Mcleod Russel India Ltd

⚠️ McLeod Russel India’s Financial Health in Question: Key Concerns & Uncertainties

- Unrecognized penal/compound interest and adjustments on borrowings from ARCs, banks, and ICDs pending reconciliation.

- Fair value of Property, Plant, Equipment, and Goodwill undetermined; potential impairments not assessed.

- Lease rent payable by parent company remains uncalculated and unrecorded.

- Statutory liabilities (including interest) outstanding but not fully determined.

- Arbitral Tribunal award involving promoter entities (₹50,896 lakhs + USD/INR sums) not recognized.

- Debit/credit balances (borrowings, interest) under reconciliation; adjustments unclear.

- Predecessor auditor flagged non-compliance risks (Section 185, Companies Act) on loans to group companies.

- Current liabilities exceed current assets; operational losses erode net worth—going concern doubts.

- Resolution plan for debt restructuring submitted to NARCL; outcome pending.

- Net loss of ₹495 lakhs (6M ending Sept 2025) on ₹8,872 lakhs total income.

- Segment losses: India (₹1,242 lakhs), Uganda (₹161 lakhs), UK (₹87 lakhs); Others profit: ₹48 lakhs.

- Total assets: ₹3,75,533 lakhs; liabilities: ₹3,69,186 lakhs (Sept 2025).

- Auditors state financials don’t comply fairly with Indian Accounting Standards.

- Revenue from Operations: ₹32,417 lakhs (Q2 2025) vs. ₹16,803 lakhs (Q1 2025).

- Quarterly PBT: Profit of ₹3,751 lakhs (Q2 2025) vs. loss of ₹4,949 lakhs (Q1 2025).

- EPS: ₹2.79 (Basic/Diluted) for Q2 2025.

- ICDs of ₹2,86,050 lakhs to promoter entities face recoverability risks; ₹1,01,039 lakhs provisioned (shortfall unconfirmed).

- Material uncertainties over going concern status amid debt restructuring talks.

- Auditors’ adverse conclusions impact fairness of financial statements.