Appointment of Internal Auditors of the Company for Financial Year 2024-25 and 2025-26
Awaiting price reaction for this filing.
The board approved audited consolidated financial statements for three years — FY2021, FY2022, and FY2023 — all carrying modified opinions from statutory auditor M/s Batliboi & Purohit, with disclaimers on going concern, pending reconciliations, and unaudited subsidiaries. The company allotted the first tranche of 23 lakh 0.01% unlisted non-cumulative redeemable preference shares of ₹100 each, totalling ₹23 crore, to Finquest Financial Solutions Pvt Ltd on a private placement basis. M/s Todarwal & Todarwal LLP was appointed as Internal Auditor for FY2024-25 and FY2025-26, subject to shareholder approval of remuneration. Mr. Alok Prakash, a PhD holder with 28 years of experience in paper and textile industries (previously Chief Sales Officer at Century Pulp & Paper, B.K. Birla Group), was appointed as CEO effective April 16, 2025. The filings reflect a company in deep financial distress, with the auditor flagging material uncertainty around going concern, fully eroded net worth of key subsidiaries, and substantial control/ownership complications.
For shareholders, the filing signals an ongoing turnaround attempt — new leadership, fresh internal audit oversight, and promoter-group capital infusion via preference shares — but the backdrop is worrying: multi-year audit disclaimers, going-concern doubts, and a history of CIRP. The stock may react cautiously given the severity of audit qualifications, though restructuring steps could be viewed as constructive.