Zicom Electronic Security Systems Ltd posted zero revenue for FY25 amid its insolvency process. Auditors issued an adverse opinion due to significant accounting discrepancies and doubt about the company's ability to continue as a going concern.
Zicom Electronic Security Systems Ltd Faces Deep Financial Distress Amid CIRP
Zicom Electronic Security Systems Ltd has reported nil revenue from operations for the second consecutive year for the financial year ended March 31, 2025. The company's limited operations are currently under the Corporate Insolvency Resolution Process (CIRP).
| Metric | FY 2024-25 (Rs. crore) | FY 2023-24 (Rs. crore) |
|---|---|---|
| Revenue from Operations | 0.00 | 0.00 |
| Other Income | 0.35 | 0.46 |
| Total Expenses | 0.54 | 0.81 |
| Net Loss | (0.19) | (0.35) |
Total expenses were mainly legal and professional charges, along with Resolution Professional (RP) fees.
Auditor's Adverse Opinion
Shah & Jhalawadia, the statutory auditor, issued an adverse opinion, stating the financial statements do not present a true and fair view. Key issues include unreconciled tangible assets and inventory discrepancies, lack of trade receivable confirmations, missing investment details, absence of gratuity actuarial valuation, and failure to consider a registered valuer's assessment for asset revaluation.
Material Uncertainty: Going Concern
The auditor flagged significant doubt about Zicom's ability to continue as a going concern. The company has not operated for five years, has no employees, and no customers or contracts. Its net worth is severely eroded (Other Equity: -Rs. 1,349.93 crore as of March 31, 2025). The outcome depends on the Committee of Creditors' (CoC) resolution plan approval or potential liquidation as the CIRP period nears expiry.
Corporate and Regulatory Updates
- The Resolution Professional Chirag Rajendrakumar Shah took charge on September 4, 2025.
- IDBI Bank declared Zicom a wilful defaulter on September 25, 2024, for loan defaults.
- The company is in commercial arbitration against Zicom SaaS Private Limited over a Brand Transfer Agreement.
- Zicom failed to hold AGMs for FY 2020-21 and 2021-22 and has violated SEBI LODR listing compliance.
Reader Takeaway: Nil revenue and an adverse audit highlight extreme risk for shareholders awaiting resolution plan outcome.