Update on Clarification on Financial result for quarter ended 30th June 2025
GANGESSECU · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 2.7 pts less than Nifty Microcap 250 and 2.0 pts less than its Tea & Coffee peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Ganges Securities filed its unaudited financial results for Q1FY26 (quarter ended 30 June 2025). On a standalone basis, net profit fell to ₹12.89 lakh from ₹33.66 lakh a year earlier, while consolidated net profit stood at ₹103.18 lakh driven by tea business revenues of ₹565.39 lakh. The stock exchanges had sought clarification on a procedural discrepancy in how the results were signed; the company confirmed that director Mr. Brij Mohan Agarwal was duly authorised by the board to sign in the absence of the Chairperson/MD/WTD, enclosing a certified board resolution. Notably, Note 3 of the consolidated results discloses that during FY25, a wholly-owned subsidiary Cinnatolliah Tea Limited identified a misappropriation of funds by its former CFO using fictitious invoices, with an FIR filed and ₹101.86 lakh booked as an exceptional item.
The clarification resolves a routine compliance query and is unlikely to materially move the stock. However, the disclosed fraud at the tea subsidiary — involving the former CFO and FIR — is a governance red flag that retail investors should weigh, even though the financial impact was already captured in FY25 accounts.