Considered, approved and taken on record Audited Financial results of the Company for the Quarter & Year ended 31 March 2026 and taken note of Audited Report of the Auditor for the Quarter ....
Awaiting price reaction for this filing.
AJEL Limited reported a Disclaimer of Opinion from auditors GMK & CO LLP for both standalone and consolidated financial statements for FY 2025-26. The auditors cited multiple material concerns: a Rs. 5 crore bank loan from Bank of Maharashtra declared NPA in October 2024 with no interest provision made; inability to verify trade payables, receivables, and goodwill impairment; Rs. 85.96 lakhs in unrecovered loans; and unaudited financial statements for the company's USA branch and step-down subsidiary. Consolidated revenue was flat at Rs. 1,366.57 lakhs (vs Rs. 1,364.38 lakhs prior year), while consolidated loss before tax improved to Rs. 46.08 lakhs from Rs. 167.00 lakhs. Standalone revenue grew marginally to Rs. 396.83 lakhs from Rs. 388.51 lakhs. Negative operating cash flows were Rs. 120.24 lakhs (consolidated) and Rs. 123.38 lakhs (standalone). Total borrowings stand at Rs. 1,239.45 lakhs consolidated.
The disclaimer of opinion is a serious red flag indicating fundamental concerns about financial statement reliability. Shareholders should be cautious as the company has mounting borrowings, negative cash flows, and an NPA loan without proper provisioning, raising substantial doubts about its ability to continue as a going concern.