Rajeswari Infrastructure CIRP Concludes with Disclaimer Opinion

Key Developments

• The company was admitted into Corporate Insolvency Resolution Process (CIRP) under IBC 2016 pursuant to NCLT order dated May 10, 2023
• The Resolution Plan submitted by Mr. Guruswamy Ramamurthy was approved by NCLT vide order dated January 13, 2026, concluding the CIRP
• Pursuant to the approved Resolution Plan, a Monitoring Committee has been constituted for overseeing company affairs with Mr. Sanjay Mehra appointed as Chairman
• The company resubmitted/uploaded updated Cash Flow Statement under Indirect Method on BSE Listing Portal in compliance with exchange observations

Financial Results (Standalone)

Quarter ended September 30, 2024:

• Total income from operations (net): ₹0.01 lakh
• Net Loss for the period: ₹3.08 lakh
• Earnings Per Share: (₹0.06)
• Equity Share Capital: ₹553.09 lakh
• Reserves: (₹47.54) lakh

Half Year ended September 30, 2024:

• Total income from operations (net): ₹0.06 lakh
• Net Loss for the period: ₹6.12 lakh
• Earnings Per Share: (₹0.11)

Auditor's Opinion

K M K U & Associates issued a Disclaimer of Opinion on the financial results citing:

• Inability to obtain sufficient appropriate evidence regarding opening balances as at April 1, 2024
• Qualified opinion by predecessor auditor for FY24 regarding non-compliance with Ind AS 37 and Ind AS 109
• Lack of physical verification of tangible/intangible assets and inventories
• Non-reconciliation of tax-related balances and non-compliance with TDS provisions
• Classification of CIRP admitted dues of ₹35,34,04,463.00 as contingent liability instead of provision
• Continuing to carry deposits with financial creditor (₹1,20,80,052) despite being subsumed in CIRP claims
• Inability to obtain balance confirmations for debtors and creditors

Financial Position (as at September 30, 2024)

Assets: ₹1,316.70 lakh

• Property Plant and Equipment: ₹506.63 lakh
• Inventories: ₹294.96 lakh
• Cash and Cash Equivalents: ₹11.77 lakh

Equity and Liabilities: ₹1,316.70 lakh

• Equity Share Capital: ₹553.09 lakh
• Other Equity: (₹628.11) lakh
• Other Current Liabilities: ₹1,386.32 lakh

Segment Information

The company operates in three business segments:

1. House Construction

2. Service Apartments

3. Offset Printing

Governance Structure

As per the approved Resolution Plan, the powers of the Board of Directors are exercised by the Monitoring Committee with Mr. Sanjay Mehra as Chairman.