Outcome of the Board meeting dated 29.05.2025
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The Board approved the audited financial results for the quarter and year ended 31 March 2025. The company declared an 'unmodified opinion' to the exchanges, but the auditor (M/s Agarwal Khetan & Co.) actually issued a Qualified Opinion on the results. Key qualifications: (1) inability to determine fair value of investments under Ind AS due to lack of investee company data, (2) no provision made for a massive contingent liability of Rs. 245.32 crore arising from a corporate guarantee given for M/s Kohinoor Steel Pvt Ltd, which is under the insolvency resolution (CIRP) process, and (3) inability to assess the impact on profit and net assets. Despite this, FY25 numbers look strong on the surface: total income rose to Rs. 88.57 lakh (from Rs. 62.86 lakh), PAT jumped to Rs. 46.17 lakh (from Rs. 18.37 lakh, ~151% growth), and EPS rose to Rs. 1.54 from Rs. 0.61. The balance sheet, however, remains deeply stressed with negative total equity of Rs. (418.28) lakh, negative net worth, and borrowings of Rs. 981.25 lakh.
The mismatch between the company's 'unmodified opinion' declaration and the auditor's qualified opinion is a serious red flag. Combined with negative net worth and a Rs. 245+ crore contingent liability that dwarfs the company's entire asset base, this poses significant going-concern risk for shareholders. Short-term PAT growth may attract speculators, but the underlying financial weakness and unresolved guarantee exposure make this a high-risk stock.