Ceenik Exports (India) Limited has received a Final Order from the Regional Director (Western Region), Ministry of Corporate Affairs, under Section 441 of the Companies Act, 2013, marking the conclusion of regulatory proceedings that began with an Interim Order addressing non-compliance issues spanning three financial years from 2015-16 to 2017-18.

Final Order and Penalty Payment

The company has paid a total penalty amount of ₹4.25 lakh as levied under the Final Order for compounding defaults under Section 139 of the Companies Act, 2013. The non-compliance specifically related to the appointment and ratification of statutory auditors during the mentioned financial years, where the company appointed statutory auditors for one year instead of the required five-year term.

Nature of Compliance Violation

The regulatory action centered on the company's failure to file Form ADT-1 for the appointment of statutory auditors for the mandatory five-year period under Section 139 of the Companies Act, 2013. Instead, the company had appointed statutory auditors for only one year during the financial years 2015-16 to 2017-18, constituting a significant procedural violation.

Regulatory Process and Timeline

The company received the Final Order on December 27, 2024. However, due to corrections required in the order, Ceenik Exports approached the Regional Director's office to obtain an updated order copy. Following their direction, the company filed a request letter with the RD office for the corrected documentation.

Impact Assessment

According to the company's disclosure, the penalty payment of ₹1.50 lakh to the Ministry of Corporate Affairs represents the financial impact of the non-compliance. The company has stated that there is no material impact on business operations or other aspects of the company's functioning. Managing Director Narain Nanik Hingorani has overseen the company's response to the regulatory proceedings throughout this process.

Compliance and Disclosure

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing detailed information about the Final Order and its implications. This transparency demonstrates the company's commitment to keeping stakeholders informed about regulatory developments that could affect its operations.

Ceenik Exports (India) Limited, a company engaged in realty, investments, and derivative trading, has reported a significant loss for the first quarter. The company's financial results, approved by the Board of Directors on August 12, reveal a challenging start to the financial year.

Financial Performance

Ceenik Exports reported a net loss of Rs. 379.54 lakhs for the quarter ended June 30, a stark contrast to the profit of Rs. 380.51 lakhs recorded in the same quarter of the previous year. The company's total income from operations turned negative at Rs. 340.64 lakhs, primarily due to substantial losses in its derivative trading business.

Key financial highlights for Q1:

The company's performance was significantly impacted by:

1. Losses in derivative trading business: Rs. 388.27 lakhs
2. Positive contribution from realty & investments segment: Rs. 47.63 lakhs

Segment-wise Performance

Ceenik Exports operates in two main segments:

1. Realty & Investments: This segment generated revenue of Rs. 47.63 lakhs and a segment result of Rs. 32.70 lakhs.
2. Derivative Trading Business: This segment reported a loss of Rs. 388.27 lakhs, significantly impacting the overall performance.

Annual General Meeting and Corporate Actions

The Board of Directors has scheduled the 31st Annual General Meeting (AGM) for September 25, to be held via video conferencing. Other key decisions include:

1. Appointment of M/s Dilip Swarnkar & Associates as secretarial auditors for five years, subject to shareholder approval.
2. Setting September 18 as the cut-off date for AGM voting eligibility.

Balance Sheet Overview

As of June 30, Ceenik Exports reported:

• Total Assets: Rs. 5,723.03 lakhs
• Total Equity: Rs. 1,699.87 lakhs
• Non-Current Liabilities: Rs. 1,062.63 lakhs
• Current Liabilities: Rs. 2,960.53 lakhs

The company's financial position reflects a mix of investments in property, derivative trading assets, and various current and non-current assets.

Conclusion

Ceenik Exports faces challenges in its derivative trading business, which has significantly impacted its overall financial performance for Q1. The company's realty and investments segment, however, continues to contribute positively. As the company moves forward, stakeholders will be keenly watching how it navigates these challenges and works towards improving its financial position in the coming quarters.