Arshiya Limited has submitted to the Exchange, the financial results for the period ended September 30, 2024.
ARSHIYA · price
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Arshiya Limited is under Corporate Insolvency Resolution Process (CIRP) admitted by NCLT on April 23, 2024. The Resolution Professional has approved and taken on record the unaudited standalone financial results for Q2 and H1 FY2025 (ended September 30, 2024). Revenue from operations was Rs. 360.89 lakhs for Q2 and Rs. 579.89 lakhs for H1. The company reported a massive loss before tax of Rs. 7,785 lakhs for Q2 and Rs. 99,685.09 lakhs for H1. Negative equity stands at Rs. 1,34,268.76 lakhs. The Statutory Auditors have issued a DISCLAIMER OF CONCLUSION, meaning they cannot express any conclusion on the financial statements due to multiple material uncertainties including non-compliance with Ind AS 109 (financial guarantees of Rs. 1,03,850 lakhs), non-assessment of impairment of PPE (Rs. 57,425.07 lakhs) and investments, inability to confirm trade receivables/payables, and severe operational disruption where 50 out of 71 employees resigned in July-August 2024. The company also faces termination of sub-lease agreements for warehouses and subsidiaries are under separate CIRP.
This is an extremely negative development for shareholders. The auditor's disclaimer of conclusion represents the most severe audit qualification, indicating fundamental concerns about the reliability of the financial statements. The company is in CIRP with negative equity exceeding Rs. 1.34 lakh crore, massive accumulated losses, and face significant uncertainty on asset valuations and contingent liabilities. Shareholders should be aware that recovery of any value is entirely dependent on the outcome of the CIRP resolution plan.