Chrome Silicon Ltd reports a massive decline in revenue to Rs 1.07 lakh for FY 2025-26, down from Rs 73.40 crore the previous year. The company has suspended manufacturing operations at its Rudraram unit and secured shareholder approval to sell plant and machinery assets. The auditor has issued multiple qualifications citing lack of physical verification for assets, inventory issues, and unconfirmed loan balances. This filing highlights a critical phase for the firm as it moves toward asset monetization.
Chrome Silicon Operations Halted Amid Severe Auditor Qualifications
Revenue for the year dropped to Rs 1.07 Lakh from Rs 7,340.06 Lakh. The company reported a net loss of Rs 984 Lakh compared to a loss of Rs 8,594.16 Lakh in the prior year.
Reader Takeaway: Operations are suspended at the Rudraram unit, with significant auditor concerns regarding internal financial controls and asset valuation.
What just happened
Chrome Silicon Ltd has officially moved to monetize its core assets. Shareholders approved the disposal of plant, machinery, and movable assets from the Rudraram manufacturing facility via a July 2026 postal ballot. This follows the complete suspension of manufacturing activities at that site, which began in May 2025 due to adverse market conditions.
Auditor Qualifications and Concerns
The independent auditor has flagged serious issues regarding the company's financial transparency and record-keeping. Qualifications include the failure to perform physical verification of Property, Plant, and Equipment, and non-compliance with Ind AS 19 regarding employee benefit provisions. Furthermore, the auditor expressed concern over the recoverability of Rs 6.65 crore in interest-free loans and reported a lack of physical verification for inventories. Significant trade payables, supplier advances, and borrowings totaling over Rs 47 crore lack formal balance confirmations.
Risks to watch
Investors should note the high-risk nature of the company’s current status. The primary concern is the total suspension of manufacturing, which has cratered revenue. The reliance on selling off factory assets to pay down debt and manage expenses signals a lack of core operational income. Additionally, the auditor’s inability to confirm material asset values and loan recoverability suggests significant potential for further write-downs.
What to track next
Watch for official updates on the execution of the Rudraram asset sale. The company’s ability to successfully monetize these assets without further eroding shareholder value remains the key pivot point for any potential business recovery.