Audited Financial Results for the quarter and year ended 31st March, 2025
Awaiting price reaction for this filing.
Modern Denim Limited reported audited results for FY25 showing a revenue from operations of Rs. 480.76 lacs, a sharp decline of about 39% from Rs. 790.82 lacs in FY24. The company posted a net loss of Rs. 569.78 lacs for FY25, wider than the Rs. 533.52 lacs loss in the previous year. EPS for FY25 stood at negative Rs. 1.42. The auditor (J.T. Shah & Co) issued a qualified opinion, flagging that the company has not provided for roughly Rs. 685 lacs in interest and amortization on borrowings, cumulative redeemable preference shares, and non-current borrowings. An Emphasis of Matter paragraph highlights that the company's net worth is fully eroded with a negative net worth of Rs. 6,639.80 lacs, and material uncertainties exist about its ability to continue as a going concern. A scheme of compromise and arrangement under Sections 230-232 of the Companies Act, 2013 is pending approval.
This is a deeply negative filing for shareholders — the company is loss-making, revenue is collapsing, equity is wiped out, and the auditor has flagged serious going-concern doubts. Pending NCLT approval of its restructuring scheme is the key lifeline; rejection or delay could put the stock at risk of further decline or suspension.