Annam Steels Pvt Ltd

M/s. Annam Steels Private Limited (ASPL) was incorporated on 14 December 2000, bearing CIN: U27106TN2000PTC46300. The original promoter-directors were Mr. C. Vijayakumar, Mrs. Zita Vijay, Mrs. Geetha Comraj, Ms. Zivi Annam, and Mrs. Rosammal. The Company has a paid-up capital of Rs. 5 lakhs. 

 

The main objects of incorporation were to carry on the business of ship breaking; to establish steel furnaces and rolling mills for the manufacture of steel ingots and allied products; and to undertake dismantling of scrapped plants and machinery, as well as trading in ferrous and non-ferrous metals. 

In the course of its operations, the Company participated in tenders floated by Public Sector Undertakings (PSUs) and private agencies for the acquisition of scrapped plants and machinery, and also in certain tenders involving the sale of immovable properties. From commencement of business up to the financial year 2010-11, the Company recorded an average annual turnover of approximately Rs. 5 to 8 crores. 

 

During the financial year 2011-12, the Company participated in a global tender floated by M/s. KIOCL, Karnataka, for dismantling and acquisition of scrapped machinery. ASPL emerged as the successful bidder with a bid value of Rs. 227 crores, and the award was confirmed in its favour. The Directors initially explored funding through various financial institutions and private sources; however, these efforts did not yield results. 

 

Subsequently, the second-highest bidder, M/s. Kerala Steel Associates, represented by Mr. K. Noor Mohammed Noorisha and Mr. E.T. Firoz, agreed to take over the project. A Memorandum of Understanding (MOU) was executed between ASPL and the said parties. Pursuant to restructuring, the shareholding pattern was revised such that Mr. Vijayakumar held 7.5% of the shares, while the other two parties held 46.25% each. 

 

On the strength of the project and the available collateral securities, the new stakeholders approached financial institutions. After due appraisal and scrutiny of the project feasibility, Canara Bank and Punjab National Bank jointly sanctioned funding aggregating to Rs. 190 crores, directly remitted to KIOCL towards the project cost (Rs. 100 crores by Canara Bank and Rs. 90 crores by Punjab National Bank). Together with advances received from prospective buyers and unsecured loans from the Directors, the entire project cost of Rs. 227 crores, along with taxes and other incidental expenses totalling approximately Rs. 248 crores, was paid to KIOCL. 

 

The project commenced with a stipulated completion period of two years. However, it encountered multiple challenges, including operational complications in dismantling, adverse weather conditions, fatal workplace accidents, a global recession, and a significant decline in steel prices. These factors adversely affected the anticipated recovery of tonnage from dismantling activities, resulting in substantial financial losses. 

 

Despite these difficulties, the Company repaid approximately Rs. 110 crores to the lending banks towards principal and interest. Ultimately, the project came to a standstill upon expiry of the contractual time limit, and KIOCL did not permit continuation of dismantling activities. Various legal proceedings were initiated but did not yield a favourable outcome. Consequently, the loan accounts were classified as Non-Performing Assets (NPA), and the banks initiated recovery proceedings, leading to further legal complications and auction of certain collateral properties. 

 

The Company ceased operations during the financial year 2016-17, and its loan accounts were classified as NPAs in the same year. Thereafter, the Company made attempts to settle the dues under a One Time Settlement (OTS) scheme; however, these efforts were unsuccessful. During the course of negotiations with the lenders, the Company received notice from the National Company Law Tribunal (NCLT) regarding initiation of liquidation proceedings at the instance of one of its creditors, M/s. Vinayaka Alloys private limited, which ultimately culminated in commencement of Corporate Insolvency Resolution Process (CIRP) proceedings

Details of Directors: 

Details of Directors of ASPL are provided below and it should be noted that the powers of the Board of Directors are suspended pursuant to the NCLT order dated 26th November 2025 and  appointment of IRP. The details as on 26th November 2026 are as below