Shivom Investment & Consultancy Ltd has completed its Corporate Insolvency Resolution Process. The company is pivoting to metal manufacturing but faces an auditor's disclaimer of opinion and trading suspension on BSE.

Shivom Investment & Consultancy Ltd: From Insolvency to Metal Manufacturing Amidst Audit Concerns

The company reported a profit of ₹2.88 crore for FY 2025-26, a decrease from ₹3.70 crore in the previous year. Total income stood at ₹3.50 crore, down from ₹3.87 crore.

Reader Takeaway: New manufacturing pivot shows potential; auditor disclaimer and trading suspension pose significant risks.

What just happened

Shivom Investment & Consultancy Ltd has successfully completed its Corporate Insolvency Resolution Process (CIRP), with its resolution plan approved by the NCLT on August 18, 2025. This marks a significant transition, with the company shifting its focus from being an inactive NBFC to manufacturing metals and metal-based products.

However, the company's standalone financial statements for FY 2025-26 received a disclaimer of opinion from its statutory auditor, M/s. S Parth & Co. The auditor cited insufficient audit evidence due to historical record-keeping issues and management transition, highlighting material weaknesses in internal financial controls.

Financially, for FY 2025-26, Shivom Investment reported a total income of ₹3.4966 crore and total expenditure of ₹0.6118 crore, resulting in a profit after tax of ₹2.8848 crore. This contrasts with FY 2024-25, where total income was ₹3.8702 crore and profit after tax was ₹3.7018 crore.

The company’s trading on the BSE remains suspended due to non-payment of listing fees by the previous management.

Why this matters

For investors, the completion of CIRP signifies a potential fresh start under new management. The pivot to the manufacturing sector could unlock new growth avenues. However, the auditor's disclaimer casts a shadow over the reliability of the current financial figures and points to underlying governance and control issues. The ongoing trading suspension prevents liquidity for shareholders and indicates unresolved compliance matters.

The backstory

Shivom Investment & Consultancy Ltd was undergoing the CIRP, a process aimed at resolving insolvency. The company has now emerged from this process with a new strategic direction and a reconstituted board. The focus has shifted from its past as an inactive Non-Banking Financial Company (NBFC) to establishing a presence in the manufacturing sector.

What changes now

The company is now operating under a debt-free capital structure implemented via capital restructuring. New shares have been issued to the Successful Resolution Applicant (SRA). The new management is seeking shareholder approval for enhanced borrowing limits (up to ₹500 crore) and investment/guarantee limits (up to ₹200 crore) to fuel future expansion. The board has also been reconstituted with Ravi Dhirajlal Vagadiya as Managing Director and Prashant Ghanshyambhai Ukani as CFO/Executive Director.

Risks to watch

• Operational Setup: The company has yet to establish its manufacturing facility, facing execution risks related to land acquisition, machinery procurement, and securing regulatory approvals.
• Trading Suspension: Shares remain suspended from trading on the BSE, impacting liquidity and investor access.
• Auditor Disclaimer: The lack of sufficient audit evidence raises concerns about financial transparency and internal controls.

Peer comparison

As Shivom Investment transitions into the metal manufacturing sector, its future performance will be benchmarked against established players in this industry. However, direct comparison is challenging currently, given the company's zero commercial operations and the ongoing trading suspension. The sector includes companies involved in producing and processing various metals.

Context metrics (time-bound)

• CIRP Approval: August 18, 2025
• Reporting Period: FY 2025-26
• AGM Date: July 7, 2026

What to track next

Investors should closely monitor the company's progress in establishing its manufacturing operations, the timeline for the revocation of the BSE trading suspension, and any steps taken to address the auditor's concerns regarding internal controls and record-keeping. The upcoming Annual General Meeting (AGM) on July 7, 2026, will be crucial for updates on expansion plans.