Submission of Audited Financials Results for the Quarter & Financial Year Ended 31st March, 2025
GRANDOAK · price
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Awaiting price reaction for this filing.
Grand Oak Canyons Distillery Ltd (formerly Pacheli Industrial Finance Ltd), a Core Investment Company, reported audited results for FY25 with a sharp swing to a loss. Standalone loss after tax for the year ended March 2025 was about Rs 500.62 lakhs compared with a profit of Rs 0.52 lakh in FY24, driven by total expenses ballooning to Rs 508.53 lakhs against total income of Rs 106.45 lakhs. The statutory auditor flagged in CARO that the company may not be capable of meeting its liabilities as they fall due within one year from the balance sheet date. During the year, about Rs 2,153 crore of loans given by the company were converted into equity after borrowers cited financial distress, and the statutory auditor resigned with the replacement not ratified at an EGM. The auditor also noted the company is required to register under Section 45-IA of the RBI Act but has not done so.
This is a clearly negative filing for shareholders. A large swing to loss, an explicit going-concern-type warning from the auditor, a botched auditor change, and the need for RBI registration all raise serious red flags about the company's solvency and governance, which is likely to weigh on the stock and on minority shareholder confidence.