Rajasthan Cylinders and Containers Limited Q1 FY27 Financial Results

Financial Performance Summary

The company filed its unaudited financial results for the quarter ended June 30, 2026, pursuant to Regulation 33 of SEBI (LODR) Regulations, 2015. The results show continued operational challenges with zero revenue from operations.

Income Statement Highlights (Amount in ₹ Lakhs):

  • Total Income: ₹22.73 lakh (consisting entirely of Other Income)
  • Revenue from Operations: ₹0.00 (compared to ₹22.06 lakh in Q1 FY26 and ₹114.50 lakh for FY26)
  • Total Expenses: ₹110.16 lakh
  • Employee Benefits Expense: ₹20.15 lakh
  • Finance Costs: ₹0.45 lakh
  • Depreciation and Amortization: ₹7.27 lakh
  • Other Expenses: ₹82.29 lakh
  • Loss Before Tax: ₹(87.43) lakh
  • Tax Benefit (Deferred Tax): ₹(23.25) lakh
  • Net Loss for the Quarter: ₹(64.18) lakh

Earnings Per Share:

  • Basic/Diluted EPS: ₹(1.91) for continuing operations
  • This compares to EPS of ₹(1.01) in Q1 FY26 and ₹(3.02) for full year FY26

Capital Structure:

  • Paid-Up Equity Share Capital: ₹336.16 lakh (Face Value ₹10 each)
  • No change in share capital during the quarter

Auditor's Qualified Review Report

S.R. Goyal & Co., Chartered Accountants (FRN: 001537C), issued a limited review report with a qualified conclusion citing several issues:

Key Qualification Areas:

1. MSMED Act Compliance: Interest payable under Section 16 of MSMED Act, 2006 on overdue amounts to micro and small enterprises has not been ascertained and not provided for. Impact not quantified.

2. Related Party Receivables: Loans & Advances include ₹257.24 lakh receivable from related parties. In absence of any agreement and repayment terms, auditors are unable to comment on recoverability.

3. Balance Confirmations: Balances of Trade Payables, Financial Assets (including employee's advances), Advances to suppliers, Loans given, interest receivable on loans, and Unsecured Loans taken are subject to confirmation and consequential adjustments.

4. Deferred Tax Assets: The company recognized net deferred tax assets of ₹23.25 lakh for the quarter (cumulative ₹673.97 lakh up to June 30, 2026) on carried forward unused tax losses. Given the history of losses, auditors are unable to comment on any adjustments required to the carrying value.

Material Uncertainty Regarding Going Concern

The review report highlights a material uncertainty regarding the company's ability to continue as a going concern:

  • The company has closed its manufacturing operations due to unsatisfactory performance and continued operational losses
  • The company has disposed of its Plant & Machinery in one or more tranches
  • These conditions indicate material uncertainty that may cast significant doubt on the company's ability to continue as a going concern

Management Actions and Future Plans

Despite the going concern issues, the financial statements have been prepared on a going concern basis because:

  • The Board of Directors has consented to appoint a consultant for setting up a new project
  • The company has entered into an agreement for disposal of leasehold land measuring 6,627.30 square meters
  • The company has received an advance of ₹1,019 lakh for the land disposal, subject to approval of sub-division of land by Rajasthan State Industrial Development and Investment Corporation Limited

Additional Notes

  • The figures for the quarter ended March 31, 2026 are balancing figures between audited full-year figures and published year-to-date figures up to the end of the third quarter of previous financial year
  • The company has discontinued its operations
  • There are no separate reportable business or geographical segments as per Ind AS 108
  • Previous period figures have been regrouped/reclassified wherever necessary