Radha Madhav Corporation Limited reported a net loss of ₹236.17 million for the quarter ended September 30, 2022, a significant decline from the profit of ₹1.18 million recorded in the corresponding quarter of the previous year. Revenue from operations dropped to ₹0.34 million, down from ₹0.55 million in the same period last year. The company’s total income for the quarter stood at ₹0.49 million.

The financial performance was heavily impacted by exceptional expenses and adjustments following the approval of a resolution plan by the National Company Law Tribunal (NCLT), Ahmedabad Bench. The resolution plan, involving M/s. Vama Construction, was approved on August 1, 2022, leading to a drastic reduction in assets and liabilities. The new promoters have inducted new directors, discontinuing the previous management base.

Financial Results Overview

The company reported a total expense of ₹236.66 million for the quarter, a sharp increase from the ₹2.66 million reported in the corresponding quarter of the previous year. Other expenses surged to ₹202.75 million, while changes in inventories amounted to ₹30.36 million. Depreciation and amortization expenses were recorded at ₹2.22 million.

For the half-year ended September 30, 2022, the company reported a net loss of ₹238.95 million on a total income of ₹1.01 million. In comparison, the corresponding half-year of the previous year saw a profit of ₹2.27 million on a total income of ₹9.97 million.

Assets and Liabilities

The statement of assets and liabilities as of September 30, 2022, showed total assets at ₹375.09 million, a decrease from ₹547.65 million as of March 31, 2021. Total equity stood at a negative ₹75.24 million, compared to a negative ₹367.37 million in the previous year. Total liabilities were reported at ₹450.33 million.

Current assets decreased significantly to ₹114.85 million from ₹255.19 million, driven largely by a reduction in trade receivables and other current assets. Cash and cash equivalents, however, increased to ₹57.87 million from ₹5.63 million in the previous year.

Auditor's Observations

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors on December 8, 2023. Ajay Shobha & Co., Chartered Accountants, conducted the limited review pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The auditors noted that the resolution plan approved by the NCLT led to a drastic reduction in assets and liabilities. They also drew attention to the preparation of financial results on a going concern basis, as stated in the notes, though their opinion was not modified in this regard.

Radha Madhav Corporation Limited has requested BSE Limited and National Stock Exchange of India Limited to withdraw penalties levied for non-compliance between March 2015 and August 2022. In a communication dated March 6, 2026, the company attributed the non-compliance to the Corporate Insolvency Resolution Process (CIRP) and subsequent management control by the Resolution Professional.

The company was admitted into CIRP on October 22, 2020, and remained under the control of the Resolution Professional until August 1, 2022. Radha Madhav Corporation Limited stated that the Hon’ble NCLT, Ahmedabad Bench, approved the Resolution Plan on August 1, 2022, bringing the company under the control of new management. Citing paragraph 27 of the NCLT order, the company argued that the Resolution Applicant cannot be saddled with any previous claim against the Corporate Debtor prior to the initiation of CIRP.

Regarding the non-compliance with Corporate Governance Regulations (Regulations 17 to 27), the company stated that its share capital was reduced from 9,12,95,775 equity shares to 6,82,185 equity shares pursuant to the NCLT order. It noted that under Regulation 15(2) of SEBI (LODR) Regulations, 2015, corporate governance provisions are not mandatory for listed entities with paid-up equity share capital not exceeding ₹10 Crore and net worth not exceeding ₹25 Crore. The company stated it currently falls within these threshold limits.

The company also addressed the absence of consolidated financial results for the quarter ended December 2025. It clarified that a proposed acquisition of a majority stake in Phytoatomy Private Limited, intimated via letter on November 4, 2023, remains under process and has not been completed. Consequently, the company stated that the requirement for submission of consolidated financial results under Regulation 33 of SEBI (LODR) Regulations, 2015, is not applicable.

Radha Madhav Corporation Limited confirmed that all filings w.e.f. August 1, 2022, are in place and reflected on the BSE Portal. It reiterated that as a successful Resolution Applicant, it could not undertake any filings prior to August 1, 2022, as the company was under the control of the Resolution Professional.