Neogem India Reports Widening Losses Amid Severe Auditor Disclaimers

Net Loss: Rs 28.83 Lakh (Q2) | Auditor Opinion: Adverse and Disclaimer of Opinion

Reader Takeaway: Extreme financial distress and operational shutdown suggest significant long-term risks for shareholders due to eroded net worth.

What just happened

Neogem India Ltd has reported a net loss of Rs 28.83 lakh for the quarter ended September 30, 2026, compared to a loss of Rs 8.64 lakh in the same period last year. The company’s half-year net loss stands at Rs 31.48 lakh. These results were accompanied by a scathing report from statutory auditor Ashok Bairagra & Associates, which issued an adverse opinion and a disclaimer of opinion on the standalone financial statements.

Why this matters

The auditor’s report highlights a fundamental breakdown in the company’s financial stability. The firm has effectively stopped all manufacturing operations since January 1, 2018. Auditors noted that if proper provisions were made for long-outstanding debtors of Rs 41.11 crore, the company's net worth would be completely wiped out.

Risks to watch

Significant red flags include:

• Going Concern Doubt: Auditors stated the company is unable to meet liabilities, casting extreme doubt on its future.
• Loan Defaults: Credit facilities from Punjab National Bank and Bank of India were marked as Non-Performing Assets (NPA) dating back to 2015-16.
• Asset Freeze: Bank accounts remain frozen under regulatory direction following defaults.
• Legal Action: Punjab National Bank has initiated recovery proceedings under the SARFAESI Act, 2002.

What to track next

Investors should monitor any potential disclosures regarding the liquidation of assets or formal bankruptcy proceedings, as the company currently lacks a stated revival plan and continues to accumulate losses while remaining operationally inactive.