Ceenik Exports (India) Ltd , a company transitioning from garments to realty investments and derivative trading, has reported a significant increase in net loss for the half-year ended September 30, 2025. The company's financial results reveal a challenging period marked by substantial losses in its derivative trading segment.

Financial Performance

The company posted a net loss of Rs 682.33 lakhs for the half-year, compared to a loss of Rs 501.49 lakhs in the corresponding period of the previous year. This represents an increase in losses of approximately 36%.

Segment-wise Performance

Derivative Trading

The derivative trading business, which has become a primary focus for the company, showed a negative revenue of Rs 726.11 lakhs. This significant loss in the trading segment has been a major contributor to the overall poor performance.

Realty & Investments

The realty and investments segment has shown positive results:

Despite the positive performance, it was not sufficient to offset the losses from derivative trading.

Operational Changes

1. Garment Segment Discontinuation: Ceenik Exports has discontinued its garments segment effective from March 31, 2025. This strategic decision marks a significant shift in the company's business model.

2. Focus Shift: The company is now primarily operating in realty investments and derivative trading segments, moving away from its traditional garment business.

Balance Sheet Highlights

As of September 30, 2025:

Cash Flow and Liquidity

The company's cash and cash equivalents stood at Rs 48.13 lakhs as of September 30, 2025, compared to Rs 52.12 lakhs at the end of the previous financial year, indicating a slight decrease in liquidity.

Conclusion

Ceenik Exports is navigating through a challenging transition period. The substantial losses in its derivative trading business have overshadowed the positive performance of its realty and investments segment. As the company continues to pivot away from its traditional garment business, the board and management face the task of stabilizing operations and improving financial performance in the coming quarters, particularly in light of the increased net loss and the negative revenue from derivative trading.

Ceenik Exports (India) Limited has received a Final Order from the Regional Director (Western Region), Ministry of Corporate Affairs, under Section 441 of the Companies Act, 2013, marking the conclusion of regulatory proceedings that began with an Interim Order addressing non-compliance issues spanning three financial years from 2015-16 to 2017-18.

Final Order and Penalty Payment

The company has paid a total penalty amount of ₹4.25 lakh as levied under the Final Order for compounding defaults under Section 139 of the Companies Act, 2013. The non-compliance specifically related to the appointment and ratification of statutory auditors during the mentioned financial years, where the company appointed statutory auditors for one year instead of the required five-year term.

Nature of Compliance Violation

The regulatory action centered on the company's failure to file Form ADT-1 for the appointment of statutory auditors for the mandatory five-year period under Section 139 of the Companies Act, 2013. Instead, the company had appointed statutory auditors for only one year during the financial years 2015-16 to 2017-18, constituting a significant procedural violation.

Regulatory Process and Timeline

The company received the Final Order on December 27, 2024. However, due to corrections required in the order, Ceenik Exports approached the Regional Director's office to obtain an updated order copy. Following their direction, the company filed a request letter with the RD office for the corrected documentation.

Impact Assessment

According to the company's disclosure, the penalty payment of ₹1.50 lakh to the Ministry of Corporate Affairs represents the financial impact of the non-compliance. The company has stated that there is no material impact on business operations or other aspects of the company's functioning. Managing Director Narain Nanik Hingorani has overseen the company's response to the regulatory proceedings throughout this process.

Compliance and Disclosure

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing detailed information about the Final Order and its implications. This transparency demonstrates the company's commitment to keeping stakeholders informed about regulatory developments that could affect its operations.