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, a company listed on the BSE with scrip code 531119, has found itself in regulatory hot water over non-compliance issues related to the appointment and ratification of statutory auditors. The company recently received an Interim Order from the Ministry of Corporate Affairs' Regional Director under Section 441 of the Companies Act, 2013, addressing irregularities spanning three financial years from 2015-16 to 2017-18.

Details of Non-Compliance

The Interim Order, issued by the Office of the Regional Director (Western Region), Ministry of Corporate Affairs, highlights a default under Section 139 of the Companies Act, 2013. The non-compliance specifically pertains to the appointment and ratification processes of Statutory Auditors during the mentioned financial years.

Regulatory Directives

As per the Interim Order, Ceenik Exports and its officers in default are required to take necessary steps to compound the default. This action is subject to final approval from the competent authority, indicating that the company's response to this order will be closely scrutinized.

Company's Response

In response to the regulatory action, Ceenik Exports has stated that it is in the process of taking appropriate actions to comply with the directions contained in the Interim Order. Narain Nanik Hingorani, the Managing Director of Ceenik Exports, signed off on the company's official intimation to the BSE regarding this matter.

Implications for Stakeholders

This development serves as a reminder of the importance of corporate governance and regulatory compliance in the Indian business landscape. Shareholders and potential investors of Ceenik Exports should closely monitor the company's actions in response to this Interim Order, as it may have implications for the company's financial reporting and overall governance structure.

The company's prompt disclosure of this regulatory action, made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrates a commitment to transparency with its stakeholders. However, the resolution of this non-compliance issue and its potential impact on the company's operations remain to be seen.

As the situation unfolds, market participants will be watching closely to see how Ceenik Exports addresses these compliance issues and works towards resolving them with the regulatory authorities.