JBF Industries Limited, formerly a prominent player in the Indian polyester industry, is currently undergoing a **Corporate Insolvency Resolution Process (CIRP)**. Following an order by the **National Company Law Tribunal (NCLT), Ahmedabad Bench**, on **January 25, 2024**, the company’s Board of Directors has been suspended. Operations and the resolution process are currently managed by the **Resolution Professional (RP), Mr. Mukesh Verma**. --- ### **Current Insolvency Status & Resolution Strategy** The company’s primary strategic objective is no longer industrial production, but the successful conclusion of the legal insolvency process to facilitate a change in management and potential debt restructuring. * **Resolution Progress:** The process has seen significant interest, with **25 Prospective Resolution Applicants (PRAs)** initially included in the final list. * **Plan Selection:** Following detailed negotiations and a **Swiss Challenge Round**, **nine** initial plans were narrowed down. * **Current Milestone:** As of **November 2025**, **one compliant Resolution Plan** has been approved by the **Committee of Creditors (CoC)**. This plan is currently awaiting final statutory clearance from the **Hon’ble NCLT**. * **Going Concern Status:** The company has officially ceased to operate as a **"going concern."** Its ability to generate revenue or meet financial commitments is described as "critically dented." --- ### **Operational Contraction & Asset Liquidation** The company has experienced a total cessation of its core manufacturing activities following the repossession of its physical infrastructure by lenders. * **Manufacturing Exit:** All operations at the **Sarigam, Athola, and Saily (Silvassa)** and **Vapi (Gujarat)** plants were discontinued effective **December 1, 2022**. * **Asset Repossession:** Approximately **99%** of the company’s debt was assigned to **CFM Asset Reconstruction Private Limited (CFM)**. In **November 2021**, CFM took physical possession of all secured assets and subsequently sold them via private treaty to **Madelin Enterprises Private Limited (MEPL)** for **₹881 crore**. * **Current Asset Base:** As of the **March 31, 2024** fiscal year-end, the company reported **zero Property, Plant and Equipment (PPE)**, zero intangible assets, and zero inventory. * **Registered Office:** Reflecting its reduced scale, the office was shifted in **March 2025** to a commercial complex in **Silvassa**. --- ### **Historical Product Portfolio & Revenue Streams** While currently inactive, the company’s business model was built around the synthetic textile value chain. Revenue was historically generated through: | Product/Service | Description | | :--- | :--- | | **Polyester Chips** | Intermediate raw materials for filament yarns and plastic applications. | | **Polyester Yarn** | Base synthetic fibers for apparel and home textiles. | | **Processed Yarn** | Value-added yarns (texturized or dyed) for specific industrial needs. | | **Technical Services** | Specialized processing services recognized over time. | **Revenue Collapse:** The impact of asset repossession is evident in the precipitous decline of turnover: * **FY 2021-22:** ₹3,272.23 Crore * **FY 2022-23:** ₹1,097.17 Crore * **FY 2023-24:** **₹1.94 Crore** (Domestic only; international revenue fell to zero). --- ### **Financial Solvency & Debt Profile** The company’s financial position is characterized by completely eroded net worth and massive unprovided liabilities. **Key Financial Metrics:** | Metric (₹ in Crores) | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | | **Total Debt** | **2,473.79** | **2,473.78** | | **Net Worth** | **Negative** | **(2,836.85)** | | **Reported Net Loss** | **(10.64)** | **(1,853.46)** | **Debt Breakdown & Interest Non-Provision:** * **Total Borrowings:** **₹2,473.79 crore**, comprising Term Loans (**₹641.21 cr**), Cash Credit (**₹1,718.62 cr**), and Preference Shares (**₹113.96 cr**). * **NPA Status:** All borrowings are classified as Non-Performing Assets. * **Interest Policy:** Since **April 1, 2023**, the company has recognized **0% interest** despite documented rates (previously **9%**). * **Unprovided Interest:** As of **December 31, 2025**, the aggregate unprovided interest stands at **₹1,896.76 crore**. Auditors note that if this were provided, the quarterly loss would jump from **₹1.6 crore** to **₹117.65 crore**. --- ### **Corporate Structure & Subsidiary Exposure** The company’s global footprint is being dismantled through various insolvency and legal proceedings: * **JBF Petrochemicals Limited (JPL):** This Mangalore-based step-down subsidiary defaulted in FY18 and has since been **acquired by GAIL** via NCLT. JBF Industries holds a massive corporate guarantee exposure of **USD 463.96 Million** (approx. **₹3,775.87 Crores**) related to JPL. * **JBF Global Pte Ltd (Singapore):** Formerly the primary overseas holding entity; its entire holding was sold to **Madelin Enterprises** in March 2023, though formal share transfer remains pending. * **JBF RAK LLC (UAE):** Currently undergoing restructuring. It faces a contested claim of **₹128.48 crore (US$19.9M)** from an operational creditor. * **JBF Trade Invest Pte Ltd:** This entity has been **struck off**. --- ### **Governance, Compliance & Risk Factors** The company is currently in a state of significant regulatory non-compliance: * **Management Void:** There is currently no **CEO, CFO, Company Secretary, or Compliance Officer**. The CS position was vacated in **June 2024** to cut costs. * **Audit Qualifications:** Statutory auditors have issued a **Qualified Opinion** citing material weaknesses in internal controls and the failure to prepare **Consolidated Financial Statements** since March 2023. * **Listing Violations:** The company is non-compliant with **BSE Annual Listing Fees** for FY24 and FY25 and has failed to maintain the **Structured Digital Database (SDD)** required under insider trading regulations. * **Litigation:** **Tamilnad Mercantile Bank (TMBL)** has filed a demand notice for **₹32.94 Crores** plus interest, which remains subjudice in the Gujarat High Court. **Comparative Ratio Analysis (FY24 Variance):** | Ratio | Variance | Reason | | :--- | :--- | :--- | | **Trade Receivables Turnover** | **-95.31%** | Loss of operational assets | | **Return on Capital Employed** | **-88.65%** | Massive provisioning for doubtful debts | | **Return on Net Worth** | **N.A.** | **Net worth is fully eroded** |