Cochin Malabar Estates and Industries Limited (CMEIL) has reported its financial results for the quarter ended September 30, 2025, revealing a continued struggle with profitability amid efforts to maintain its going concern status.

Financial Performance

The company reported a net loss of ₹10.89 crore for the quarter ended September 30, 2025, showing a slight improvement from the loss of ₹14.72 crore in the previous quarter. For the six-month period, CMEIL recorded a net loss of ₹25.61 crore, marginally better than the ₹27.03 crore loss in the same period last year.

Revenue and Expenses

CMEIL generated other income of ₹137.64 crore during the quarter, with no revenue from operations. The company's total expenses for the quarter stood at ₹12.53 crore, including finance costs of ₹9.60 crore.

Financial Position

The financial position of CMEIL remains precarious, as highlighted in the following table:

The company's net worth has been fully eroded, with current liabilities (₹369.08 lakhs) significantly exceeding current assets. This condition raises substantial doubt about CMEIL's ability to continue as a going concern.

Cash Flow and Liquidity

CMEIL's cash and cash equivalents decreased to ₹15.64 lakhs as of September 30, 2025, from ₹46.51 lakhs at the beginning of the financial year. This decline in liquidity further underscores the financial challenges faced by the company.

Management's Stance and Future Plans

Despite the eroded net worth and financial difficulties, the management maintains the company's going concern status. This stance is based on CMEIL's plans to develop its land assets in Goa. The company's statement suggests that these development plans are central to its strategy for future viability and potential turnaround.

Auditor's Observations

The independent auditors have drawn attention to the company's fully eroded net worth and the excess of current liabilities over current assets. While they have not modified their conclusion, they note that the appropriateness of the going concern basis depends on CMEIL's ability to repay its obligations through utilization of its property, plant and equipment, generating regular income, and resuming normal operations.

Conclusion

While Cochin Malabar Estates and Industries Limited faces significant financial challenges, including a fully eroded net worth and ongoing losses, the company's management remains committed to maintaining its going concern status. The success of this strategy heavily relies on the development of its Goa land assets and the company's ability to generate regular income in the future. Investors and stakeholders will likely be watching closely to see if CMEIL can execute its turnaround plans effectively in the coming quarters.

Cochin Malabar Estates and Industries Ltd has reported a net profit of ₹128.10 lakh for the quarter ended June 30, 2025, compared to a profit of ₹49.92 lakh in the same period last year. The company's revenue from operations stood at ₹137.44 lakh, with a total income of ₹137.64 lakh for the quarter.

Financial Highlights

• Revenue from operations: ₹137.44 lakh
• Total income: ₹137.64 lakh
• Net profit: ₹128.10 lakh
• Earnings per share: ₹7.23 (basic and diluted)

The company's total expenses for the quarter amounted to ₹116.86 lakh, including employee benefits expense of ₹0.38 lakh, finance costs of ₹9.25 lakh, depreciation of ₹0.66 lakh, and other expenses of ₹8.86 lakh.

Annual General Meeting Announcement

Cochin Malabar Estates and Industries Ltd has announced that its 95th Annual General Meeting (AGM) will be held on Thursday, August 28, 2025, at 11:30 A.M. through Video Conferencing/Other Audio Visual Means. Key points from the AGM notice include:

1. Adoption of audited financial statements for the year ended March 31, 2025
2. Appointment of Mr. Chandra Prakash Sharma as a director liable to retire by rotation
3. Appointment of Mrs. Komal Bhotika as an Independent Director for a term of 5 consecutive years

Board's Statement on Company's Status

The Board of Directors noted that while the company's net worth has been fully eroded, they maintain the going concern status. This decision is based on the ongoing development of land assets in Goa and future business plans.

Auditor's Observations

The company's auditors, Singhi & Co, have drawn attention to the fact that the company's net worth is fully eroded and its current liabilities exceed current assets. However, the financial statements have been prepared on a going concern basis, with the appropriateness dependent on the company's ability to:

• Repay obligations through utilization of property, plant and equipment
• Generate regular income
• Resume normal operations

Investors and shareholders are advised to review the full financial results and AGM notice for more detailed information on the company's performance and future plans.