Ujaas Energy’s record is shaped by a three-year insolvency and a resolution plan that wiped its balance sheet clean. Five consecutive qualified audit opinions, a fresh ₹51.19 crore GST demand for the CIRP period, and a ₹97.1 crore impairment taken the moment new management arrived tell you that the pre-resolution numbers were never verified. The post-resolution entity is structurally simple, but its receivables remain unconfirmed, and its cash flows have historically lagged profits.
Key findings
- Audit opinions have been qualified for five straight years
Critical- The standalone audit opinion was qualified every year from FY2022 through FY2026. Trade receivables the auditor could not verify stood at ₹28.55 crore as at 31 March 2026, and a difference between the book balance and Axis Bank’s fixed-deposit confirmation persisted every year, reaching ₹17.49 lakh in FY2026. Despite these recurring control failures, the auditor’s opinion on internal financial controls was unqualified in every year from FY2020 through FY2026. - The company spent over three years under NCLT-supervised insolvency
Major- NCLT admitted the CIRP application on 17 September 2020 after an operational creditor filed for default on dues of ₹18,67,008. CRISIL downgraded the long-term rating to ‘CRISIL D’ on 7 October 2020. The resolution plan was approved on 13 October 2023, and the company’s governance reports since then state no capital-market strictures were imposed. - A ₹97.1 crore impairment was recorded immediately after new management took control
Major- No impairment assessment of property, plant and equipment and intangible assets was carried out as at 31 March 2022 or 31 March 2023. New management, effective 20 October 2023, conducted an impairment review and provided ₹97.1 crore on those assets for the year ended 31 March 2024. - Trade receivables are almost entirely unconfirmed and receivable days stretched to 201
Major- As at 31 March 2026, external confirmations were not received for ₹28.55 crore out of ₹28.56 crore in trade receivables. The auditor identified revenue recognition on fixed-price contracts using the percentage-of-completion method as a Key Audit Matter, an area needing the most judgement, in FY2020, FY2021, and FY2022. Receivable days rose from 143 days in FY17 to 201 days in FY18. - Operating cash flows have been persistently weak relative to reported profits
Major- Cumulative CFO over FY2015-FY2018 was ₹48 crore against cumulative PAT of ₹85 crore, a CFO/PAT ratio of 0.56x. In FY2018, PAT was ₹16.96 crore but CFO was negative ₹34.16 crore. The auditor reported under CARO, a regulatory reporting order, for FY2021-22 that short-term funds of 5.79 crore were used for long-term purposes. The Board on 3 November 2025 approved a preferential issue of 12.76 crore equity shares for up to ₹140.33 crore. - The group is structurally simplified to a single entity with no subsidiaries
Clean- As of 31 March 2025, Ujaas Energy has no subsidiaries, associates, or joint ventures. The sole prior subsidiary, Eizzoba Energy One Limited (Uganda), ceased to be a subsidiary on 22 March 2019. The NCLT-approved demerger transferred legacy businesses to two new companies, with shares allotted directly to Ujaas Energy shareholders.
What to watch
- GST demand of ₹51.14 crore. The company received a Show Cause Notice on 13 March 2025 and disputes enforceability based on the NCLT resolution plan extinguishment.
- Unconfirmed trade receivables of ₹28.55 crore. As at 31 March 2026, management states adjustments will be made when confirmations are received or accounts settled.
- Preferential issue deployment. Proceeds of up to ₹140.33 crore from the issue approved on 3 November 2025 remain to be deployed.
- Audit trail exception. The property, plant and equipment register lacked an audit trail feature as at 31 March 2026.
Bottom line: This is a post-insolvency restart with a single-entity structure and a balance sheet freed of legacy claims. The record that matters is the one being built now, but the foundation is thin: five years of qualified opinions mean the assets and profits carried forward were never independently verified, and the fresh GST demand tests whether the resolution plan’s extinguishment holds. Watch the receivables confirmation, the GST outcome, and whether the zero-interest promoter loan converts, those three items will show whether the new Ujaas Energy is trading on its own strength or on the terms of its resolution.