Rajeswari Infrastructure Limited reported a net loss of ₹21.35 lakh for the financial year ended March 31, 2024, narrowing from the previous year's loss of ₹86.49 lakh. The company, which remains under the Corporate Insolvency Resolution Process (CIRP), submitted its Annual Report for FY24 to the Bombay Stock Exchange in compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors remains suspended, and Sanjay Mehra continues to serve as the Resolution Professional.

Revenue from operations ceased during the year, with gross turnover recorded at nil compared to ₹1.09 crore in FY23. Other income fell significantly to ₹5.76 lakh from ₹61.86 lakh in the prior year. The loss before depreciation, finance costs, and exceptional items stood at ₹5.76 lakh. Depreciation for the period was ₹11.35 lakh, while employee benefit expenses were ₹3.48 lakh. The loss before tax was ₹18.48 lakh, resulting in a net loss after tax of ₹21.35 lakh.

The National Company Law Tribunal (NCLT), Chennai Bench, initiated the CIRP against the company on May 10, 2023, based on a petition filed by Intec Capital. Consequently, the powers of the Board of Directors were suspended. The Committee of Creditors held eleven meetings during the year to manage the resolution process. The company has recommended the appointment of M/s Pawan Puri & Associates as the statutory auditor for the period from the conclusion of the 31st Annual General Meeting until the conclusion of the sixth AGM.

The statutory auditors, M/s N. Sankaran & Co., noted in their report for FY23 that the company had been declared a wilful defaulter by Intec Ltd., which led to the initiation of CIRP proceedings. The financial statements for FY24 were prepared under the going concern assumption. The company did not declare any dividend for the year. The 31st Annual General Meeting is scheduled to be held on August 12, 2025, through video conferencing to transact business, including the adoption of audited financial statements and the appointment of the statutory auditor.

Rajeswari Infrastructure Limited reported a net loss of ₹13.05 lakh for the year ended March 31, 2026, widening from a loss of ₹9.11 lakh in the previous year. The company recorded total income of ₹0.09 lakh for the fiscal year, while its equity share capital stood at ₹553.09 lakh and reserves remained negative at ₹47.54 lakh. The financials reflect the ongoing challenges following the Corporate Insolvency Resolution Process (CIRP), which concluded after the National Company Law Tribunal (NCLT) approved a resolution plan on January 13, 2026.

The company's audited standalone financial results for FY26 were accompanied by an Independent Auditor's Report that issued a disclaimer of opinion. K M K U & Associates, the statutory auditor, stated they were unable to obtain sufficient appropriate evidence to determine whether the financial statements complied with Indian Accounting Standards. The disclaimer stems from significant uncertainties regarding the company's ability to continue as a going concern and the adequacy of asset valuations following the resolution plan approval.

Auditor's Key Observations

The auditor highlighted several material issues that prevented the issuance of a standard review report. Notably, the company did not conduct physical verification of inventories or complete impairment assessments for tangible and intangible assets. Additionally, the auditor noted that claims admitted during CIRP totaling ₹35.34 crore were classified as contingent liabilities rather than recognized liabilities, a departure from accounting standards. If these amounts had been provisioned, the net loss would have increased by ₹22.65 crore.

The report also pointed out non-compliance with the Income Tax Act, 1961, regarding non-deduction or non-deposit of Tax Deducted at Source (TDS). The auditor expressed an inability to comment on the fairness of tax-related balances and the recoverability of loans and advances amounting to ₹1.21 crore, which were subsumed in CIRP claims but remain on the books.

Financial Performance

The audited financial results for the year ended March 31, 2026, reflect the ongoing challenges faced by the company. Revenue from operations remained nil, with other income contributing to the total income. The company's equity share capital stood at ₹553.09 lakh, while reserves were negative at ₹47.54 lakh.

Governance and Oversight

Following the NCLT order on January 13, 2026, the CIRP concluded, and the powers of the Board of Directors, which were previously suspended, are now exercised by a Monitoring Committee. Mr. Sanjay Mehra, the former Resolution Professional, has been appointed as the Chairman of the Monitoring Committee. The financial statements were prepared on a going concern basis based on the assessment of the effects of the approved resolution plan.