Zicom Electronic Security Systems Limited reported a net loss of ₹2,076.00 lakh for the financial year ended March 31, 2026 (FY26), widening sharply from the ₹18.92 lakh loss recorded in FY25. The deterioration in profitability was driven entirely by non-operational factors, as the company generated zero revenue from operations during the period.

The primary driver of the loss was an exceptional item of ₹2,069.96 lakh, representing the write-off of a corporate guarantee claim. This amount relates to a claim admitted by the National Skill Development Corporation following an order from the National Company Law Tribunal (NCLT), Mumbai Bench, dated February 16, 2026. The guarantee was invoked due to the default by ASTM Skills Private Limited, which has since entered liquidation under the Insolvency and Bankruptcy Code (IBC). Consequently, the Resolution Professional (RP) determined that no recovery was possible and opted to write off the amount.

Financial Performance

The company’s total income for FY26 stood at ₹43.89 lakh, derived solely from other income sources such as rent received (₹39.88 lakh). Total expenses amounted to ₹49.93 lakh, comprising other expenses of ₹46.55 lakh, depreciation of ₹3.39 lakh, and nominal finance costs of ₹0.01 lakh. Before accounting for the exceptional write-off, the company incurred a loss of ₹6.05 lakh.

Balance Sheet and Liquidity

As of March 31, 2026, total assets declined to ₹1,706.18 lakh from ₹1,741.66 lakh in the previous year. Cash and cash equivalents increased marginally to ₹24.42 lakh from ₹20.05 lakh, while other bank balances fell significantly to ₹28.97 lakh from ₹80.27 lakh. The company’s equity stands at a negative ₹(137,068.59 lakh), reflecting accumulated losses that have fully eroded the net worth. Current borrowings rose to ₹120,320.89 lakh, primarily due to invoked corporate guarantees totaling ₹81,797.04 lakh and secured bank loans of ₹38,019.08 lakh.

Audit Opinion and Going Concern

Independent auditors Shah & Jhalawadia issued an adverse opinion on the financial statements. The basis for this opinion includes multiple material discrepancies, such as unverified tangible assets, unconfirmed trade receivables, and the failure to recognize impairment allowances on trade receivables despite assessments by registered valuers. Additionally, the auditors noted discrepancies between GST returns and book records regarding rent income.

A material uncertainty related to going concern was highlighted. The company has not carried out business operations for five years, has no employees, and possesses no existing contracts for future revenue generation. The CIRP process initiated on July 29, 2022, is nearing its maximum statutory period, with the outcome dependent on the approval of a resolution plan or potential liquidation.

What the Numbers Show

The financial results reveal a complete cessation of core business activities, with rent income constituting the entirety of the company’s revenue stream. The divergence between the modest operational loss of ₹6.05 lakh and the final net loss of ₹2,076.00 lakh underscores that the current financial deterioration is driven by historical contingent liabilities—specifically invoked corporate guarantees—rather than ongoing operational inefficiencies. The balance sheet reflects a frozen state, with assets largely unverifiable and liabilities dominated by statutory and financial creditor claims admitted during the insolvency process.

The National Company Law Tribunal (NCLT), Court-V, Mumbai Bench, has adjourned the proceedings in the insolvency case initiated by IDBI Bank Limited against Zicom Electronic Security Systems Limited. The tribunal heard arguments from the counsel for the applicant and the respondent before deferring the matter.

The case, filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, involves two interlocutory applications: IA/1566/2026 and IA(PLAN)/32/2026. The bench, comprising Judicial Member Lakshmi Gurung and Technical Member Charanjeet Singh Gulati, directed that the arguments of the second respondent and the rejoinder on behalf of the applicant would continue on the next date of hearing.

Both applications have been listed for further consideration on July 17, 2026. The order was delivered on July 2, 2026.