Submission of Un-audited Financial Results ?(Standalone and Consolidated ) for quarter ending June, 30 2024.
Awaiting price reaction for this filing.
The Resolution Professional (Mr. Brijesh Singh Bhadauriya) submitted the long-pending Q1 FY25 results of RCI Industries & Technologies, which is currently under Corporate Insolvency Resolution Process (CIRP) since November 2022. The company reported a net loss of ₹157.93 lakhs in Q1 FY25 compared to a loss of ₹241.21 lakhs in Q1 FY24. Revenue from operations collapsed to ₹13.23 lakhs from ₹86.37 lakhs a year ago — an 85% year-on-year drop. The auditor, M/s R. Bansal & Co, issued a qualified review report citing 11 serious qualifications including lack of fixed asset records, overstated plant and machinery, missing CWIP, no fair valuation of investments, and undisclosed related-party transactions. The auditor explicitly flagged material uncertainty about the company's ability to continue as a going concern, given fully eroded net worth and continuous losses. The filing is over a year delayed as the suspended management was uncooperative, and the resolution plan by JTL Industries remains pending NCLT approval.
Highly negative for shareholders — the company is in CIRP, bleeding cash with negligible revenue, fully eroded net worth, and loans already classified as NPA since 2020. The qualified audit and forensic findings of ₹369.71 crore in fraudulent transactions and ₹214 crore in alleged fake GST credit further cloud recovery prospects. Existing equity holders face significant dilution or wipeout risk once the NCLT-approved resolution plan (currently by JTL Industries) is implemented.