Bheema Cements reports qualified audit opinion, faces going concern doubts

Bheema Cements Limited’s statutory auditors, M/s P. Murali & Co., issued a qualified opinion on the company's audited financial results for the fourth quarter and financial year ended March 31, 2025. This qualification stems from the company's failure to provide interest on outstanding amounts payable to financial creditors, namely Union Bank of India and JMF Asset Reconstruction Company, as mandated by a National Company Law Tribunal (NCLT) order. The company stated its policy is to pay interest at the time of final principal repayment.

Additionally, the auditors highlighted a material uncertainty regarding the company's ability to continue as a going concern. This is due to Bheema Cements not meeting payment obligations to JM Financial Asset Reconstruction Company Limited as per a National Company Law Appellate Tribunal (NCLAT) Order dated January 19, 2024, leading to a liquidation petition being filed. The company is pursuing an SLP in the Supreme Court to modify these payment terms.

Further qualifications include unremitted TDS amounting to Rs. 9.58 Lakhs as of March 31, 2025, and issues with Loans & Advances, Property, Plant, and Equipment. The company also faces SEBI trading suspension and non-payment of Annual Listing Fees due to operational challenges and regulatory licensing delays following its Corporate Insolvency Resolution Process emergence.