Submission of Quarterly Financial Results for quarter ending March,2023.
Awaiting price reaction for this filing.
RCI Industries & Technologies Ltd has finally submitted its delayed financial results for Q4 and FY ending March 2023, more than two years late. The company is currently under Corporate Insolvency Resolution Process (CIRP) since November 2022, with a Resolution Professional now in charge instead of the board. For FY23, revenue from operations crashed to Rs 2,301.89 lakhs from Rs 5,968.13 lakhs the previous year (a ~61% decline), and the company posted a net loss of Rs 1,719.34 lakhs (FY22 loss was Rs 7,209.79 lakhs). Net worth is fully eroded at negative Rs 13,873.44 lakhs, and the company's borrowings were declared NPA back in March 2020. The auditor issued a qualified opinion citing multiple issues including unverified fixed assets, overstated plant and machinery (30-50%), missing records, and a forensic audit flagging suspicious transactions worth Rs 369.71 crores.
Shareholders face extreme risk — the company is in insolvency, net worth is wiped out, and the auditor explicitly flagged going concern doubts. A resolution plan has been approved by creditors and is pending NCLT approval, which will determine recovery for equity holders, who are likely last in line after creditors.