CMI Limited reported a net loss of ₹128.51 lakh for the quarter ended June 30, 2025, a significant improvement from the ₹351.66 lakh loss recorded in the corresponding quarter of the previous year.

The company, which is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, saw its revenue from operations decline to ₹1,380.25 lakh in Q1FY26, down from ₹1,561.22 lakh in Q1FY25.

Financial Performance

The Board of Directors (Power Suspended), acting under the authorization of Resolution Professional Deepak Maini, approved the unaudited financial results on September 11, 2026. The results were subject to a limited review by statutory auditors Kumar Pramod & Associates.

Revenue from operations contracted by approximately 11.6% year-on-year. However, total expenses fell by a sharper margin of roughly 20.9%, driven primarily by a reduction in other expenses and employee benefits costs. This cost compression contributed to the narrowing of the net loss.

Key Operational Metrics

• Cost of raw materials consumed stood at ₹1,238.70 lakh, compared to ₹1,550.61 lakh in the prior year quarter.
• Employee benefits expenses decreased to ₹65.53 lakh from ₹89.76 lakh.
• Finance costs were minimal at ₹3.43 lakh, down from ₹5.13 lakh.
• Depreciation and amortization expenses remained relatively stable at ₹186.20 lakh.

What the Numbers Show

The divergence between the decline in revenue (-11.6%) and the steeper decline in total expenses (-20.9%) highlights a contraction in operational scale alongside improved cost efficiency. The reduction in raw material consumption aligns with the lower revenue figure, suggesting reduced production volume or input costs. Meanwhile, the significant drop in 'other expenses' (from ₹89.79 lakh to ₹33.01 lakh) was a key driver in limiting the bottom-line loss, indicating potential streamlining of non-core operational outlays during the insolvency process.

Auditor Observations

Kumar Pramod & Associates issued a limited review report with several matters requiring attention:

• Going Concern: Accumulated losses amounting to ₹16,375.79 lakh have eroded the company's net worth against a paid-up capital of ₹1,603.07 lakh.
• Accounting Standards: The financial statements were prepared under generally accepted accounting principles in India, not Ind AS.
• Verification Gaps: Confirmations for bank accounts, loans, and investments were unavailable. Fixed asset registers and inventory quantitative details were also not provided for verification.
• Contingent Liabilities: Potential liabilities related to income tax, TDS disputes, and GST could not be ascertained due to lack of available details.

The company continues to operate under the guidance of the Resolution Professional, with the board's powers suspended as per the IBC.

CMI Limited has disclosed a complete transition in its statutory audit function, with the resignation of M/s. Bagchi Kejriwal & Co., Chartered Accountants, followed by the appointment of M/s. Kumar Pramod & Associates, Chartered Accountants, as the new Statutory Auditors. Both disclosures were filed on May 18, 2026, pursuant to Regulation 30(6) read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and were communicated to both BSE Limited and the National Stock Exchange of India.

Resignation of M/s. Bagchi Kejriwal & Co.

M/s. Bagchi Kejriwal & Co., Chartered Accountants, tendered their resignation as Statutory Auditor and Tax Auditor of CMI Limited vide their resignation letter dated April 18, 2026, citing unavoidable reasons and circumstances beyond their control. The firm also requested the release of long-pending dues related to both audit engagements. The company confirmed that there is no other material reason for the resignation beyond what was stated in the resignation letter. The following table summarises the key details of the resignation:

Appointment of M/s. Kumar Pramod & Associates Under CIRP Framework

Following the resignation, the Resolution Professional, acting on behalf of the Board of Directors of CMI Limited — whose powers stand suspended under the ongoing Corporate Insolvency Resolution Process (CIRP) — appointed M/s. Kumar Pramod & Associates, Chartered Accountants, as the new Statutory Auditors. The appointment covers the audit of the company's books for the years ended March 31, 2026, March 31, 2027, and March 31, 2028. The confirmation of the appointment was received on May 16, 2026. The CIRP was initiated following an application filed by Canara Bank as a Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016, which was admitted by the Hon'ble National Company Law Tribunal.

The key particulars of the new statutory auditor appointment are as follows:

Profile of the Newly Appointed Audit Firm

M/s. Kumar Pramod & Associates is a peer-reviewed Chartered Accountants firm established in 1992. The firm brings extensive experience across multiple domains relevant to the company's current proceedings, including audit and taxation, Goods and Services Tax (GST), forensic audit, insolvency-related assignments, and secretarial compliances. The firm is led by a team of five qualified partners and has handled assignments for leading public sector undertakings, government bodies, and nationalised banks, including SBI, PNB, BSNL, NHPC, MTNL, and TRIFED.

Regulatory Compliance

Both disclosures were made in accordance with SEBI Circular CIR/CFD/CMD/4/2015 dated September 9, 2015, which prescribes the format and requirements for disclosing changes in statutory auditors by listed entities. CMI Limited has requested the stock exchanges to take the information on record.