Outcome with Result
Awaiting price reaction for this filing.
McNally Bharat Engineering reported a steeply higher net loss of Rs. 1,71,608.57 lakhs for FY25, nearly double the Rs. 88,326.28 lakhs loss in FY24. Revenue from operations fell about 37% to Rs. 10,492.36 lakhs from Rs. 16,744.31 lakhs a year ago. The statutory auditor (V. Singhi & Associates) issued an Adverse Opinion, flagging unconfirmed trade balances, questionable recoverability of Rs. 3,806 lakhs in claims under arbitration, non-adjustment of unsecured loans to Vedica Sanjeevani Projects, and recognition of Rs. 51,706.60 lakhs of deferred tax assets the auditor could not validate. Net worth is fully eroded at negative Rs. 5,89,227.38 lakhs, and the auditor flagged a material uncertainty on going concern. The company's CIRP continues: BTL EPC Ltd (the Successful Resolution Applicant) has paid the first tranche and part of the second, has sought NCLT extension till September 2025, and 95% of old equity was extinguished with fresh shares issued to Mandal Vyapar Pvt Ltd (SPV of SRA), which now holds 90% of the company. Existing shareholders are to receive only Rs. 0.01 per share as a goodwill payment kept in escrow.
This is a deeply negative outcome for shareholders. The existing equity was effectively wiped out (95% cancelled) under the resolution plan, with only a token Rs. 0.01 per share payable from escrow, and control has shifted to the new SRA-backed entity. The adverse audit opinion, going-concern doubt, and large provisions for doubtful debts indicate severe financial distress with material uncertainty around recovery.