Keerthi Industries gets IBC notice over ₹4.31 cr coal bill
Coal supplier J P Associates served a demand notice under the Insolvency and Bankruptcy Code for unpaid operational debt. Keerthi, already loss-making and flagged for going-concern risk, says it will try to resolve amicably.
— 3 earlier stories on Keerthi Industries Ltd. →What's new
- J P Associates served an IBC demand notice for unpaid coal supplies of ₹4.31 cr
- Notice includes ₹3.34 cr principal and ₹0.97 cr interest
- Company says no material impact but faces going-concern warning and plant shutdown
Why this matters
For a ₹30 cr market-cap company, a ₹4.31 cr IBC notice is material — roughly 14% of equity value. It formalises default risk and could escalate to insolvency proceedings if not settled within statutory timelines, compounding existing liquidity stress from a ₹15 cr net loss and a plant shutdown.
What we're watching
- Whether Keerthi settles within the 10-day statutory window to avoid escalation
- If the supplier stops coal supply, further pressuring operations
- Any subsequent filing for corporate insolvency resolution
The full read
Keerthi Industries was already in deep trouble. Its clinker plant is shut. Its auditor flagged a going-concern risk after a ₹15.29 crore net loss. Current liabilities exceed current assets by ₹53.79 crore. Now its coal supplier, J P Associates, has served a formal demand notice under the IBC for ₹4.31 crore ( ₹3.34 crore in principal and ₹0.97 crore in interest). The amount is 14% of the company's ₹30 crore market cap. Management says it will resolve the matter amicably and sees no material impact. But the statutory clock is ticking. If Keerthi doesn't pay within the prescribed timeline, J P Associates can drag it to the NCLT. For a company already bleeding cash and running on borrowed time, an IBC petition would be the final act.
Questions answered
- What is this IBC demand notice?
- It is a formal demand under the Insolvency and Bankruptcy Code from a creditor (J P Associates) claiming unpaid operational debt. If the company fails to pay within the statutory period (typically 10 days), the creditor can file for corporate insolvency resolution.
- How much does Keerthi owe J P Associates?
- The claim is ₹4.31 crore — ₹3.34 crore in principal and ₹0.97 crore in interest — for coal supplies.
- What happens if Keerthi doesn't pay?
- J P Associates can approach the National Company Law Tribunal (NCLT) to initiate corporate insolvency resolution proceedings, which could lead to restructuring or liquidation of the company.
- Can Keerthi afford to pay ₹4.31 crore?
- Its latest quarterly sales were ₹25 crore with a net loss of ₹2 crore, and it has a debt-to-equity ratio of 1.42. Cash flow is likely strained given the ₹15 crore net loss in FY26 and a current liabilities surplus of ₹53.79 crore over current assets.
- What is Keerthi's current operational status?
- The company shut its clinker production facility in early June. Its auditor issued a going-concern warning in May after a ₹15.29 crore net loss in FY26.
Keerthi Industries Ltd.
Latest quarter · Mar 2026
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All notes on KEERTHI →- 17 Jul 2026 · 4:24 PM IST Keerthi Industries gets IBC notice over ₹4.31 cr coal bill
- 35d ago Keerthi halts clinker plant as losses mount
- 51d ago Keerthi Industries auditor flags going-concern risk after ₹15 cr loss
- 51d ago Keerthi Industries auditor flags going-concern risk after cement losses