** | **INR 3,41,57,988** | | **Default Date** | **November 27, 2022** | | **Nature of Debt** | **41 invoices** (April–August 2022) | | **Company Defense** | Cited a "financial crunch" and requested time to raise capital | * **Current Resolution Strategy:** The primary objective is the maximization of value for the **Corporate Debtor** through a competitive bidding process. * **Form G Issuance**: An **Addendum to Form G** was issued on **January 17, 2026**, following **100% approval** from the CoC. * **Prospective Resolution Applicants (PRAs)**: The timeline for submitting resolution plans has been extended to address queries from interested bidders and ensure robust participation. --- ### **Critical Risk Factors and Audit Qualifications** Investors must note significant uncertainties regarding the company’s internal controls and "Going Concern" status. * **Going Concern Uncertainty**: Auditors have issued a **Material Uncertainty** notice, citing that current liabilities far exceed current assets and the net worth is fully eroded. * **Asset Impairment**: * **Inventory Deterioration**: Due to a cessation of factory operations for over **8 months** (as of mid-2024), significant inventory was scrapped, leading to a sharp reduction in stock value. * **Debtor Provisioning**: A massive provision of **INR 19,00,95,823** was created against trade receivables, as many of the company’s customers are also in NCLT proceedings or classified as NPAs. * **Forensic and Legal Risks**: * **Forensic Audit**: Initiated by the **Bank of Maharashtra** for the period **April 2017 to March 2024**; the final impact of this audit is currently unknown. * **Pending Litigations**: Multiple material litigations are ongoing, though management currently deems significant outflows as "improbable." * **Internal Control Gaps**: * Lack of third-party confirmations for **Loans & Advances, Trade Receivables, and Trade Payables**. * High **staff turnover** and risks associated with inadequate internal reporting systems. --- ### **Governance and Compliance Framework** Despite its financial distress, the company maintains a structured compliance framework in line with listed entity requirements. * **Accounting Standards**: Financial statements are prepared in accordance with **Indian Accounting Standards (Ind AS)**. * **Insider Trading Controls**: Maintains a strict **Trading Window** policy for designated persons, which closes at the end of each quarter and reopens **48 hours** after financial results are announced. * **Risk Management**: Employs a framework to monitor operational risks, including regular physical verification of inventory (noting that acrylic materials are prone to weight loss due to foreign ingredients). * **Audit Oversight**: Periodical audits and reviews are conducted to monitor the implementation of mitigation strategies within the existing policy framework.