Midwest Gold Limited , a company engaged in the processing and trading of granite, marble, and other natural stones, has reported the complete utilization of funds raised through its preferential issue, according to the latest monitoring agency report for the quarter ended September 30, 2025.

Fund Utilization Details

The company had raised a total of Rs 118.47 crore through a preferential issue, which was conducted in two parts:

1. Rs 39.57 crore through an equity share swap for acquiring a 97.40% stake in Midwest Energy Private Limited (MEPL).
2. Rs 78.90 crore in cash (out of the proposed Rs 85.02 crore).

The utilization of the funds, as reported by Infomerics Valuation and Rating Private Limited, the appointed monitoring agency, is as follows:

Key Highlights

• The monitoring agency reported no deviations from the disclosed objects of the issue.
• The acquisition of the MEPL stake has been completed, utilizing the full allocated amount of Rs 39.57 crore.
• For debt repayment, the company has utilized Rs 19.60 crore out of the allocated Rs 20.03 crore.
• Working capital requirements saw a utilization of Rs 12.00 crore against the allocated Rs 20.27 crore.
• General corporate purposes accounted for Rs 17.31 crore of the utilized funds, out of the allocated Rs 19.60 crore.

Additional Financial Maneuvers

The report also highlighted that Midwest Gold Limited had availed an overdraft facility of Rs 9.40 crore against fixed deposits. This amount was subsequently transferred to MEPL for expansion and working capital needs.

Corporate Governance

The Audit Committee of Midwest Gold Limited has reviewed the monitoring agency report, and the Board of Directors has taken it on record during their meeting held on November 8, 2025. This action demonstrates the company's commitment to transparency and adherence to regulatory requirements.

The timely and appropriate utilization of funds raised through the preferential issue indicates Midwest Gold Limited's focus on strategic growth and financial prudence.

Midwest Gold Limited has announced its financial results for the quarter and half-year ended September 30, 2025, revealing a mixed performance across its standalone and consolidated operations.

Standalone Performance

On a standalone basis, Midwest Gold Limited reported a profit of ₹72.57 crore for the quarter, marking a significant turnaround from the loss of ₹37.46 crore in the previous quarter. The company's standalone revenue from operations stood at ₹0.52 crore for the quarter.

Consolidated Results

However, the consolidated picture presents a different scenario. The company posted a consolidated loss of ₹352.43 crore for the quarter. The consolidated revenue from operations was reported at ₹120.12 crore.

Financial Highlights

Auditor's Observations

The auditors have issued a qualified opinion on the consolidated results, noting concerns about ₹2,009.34 crore classified under Intangible Assets Under Development. They stated that sufficient evidence for recognition criteria under accounting standards was not provided for this amount.

Segment Performance

The company operates in multiple segments through its subsidiaries:

1. Rare-earth materials and magnets
2. Renewable energy and power storage systems
3. Other operations

The renewable energy and power storage systems segment reported revenue of ₹131.24 crore but faced a segment loss of ₹262.72 crore for the quarter.

Management's Response

Regarding the auditor's qualification, the management acknowledged that certain supporting documentation and project evaluations required to conclusively demonstrate the capitalization criteria may not have been adequately compiled or presented. The company has committed to strengthening its documentation processes related to the capitalization of development costs to ensure full compliance with accounting standards.

Utilization of Preferential Allotment Proceeds

The company reported full utilization of the ₹7,890.44 crore raised through preferential allotment. The funds were allocated as follows:

• ₹1,900.00 crore for future expansion plans and activities
• ₹2,027.00 crore for working capital requirements
• ₹2,003.44 crore for repayment of borrowings
• ₹1,960.00 crore for general corporate purposes

Midwest Gold Limited's mixed financial results reflect the complex nature of its operations across various segments. While the standalone entity has shown profitability, the consolidated performance indicates challenges in its subsidiaries, particularly in the renewable energy and power storage systems segment. The company's commitment to improving documentation processes for intangible asset development costs suggests a focus on addressing the auditors' concerns in future reporting periods.