Approval of Audited Financials for the year ended 31st March,2025
Awaiting price reaction for this filing.
The board approved audited financials for FY25 on 30 May 2025. The company reported no operating revenue, with only 'other income' of Rs 42.42 lakhs (vs Rs 39.37 lakhs in FY24). Total expenses fell sharply to Rs 26.12 lakhs (vs Rs 30.74 lakhs), pushing profit before tax up nearly 89% to Rs 16.30 lakhs and profit after tax up about 88% to Rs 12.57 lakhs (EPS Rs 0.07 vs Rs 0.04). Total assets stood at Rs 2,003.55 lakhs. However, the auditor (Vinod S. Mehta & Co.) issued a Qualified Opinion flagging 7 concerns, including a doubtful advance of Rs 2.32 crore from Topson Iron Ore India Pvt Ltd with no provision made, non-registration under RBI Act Section 45-IA, no internal audit conducted, and non-compliance with Ind AS-19 (employee retirement benefits) and Ind AS-109 (loan measurement). The company simultaneously filed a separate declaration calling the auditor's opinion 'unmodified' — directly contradicting the auditor's report. Operating cash flow was sharply negative at Rs -69.23 lakhs, and cash on hand nearly halved to Rs 26.67 lakhs.
The qualified auditor opinion with a material doubtful advance of Rs 2.32 crore unresolved is a significant red flag for shareholders. The contradictory filing claiming an 'unmodified opinion' raises governance concerns. Negative operating cash flow and absence of core operating revenue suggest the business lacks a clear income-generating activity — investors should treat these results with caution.