Dear Sir, Attached is the 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 Limited (formerly TRC Financial Services Limited) reported a net loss of Rs. 44.61 lakhs for FY25, compared to a net profit of Rs. 21.68 lakhs in FY24, a swing of roughly Rs. 66 lakhs. The auditor (P. B. Shetty & Co. LLP) issued an unmodified (clean) opinion, but flagged significant concerns under 'Other Matters' — accumulated losses have grown to Rs. 299.16 lakhs, causing severe erosion of net worth (negative other equity of Rs. 299.16 lakhs against share capital of Rs. 500.09 lakhs). Q4 FY25 revenue from operations stood at Rs. 115.02 lakhs versus Rs. 133.00 lakhs in Q4 FY24. Total assets declined to Rs. 248.15 lakhs from Rs. 305.88 lakhs, and cash balances shrank to Rs. 0.43 lakhs. The company is continuing on a going-concern basis, with management citing plans to explore new revenue avenues, though the auditor noted this depends entirely on future business plan performance.
Negative for shareholders — the company has swung to a loss, its net worth is heavily eroded, and the auditor has explicitly questioned the going-concern assumption. For investors, this raises red flags about the company's financial health and long-term viability, despite the clean audit opinion.