SRM Energy Limited , a company in the power generation sector, has reported a significant standalone net loss of Rs 139.70 crore for the quarter ended June 30. This marks a substantial increase from the Rs 8.70 lakh loss reported in the previous quarter.

Financial Performance

The company's financial results paint a challenging picture:

Operational Challenges

SRM Energy is facing severe operational challenges:

• No business operations and continuous cash losses
• Fully eroded net worth with accumulated losses
• Current liabilities exceeding current assets

Impairment and Asset Held for Sale

The company has made a significant impairment provision of Rs 131.00 lakh on its investment in its wholly-owned subsidiary, SRM Energy Tamilnadu Private Limited (SETPL). This investment has been classified as an asset held for sale at Rs 1.00 lakh, reflecting the proposed sale to the parent company, Spice Energy Private Limited.

Subsidiary Issues

SETPL, the wholly-owned subsidiary, is facing its own set of challenges:

• Approached NCLT for insolvency resolution
• Received an attachment order from SEBI for a Rs 4,326.56 crore loan amount
• Sold a portion of land at a loss of Rs 10.16 lakh

Going Concern Uncertainty

The statutory auditors have issued a qualified conclusion, highlighting material uncertainty regarding the company's ability to continue as a going concern. The management expects support from the parent company to meet expenses if the company is unable to do so on its own.

Employee Salaries

The company has unpaid employee salaries amounting to Rs 13.98 lakh as of June 30.

Future Outlook

With no current business operations and mounting financial challenges, SRM Energy's future remains uncertain. The company's ability to turn around its operations and financial position will likely depend on the success of its restructuring efforts and the support from its parent company.

SRM Energy Limited has announced a significant corporate action that requires shareholder approval through a postal ballot process. The company's Board of Directors has approved the transfer of its entire stake in its wholly-owned subsidiary to its holding company, setting in motion a series of events that will culminate in late August 2025.

Key Highlights

• The Board of Directors of SRM Energy Limited has approved the transfer of 13,20,000 equity shares in SRM Energy Tamilnadu Private Limited to Spice Energy Private Limited.
• The shares have a face value of Rs. 10.00 each and represent the company's entire stake in its wholly-owned subsidiary.
• Shareholder approval will be sought through a postal ballot process, which includes remote e-voting.
• Mr. Satish Kumar Nirankar of M/s. S.K. Nirankar & Associates has been appointed as the scrutinizer for the e-voting process.

Postal Ballot and E-Voting Details

The company has outlined the following schedule for the postal ballot process:

Additional Information

The Board meeting that approved these measures was held on July 22, 2025. It commenced at 12:50 PM and concluded at 01:40 PM, slightly later than the originally scheduled time of 12:00 Noon.

SRM Energy Limited has stated that the postal ballot notice containing the proposal for share transfer and other related resolutions will be submitted to the Bombay Stock Exchange in due course.

Shareholders are advised to watch for the official postal ballot notice, which will provide detailed instructions on the e-voting process and the full text of the resolutions to be considered.

This corporate action represents a significant change in the company's structure, potentially impacting its operations and stakeholder interests. Investors and shareholders are encouraged to carefully review the forthcoming postal ballot materials and exercise their voting rights accordingly.