Ankit Metal & Power Limited is an integrated steel manufacturer based in Eastern India. While the company maintains a diverse product portfolio and captive power capabilities, it is currently navigating a period of extreme financial distress and is undergoing a formal **Corporate Insolvency Resolution Process (CIRP)**. This profile synthesizes the company’s operational infrastructure, strategic market positioning, and critical financial risks. --- ### **Integrated Manufacturing Infrastructure & Product Portfolio** The company operates a primary business model focused on the production of iron and steel products, supported by internal power generation to optimize operational costs. All operations are centralized at its integrated plant in **West Bengal**. * **Core Product Range:** * **Primary Materials:** Iron Ore Pellets, Sponge Iron, and Pig Iron. * **Intermediate Products:** MS Ingots and Billets. * **Finished Goods:** Rolled products, specifically **TMT Bars** and superior quality mill products. * **Captive Power Generation:** The facility includes a **12.5 MW Captive Power Plant (CPP)**. The power generated is consumed entirely for internal manufacturing, serving as a critical cost-containment measure. * **Production Performance:** In FY23, the company produced **2.57 Lacs MT** of ferrous and non-ferrous materials, representing a **25.93% decrease** from the previous year (**3.47 Lacs MT**) due to lower plant operating levels. | Feature | Details | | :--- | :--- | | **Plant Location** | Jorehira, Dist. Bankura, West Bengal | | **Primary Market** | Domestic (India) | | **Certifications** | Integrated Management System (Quality, Environment, Health & Safety) | | **Shareholding** | **71.02%** held by Promoter & Promoter Group (as of March 31, 2023) | | **Exchange Listing** | Traded on **NSE** and **BSE** (**99.99%** dematerialized) | --- ### **Strategic Market Positioning & Growth Drivers** The company’s long-term strategy is designed to capitalize on India’s status as the **world’s second-largest crude steel producer** and the government’s target to reach **300 MT** of annual production. * **Sector Diversification:** The company targets high-growth industries, including **Power, Shipping, Railways, and Automobiles**. * **Automotive Segment Strategy:** Management is focusing on the **SUV (Sport Utility Vehicle)** market, transitioning from niche enthusiast products to mass-market family vehicles. A key strategic shift involves moving from **3-door** layouts to **5-door** variants (such as the upcoming **Thar 5-door**) to improve accessibility and appeal to the family segment. * **Export Potential:** Following the removal of export duties and the implementation of the **RoDTEP scheme**, the company aims to compete more aggressively in international markets, provided fiscal conditions stabilize. * **Secondary Steel Industry (SSI) Alignment:** The company is monitoring the SSI sector, which is expected to add **33 MT** of capacity by **2030**, and the **PLI scheme** for high-end alloy specialty steel. --- ### **Capacity Expansion & Capital Expenditure (CAPEX)** To enhance its market share in the pellet segment, the company initiated a significant brownfield expansion project. However, this project is currently under strategic review due to external economic factors. | Project Component | Details | | :--- | :--- | | **Existing Pellet Capacity** | **6,00,000 MT p.a.** | | **Target Pellet Capacity** | **12,00,000 MT p.a.** | | **Total Estimated CAPEX** | **Rs. 12,500 Lacs** (approx.) | | **Capital Work-in-Progress** | **Rs. 4,719.95 Lacs** (as of Sept 2023) | | **Current Status** | **Temporarily Suspended** (Pending market review and export tax impact) | --- ### **Financial Performance & Solvency Crisis** Despite a revenue growth of **12.85%** to **₹85,399.17 Lacs** in FY23, the company faces severe liquidity constraints and a complete erosion of its net worth. * **Accumulated Losses:** As of September 30, 2023, losses reached **₹1,47,816.97 Lacs**, far exceeding the company’s total equity. * **Debt Default:** Total defaults against financial facilities reached **₹2,213.81 crore** as of January 31, 2023. * **Credit Rating:** The company’s credit profile is rated **D (Default)** by **ICRA Limited**. * **Going Concern Uncertainty:** While financials are prepared on a "Going Concern" basis due to expected infrastructure demand, auditors have raised significant "Material Uncertainty" qualifications. **Comparative Financial Summary:** | Period | Revenue from Operations | Reported Net Loss | | :--- | :--- | :--- | | **FY22 (Full Year)** | **₹75,672.12 Lacs** | **₹5,162.31 Lacs** | | **FY23 (Full Year)** | **₹85,399.17 Lacs** | **₹9,874.73 Lacs** | | **Q2 FY24 (Quarter)** | Not Disclosed | **₹9,700.09 Lacs** | | **Q3 FY24 (Quarter)** | Not Disclosed | **₹7,606.01 Lacs** | --- ### **Insolvency Status & Debt Restructuring** The company is currently under the **Corporate Insolvency Resolution Process (CIRP)** as mandated by the **NCLT Kolkata Bench** (effective May 03, 2024). * **Resolution Progress:** As of **January 20, 2026**, a **Resolution Plan** has been approved by the **Committee of Creditors (CoC)** with an **89.79% majority**. * **Suspended Governance:** The Board of Directors' powers are suspended; the company is managed by a **Resolution Professional**. * **Debt Assignment:** Major credit facilities from **SBI, IDBI, IOB, UBI, and Allahabad Bank** have been assigned to **Asset Reconstruction Companies (ARCs)**. * **Failed Restructuring:** A prior **CDR Package** failed in 2016, and a subsequent restructuring with **Alchemist ARC** was revoked on **December 12, 2022**, following payment defaults. --- ### **Critical Risk Factors & Audit Qualifications** Investors should note several high-impact risks and accounting discrepancies: * **Unrecorded Interest Liabilities:** The company does not provide for interest on borrowings declared as **Non-Performing Assets (NPA)**. * **Cumulative Unprovided Interest:** **₹1,06,586.65 Lacs** (as of Dec 31, 2023). * **Impact:** If interest were recognized, the FY23 Net Loss would have been **₹26,429.60 Lacs** instead of the reported **₹9,874.73 Lacs**. * **Contingent Liabilities:** * **Income Tax Appeals:** **₹265.95 crore**. * **CDR Recompense:** **₹481.76 crore**. * **Railway Freight Evasion Claims:** **₹41.62 crore**. * **Operational Risks:** * **Supply Chain:** High dependence on imported **coking coal** and vulnerability to global price volatility. * **Customer Concentration:** Revenue is heavily reliant on a limited number of key clients. * **Data Integrity:** Auditors have flagged that balances for **Trade Receivables, Payables, and Borrowings** are subject to pending reconciliation and confirmation. * **Statutory Dues:** Unpaid statutory dues exceeding six months totaled **₹6.51 crore** as of late 2023.