**Vikas WSP Limited**, established in **1988**, is a specialized Indian manufacturer of **Guar Gum Powder (GGP)** and **Water Soluble Polymers (WSP)**. Historically a significant player in the global guar gum market, the company is currently undergoing a **Corporate Insolvency Resolution Process (CIRP)** under the **Insolvency and Bankruptcy Code, 2016 (IBC)**. The company’s operations have been suspended since **September 2020**, and its future viability is entirely dependent on the successful implementation of a court-approved resolution plan. --- ### Current Insolvency Status and Resolution Roadmap The company was admitted into insolvency by the **NCLT Chandigarh Bench** on **February 2, 2022**, following an application by the **Bank of India**. The Board of Directors is currently suspended, and management powers are vested in the **Resolution Professional (RP)**, Mr. Darshan Singh Anand. | Milestone | Detail / Status | | :--- | :--- | | **Insolvency Commencement** | **February 2, 2022** | | **Successful Resolution Applicant** | **M/s Arcbolt Space and Foods Private Limited** | | **CoC Approval Rate** | Approved by Committee of Creditors on **August 25, 2022** | | **NCLT Approval Status** | Application filed **October 31, 2022**; Order currently **Reserved** | | **Next Hearing Date** | **March 16, 2026** (as per latest schedule) | The strategic objective is to maintain the company as a **"Going Concern"** until the successful bidder, **Arcbolt Space and Foods**, can take over, infuse capital, and restart production. --- ### Product Portfolio and Industrial Applications Vikas WSP specializes in the processing of guar seeds into high-viscosity gum and derivatives. Its production capacity is rated at **58,800 MT per annum**. * **Food Grade Guar Gum:** Used as a thickener, stabilizer, and emulsifier in the global food industry. * **Technical Grade Guar Gum:** * **Oil & Gas:** Essential for hydraulic fracturing (fracking) and oil drilling. * **Industrial:** Used in **textile printing**, **paper manufacturing**, **mining**, and **pet food** production. * **Geographic Reach:** Historically exported to the **US** and **Europe**, alongside domestic Indian sales. In the domestic segment, **two customers** historically accounted for over **10%** of total sales. --- ### Financial Performance and NPA Classification The company has faced a total collapse in revenue and mounting net losses. All credit facilities are currently classified as **Non-Performing Assets (NPA)**. #### Key Financial Metrics | Metric | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Total Turnover** | **Nil** | **₹24.97 Lakhs** | **₹23.10 Crore** | | **Net Loss** | **₹(2,644.94) Lakhs** | **₹(3,272.52) Lakhs** | **₹(16,317.35) Lakhs** | | **Foreign Exchange Earnings** | **Nil** | **Nil** | Not Specified | #### Debt Profile and Lender Status The company operates under a consortium of three banks with a total sanctioned limit of **₹22,000 Lakhs**, all of which are inaccessible due to default. * **Punjab National Bank:** NPA since **30/11/2019**. * **Union Bank of India:** NPA since **31/03/2016**. * **Bank of India:** NPA since **31/12/2016**. * **Interest Accrual:** Working capital loans are accounted at **15.50% p.a.**, with total interest provisions reaching **₹12,428.45 Lakhs** at the start of CIRP. --- ### Critical Risks and Governance Challenges The company faces severe "Emphasis of Matter" qualifications from auditors regarding its ability to continue as a going concern. * **Data and Record Loss:** A **ransomware attack** on **February 15, 2022**, destroyed Tally data and asset registers prior to April 2021. Furthermore, management reported a **fire and theft** at the office, resulting in the loss of statutory registers and signed minutes. * **Management Non-Cooperation:** The RP has filed a **Section 19(2)** application under the IBC against the erstwhile management for failing to hand over title deeds and material documents. * **Regulatory Non-Compliance:** The company has failed to install **Structured Digital Database (SDD)** software required by SEBI and is delinquent in filing financial results for multiple fiscal years. * **Promoter Pledges:** As of March 2024, **1,69,36,900 shares** held by promoter **Bajrang Dass Aggarwal** remain under a pledge dating back to **2015**. --- ### Contingent Liabilities and Asset Uncertainties There are significant discrepancies between the company’s books and the claims admitted during the insolvency process. * **Workmen Claims:** The CoC admitted claims of **₹49.63 Crore**, while the company books only record **₹23.35 Crore**, leaving an unprovided **contingent liability of ₹26.28 Crore**. * **Doubtful Advances:** Capital and supplier advances totaling **₹66.95 Crore** are considered doubtful. No impairment has been recognized pending the final resolution plan. * **US Litigation:** The company is pursuing a recovery suit against **Economy Polymers and Chemicals (USA)** for **USD 40 Million (approx. ₹260.28 Crore)**. The suit was previously dismissed and is currently under appeal in US courts. * **Statutory Defaults:** Outstanding dues exist for **PF, ESI, GST, TDS, and Service Tax**, with **₹509.95 Lakhs** currently deposited "under protest." --- ### Infrastructure and Sustainability Efforts Despite the operational halt, the company maintains physical infrastructure across two primary locations: * **Registered Office:** Siwani, Haryana. * **Principal Place of Business:** Sri Ganganagar, Rajasthan (includes manufacturing units). * **Historical R&D:** Focused on reducing environmental footprints and enhancing productivity through water-soluble polymer derivatives. * **Energy Conservation:** Previous initiatives included the installation of **servo stabilizers** and high power factor motors to optimize energy consumption. **Investor Note:** Any investment value is currently speculative and contingent upon the **NCLT's final approval** of the resolution plan and the ability of **Arcbolt Space and Foods** to successfully recapitalize and restart the manufacturing facilities.