Ashima Ltd’s record is one of a company that has shrunk to a fraction of its former self while carrying a heavy, unresolved litigation load and a web of promoter-linked arrangements. The balance sheet holds contingent liabilities that include a ₹2,070.45 lacs recovery by HDFC Bank and a ₹1,906 lacs sales tax demand, and a real-estate project funded by zero-interest debentures whose redemption premium floats with project returns.
Key findings
- Litigation load persists without provisions
Major- The company faces a ₹2,070.45 lacs recovery by HDFC Bank that previously involved property attachments in Ahmedabad, Kadi and Mumbai, and a ₹1,906 lacs sales tax demand spanning multiple assessment years. Bank deposits of ₹339 lacs remain frozen by court order. As stated in the FY2019-20 annual report, no provision has been recognised for contingent liabilities, and this position remained unchanged in subsequent years. - A real-estate project is funded by zero-interest NCDs with redemption premiums tied to project IRR
Major- Ashima had ₹2,675 lacs of zero-interest NCDs outstanding as of March 2026 after partial redemption of ₹2,825 lacs during the year. These instruments are secured by a first charge on project land and FSI, carry no interest, and are redeemable at a premium that provides an IRR equal to the project IRR. - A promoter-controlled entity is the counterparty in escalating service and investment-management contracts
Major- Saumya Constructions Private Limited, where the promoter trust holds 89.31% and the Chairman & MD and Executive Director are directors, acts as Development Advisor to Ashima and saw its shareholder-approved PMS fee limit raised from ₹2.00 crore to ₹6.50 crore per year between July 2025 and May 2026. The maximum portfolio value managed by Ashima’s subsidiary for SCPL was increased from ₹150 crore to ₹350 crore over the same period, while Ashima’s own consolidated turnover was ₹12.01 crore. - Three generations of the promoter family sit on the board, and an independent director was re-designated to facilitate professional services from his firm
Major- Mr. Chintan N. Parikh (Chairman & MD), his son Mr. Krishnachintan Parikh (Executive Director), and his daughter Ms. Uttara Chintan Parikh (Non-Executive Non-Independent Director appointed 1 July 2026) hold board positions simultaneously, while Saumya Constructions Private Limited, where Ms. Parikh is a Director, is the Development Advisor to Ashima. Mr. Sanjay Shaileshbhai Majmudar was re-designated from Independent to Non-Independent Director on 6 January 2026 because the company proposed to avail professional services from his CA firm, which the company acknowledged may affect his independence. - Reported profits are shaped by large non-cash deferred-tax swings and mark-to-market gains
Major- Ashima recognised previously unrecognised net deferred tax assets of ₹3,500 lacs in FY2024, contributing to a reported profit of ₹9,641 lacs, then saw the deferred tax impact reverse to a negative ₹479 lacs in FY2026, contributing to a reported loss of ₹2,164 lacs. The Investment division reported an XIRR of 78% in FY2024 against benchmark indices of 25% to 39%, and non-interest-bearing NCDs are carried at fair value through profit or loss, requiring significant judgement.
What to watch
- Unsettled suspense account. The ₹750-lac suspense account remained unsettled as of the FY2026 annual report.
- Sales tax appeals. Appeals aggregating ₹1,906 lacs were pending before appellate authorities as of the FY2026 annual report.
Bottom line: This is a disclosed record, but the business has contracted to a point where the governance and litigation overhead looms larger than the operations. The risk is not hidden, it sits in the unresolved enforcement proceedings, the promoter-linked contracts that keep crossing materiality thresholds, and a real-estate funding structure whose cost will only be known when the project completes. Watch the DRAT hearing date, the sales tax appeals, and any shareholder vote that tests the limits of the SCPL arrangements.