Electrotherm (India) Limited has informed the Exchange about the Appointment of Cost Auditor
ELECTHERM · price
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The Board approved audited standalone and consolidated results for Q4 and FY ending March 31, 2025. Standalone revenue fell to Rs 4,115.37 crores (from Rs 4,271.50 crores in FY24), but net profit jumped to Rs 428.60 crores (from Rs 319.43 crores), largely due to Rs 106.78 crores in exceptional items from one-time debt settlements with banks and ARCs. The statutory auditor issued a qualified opinion, flagging non-provision of interest on NPA loans of Rs 916.51 crores (standalone) / Rs 1,212.65 crores (consolidated), which overstates FY25 net profit by Rs 131.80 crores. The Board appointed M/s. V. H. Savaliya & Associates as Cost Auditor for FY26, M/s. Bharat Prajapati & Co. as Secretarial Auditor for FY26–30, and cleared a postal ballot to appoint Mr. Tushar Jani as Director and Whole-time Director. The Bhandari promoter family signed a Family Settlement Agreement under which Mr. Mukesh Bhandari and his family will exit, transferring their shares to Mr. Shailesh Bhandari (Executive Vice Chairman), who will retain sole management control.
Despite headline profit growth driven by debt-settlement gains, the company's books remain weak — other equity is still negative (Rs -126.17 crores standalone), the auditor's qualification, lingering loan defaults, and the Enforcement Directorate's PMLA action (with bank accounts partly frozen) against the Executive Vice Chairman raise serious governance red flags. Shareholders should track the pending NCLT petition on preference shares, ED hearings, and execution of the family settlement, all of which could materially affect the stock and control structure.