Cerebra Integrated Technologies Limited shareholders have approved the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The resolution was passed with 99.61% of valid votes in favour during an Extraordinary General Meeting (EGM) held on June 6, 2026, via video conferencing. This approval authorizes the company to proceed with the insolvency resolution process as a strategic measure for compliance and restructuring.

The EGM proceedings were supervised by Mr. Parameshwar G. Bhat, appointed as the Scrutinizer. Voting was conducted through remote e-voting and e-voting at the meeting, facilitated by Central Depository Services (India) Limited (CDSL). A total of 54 members cast their votes, with 22,757,879 shares voting in favour and 88,713 shares voting against. The resolution received the requisite majority, with 100% support from the Promoter and Promoter Group and 99.6% support from Public-Non Institutions.

Voting Results Summary

The record date for determining shareholder eligibility was May 29, 2026. The remote e-voting facility was open from June 2, 2026, to June 5, 2026. The company will submit the detailed voting results to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Cerebra Integrated Technologies Limited reported a widened net loss of ₹716.42 crore for the financial year ended March 31, 2026, as revenue declined significantly to ₹59.54 crore. The company's statutory auditor, YCRJ & Associates, issued a disclaimer of opinion on the standalone and consolidated financial results, citing material uncertainties that cast significant doubt on the company's ability to continue as a going concern.

Financial Performance

The standalone net loss for FY26 widened from ₹473.17 crore in the previous year. Revenue from operations dropped to ₹59.54 crore from ₹356.15 crore in FY25. For the fourth quarter ended March 31, 2026, the company reported a net loss of ₹311.49 crore on revenue of ₹11.42 crore. Total expenses for the year surged to ₹823.84 crore, driven primarily by other expenses which stood at ₹700.33 crore.

Auditor's Disclaimer of Opinion

YCRJ & Associates stated they could not obtain sufficient appropriate audit evidence to support the company's use of the going concern basis of accounting. The report highlighted that the company is incurring significant operating losses, has substantially reduced its workforce, and ceased key operations including refurbishment activities. Additionally, the company faces challenges in meeting obligations and servicing current liabilities.

The auditors also raised concerns over the devaluation of inventories amounting to ₹9.76 crore, noting a lack of item-wise details and valuation workings. Furthermore, the report flagged outstanding trade receivables of ₹143.07 crore, of which ₹142.99 crore was overdue for more than a year, and outstanding dues of ₹100.28 crore from an overseas party related to the sale of a former subsidiary, Cerebra Middle East FZCO Dubai.

Management Response

In the statement on the impact of audit qualifications, the management asserted that the going concern assumption remains appropriate based on mitigating actions underway. These measures include significant cost rationalization, renegotiation of vendor contracts, and discussions with potential investors to raise capital. The company is also identifying non-core assets for monetization to support working capital requirements and reduce liabilities.