Ushdev International, currently under liquidation, has disclosed a massive negative net worth of Rs 12,269 crore. The statutory auditor has issued a disclaimer of opinion due to lack of evidence, while the company faces ongoing probes by the CBI and ED. As the liquidation process under the IBC continues, shareholders face extreme risk with minimal prospect of value recovery.
Ushdev International Faces Severe Liquidation Hurdles
Negative net worth stands at Rs 12,269.82 crore; total current liabilities reach Rs 12,489.70 crore.
Reader Takeaway: Company is under liquidation via NCLT; shareholders hold lowest distribution priority under the IBC waterfall mechanism.
What just happened
Ushdev International has released its financial statements for the year ended March 31, 2026, prepared on a 'non-going concern' basis due to its ongoing liquidation. The Hon'ble NCLT, Mumbai, ordered the liquidation on October 16, 2025, following the failure of the resolution applicant, Taguda Pte. Ltd., to implement an approved plan. Secured creditors, led by State Bank of India, have successfully invoked bid bonds and performance security totaling Rs 18.13 crore.
Why this matters
The statutory auditors, SGN & CO, have issued a 'Disclaimer of Opinion,' citing a complete lack of sufficient audit evidence and inadequate internal financial controls. This signifies that the financial health of the firm cannot be verified, leaving the company in a state of severe administrative and financial instability.
The backstory
The management board's powers are suspended, with the affairs of the company now managed by Liquidator Trupalkumar Patel under the IBC, 2016. The company remains under the shadow of investigative agencies, with the CBI and ED having conducted searches in 2022 and 2023. Key accounting records up to FY 2017-18 remain with the CBI after the seizure of the company’s servers.
Risks to watch
Shareholders are currently positioned at the bottom of the waterfall mechanism under Section 53 of the IBC. With liabilities vastly outweighing assets, the recovery of any equity value remains highly improbable. Investors should monitor the liquidator's reports for any updates on asset realization, though these proceeds are legally earmarked for creditors first.
What to track next
The final distribution of assets and any further disclosures regarding the unresolved investigations by the CBI and ED remain the critical developments for the remaining stakeholders.