Shivom Investment & Consultancy Ltd Approves Financial Results and Announces AGM Following Corporate Restructuring

Shivom Investment & Consultancy Ltd Approves Financial Results and Announces AGM Following Corporate Restructuring​

Shivom Investment & Consultancy Limited has approved its Audited Financial Statements for the financial year ended March 31, 2024, alongside setting the date for the ensuing Annual General Meeting (AGM). The results reflect significant operational challenges as the company continues through its Corporate Insolvency Resolution Process (CIRP), following the surrender of its NBFC registration.

The Board meeting reviewed and approved the financial statements for the fourth quarter and the full financial year ended March 31, 2024. The management confirmed that the AGM is scheduled to adopt these results.

Financial Performance Review​

The company reported a loss for the period ending March 31, 2024. Analysis of the Profit and Loss Statement reveals a substantial decrease in revenue from operations compared to the preceding year.

Key financial metrics for FY 2023-24 stand as follows (Amount in Lacs):


The company's financial position as of March 31, 2024, shows a total equity and liabilities amount of 3,833.06 lacs, up marginally from 3,822.03 lacs in the previous year. The balance sheet notes indicate that long-term borrowings stand at 3,002.50 lacs.

Operational Status and Audit Findings​

The company has been undergoing CIRP since February 7, 2024, following an order from the National Company Law Tribunal (NCLT), having surrendered its NBFC license. The Board noted that the implementation of certain actions under the Resolution Plan remains pending, including procedural formalities and approvals from regulatory authorities.

The Independent Auditor’s Report presented a qualified opinion on the standalone financial statements. Key qualifications raised by M/s S Parth & Co include:

• Accounting Departure: The company prepared its financial statements in accordance with Accounting Standards (AS) notified under the Companies Act, 2013, instead of the applicable Indian Accounting Standards (Ind AS).
• Records Access: Management was noted to have incomplete access to historical books of account, agreements, and records related to certain assets and liabilities.
• Restructuring Impact: The accounting impact of the significant restructuring under the Resolution Plan has not been fully determined or incorporated into the financial statements.

Cash Flow and Statutory Compliance​

The Standalone Cash Flow Statement for the year ended March 31, 2024, showed a net cash generated from operating activities of (821.41) lacs. The closing balance for Cash and Cash Equivalents was recorded at 0.13 lacs.

Regarding statutory compliance, the auditor noted that no provision has been made in the books of account for gratuity as per Accounting Standard 15. Furthermore, the audit report confirmed that material uncertainty exists regarding the company's capability to meet its existing liabilities within one year from the balance sheet date.

Stock Price Movement​

Shivom Investment & Consultancy Ltd settled at ₹0.43 on Monday, maintaining its price despite the market suspension. The shares moved within an intraday range established between a low of ₹0.41 and a high of ₹0.45.