News Earnings Value Industries Limited Reports Q1FY25 Loss of ₹682.23 Million Under Ongoing CIRPValue Industries Limited Reports Q1FY25 Loss of ₹682.23 Million Under Ongoing CIRP
Value Industries Limited reported a net loss of ₹682.23 million for Q1FY25 ended June 30, 2024, compared to ₹617.12 million in the previous year quarter. The company recorded finance costs of ₹640.82 million with no operational revenue. Operating under CIRP since 2018, the company faces significant operational challenges and auditor disclaimers due to unavailable pre-CIRP records and ongoing investigations.
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Value Industries Limited has announced its unaudited financial results for the quarter ended June 30, 2024, revealing continued financial challenges as the company operates under Corporate Insolvency Resolution Process (CIRP). The results were submitted with significant delays due to operational constraints and limited availability of pre-CIRP records.
Financial Performance Overview
The company's financial performance for Q1FY25 reflects the ongoing impact of insolvency proceedings:
| Metric | Q1FY25 (₹ Million) | Q1FY24 (₹ Million) | Change |
|---|---|---|---|
| Revenue from Operations | - | - | No change |
| Other Income | 0.67 | 0.46 | +45.65% |
| Total Income | 0.67 | 0.46 | +45.65% |
| Net Loss | (682.23) | (617.12) | -10.55% |
| Finance Costs | 640.82 | 543.32 | +17.95% |
| Depreciation | 36.87 | 43.55 | -15.34% |
The company reported no revenue from operations during the quarter, similar to the corresponding period in the previous year. Finance costs constituted the largest expense component at ₹640.82 million, representing a significant increase from ₹543.32 million in Q1FY24.
CIRP Status and Legal Proceedings
Value Industries Limited has been under CIRP since September 5, 2018, following an order by the National Company Law Tribunal (NCLT). The company is part of a consolidated insolvency process involving 13 Videocon Group entities. Key developments in the CIRP process include:
- Resolution Professional: Mr. Abhijit Guhathakurta continues to manage the company under CIRP provisions
- Approved Resolution Plan: Twin Star Technologies Limited's resolution plan was initially approved in June 2021 but later set aside by NCLAT in January 2022
- Supreme Court Appeals: Current status quo maintained pending Supreme Court directions on appeals filed by Twin Star Technologies Limited
- Trading Suspension: Company securities remain suspended on BSE and NSE since June 16, 2021
Auditor's Disclaimer and Operational Challenges
The statutory auditors, GAMP & Co., issued a disclaimer of conclusion on the financial results, citing several material limitations:
Key Audit Concerns:
- Unavailability of detailed pre-CIRP books of accounts and supporting documents
- Ongoing investigations by government agencies including SFIO and Directorate of Enforcement
- Assets recorded at carrying values without revaluation or impairment assessment
- Uncertainty regarding creditor claims and interest liabilities under moratorium
- Non-compliance with appointment of key managerial personnel requirements
Going Concern and Future Outlook
The auditors highlighted material uncertainty regarding the company's ability to continue as a going concern. The company's negative net worth and continued losses raise significant doubts about operational sustainability. The financial results noted that the company's future depends entirely on the successful completion of the CIRP and approval of a viable resolution plan.
Current Financial Position:
- Paid-up equity share capital: ₹391.86 million
- Basic and diluted earnings per share: ₹(17.41) for Q1FY25
- Other equity: Not disclosed for the current quarter
The Resolution Professional emphasized that the financial results were prepared on a best-effort basis using available data, with significant disclaimers regarding accuracy and completeness due to the constraints imposed by the ongoing insolvency proceedings.
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