CMI Ltd Board Approves Q2 FY25 Results Amidst Ongoing CIRP and Auditor Concerns
CMI Ltd's board approved Q2 FY25 results, reporting significant losses. The company is under CIRP, and auditors raised major concerns about going concern, unaudited liabilities, and lack of verifiable financial data.
The ongoing Corporate Insolvency Resolution Process, coupled with significant financial losses and the auditor's inability to provide an audit opinion due to critical accounting and operational deficiencies, indicates a high adverse impact on the company's financial health and future prospects.
The company reported substantial losses for the quarter and half-year, and its accumulated losses have eroded net worth. The auditor's report highlights severe issues related to going concern, lack of proper financial records, unconfirmed balances, and pending litigations, leading to a disclaimer of opinion.
CMI Limited announced that its Board of Directors (power suspended), with authorization from the Resolution Professional, approved the Unaudited Financial Results for the quarter and half year ended September 30, 2024, at a meeting held on October 29, 2025. The company is currently undergoing a Corporate Insolvency Resolution Process (CIRP), which was initiated by Canara Bank on July 28, 2023 (pronounced August 01, 2023).
Key financial highlights for the period: * For the quarter ended September 30, 2024: * Revenue from Operations: ₹3,013.22 lakhs * Total Income: ₹3,053.36 lakhs * Net Loss for the period: (₹633.26 lakhs) * Basic Earnings Per Share (EPS): (₹0.40) * For the half year ended September 30, 2024: * Revenue from Operations: ₹4,574.44 lakhs * Total Income: ₹4,633.36 lakhs * Net Loss for the period: (₹984.92 lakhs) * Basic Earnings Per Share (EPS): (₹0.61)
The Statutory Auditors issued a Limited Review Report with significant observations, including: * Accumulated losses of ₹16,407.74 lakhs as of September 30, 2024, which has eroded the company's net worth against a paid-up capital of ₹1,603.07 lakhs. * The company has been continuously incurring losses for several years. * Financial statements were not prepared in accordance with Indian Accounting Standard (IndAS) 34 due to the CIRP. * Liabilities under litigation with income tax, TDS, and GST departments could not be ascertained. * Fixed assets register is unavailable, and physical verification is needed. * Confirmation of loan accounts, bank accounts, and investments is unavailable, and balances are subject to reconciliation. * Quantitative details of stock are unavailable. * Balances of current assets and liabilities are subject to confirmation, and recovery from current assets is unascertained. * Pending litigations have not been independently verified.
The auditors issued a disclaimer, stating they were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion due to the significance of these matters.
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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.
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