Zicom Electronic Security Systems Limited Files Audited Financials for FY26 Amidst CIRP
Zicom Electronic Security Systems Limited has submitted audited standalone financial statements for FY2025-26. The company is under Corporate Insolvency Resolution Process (CIRP). The auditor issued an adverse opinion due to numerous discrepancies in asset valuation, inventory, receivables, and unconfirmed balances. Material uncertainty exists regarding the company's going concern status.
The adverse audit opinion, coupled with the ongoing CIRP and material uncertainty about going concern, indicates a high impact on the company's operations, stakeholder confidence, and future prospects.
The announcement details significant financial reporting issues and an adverse audit opinion, raising concerns about the company's financial health and compliance.
Zicom Electronic Security Systems Limited, currently under Corporate Insolvency Resolution Process (CIRP) since July 29, 2022, has submitted its audited standalone financial statements for the financial year ended March 31, 2026. The submission is made by the Resolution Professional, Chirag Rajendrakumar Shah, who took charge on September 4, 2025.
The audit report, issued by Shah & Jhalawadia, carries an adverse opinion due to several significant issues. These include the non-consideration of discrepancies in tangible assets and inventories, lack of detailed bifurcation of investments, and unconfirmed balances in trade receivables and other non-current/current assets. The company also failed to provide an actuarial valuation for its gratuity liability and has not accounted for potential impacts from revaluation of assets by a previous registered valuer.
Furthermore, the auditor noted a discrepancy between GST returns and book entries for rent income, and the recognition of godown rent expense beyond the lease term. The company has not held its Annual General Meetings for FY2020-2021 and FY2021-2022, and certain expenses incurred during the CIRP period have not been recorded pending approval.
A material uncertainty exists regarding the company's ability to continue as a going concern, as it has not conducted business operations for the past five years and faces significant erosion of net worth. The resolution plan process is ongoing, with the Committee of Creditors (CoC) reviewing a plan approved by them, but the NCLT has directed reconsideration. The auditors also highlighted the absence of a CFO and Company Secretary, a non-compliance with Section 203 of the Act.
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Zicom Electronic Security Systems Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. 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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