**CMI Limited** is a specialized manufacturer of wires and cables in India, historically recognized for its high-degree of product customization and presence in critical infrastructure sectors including Railways, Telecommunications, and Power. The company is currently navigating a **Corporate Insolvency Resolution Process (CIRP)** under the **Insolvency and Bankruptcy Code (IBC), 2016**, and is undergoing a structural and financial transition under the supervision of a Resolution Professional. --- ### **Current Corporate Status & Insolvency Proceedings** The company’s operational and financial governance is currently dictated by its legal status under the **NCLT**: * **CIRP Initiation:** Process initiated by the **NCLT, Delhi Bench**, on **July 28, 2023**, following a petition by **Canara Bank** regarding a default of **₹164.86 crore**. * **Management Transition:** The powers of the Board of Directors are suspended. Operations and regulatory compliances are managed by the **Resolution Professional (RP)**, Mr. **Deepak Maini**. * **Liquidation Status:** As of late **2025**, an application for the **liquidation** of the company is pending before the Adjudicating Authority, as no Resolution Plan has been finalized by the **Committee of Creditors (CoC)**. * **Compliance Constraints:** Due to the insolvency, the company has faced challenges in maintaining **Ind AS** disclosures, physical asset verification, and payment of depository dues to NSDL/CDSL, leading to a suspension of access to shareholder data (**Benpose**). --- ### **Specialized Product Portfolio & Technical Capabilities** CMI Limited maintains a diverse range of high-specification cabling solutions designed for harsh environments and precision engineering: | Segment | Key Product Offerings | Strategic Applications | | :--- | :--- | :--- | | **Railways** | Signaling cables, electrification wires, and quad cables. | Modernization of Indian Railways; **100% electrification** targets. | | **Telecom & 5G** | Jelly Filled Telephone Cables (**JFTC**), Fiber Optic, High-frequency twisted pair. | **5G infrastructure**; data-power combined cables offering **50% cost savings**. | | **Power & Grid** | **LT/HT** cables, **HVDC** (High-Voltage Direct Current), Underground cables. | Smart Grids, cross-border power delivery, and urban undergrounding. | | **Electric Mobility** | **EV Charging Cables** (AC & **DC Charging**). | High-speed charging stations (**400V to 480V**) up to **50kW**. | | **Specialty/Space** | Subsea cables, Control & Instrumentation, specialized wiring. | Offshore wind farms, **ISRO** space missions, **BHEL**, and **NTPC**. | --- ### **Manufacturing Footprint & Operational Infrastructure** The company’s production capacity is centered in Northern India, though utilization has been severely impacted by financial constraints: * **Faridabad Works (Haryana):** Located at Sector 6 (Plots 71 & 82), serving as a primary manufacturing hub. * **Baddi Works (Himachal Pradesh):** A specialized unit in Bhatauli Khurd. This plant has recently remained **non-operational** due to a lack of working capital, contributing to significant operational deficits. * **Registered Office:** Located in the Jhilmil Industrial Area, Delhi. --- ### **Market Strategy & Structural Growth Drivers** Despite financial distress, the company’s business model aligns with several long-term Indian infrastructure mega-trends: * **Railway Modernization:** Leveraging the **₹13 trillion** National Infrastructure Pipeline investment and the goal of **85% electrification** by **2030**. * **Renewable Energy Integration:** Demand for specialized cables to support India’s **523 GW** renewable capacity target by **2030**. * **Data Center Expansion:** Rising demand for liquid-cooled and high-speed fiber optic cables driven by AI and Cloud computing. * **Export Focus:** A strategic footprint in **20+ countries** (including **UK, Germany, Singapore, and UAE**) utilizing a contract manufacturing model with **advance payment** terms to mitigate credit risk. * **Order Book:** Historically, the company has maintained approvals supporting an order book between **₹300 - ₹500 crores**. --- ### **Financial Performance & Capital Structure** The company’s financial health is characterized by severe net worth erosion and high debt obligations. **Standalone Financial Summary:** | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Revenue from Operations** | **5,808.00** | **2,908.00** | **2,359.00** | | **Profit/(Loss) After Tax** | **(1,103.15)** | **(1,006.00)** | **(11,009.02)** | | **Other Equity / Reserves** | **(16,247.28)** | - | **(14,305.62)** | **Liquidity and Debt Profile (as of March 31, 2024):** * **Total Borrowings:** **₹40,848.53 Lakhs**, with **₹31,361.11 Lakhs** classified as payable on demand. * **Net Worth:** Fully eroded; accumulated losses reached **₹164.08 Crore** by September 2024. * **Share Capital:** Paid-up capital stands at **₹16.03 Crore** (1,60,27,457 equity shares at ₹10 each). * **Credit Rating:** No ratings obtained for **FY 2024-25**; no dividends recommended due to continuous losses. --- ### **Critical Risk Factors & Audit Qualifications** Investors should note the following high-impact risks identified in recent regulatory filings and audit reports: * **Going Concern Uncertainty:** Auditors have issued a **Qualified Opinion**, questioning the company's ability to continue operations given the pending liquidation application and total net worth erosion. * **Operational Inefficiency:** Inability to cover fixed costs due to the closure of the Baddi plant and underutilization of Faridabad facilities. * **Commodity & Macro Exposure:** High sensitivity to **Copper and Aluminum** prices; the company does **not** currently engage in hedging, leaving it vulnerable to margin compression. * **Data & Compliance Gaps:** * Lack of a **Fixed Asset Register** and physical verification of Property, Plant, and Equipment (**PPE**). * Unconfirmed balances for **Trade Receivables, Payables, and Bank accounts**. * Unascertained liabilities regarding **Income Tax, TDS, and GST** litigation. * **Market Competition:** Intense pressure from the unorganized sector and low-cost imports, alongside rising domestic logistics costs driven by fuel price volatility. * **Exceptional Losses:** Recent financials include heavy provisions for **doubtful debts**, **liquidated damages**, and **inventory write-downs**.