Acme Resources Reports Significant Loss Amid COVID-19 Challenges
Acme Resources Limited, an NBFC, reported substantial financial losses for FY 2020-21. Net loss increased by 527.58% to ₹1,739.72 crore, while total income decreased by 28.49% to ₹1,157.44 crore. The company made a provision of ₹2,404.63 lakhs for impairment on financial instruments due to borrower defaults during the pandemic. Acme Resources granted moratoriums to eligible borrowers as per RBI guidelines. The company operates in NBFC and property trading segments, with shares listed on BSE and CSE.
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Acme Resources Limited , a non-banking financial company (NBFC), has reported substantial financial losses for the fiscal year ending March 31, 2021, primarily due to the economic impact of the COVID-19 pandemic. The company's financial performance reflects the broader challenges faced by the NBFC sector during this period.
Financial Performance Overview
The company's financial results, as approved by the Board of Directors on June 29, 2021, reveal a significant downturn compared to the previous fiscal year:
| Metric | FY 2020-21 | FY 2019-20 | Change |
|---|---|---|---|
| Net Loss | ₹1,739.72 | ₹277.21 | ↑527.58% |
| Total Income | ₹1,157.44 | ₹1,618.67 | ↓28.49% |
| Total Expenses | ₹2,968.81 | ₹1,337.19 | ↑121.87% |
Impact of COVID-19 and Provisions
A key factor contributing to the increased loss was a substantial provision of ₹2,404.63 lakhs for impairment on financial instruments. This provision was necessitated by borrower defaults during the COVID-19 pandemic, highlighting the severe impact of the economic downturn on the company's loan portfolio.
Moratorium and Regulatory Compliance
In line with Reserve Bank of India (RBI) guidelines, Acme Resources granted moratoriums of up to six months on installments falling due between March 2020 and August 2020 for eligible borrowers. This measure, while providing relief to borrowers, may have contributed to the company's financial stress.
Business Segments
Acme Resources operates in two primary segments:
- NBFC business
- Property trading
The company's diverse operations in these sectors underscore its exposure to both financial services and real estate markets, which have been significantly affected by the pandemic.
Share Capital and Listing Status
According to the latest Share Capital Reconciliation Audit Report:
- Total issued and listed capital: 2,57,44,000 shares
- Face value: ₹10 per share
- Dematerialized shares:
- CDSL: 1,14,65,404 shares (44.54%)
- NSDL: 1,26,14,229 shares (48.99%)
- Physical shares: 16,64,367 (6.47%)
The company is listed on both the Bombay Stock Exchange (BSE) and the Calcutta Stock Exchange (CSE), with ongoing processes for revocation of listing from CSE.
Conclusion
Acme Resources Limited's financial results for FY 2020-21 reflect the severe challenges faced by NBFCs during the COVID-19 pandemic. The significant increase in provisions and decline in total income underscore the impact of economic disruptions on the company's operations. As the economy recovers, the company's performance in subsequent quarters will be crucial to assess its resilience and recovery trajectory.
Historical Stock Returns for Acme Resources
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.64% | -0.88% | +4.49% | +2.21% | +21.10% | +352.78% |
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