Shivom Investment & Consultancy Ltd has exited the Corporate Insolvency Resolution Process (CIRP) and is under new management. The company reported a significantly reduced net loss of ₹0.49 crore for FY24, down from ₹49.01 crore in the prior year.
Shivom Investment Exits Insolvency, Net Loss Narrows Significantly
Net Loss: ₹0.49 crore (₹48.62 lakh) Revenue from Operations: ₹0.17 crore (₹16.55 lakh) Reader Takeaway: Exited insolvency and reduced losses are positive; qualified audit and unclear future model are key risks. ## What just happened Shivom Investment & Consultancy Ltd has exited the Corporate Insolvency Resolution Process (CIRP) and is now under new management. The company has reported its financial results for FY 2023-24, showing a net loss of ₹0.49 crore (₹48.62 lakh). This is a significant improvement compared to the net loss of ₹49.01 crore (₹4,900.70 lakh) reported in FY 2022-23. Revenue from operations for FY 2023-24 stood at ₹0.17 crore (₹16.55 lakh). The company's total assets were reported at ₹38.33 crore (₹3,833.06 lakh). ## Why this matters The exit from CIRP and the change in management are crucial developments for the company's future. The drastic reduction in net losses is a direct result of the restructuring process, particularly a substantial cut in 'Other Expenses' from ₹50.97 crore to ₹0.01 crore. However, the decline in revenue from operations indicates a cessation of former NBFC activities. ## The backstory The company was undergoing CIRP following an NCLT order on February 7, 2024. A resolution plan was approved by the Committee of Creditors and the NCLT on August 18, 2025. The approval of backlogged financial results marks a step towards normalizing corporate compliance after the insolvency period. ## What changes now With the insolvency process concluded and new management in place, the company is expected to focus on implementing the approved resolution plan. The immediate priority is to address the compliance and reporting issues highlighted by the auditor and define a new business strategy. ## Risks to watch The auditor's qualified opinion raises significant concerns. These include difficulties in verifying assets and liabilities due to incomplete historical records, the use of Accounting Standards (AS) instead of Ind AS, and identified material weaknesses in internal financial controls. A lack of gratuity provision is also noted. ## Peer comparison Shivom Investment's situation is unique due to its recent exit from insolvency. Direct peer comparison on financial performance is challenging given the company's transition and cessation of prior business activities. Most companies in the financial services sector adhere to Ind AS and maintain robust internal controls. ## Context metrics (time-bound) * **FY 2023-24 Net Loss:** ₹0.49 crore (₹48.62 lakh) * **FY 2022-23 Net Loss:** ₹49.01 crore (₹4,900.70 lakh) * **FY 2023-24 Revenue:** ₹0.17 crore (₹16.55 lakh) * **FY 2022-23 Revenue:** ₹3.50 crore (₹350.18 lakh) * **FY 2023-24 Total Assets:** ₹38.33 crore (₹3,833.06 lakh) * **FY 2022-23 Total Assets:** ₹38.22 crore (₹3,821.66 lakh) * **CIRP Start Date:** February 7, 2024 * **Resolution Plan Approval:** August 18, 2025 ## What to track next Investors should closely monitor the company's efforts to rectify the auditor's concerns, including strengthening internal controls and migrating to Ind AS. Any clarity on the new business model and operational direction will be critical for assessing future prospects.
