Financial Results for the Financial Year ended 31st March, 2025
Awaiting price reaction for this filing.
Vijay Textiles reported audited FY25 results showing revenue from operations of Rs. 811.52 lakhs and a net loss of Rs. 1,917.90 lakhs, slightly narrower than the Rs. 2,352.24 lakh loss in FY24. The company's factory and assets are under possession following SARFAESI action by lenders in June 2024, and it has been classified as a Non-Performing Asset (NPA) by SBI and Axis Bank, with bank accounts frozen and equity trading suspended. The directors declared the audit report carries an 'unmodified opinion', but the actual auditor's report issued by SVD & Associates is a 'Disclaimer of Opinion' due to inability to verify transactions, long-outstanding advances of Rs. 1,479.92 lakhs, trade receivables of Rs. 1,526.85 lakhs, inventory concerns, and transactions routed through directors' personal bank accounts. A one-time settlement of Rs. 79.60 Crore with lenders failed, an NCLT insolvency plea by SBI was rejected in May 2024, and the company is closing its loss-making showroom operations.
Extremely negative for shareholders — the company is in severe financial distress with NPA status, frozen bank accounts, factory under lender possession, suspended equity trading, and a disclaimer (rather than unmodified) audit opinion contradicting management's declaration. Investors should treat this as a high-risk situation with material doubt on going concern and recoverability of assets.