⚡ Flash Summary
Crescent Jute Products Limited (CJPL) faces significant operational and financial challenges. The company ceased operations in May 2011 due to a shortage of working capital and declining demand. The company has an accumulated loss of Rs. 476.65 million as of June 30, 2025, resulting in negative equity. The management is implementing a closure plan involving asset disposal, but currently lacks funds for future business initiatives.
📌 Key Takeaways
- 📉 CJPL’s operations have been closed since May 2011.
- 🏭 The company decided to dispose of property, plant, and equipment in October 2011.
- ❌ All property, plant, and equipment were disposed of by June 30, 2019.
- 💰 The company’s accumulated losses as of June 30, 2025, amount to Rs. 476.65 million.
- Equity has turned negative, with a balance of Rs. 203.38 million.
- ⛔ There was no revenue in FY 2024-25 due to non-operational status.
- 🏦 Other income of Rs. 1.141 million is mainly from bank accounts and gains on share sales.
- 💸 Administrative expenses totaled Rs. 8.507 million.
- ➖ Other expenses amounted to Rs. 35,000.
- 📉 Finance costs were Rs. 9,000.
- ❗ The company reported a loss before taxation of Rs. 7.410 million.
- 🧾 There was no taxation.
- ❌ The company reported a loss after taxation of Rs. 7.410 million.
- 📉 Accounts show a loss of Rupees 7.41 million for the year ended June 30, 2025, compared to a profit of Rupees 7.38 million in 2024.
- ⛔ The company currently lacks funds for future business plans.
🎯 Investment Thesis
Given CJPL’s dire financial situation, cessation of operations, and negative equity, a SELL recommendation is warranted. The company’s dependence on asset disposal and the lack of funding for future business plans do not offer a compelling investment case. There is little evidence to suggest a turnaround, and the risks far outweigh any potential return.
Disclaimer: AI-generated analysis. Not financial advice.