C & C Constructions reports Q2FY26 net loss of ₹40.43 million
C & C Constructions Limited reported a net loss of ₹40.43 million for Q2FY26 on total income of ₹2.85 million, following the correction of XBRL filing errors. The company noted that comparative figures were unavailable due to prior liquidation proceedings and highlighted ongoing legal and operational uncertainties in its auditor's report.
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C & C Constructions Limited reported a net loss of ₹40.43 million for the quarter ended September 30, 2025, following the resubmission of its financial results to correct filing discrepancies. The company, which was acquired by M/s R K Constructions in December 2024, recorded total income of ₹2.85 million for the period, while total expenses amounted to ₹43.28 million. The financial statements, prepared on a limited basis due to the ongoing liquidation process, were reviewed by A S G & Associates, Chartered Accountants.
The company addressed observations from the National Stock Exchange of India Limited regarding its initial XBRL submission. Management clarified that "Half-Yearly" was inadvertently selected instead of "Quarterly" in the reporting type drop-down, leading to the resubmission of the revised results. Additionally, the firm explained that comparative figures for the quarter ended September 30, 2024, were not disclosed as quarterly financial results were not prepared during the Corporate Insolvency Resolution Process and Liquidation Period.
Financial Performance
The unaudited financial results for the quarter ended September 30, 2025, reflect the company's status as a going concern under new management. Revenue from operations remained nil, while other income contributed ₹2.85 million. Finance costs accounted for a significant portion of the expenses at ₹30.57 million. The basic and diluted earnings per share for the quarter were reported as a loss of ₹1.59.
| Particulars | Quarter ended Sep 30, 2025 (Unaudited) | Half year ended Sep 30, 2025 (Unaudited) |
|---|---|---|
| Total Income | 2.85 | 37.84 |
| Total Expenses | 43.28 | 79.72 |
| Profit Before Tax | (40.43) | (41.88) |
| Net Profit/(Loss) | (40.43) | (41.88) |
Auditor's Emphasis and Legal Proceedings
A S G & Associates highlighted several material uncertainties in their review report. The financial statements were prepared based on limited and preliminary information available to the new management, as key records and details are still awaited from the Liquidator. The auditors noted that the uncertainties inherent in the Insolvency and Bankruptcy Code liquidation process may materially affect certain estimates and disclosures.
The report also drew attention to specific legal notices received by the company. These include notices under Section 276(B) of the Income Tax Act, 1961, regarding late deposit of tax deducted at source for financial years 2012-13, 2013-14, 2014-15, and 2016-17. Furthermore, the company received summons for the levy of damages under Section 14 B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, aggregating to ₹0.96 Crores for the period from 2013-2016 and 2014-2017.
Balance Sheet and Cash Flow
The company's total assets as of September 30, 2025, stood at ₹3,738.92 million, a decrease from ₹3,852.75 million as of March 31, 2025. Equity share capital remained constant at ₹254.45 million, while other equity was reported at a negative balance of ₹21,014.36 million. Current liabilities, primarily comprising borrowings of ₹18,781.34 million, totaled ₹24,498.83 million.
Cash flow from operating activities for the half year ended September 30, 2025, was negative at ₹577.57 million. However, investing activities provided a net inflow of ₹157.70 million, largely driven by the sale proceeds of fixed assets. Financing activities resulted in a net inflow of ₹410.60 million, primarily from proceeds from borrowings. Consequently, cash and cash equivalents decreased from ₹30.30 million at the beginning of the year to ₹21.04 million at the end of the half year.
What is the estimated timeline for the new management to receive key records from the Liquidator to resolve the material uncertainties?
How does the company plan to address the ₹0.96 Crore PF summons and the historical income tax notices given the ongoing liquidation?
With revenue from operations currently nil, what strategic measures will be taken to reduce the heavy reliance on borrowings for financing?
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