Welcast Steels Limited has announced the permanent closure of its factory in Bangalore, effective December 15, 2025. The company’s financial results for the quarter and half-year ended September 30, 2026, have been prepared on a ‘non-going concern’ basis due to ongoing labour disputes and the cessation of manufacturing activities. All non-financial assets are now recognized at the lower of carrying value and fair value less costs to sell.
Factory Closure and Non-Going Concern Basis
Welcast Steels Limited has officially communicated the permanent closure of its sole manufacturing facility located in Peenya Industrial Area, Bangalore. The cessation of business operations took effect after the closure of business hours on December 15, 2025. Following this decision, the factory’s operational licenses and sanctioned power facilities have been surrendered.
Financial Reporting Under Non-Going Concern
The company’s financial statements for the quarter and half-year ended September 30, 2026, have been prepared on a ‘non-going concern’ basis. This accounting treatment reflects the management’s assessment that the company may not be able to continue its operations in the foreseeable future. This situation arises due to pending labor disputes before various courts and judicial forums.
Asset Valuation and Financial Principles
In line with the non-going concern assessment:
- All non-financial assets are now recorded at the lower of their carrying value and fair value less costs to sell.
- Financial assets continue to be recognized at fair value or amortized cost, adjusted for any loss allowances.
- All liabilities are recorded at their expected settlement values.
- No adjustments have been made for contingent liabilities deemed improbable by management.
- Deferred tax assets or liabilities are not recognized for temporary differences and unabsorbed losses, given the absence of probable future taxable income.
Source: BSE
