CRP Risk Management Limited Reports Net Loss in Q4 FY25 Amid Audit Qualifications
CRP Risk Management Limited reported a net loss of ₹0.27 lakhs for Q4 FY25 with total income declining 83.5% to ₹215.77 lakhs. The company faces significant challenges including NPA classification by banks, outstanding TDS dues of ₹44.41 lakhs, advances to suppliers worth ₹8.96 crores, and slow-moving inventory of ₹2.44 crores without adequate provisions.
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CRP Risk Management Limited has submitted its revised audited financial results for the quarter ended March 31, 2025, revealing challenging financial conditions marked by a net loss and significant audit qualifications. The company's performance reflects operational difficulties and regulatory concerns that have impacted its financial standing.
Financial Performance Overview
The company reported a net loss of ₹0.27 lakhs for the year ended March 31, 2025, a significant decline from the net profit of ₹3.62 lakhs recorded in the previous year. Total income dropped substantially to ₹215.77 lakhs compared to ₹1,304.93 lakhs in FY24, representing a decline of over 83%.
| Financial Metric | FY25 (₹ Lakhs) | FY24 (₹ Lakhs) | Change |
|---|---|---|---|
| Total Income | 215.77 | 1,304.93 | -83.5% |
| Total Expenditure | 216.04 | 1,300.30 | -83.4% |
| Net Profit/(Loss) | (0.27) | 3.62 | Loss |
| Earnings Per Share | (0.00) | 0.02 | Negative |
Balance Sheet Position
The company's balance sheet shows total assets and liabilities of ₹8,915.18 lakhs as of March 31, 2025, down from ₹10,304.48 lakhs in the previous year. Net worth stood at ₹6,059.02 lakhs, marginally higher than ₹6,048.95 lakhs in FY24.
| Balance Sheet Item | FY25 (₹ Lakhs) | FY24 (₹ Lakhs) |
|---|---|---|
| Total Assets | 8,915.18 | 10,304.48 |
| Total Liabilities | 8,915.18 | 10,304.48 |
| Shareholders' Funds | 6,059.62 | 6,048.95 |
| Share Capital | 1,748.49 | 1,748.49 |
Audit Qualifications and Concerns
The independent auditor's report contained several qualifications that highlight significant operational and financial challenges. The company has been classified as a Non-Performing Asset by State Bank of India on December 28, 2021, and by The Wai Urban Co-Operative Bank Ltd on November 30, 2021.
Outstanding statutory dues present another area of concern:
| Statutory Due | Amount (₹ Lakhs) |
|---|---|
| TDS Payable | 44.41 |
Emphasis of Matter Issues
The auditors highlighted two critical matters requiring attention. The company has advances paid to suppliers amounting to ₹8.96 crores outstanding at the year-end. Additionally, inventory worth ₹2.44 crores consists of slow-moving or obsolete stock, for which adequate provisions for diminution in value have not been made.
Cash Flow Analysis
The company's cash flow statement reveals improved operating cash generation of ₹677.90 lakhs in FY25 compared to negative ₹468.19 lakhs in FY24. However, cash and cash equivalents decreased marginally from ₹8.66 lakhs to ₹8.20 lakhs during the year.
| Cash Flow Component | FY25 (₹ Lakhs) | FY24 (₹ Lakhs) |
|---|---|---|
| Operating Activities | 677.90 | (468.19) |
| Investing Activities | - | - |
| Financing Activities | (678.37) | 468.19 |
| Net Change | (0.46) | 0.00 |
The results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on May 30, 2025. The company continues to face operational challenges while working to address the various audit qualifications and regulatory concerns highlighted in the financial statements.
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