Submission of Quarter and year ended financial results 31 march, 2024
Awaiting price reaction for this filing.
RCI Industries and Technologies Ltd (not JTL Defence Ltd as the headline suggests) submitted its audited financial results for FY24, with revenue from operations collapsing to Rs. 229.50 lakhs from Rs. 2,301.89 lakhs in FY23, a drop of roughly 90%. The company reported a net loss of Rs. 922.01 lakhs in FY24, narrower than the Rs. 1,719.34 lakhs loss the prior year, but expenses still dwarfed income. The company is under Corporate Insolvency Resolution Process (CIRP) since November 2022, with the Resolution Professional Mr. Brijesh Singh Bhadauriya signing the results. The Resolution Plan submitted by M/s JTL Industries Limited has been approved by the Committee of Creditors but is awaiting NCLT approval. The auditor issued a qualified opinion, citing multiple issues including improperly maintained fixed asset register, overstated machinery values, and inability to verify significant balances.
This is a high-risk stock — the company's net worth is fully eroded, loans have been NPA since 2020, and a forensic audit uncovered fraudulent transactions worth Rs. 369.71 crores. Multiple government agencies (SFIO, ED, DGGST, Income Tax) are investigating alleged fake ITC of Rs. 214 crores. Shareholders face significant uncertainty, and value depends almost entirely on the pending NCLT approval of the resolution plan.