Submission of Financial results quater and six months ended 30th september, 2024.
Awaiting price reaction for this filing.
RCI Industries & Technologies Ltd (under Corporate Insolvency Resolution Process since November 2022) filed long-delayed unaudited results for Q2 FY25 and H1 FY25. Revenue from operations was just Rs 22.77 lakhs for the quarter and Rs 36.00 lakhs for the half-year, sharply down from Rs 156.21 lakhs a year earlier. The company posted a net loss of Rs 138.57 lakhs in Q2 and Rs 296.50 lakhs in H1, though smaller than the prior year's Rs 465.69 lakh loss. Net worth is fully eroded at negative Rs 15,092.93 lakhs against total borrowings of over Rs 21,700 lakhs. Cash used in operations was Rs 815.21 lakhs. The auditor issued a qualified conclusion flagging missing fixed-asset records, CWIP irregularities, lack of fair valuation of group investments, forensic findings of fraudulent transactions worth Rs 369.71 crores, and multiple investigations by SFIO, ED, DGGST and the Income Tax Department over alleged fake ITC of Rs 214 crores. A resolution plan by M/s JTL Industries was approved by the Committee of Creditors and is awaiting NCLT approval.
Very high risk to shareholders: the auditor has raised a going-concern doubt due to fully eroded net worth and continuous losses, and the company's survival now hinges on NCLT approval of the JTL Industries resolution plan, which would likely restructure or wipe out existing equity. The stock remains a speculative, high-risk bet pending the tribunal's order.