Board Meeting outcome for approval of Audited Consolidated and Standalone Financial Results for the Quarter and Financial Year ended 31.03.2025
Awaiting price reaction for this filing.
Inditrade Capital's board approved FY25 audited results on 21 August 2025, but the auditor (Kirtane & Pandit LLP) issued an Adverse Opinion on both standalone and consolidated statements. Standalone, the company swung to a loss of Rs 297.86 lakhs in FY25 from a profit of Rs 67.52 lakhs in FY24, with revenue from operations nearly halving to Rs 779.09 lakhs. Consolidated performance was far worse: a loss of Rs 10,553.55 lakhs versus a profit of Rs 312.42 lakhs last year, with revenue collapsing about 67% to Rs 5,330.22 lakhs and a massive Rs 6,168.62 lakhs impairment charge on financial instruments. The auditor flagged material uncertainty over going concern because subsidiaries (Inditrade Fincorp, Microfinance, Scalerator) themselves face going-concern doubts and account for roughly 68% of consolidated assets. Other red flags include Rs 309.21 lakhs of deferred tax assets that may not be realisable, lapsed RBI qualifying-asset norms in the microfinance arm, Rs 214.89 lakhs of unpaid statutory dues, and Rs 1,414.47 lakhs still frozen by law-enforcement agencies in the Fincorp subsidiary's bank accounts.
This is a severe negative disclosure — an Adverse Opinion from the auditor combined with a going-concern warning is rare and signals deep financial stress at both the company and its key subsidiaries. Shareholders should expect heightened stock-price volatility, possible regulatory scrutiny from NSE/BSE and RBI, and a real risk of value erosion in subsidiary investments. Investors should treat the stock as high-risk pending clarity on the frozen funds, the impairment of loans/investments, and any capital-raising or restructuring plans from the board.