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CLC Industries Ltd
| Quarterly Financial Results Q3 FY 2025-26
Summary : CLC Industries reported a net loss with a qualified audit opinion and going concern warning, despite new promoters taking control and applying for trading resumption.
Quarterly Report Analysis & Insights
Financial Disclosures
- Total expenses: Rs. 3,745.85 Lakhs (Q3 FY26), Rs. 36,367.94 Lakhs (9M FY26).
- Cost of Materials Consumed: Rs. 2,296.11 Lakhs (Q3 FY26).
- Purchases: Rs. 235.41 Lakhs (Q3 FY26).
- Finance costs: Rs. 185.89 Lakhs (Q3 FY26).
- Employee benefit expenses: Rs. 38.45 Lakhs (Q3 FY26).
- Revenue from operations: Rs. 3,167.77 Lakhs (Q3 FY26), Rs. 35,146.58 Lakhs (9M FY26).
- Other income: Rs. 85.36 Lakhs (Q3 FY26), Rs. 346.99 Lakhs (9M FY26).
- Total Income: Rs. 3,253.13 Lakhs (Q3 FY26), Rs. 35,493.57 Lakhs (9M FY26).
- Paid-up equity share capital: Rs. 1,039.47 Lakhs.
- Net Worth: Rs. 126.90 Lakhs (Q3 FY26).
- Total Assets: Rs. 10,048.47 Lakhs (Q3 FY26).
- Total Liabilities: Rs. 10,048.47 Lakhs (Q3 FY26).
- Other equity: Rs. (38.52) Lakhs (Year ended 31-03-2025).
- Fixed deposit receipt lying with RP (Related Party).
- Standalone financial results are presented.
Corporate Overview
- Net loss for the quarter and nine months ended December 31, 2025.
- Qualified audit opinion due to unconfirmed fixed deposits.
- Auditor raised concerns about the company's ability to continue as a going concern.
- Company was under a resolution plan, indicating past financial distress and dependence on the Successful Resolution Applicants (SRA) for revival.
- Trading and Manufacturing of Cotton Bales and Cotton Yarn.
- Formal and procedural, reporting regulatory compliance and board decisions.
- Only one reportable segment: Trading and Manufacturing of Cotton Bales and Cotton Yarn.
Risk Factors
- Qualified audit opinion on financial results.
- Unconfirmed fixed deposits of Rs. 11.17 Lakhs.
- Material uncertainty about company's going concern.
- Company reported significant net loss for period.
Key Drivers
- New promoters assumed control of company.
- Successful resolution plan implemented for revival.
- Application for trading resumption submitted.
- Company aims for improved financial stability.
Auditor’s Report
- Qualified Opinion
- No confirmation of fixed deposits of Rs. 11.17 Lakhs was made available to us.
- Material uncertainty exists regarding the company's ability to continue as a going concern.
- First time occurrence of this audit qualification in the financial year.
Board Commentary
- Successful implementation of Resolution Plan by Manjeet Cotton Private Limited and Vitthal Corporation Limited consortium.
- New Promoters (SRA) assumed control with 95% shareholding.
- Formal re-classification of new and outgoing promoters as per SEBI and NCLT orders.
- Auditor's concern about going concern status.
- No shareholder complaints received or pending during the period.
- Compliance with four Labour Codes effective from November 21, 2025.
Corporate Governance
- Compliance with Code of Ethics issued by ICAI.
- Audit Committee reviewed financial results.
- Significant deficiencies in internal control identified by auditor.
Management Discussion & Analysis
Future Strategy
- New promoters (SRA) have assumed control, implying a new strategic direction.
- Application submitted for resumption of trading of equity shares.
Performance Drivers
- Successful implementation of the Resolution Plan by new promoters.
- Re-classification of promoters and change in control.
Risk Control Measures
- Management has taken full provision against the unconfirmed fixed deposits.
Critical Risks
- Material uncertainty regarding the company's ability to continue as a going concern.
- Unconfirmed fixed deposits of Rs. 11.17 Lakhs.
- Past financial distress leading to a resolution plan.