Chrome Silicon Faces ₹9.84 Cr Loss, Suspended Operations, and Qualified Audit

Net Loss: ₹9.84 crore (₹984.00 lakh)
Total Income: ₹10.57 crore (₹1,056.86 lakh)

Reader Takeaway: Severe operational and financial instability; uncertain future for the company.

What just happened

Chrome Silicon Limited has reported a net loss of ₹9.84 crore for the financial year ended March 31, 2026. The company's total income significantly declined to ₹10.57 crore from ₹76.49 crore in the previous fiscal. Crucially, its manufacturing operations for Ferro Alloys have been suspended since May 30, 2025, due to unfavorable market conditions.

Why this matters

This situation is critical for investors as it signals severe operational and financial distress. The suspension of manufacturing operations directly impacts revenue and profitability. Furthermore, a qualified opinion from the statutory auditor raises serious concerns about the company's financial reporting and internal controls, casting doubt on its ability to continue as a going concern.

The backstory

The company has ceased its Ferro Alloys manufacturing operations. Management has stated they are monitoring market conditions to decide on resuming operations but has provided no timeline. This operational halt is the primary driver for the drastic fall in revenue.

What changes now

Investors must brace for continued uncertainty. The company needs to demonstrate a clear plan for resuming operations and address the significant discrepancies flagged by the auditor. Without these, its financial health remains precarious.

Risks to watch

Key risks include the prolonged suspension of operations, potential inability to resume manufacturing, and the unaddressed issues with physical verification of assets, recoverability of loans and advances, unconfirmed liabilities, and non-compliance with accounting standards and the MSME Act. The auditor's doubt about the company's ability to continue as a going concern is a major red flag.

Auditor Qualifications and Concerns

The statutory auditor, Pavuluri & Co., issued a qualified opinion. Key concerns include the failure to physically verify Property, Plant, and Equipment (PPE) and Inventories. Material uncertainties exist regarding the recoverability of interest-free loans and advances (₹6.65 crore) and supplier advances (₹19.77 crore). The company also could not provide confirmations for borrowings (₹4.36 crore), trade payables (₹7.18 crore), and other liabilities (₹16.36 crore). Non-compliance with Ind AS 19 for employee benefits and the MSME Act 2006 regarding trade payables were also noted.

Context metrics (time-bound)

• Revenue Drop: Total income fell from ₹76.49 crore in FY 2025 to ₹10.57 crore in FY 2026.
• Net Loss: The net loss narrowed to ₹9.84 crore in FY 2026 from ₹85.94 crore in FY 2025, but this is largely due to significantly reduced expenses following the operational suspension.
• Expenses: Total expenses reduced from ₹162.43 crore in FY 2025 to ₹20.41 crore in FY 2026.
• Cash Flow: Net cash flow from operating activities was negative at ₹19.10 crore in FY 2026.