Submission of Un-audited Financial Results quarter and Six Month ended 30th September, 2023
Awaiting price reaction for this filing.
RCI Industries & Technologies Limited, under Corporate Insolvency Resolution Process (CIRP) since November 2022 with Mr. Brijesh Singh Bhadauriya as Resolution Professional, filed its much-delayed unaudited financial results for the quarter and six months ended September 30, 2023. Revenue from operations collapsed to just ₹156.21 lakhs in H1 FY24 from ₹1,611.48 lakhs in H1 FY23, a roughly 90% decline. Net loss narrowed to ₹465.69 lakhs from ₹703.44 lakhs, and operating cash flow turned positive at ₹374.10 lakhs. Net worth is fully eroded at negative ₹14,339.14 lakhs, total borrowings stand at around ₹23,584 lakhs, and the company's loans have been NPA since March 2020. Auditor R. Bansal & Co issued a qualified review report flagging major issues including improper fixed asset register, overstated plant and machinery (30-50%), missing CWIP assets, no fair valuation of investments, going concern uncertainty, and a forensic audit identifying fraudulent transactions worth ₹369.71 crores. Multiple regulatory probes are ongoing (SFIO, ED, DGGST, Income Tax) over alleged fake ITC of ₹214 crores. A resolution plan by JTL Industries Limited has been approved by the Committee of Creditors but is pending NCLT approval.
The filing paints a picture of severe financial distress, full erosion of shareholder equity, and a roughly 90% revenue collapse, with the auditor's qualified opinion and emphasis of matter highlighting major going concern risk and historical fraud. For shareholders, the stock remains suspended/traded thinly; near-term value depends entirely on NCLT approval of the JTL Industries resolution plan, which could revive the business, while rejection would push the company toward liquidation.