Shivom Investment & Consultancy Ltd has concluded its Corporate Insolvency Resolution Process (CIRP) and is shifting focus to metal manufacturing. However, its shares remain suspended from trading due to non-compliance.

Shivom Investment Transitions Post-CIRP, Faces Trading Suspension and Audit Concerns

Shivom Investment & Consultancy Ltd reported total income of ₹0.17 crore in FY 2023-24, a significant drop from ₹3.52 crore in FY 2022-23. The company posted a loss after tax of ₹0.49 crore for FY 2023-24.

Reader Takeaway: Company exits insolvency but faces trading halt and audit issues; future uncertain.

What just happened

Shivom Investment & Consultancy Ltd has officially exited the Corporate Insolvency Resolution Process (CIRP) after the NCLT approved its resolution plan on August 18, 2025. The company is now under new management and is transitioning its business model from a Non-Banking Financial Company (NBFC) to metal manufacturing. For the fiscal year 2023-24, the company reported zero business operations due to being under CIRP, with its financials reflecting only legacy accounting and administrative costs. The reported total income was ₹0.17 crore, and the company incurred a net loss of ₹0.49 crore.

Why this matters

This marks a pivotal moment for Shivom Investment as it attempts a revival. The transition to metal manufacturing signifies a strategic shift. However, significant challenges remain, including a trading suspension on the BSE due to non-compliance, a qualified audit opinion, and concerns over internal controls and historical data integrity. These factors create substantial uncertainty for investors.

The backstory

Previously operating as an NBFC, Shivom Investment underwent CIRP. The current annual report (FY 2023-24) details a period with no active business operations. The company has also faced prior regulatory scrutiny, including SEBI penalties related to alleged falsified financial statements and misuse of funds from its pre-CIRP era.

What changes now

With the CIRP concluded, new management aims to implement the resolution plan and steer the company towards metal manufacturing. This involves regularizing statutory filings, addressing non-compliances to lift the trading suspension, and establishing new operational frameworks. The company's future performance will depend on the success of this strategic pivot and its ability to regain market confidence.

Risks to watch

Key risks include the prolonged trading suspension, which severely impacts liquidity for shareholders. The qualified audit opinion highlights fundamental accounting issues, including a failure to provide for gratuity, unclear accounting of the resolution plan's impact, and the use of older accounting standards. Furthermore, limited access to historical financial records introduces uncertainty about the accuracy of the balance sheet. Weak internal financial controls are also a concern.

Peer comparison

(No specific peer comparison data available in the filing.)

Context metrics (time-bound)

• FY 2023-24 Total Income: ₹0.17 crore (₹16.55 lakh)
• FY 2023-24 Profit/(Loss) after Tax: (₹0.49 crore) ((₹48.62 lakh))
• FY 2022-23 Total Income: ₹3.52 crore (₹351.69 lakh)
• FY 2022-23 Profit/(Loss) after Tax: (₹49.01 crore) ((₹4900.69 lakh))
• NCLT approval of resolution plan: August 18, 2025

What to track next

Investors should closely monitor the company's progress in lifting the trading suspension by clearing listing fees and rectifying procedural non-compliances. The successful establishment and ramp-up of the metal manufacturing business will be crucial. Additionally, tracking the company's efforts to improve internal controls, address the auditor's qualified opinion, and potentially transition to Ind AS reporting will be key indicators.