Rolta India Limited has informed the Exchange regarding Outcome of Board Meeting held on November 29, 2024.
Awaiting price reaction for this filing.
Rolta India has submitted its audited financial results for FY ended March 31, 2023, but the auditor (Shah & Mantri) issued an Adverse Opinion, stating the numbers do not give a true and fair view. The company was admitted into Corporate Insolvency Resolution Process (CIRP) by NCLT on January 19, 2023, and is now managed by a Resolution Professional. The auditor flagged a material uncertainty about going concern, as current liabilities exceed current assets and net worth is eroded. Two wholly-owned subsidiaries (Rolta BI & Big Data Analytics, Rolta Defence Technology Systems) were also admitted into CIRP in late 2023. Bondholders' claims of Rs. 6,268.80 crores have been admitted against invoked corporate guarantees, and Rs. 994.28 crores of deferred tax assets remain unrecognized per accounting standards.
This is deeply negative for shareholders. An Adverse Auditor Opinion combined with CIRP admission means the company's survival is uncertain, and existing equity holders are likely to face severe dilution or total loss under any resolution plan. The stock should be treated as highly speculative with significant bankruptcy risk.