CIRP admitted against a customer; machinery value of Rs. 1,657/- Lakhs already impaired to Rs. 92 Lakhs
NCLT Guwahati admitted a CIRP plea against Walchandnagar Industries' customer JUD Cements, order dated 12th October, 2026.
By ScoutQuest · · 2 min read
- Recoverable Value
- Rs. 1,657/- Lakhs
- Amount Already Impaired
- Rs. 1,565/- Lakhs
- Remaining Book Value of WIP
- Rs. 92/- Lakhs
What the company told the exchanges
- The National Company Law Tribunal, Guwahati Bench, admitted a petition shared by financial creditors to begin the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 against JUD Cements Limited, a customer.
- The order is dated 12th October, 2026, and the company says it came to know of it on 21st October, 2026.
- The transaction was the manufacture and supply of a highly customized piece of large machinery for a cement plant.
- The machinery remains undelivered and is currently in the safe physical possession and custody of the company.
- The matter was already under active legal proceedings in the Guwahati High Court; those proceedings will be stayed under the statutory moratorium under Section 14 of the IBC.
The money involved
- The total value recoverable for the custom machinery was Rs. 1,657/- Lakhs.
- Post impairment, the figure stands at Rs. 92 Lakhs only.
- The company had already impaired work in progress by Rs. 1,565/- Lakhs in previous financial years to absorb potential valuation impairments.
- The current value of the WIP in the books stands at Rs. 92/- Lakhs only.
Why the company says the impact is contained
- The write-down was largely taken in earlier financial years, so the amount still carried in the books is small relative to the original value.
- The machinery is physically with the company, so value can potentially be recovered from the asset itself rather than only from the customer.
- On that basis, the company states the formal admission of the buyer into NCLT is not expected to have any material incremental adverse impact on the current quarter's profitability or the ongoing financial performance.
What happens to the machinery
- The technical, commercial and marketing teams will explore selling it on an as is where is basis.
- Alternatives include dismantling, modifying or salvaging components for other clients, or scrap realisation, as may be in the best interest of the company.
What a retail investor can watch
- Whether a buyer, alternative client or scrap route is found for the machinery, since Rs. 92/- Lakhs is the value still carried in the books.
- How the resolution process against the customer develops from here.
The headline reads negative at first glance because a customer has gone into insolvency, but the update's own numbers show most of the money was written off earlier. The company's position is that the remaining exposure in the books is Rs. 92/- Lakhs.
Also from Walchandnagar Industries
Board meeting on November 02, 2026 to consider September quarter and half year results
23 Oct 2026
More numbers
- Total value recoverable for the custom machineryRs. 1,657/- Lakhs
- Value recoverable post impairmentRs. 92 Lakhs
- WIP already impaired in previous financial yearsRs. 1,565/- Lakhs
- Current value of WIP in the booksRs. 92/- Lakhs
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