Audit Report and Declaration of Statement of Impact of Audit Qualification for the year ended March, 2025
Awaiting price reaction for this filing.
Shah Foods Limited filed its audited standalone financial results for the quarter and year ended March 31, 2025. The company posted total income of Rs 378.22 lakhs for FY25 compared to just Rs 0.09 lakhs in FY24, swinging to a net profit of Rs 10.80 lakhs from a loss of Rs 21.91 lakhs the previous year. EPS improved to Rs 1.81 from a negative Rs 3.67. However, the balance sheet remains weak with negative other equity of Rs 126.98 lakhs, trade payables jumping to Rs 184.16 lakhs, and factory land and machinery classified as held for sale. The statutory auditor (M/s Keshri & Associates) issued an unmodified (clean) opinion with one Emphasis of Matter regarding the unsold factory assets. The company separately declared under SEBI LODR Regulation 33(3)(d) that there are no audit qualifications on the financial results.
Shareholders get clarity that the auditor has given a clean, unmodified opinion with no qualifications, which removes near-term audit risk. However, the deeply negative reserves, rising trade payables, and inability to sell factory assets highlight ongoing balance sheet stress, making this a turnaround story rather than a stable investment.