CMI Limited Board Approves Q1 FY25 Results Amidst Ongoing Insolvency Proceedings; Auditors Express Disclaimer of Opinion
CMI Limited's Q1 FY25 results approved amidst CIRP, showing a ₹351.66 lakh loss. Auditors issued a disclaimer of opinion due to significant going concern issues, eroded net worth, and lack of verifiable data.
The high impact stems from the company's severe financial distress, including eroded net worth and continuous losses, compounded by the ongoing insolvency proceedings. The auditor's inability to express an opinion on the financial statements due to significant unresolved issues creates high uncertainty and concern for stakeholders.
The company reported significant losses, has eroded its net worth, and is undergoing a corporate insolvency resolution process. The auditors' disclaimer of opinion, citing major accounting and operational discrepancies, further indicates a highly negative financial and operational outlook.
CMI Limited's Board of Directors (power suspended), authorized by the Resolution Professional, Mr. Deepak Maini, approved the unaudited financial results for the quarter ended June 30, 2024, at a meeting held on October 29, 2025. The company is currently undergoing a Corporate Insolvency Resolution Process (CIRP), initiated by Canara Bank via an NCLT order dated July 28, 2023. Key financial highlights for the quarter ended June 30, 2024 (in Lakhs): * Revenue from Operations: ₹1,561.22 lakh * Total Income: ₹1,580.00 lakh * Total Expenses: ₹1,931.66 lakh * Net Loss for the Period: ₹351.66 lakh * Basic Earnings Per Share (EPS): ₹-0.22
The statutory auditors, BAGCHI & GUPTA, issued a limited review report with significant observations and a disclaimer of opinion: * The company's accumulated losses of ₹15,489.85 lakh as of June 30, 2024, have totally eroded its net worth, raising concerns about the 'Going Concern Concept'. * The company has not complied with IND AS disclosure requirements, and financial statements were prepared under accounting principles generally accepted in India, not IND AS. * Liabilities under litigation with income tax, TDS, and GST departments could not be ascertained. * Fixed asset register not available; values taken at book value. * Confirmation of loan accounts, bank accounts, and investments not available. * Quantitative details of stock not available; value taken at book value. * Balances of Current Assets and Current Liabilities are subject to confirmation, and recovery from Current Assets has not been ascertained. * Certain confirmations, reconciliations, and valuations were not made available. * Pending litigations have not been independently verified.
Due to the significance of these matters, the auditors were unable to obtain sufficient appropriate audit evidence and thus expressed a disclaimer of opinion on these financial statements.
What to do with a filing like this
CMI Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by CMI Limited. Read the original for the full detail.