CMI Ltd. Reports Significant Losses for Q3 & 9M FY25 Amidst Ongoing CIRP with Auditor Disclaimer
CMI Ltd. reported significant losses of ₹818.05 Lakh for Q3 FY25 and ₹1,802.97 Lakh for 9M FY25. The company remains under CIRP, with auditors expressing severe concerns about going concern and financial reporting.
The ongoing CIRP, significant financial losses, erosion of net worth, and a highly qualified auditor's report with a disclaimer of opinion collectively indicate severe financial instability and operational challenges, posing a high risk to stakeholders.
The company is under corporate insolvency, reporting substantial and continuous losses, and its net worth is eroded. The auditor's report highlights severe deficiencies in financial reporting and expresses a disclaimer of opinion, indicating deep financial distress and operational issues.
CMI Limited announced the outcome of its Board Meeting held on October 31, 2025, where the Unaudited Financial Results for the quarter and nine months ended December 31, 2024, were approved. The meeting commenced at 03:30 P.M. and concluded at 04:15 P.M. * The company is currently undergoing a Corporate Insolvency Resolution Process (CIRP) initiated by Canara Bank, with the NCLT order dated July 28, 2023, pronounced on August 1, 2023. Mr. Deepak Maini has been appointed as the Interim Resolution Professional/Resolution Professional (IRP/RP). The powers of the Board are suspended, and operations are under the RP's guidance. * Key financial highlights for the quarter ended December 31, 2024: * Revenue from Operations stood at ₹4,399.89 Lakh. * Total Income was ₹4,450.32 Lakh. * The Net Loss for the period was ₹818.05 Lakh. * Basic Earnings per Share (EPS) was ₹-0.40. * Key financial highlights for the nine months ended December 31, 2024: * Revenue from Operations was ₹8,974.33 Lakh. * Total Income reached ₹9,083.68 Lakh. * The Net Loss for the period was ₹1,802.97 Lakh. * The Statutory Auditors, BAGCHI & GUPTA, issued a Limited Review Report highlighting significant concerns and a disclaimer of opinion: * The financial statements were not prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) but with accounting principles generally accepted in India. * Going Concern Issues: Accumulated losses of ₹16,777.33 Lakh as of December 31, 2024, have completely eroded the company's net worth (paid-up capital: ₹1,604.74 Lakh). The company has incurred continuous losses for many years. * Uncertainty regarding liabilities from litigation with income tax, TDS, and GST departments. * Lack of a fixed assets register, requiring physical verification. * Unconfirmed loan, bank, and investment accounts, subject to reconciliation. * Lack of quantitative details for stock, with values taken at book value. * Balances of current assets and liabilities are subject to confirmation, and recovery from current assets is unascertained. * Various confirmations, reconciliations, and valuations were not made available. * Pending litigations were not independently verified. * The auditors stated they could not obtain sufficient appropriate audit evidence to provide an audit opinion due to the significance of these matters, thereby issuing a disclaimer.
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CMI Limited filed this with the NSE as a statutory disclosure, categorised under board meeting. 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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