SK S Textiles Limited is a legacy Indian textile entity that has transitioned from an active manufacturer and trader to a company currently undergoing formal **liquidation**. Established on **October 20, 1997**, the company historically operated within the textile value chain, specializing in the production and distribution of **Threads and Clothes**. While the company was previously a publicly traded entity, it has since been **delisted** from both the **Bombay Stock Exchange (BSE)** and the **National Stock Exchange (NSE)**. It is currently governed by the provisions of the **Companies Act, 2013**, and the **Insolvency and Bankruptcy Code (IBC)**. --- ### **Corporate Identity and Operational Infrastructure** The company’s operations were historically centralized in **Maharashtra**, leveraging a dual-model of internal manufacturing and external trading. | Feature | Details | | :--- | :--- | | **Incorporation Date** | **October 20, 1997** | | **Core Business Segments** | **Manufacturing and Trading** | | **Primary Products** | **Threads** and **Clothes** | | **Registered Office** | **Prithvi Complex, Kahler Village, Thane, Maharashtra** | | **Listing Status** | **Delisted** (Formerly **BSE** & **NSE**) | | **Current Legal Status** | **Under Liquidation** (Effective **Dec 22, 2023**) | The **Prithvi Complex** facility served as the primary hub for administrative, logistical, and production activities. However, following the cessation of business, this facility no longer supports active commercial output. --- ### **Solvency Crisis and Liquidation Proceedings** SK S Textiles Limited is currently in a state of severe financial and operational distress. On **December 22, 2023**, the **National Company Law Tribunal (NCLT), Mumbai Bench-IV**, passed an order for the **liquidation** of the company. * **Suspension of Management:** The powers of the Board of Directors have been suspended and are currently vested with a court-appointed **Liquidator**. * **Going Concern Status:** There is substantial doubt regarding the company’s ability to continue as a **Going Concern**. Business operations have reached a **total standstill**, with no revenue-generating activities currently reported. * **Negative Net Worth:** The company’s liabilities significantly exceed its assets, resulting in a **negative net worth** and an inability to meet its financial obligations. --- ### **Asset Impairment and Recoverability Concerns** Management and auditors have identified significant risks regarding the valuation and recoverability of the company's remaining assets. Due to the prolonged lack of operations, the following assets are considered "doubtful": * **Inventory:** Stagnant stock valued at **Rs. 2,74,397** has been held for an extended period with no active sales channels. * **Trade Receivables:** While the company reports **Rs. 47,23,283** in outstanding receivables, a massive provision for doubtful debts amounting to **Rs. 17,92,19,417** has already been established, indicating a low probability of collection. * **Tax Assets:** Total tax-related receivables of approximately **Rs. 3.65 Crore** are at risk: * **Income Tax Receivables:** **Rs. 3,60,25,916** * **GST Short-claims:** **Rs. 4,73,534** * *Note:* These are considered unrecoverable due to missing documentation and expired statutory claim periods. --- ### **Debt Profile and Creditor Exposure** The company has defaulted on both interest and principal repayments to a large consortium of over **15 banks and Non-Banking Financial Companies (NBFCs)**. Key lenders include **ICICI Bank, HDFC Bank, IDFC First Bank, and Standard Chartered**. Due to the liquidation status, auditors have been unable to obtain independent confirmation letters or loan statements, leading to **unverified liability balances** as follows: | Liability Category | Reported Amount (INR) | | :--- | :--- | | **Cash Credit Facilities** | **56,15,06,598** | | **Term Loans (Banks)** | **9,88,43,540** | | **Term Loans (NBFCs)** | **1,76,11,671** | | **Other Financial Liabilities** | **4,79,18,638** | | **Trade Payables (Unconfirmed)** | **7,35,39,563** | --- ### **Legal, Regulatory, and Tax Contingencies** The company is embroiled in several legal disputes and has failed to maintain statutory compliance, further complicating the liquidation process. * **Income Tax Demands:** Total contingent liabilities for disputed tax demands aggregate to **Rs. 7,36,07,097**. * A significant demand of **Rs. 5,79,67,440** was upheld for **A.Y. 2020-21** after an appeal was dismissed in **March 2024**. * An appeal for **A.Y. 2012-13** was also dismissed in favor of the Assessing Officer in **September 2023**. * **Statutory Defaults:** The company has been irregular in depositing undisputed dues, including **Provident Fund (PF), ESI, Sales Tax, and GST**. * **TDS Dues (2023-24):** **Rs. 1,36,246** outstanding. * **Non-deduction:** An additional **Rs. 2,80,274** was not deducted or paid on applicable expenses. * **Reporting Failures:** The company has failed to file quarterly returns or financial statements with its lenders, a direct consequence of the ongoing insolvency proceedings. --- ### **Audit Qualifications and Accounting Deficiencies** The statutory auditors have issued a **Qualified Opinion** on the company’s financial statements, citing several critical departures from standard accounting practices: 1. **Accrual Basis Failure:** The company failed to use accrual-based accounting for certain rental incomes and audit fees. 2. **MSME Identification:** There is a lack of formal documentation or identification of suppliers under the **Micro, Small and Medium Enterprises (MSME)** Development Act, 2006, making it impossible to determine dues owed to small businesses. 3. **Documentation Gaps:** The absence of bank statements and third-party confirmations prevents the verification of the majority of the company's reported debt and trade payables.