Dear Sir, Attached herewith Audited Financials for the Quarter and year ended 31.03.2025. Kindly take the same on records.
Awaiting price reaction for this filing.
Avasara Finance Ltd has submitted its audited standalone financial results for Q4 FY25 and the full financial year ended 31 March 2025. The company swung to a net loss of Rs. 44.61 lakhs in FY25 compared to a profit of Rs. 21.68 lakhs in FY24. Revenue from operations declined to around Rs. 115 lakhs (FY24: Rs. 133 lakhs), with essentially no revenue in the first three quarters. Accumulated losses have grown to Rs. 299.16 lakhs against a share capital of Rs. 500 lakhs, meaning negative other equity and significant erosion of net worth. Cash flow from operations turned negative at Rs. (1.49) lakhs versus Rs. 3.78 lakhs generated last year. Auditor P.B. Shetty & Co. LLP issued an unmodified (clean) opinion, though it flagged the going concern assumption and erosion of net worth under 'Other Matters', noting it depends on the company's future business plan.
Despite a clean audit opinion, the company is loss-making with fully eroded net worth, declining revenues, and negative operating cash flow — all red flags for a small NBFC. Management's reliance on future business plans to sustain going concern makes this a high-risk situation for shareholders, with the stock likely to remain under pressure.