Kiduja India Limited Reports Significant Loss for Q1, Raises Going Concern Issues
Kiduja India, an investment and securities firm, reported a significant loss of ₹1,624.27 crore for Q1 ended June 30, compared to a profit of ₹541.51 crore in the same quarter last year. Total income was ₹1,912.01 crore, while expenses surged to ₹3,536.28 crore. The company's net worth has been fully eroded due to continuous losses, raising going concern issues. Auditors highlighted material uncertainty, but financial statements were prepared on a going concern basis with promoters' assurance of continued financial support. Management remains committed to exploring new business opportunities despite challenges.
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Kiduja India , a company specializing in investment and dealing in shares and securities, has reported a substantial loss for the quarter ended June 30. The financial results, approved by the company's Board of Directors on August 12, reveal significant challenges facing the firm.
Financial Performance
The company reported a loss of ₹1,624.27 crore for the quarter ended June 30, a stark contrast to the profit of ₹541.51 crore recorded in the same quarter of the previous year. This represents a considerable downturn in the company's financial performance.
Key Financial Metrics
| Particulars | Q1 (₹ in crore) | Q1 Previous Year (₹ in crore) |
|---|---|---|
| Total Income | 1,912.01 | 883.31 |
| Total Expenses | 3,536.28 | 341.80 |
| Profit/(Loss) before tax | (1,624.27) | 541.51 |
| Earnings per Share (₹) | (6.77) | 2.64 |
The company's total income for the quarter stood at ₹1,912.01 crore, while total expenses amounted to ₹3,536.28 crore. The significant increase in expenses compared to the previous year's quarter has contributed to the substantial loss.
Going Concern Issues
The financial results have raised serious concerns about Kiduja India's ability to continue as a going concern. The company's net worth has been fully eroded due to continuous losses over the past few years. Additionally, the company's liabilities exceeded its financial assets as of June 30.
Auditor's Review
D. C. Bothra & Co. LLP, the company's statutory auditors, conducted a limited review of the financial results. In their report, they highlighted the material uncertainty regarding the company's status as a going concern. However, the financial statements were prepared on a going concern basis, supported by assurances from the company's promoters and their associates to provide continued financial support.
Management's Stance
Despite the challenging financial situation, the company's management remains committed to exploring new business opportunities. The financial statements have been prepared on a going concern basis, reflecting the promoters' commitment to support the company financially.
Business Segment
Kiduja India operates in a single reportable business segment: investment and dealing in shares and securities. The company's operations are primarily located in India.
Outlook
While the company faces significant financial challenges, the continued support from promoters and their associates provides some stability. However, the substantial loss and eroded net worth indicate that Kiduja India will need to implement strong measures to improve its financial position and restore investor confidence in the coming quarters.
Historical Stock Returns for Kiduja India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.88% | -5.44% | +12.14% | +10.58% | -56.38% | +635.38% |
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