Audited financials including Auditors report and declaration with unmodified opinions for fy 2024-2025
Awaiting price reaction for this filing.
Fourth Generation Information Systems Ltd reported FY25 revenue from operations of ₹243 lakhs, sharply down from ₹584 lakhs in FY24 (a ~58% decline). Profit for the year fell to ₹45 lakhs from ₹370 lakhs, with EPS dropping to ₹0.13 from ₹1.04. The company's net worth remains negative at -₹138.78 lakhs (vs -₹53.97 lakhs last year), and borrowings rose to ₹387.56 lakhs. The statutory auditor (Gorantla & Co) issued an unmodified opinion but included an explicit 'Emphasis of Matter – Going Concern' paragraph, noting that accumulated losses have fully eroded net worth, creating material uncertainty about the company's ability to continue as a going concern. Management says it is banking on a new software product (currently in capital work-in-progress) and additional funding to sustain operations. The board also appointed Ms. Neha Pamnani as Secretarial Auditor for FY25.
Despite an unmodified audit opinion, the going concern warning and deeply negative net worth are major red flags for shareholders — the stock carries significant solvency risk and the sharp drop in revenue and profit signals serious business deterioration.