Key Events and Context

  • The company was admitted into Corporate Insolvency Resolution Process (CIRP) under IBC 2016 pursuant to NCLT Chennai Bench order dated May 10, 2023.
  • Powers of Board of Directors stood suspended and were exercised by Resolution Professional Mr. Sanjay Mehra.
  • Resolution Plan submitted by Mr. Guruswamy Ramamurthy was approved by NCLT vide order dated January 13, 2026.
  • Pursuant to the approved Resolution Plan, a Monitoring Committee was constituted for management and oversight of company affairs.
  • Mr. Sanjay Mehra ceased to be resolution professional effective January 13, 2026.

Financial Results Overview (₹ in Lakhs)

For Quarter Ended March 31, 2025:

  • Revenue from Operations: 5.02
  • Total Income: 5.02
  • Net Loss before tax: (0.03)
  • Net Loss after tax: (0.03)
  • Total Comprehensive Income: (0.03)
  • EPS: (0.00)

For Year Ended March 31, 2025:

  • Revenue from Operations: 5.02
  • Total Income: 5.02
  • Net Loss before tax: (9.11)
  • Net Loss after tax: (9.11)
  • Total Comprehensive Income: (9.11)
  • EPS: (0.16)

Capital Structure:

  • Paid-up Equity Share Capital: 553.09 (unchanged from previous year)
  • Reserves: (47.54) (unchanged from previous year)

Auditor's Disclaimer of Opinion

K M K U & Associates, Chartered Accountants, issued a disclaimer of opinion due to inability to obtain sufficient appropriate audit evidence regarding:

Basis for Disclaimer

1. Opening Balances Impact: Unable to obtain evidence regarding opening balances as at April 01, 2024, including liabilities admitted under CIRP (₹35.34 crore), financial assets subject to potential write-off, trade receivables and payables, and other assets/liabilities.

2. Going Concern Uncertainty: Reservation on appropriateness of going concern basis adopted despite Resolution Plan approval, as no adjustments made to carrying values of assets/liabilities.

3. Specific Audit Issues:

  • Tangible & Intangible Assets: No impairment assessment conducted; physical verification incomplete; unable to verify existence, completeness, valuation of assets worth ₹501.12 lakhs (PPE) and ₹0.03 lakhs (intangible).
  • Inventories: No physical verification conducted (carrying value: ₹294.96 lakhs); unable to verify existence, completeness, condition, and valuation.
  • Tax Balances: Company reconciling direct/indirect tax balances; non-compliance with TDS provisions on expenses.
  • CIRP Liabilities: Company classified admitted dues of ₹35,34,04,463.00 as contingent liability instead of provision, constituting departure from accounting standards. If provision created, net loss would be ₹22,86,94,223.87 instead of reported ₹9.11 lakhs. Provisions and net loss understated by ₹22,65,58,910.31.
  • Loans & Advances: Deposits with financial creditor + accrued interest totaling ₹1,20,80,052 subsumed in CIRP claims but not derecognized.
  • Balance Confirmations: Unable to obtain confirmations for debtors and creditors balances.

Statement of Assets and Liabilities (₹ in Lakhs)

As at March 31, 2025:

  • Total Assets: 1,314.51
  • Property Plant & Equipment: 501.12
  • Inventories: 294.96
  • Cash & Cash Equivalents: 15.09
  • Trade Receivables: 3.25
  • Equity: (78.02) [Capital 553.09 + Other Equity (631.11)]
  • Other Current Liabilities: 1,387.12
  • Trade Payables: 4.17

Segment Information

The company has three business segments:

1. House Construction

2. Service Apartments

3. Offset Printing

Segment Results for Year Ended March 31, 2025 (₹ in Lakhs):

  • House Construction: (2.52) loss
  • Service Apartments: (6.97) loss
  • Offset Printing: (2.16) loss
  • Unallocable: 4.79 profit
  • Total Segment Loss before interest: (6.86)

Statement on Impact of Audit Qualifications

Management unable to quantify impact of most qualifications due to:

  • Matters pertaining to opening balances and CIRP-related claims from previous financial years
  • Absence of complete supporting records, confirmations, and reconciliations
  • Implementation of Resolution Plan and consequential accounting effects still pending

Exception: For liabilities under CIRP, auditors quantified potential understatement of provisions and net loss at ₹22,65,58,910.31.

Financial Impact Assessment

Financial impact of most audit qualifications not quantifiable per management. Only specifically quantified impact is understatement of provisions for CIRP liabilities by ₹22.66 crore.

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