Ceenik Exports (India) Limited, a company listed on the BSE with scrip code 531119, has found itself in regulatory hot water over non-compliance issues related to the appointment and ratification of statutory auditors. The company recently received an Interim Order from the Ministry of Corporate Affairs' Regional Director under Section 441 of the Companies Act, 2013, addressing irregularities spanning three financial years from 2015-16 to 2017-18.

Details of Non-Compliance

The Interim Order, issued by the Office of the Regional Director (Western Region), Ministry of Corporate Affairs, highlights a default under Section 139 of the Companies Act, 2013. The non-compliance specifically pertains to the appointment and ratification processes of Statutory Auditors during the mentioned financial years.

Regulatory Directives

As per the Interim Order, Ceenik Exports and its officers in default are required to take necessary steps to compound the default. This action is subject to final approval from the competent authority, indicating that the company's response to this order will be closely scrutinized.

Company's Response

In response to the regulatory action, Ceenik Exports has stated that it is in the process of taking appropriate actions to comply with the directions contained in the Interim Order. Narain Nanik Hingorani, the Managing Director of Ceenik Exports, signed off on the company's official intimation to the BSE regarding this matter.

Implications for Stakeholders

This development serves as a reminder of the importance of corporate governance and regulatory compliance in the Indian business landscape. Shareholders and potential investors of Ceenik Exports should closely monitor the company's actions in response to this Interim Order, as it may have implications for the company's financial reporting and overall governance structure.

The company's prompt disclosure of this regulatory action, made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrates a commitment to transparency with its stakeholders. However, the resolution of this non-compliance issue and its potential impact on the company's operations remain to be seen.

As the situation unfolds, market participants will be watching closely to see how Ceenik Exports addresses these compliance issues and works towards resolving them with the regulatory authorities.

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.