CMR Green Technologies Limited excludes two Chiho ventures

CMR Green Technologies Limited excluded two Chiho joint ventures from its consolidated financial statements for the half year ended September 30, 2026 after operations ceased and their accounts were not prepared on a going-concern basis from March 31, 2022. The excluded entities are CMR-Chiho Industries India Private Limited and CMR-Chiho Recycling Technologies Private Limited.

Why did CMR Green exclude the two Chiho joint ventures?

CMR Green excluded the two Chiho ventures because operations had ceased and their boards decided, considering prevailing business circumstances, not to prepare financial statements on a going-concern basis. The exclusion applies to CMR-Chiho Industries India Private Limited and CMR-Chiho Recycling Technologies Private Limited for the six months ended September 30, 2026. The statutory auditor also said an ongoing dispute existed between the joint-venture partners.

The disclosure does not quantify the revenue, assets, liabilities, loss or cash flow of either excluded venture for the September 2026 half year. It also does not describe the nature of the partner dispute or disclose a settlement, disposal, restart or winding-up plan. CMR Green’s unaudited consolidated results for the six-month period were approved by its board on November 6, 2026.

ASA & Associates LLP drew attention to the non-consolidation in its limited-review report dated November 6, 2026, but did not modify its conclusion. The auditor stated that a review is narrower than an audit and provides moderate assurance. Its conclusion was that nothing had come to its attention to indicate that the September 2026 consolidated statement contained a material misstatement.

How long have the Chiho ventures used non-going-concern accounting?

The boards of both Chiho ventures determined that financial statements for each year ended March 31, 2022 to March 31, 2026, and for the six months ended September 30, 2026, would not be prepared on a going-concern basis. This covers five completed financial years and the first half of the financial year ending March 31, 2027. CMR Green cited cessation of operations and prevailing business circumstances for that treatment.

CMR Green consequently did not consider the ventures’ financial statements in the consolidated financial statements for September 30, 2026. The filing does not state which alternative accounting or measurement basis the ventures used, nor does it disclose separate balances for the periods from March 31, 2022 to March 31, 2026. The accounting disclosure is therefore limited to the basis of preparation and the resulting exclusion.

The auditor’s report separately identifies three joint ventures in the group structure as at September 30, 2026: the two Chiho entities and Nikkei CMR Aluminium India Private Limited. That list establishes that the Chiho companies were joint ventures rather than subsidiaries. The filing also lists six subsidiaries, including CMR Nikkei India Private Limited and CMR Toyotsu Aluminium India Private Limited.

Which joint-venture result remains in CMR Green’s reported figures?

CMR Green included a Rs 2.03 crore share of net profit from one joint venture for the half year ended September 30, 2026, compared with a Rs 2.46 crore share of net loss in the half year ended September 30, 2025. The auditor said the included joint-venture information was unaudited and furnished by management. It did not name that joint venture in the paragraph reporting the profit contribution.

The reported joint-venture contribution changed by Rs 4.49 crore between the two half-year periods, moving from a loss in September 2025 to a profit in September 2026. Consolidated profit before tax rose to Rs 183.98 crore from Rs 149.59 crore over the same periods. The two excluded Chiho ventures did not provide a separately reported contribution to the September 2026 consolidated result.

CMR Green reported investments in joint ventures of Rs 36.78 crore on its consolidated balance sheet at September 30, 2026, up from Rs 34.75 crore at March 31, 2026. The filing does not allocate this balance among the three named joint ventures. It therefore does not establish the carrying amount associated with either Chiho entity or with the joint venture that reported a profit share.

How did CMR Green’s wider consolidated performance change?

CMR Green reported revenue from operations of Rs 6,594.58 crore for the half year ended September 30, 2026, compared with Rs 4,074.01 crore a year earlier. Consolidated profit after tax increased to Rs 140.83 crore from Rs 113.87 crore. The group’s principal activity is recycling non-ferrous metals, including aluminium alloys in ingot and liquid form, billets, zinc alloy ingots and segregation of stainless steel, copper, brass, zinc, lead and magnesium.

Cash flow from operating activities remained negative at Rs 258.33 crore for the six months to September 2026, although it narrowed from an outflow of Rs 268.91 crore in the prior-year period. Operating profit before working-capital changes increased to Rs 444.18 crore from Rs 249.17 crore. The operating cash outflow reflected a Rs 503.98 crore inventory increase and a Rs 399.26 crore increase in trade receivables.

The working-capital comparison shows inventory growth was Rs 340.14 crore higher than the Rs 163.84 crore increase reported in the previous half year, while the receivables increase was Rs 176.82 crore higher than the prior-year Rs 222.44 crore movement. Trade payables increased by Rs 241 crore in the September 2026 half year, compared with an increase of Rs 7.78 crore a year earlier. These movements contributed to the Rs 658.91 crore change in working-capital adjustments.

On the September 30, 2026 balance sheet, total equity stood at Rs 2,047.40 crore and total liabilities at Rs 2,708.01 crore. Current borrowings were Rs 1,724.99 crore, compared with Rs 1,260.39 crore at March 31, 2026, while inventories rose to Rs 1,708.05 crore from Rs 1,316.85 crore. The disclosure does not link these balance-sheet changes to either excluded Chiho venture.

Conclusion

CMR Green’s September 2026 consolidated accounts exclude two non-operational Chiho ventures because their boards did not prepare accounts on a going-concern basis for periods from March 31, 2022. At the same time, the group reported Rs 6,594.58 crore of half-year revenue, Rs 140.83 crore of profit after tax and a Rs 2.03 crore profit share from one included joint venture.

The unresolved matter is the ongoing dispute between the Chiho joint-venture partners and the absence of separate financial data for the two ventures. Future CMR Green disclosures can show whether their exclusion continues after September 30, 2026, whether the Rs 36.78 crore joint-venture investment balance is further explained, and whether any resolution is reached for the inactive operations.