Fedders Electric and Engineering Limited has submitted to the Exchange, the financial results for the period ended March 31, 2025.
Awaiting price reaction for this filing.
Fedders Electric and Engineering Limited has submitted its audited financial results for the quarter and year ended March 31, 2025. The statutory auditors, M/s O. Aggarwal & Co., issued a qualified (modified) opinion, flagging several issues: non-compliance with the minimum 25% public shareholding rule, suspended share trading on BSE and NSE, non-transfer of Rs 47.65 lakh of unclaimed dividends to the Investor Education and Protection Fund (IEPF), missing fixed asset and scrap inventory records, non-compliance with Ind AS 109 on preference shares valuation, lack of documentation for travel expenses, and failure to spend the required Rs 76.32 lakh on CSR activities. Revenue from operations fell sharply from Rs 204.96 crore in FY24 to Rs 139.57 crore in FY25, and profit for the year dropped from Rs 87.08 crore to Rs 38.88 crore. The company has also applied to NCLT for delisting from both stock exchanges, as 100% of shares are now held by the promoter. Contingent liabilities in the form of bank guarantees increased sharply from Rs 0.52 crore to Rs 12.58 crore.
Multiple auditor qualifications, a sharp drop in revenue and profits, suspended share trading, and the proposed delisting are significant red flags. Public shareholders face illiquidity and governance concerns, while the qualified opinion suggests the financial statements may not fully reflect the company's true position.