Statemnt on Impact of audit qualification for quarter ending and Year Ending 31 March 2023
Awaiting price reaction for this filing.
RCI Industries & Technologies Ltd, currently under Corporate Insolvency Resolution Process (CIRP) since November 25, 2022 following an NCLT order, has filed a statement on the impact of audit qualifications for FY2022-23. The statutory auditor R. Bansal & Co. issued a modified opinion on the financial results. The company reported a net loss of Rs. 632.4 lakhs with a fully eroded net worth of negative Rs. 13,927.46 lakhs (standalone). A resolution plan submitted by JTL Industries Ltd was approved by the Committee of Creditors and is pending NCLT approval. Forensic audit uncovered preferential, undervalued, fraudulent and extortionate (PUFE) transactions worth Rs. 369.71 crores, and multiple government investigations (SFIO, ED, DGGST) are ongoing regarding alleged fake ITC of Rs. 214 crores.
This filing reflects a deeply distressed company under insolvency with eroded net worth, significant fraud allegations, and pending regulatory/criminal investigations. Shareholders face substantial uncertainty as the revival depends on NCLT approving the JTL Industries resolution plan, and outcomes of multiple FIRs and PUFE transaction applications could materially affect recovery.