CMI Ltd has reported a net loss of Rs 4.79 crore for the September 2025 quarter, with revenue dropping sharply to Rs 14.96 crore. Currently under Corporate Insolvency Resolution Process (CIRP), the company received a 'Disclaimer of Opinion' from its auditors, who cited a lack of documentation and complete erosion of net worth. Investors should note that board powers are suspended, and the financial data is flagged as unreliable due to unresolved accounting and operational gaps.
CMI Ltd Reports Deepening Losses Under CIRP
Revenue fell to Rs 14.96 crore in Q2, while net loss widened to Rs 4.79 crore.
Reader Takeaway: Extreme financial distress and auditor disclaimer indicate severe operational uncertainty; monitor Resolution Professional updates closely.
What just happened
CMI Ltd, currently undergoing the Corporate Insolvency Resolution Process (CIRP), released its financial results for the quarter ended 30th September 2025. The company reported a net loss of Rs 4.79 crore, significantly higher than the Rs 1.29 crore loss reported in the preceding quarter. Revenue from operations saw a sharp decline to Rs 14.96 crore, down from Rs 30.13 crore in the June 2025 quarter.
Why this matters
The company’s statutory auditors, Kumar Pramod & Associates, have issued a "Disclaimer of Opinion." This means the auditors could not verify the financial statements due to a severe lack of supporting documentation, including missing fixed asset registers and bank confirmations. The company is currently operating under the oversight of Resolution Professional Deepak Maini, with its board powers suspended.
The backstory
The company is struggling with severe financial instability. Accumulated losses have reached Rs 168.64 crore, which has completely wiped out the company’s net worth relative to its paid-up capital of Rs 16.03 crore. The auditors also highlighted non-compliance with Ind AS accounting standards.
Risks to watch
Investors face extreme uncertainty. The disclaimer of opinion suggests the reported numbers may not accurately reflect the company's financial position. Ongoing litigation, unverified tax liabilities, and the ongoing insolvency process represent substantial risks to shareholder value.
What to track next
Stakeholders should focus on the progress of the CIRP, specifically any announcements regarding potential restructuring or liquidation outcomes issued by the Resolution Professional. Any update on creditor claims will be critical for determining the future of the entity.