Whalesbook
Dharti Proteins Ltd has completed its Corporate Insolvency Resolution Process (CIRP). However, statutory auditors have raised substantial doubts about the company's ability to continue operating as a going concern.
This warning comes as the company remained inoperative throughout the financial year ended March 31, 2025. During this period, Dharti Proteins reported a net loss of ₹0.66 Lakhs, with no revenue from operations. Its net worth stood at a fragile ₹0.93 Lakhs.
The company was admitted for insolvency proceedings by the National Company Law Tribunal (NCLT) due to financial creditors, following a period of significant financial strain.
While new management has taken over, the company faces a monumental task. Its inactive status and numerous compliance failures present major hurdles for operational turnaround or relisting. Efforts are ongoing to regularize pending regulatory and statutory compliances.
Auditors highlight that the company currently has no trading or manufacturing activities, with most financial and operational indicators remaining negative. An outstanding ₹150.46 Lakhs in loans and advances is considered doubtful, potentially misstating assets and losses.
Significant non-compliances also plague the company. These include a non-functional website, failure to pay listing fees, and violations of SEBI (LODR) Regulations and Companies Act rules. Specific issues cited are the lack of a Company Secretary and no electronic voting. Dharti Proteins also lacks adequate internal financial controls.
In comparison, peers like Gokul Refoils India Ltd and Patanjali Foods Ltd operate profitably and compliantly in the same sector, underscoring Dharti Proteins' unique challenges.
The company's shares remain suspended on the Bombay Stock Exchange. Investors will track the outcome of the Annual General Meeting on September 20, 2025, progress in resolving compliance issues, and management's steps towards stabilization. The BSE's decision on the suspended listing is also a key point.