Outcome of Board Meeting dated 13.08.2025 for approval of unaudited Financial Result for Q1 for FY 2025-26
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The board approved unaudited Q1 FY26 results showing revenue from operations of Rs. 30.87 lakh, sharply lower than Rs. 111.49 lakh in Q1 FY25. Despite this, the company reported a net profit of Rs. 6.60 lakh versus a loss of Rs. 65.99 lakh in the same quarter last year. However, reserves remain deeply negative at Rs. (693.97) lakh, and the full-year FY25 ended with a loss of Rs. 200.58 lakh. Critically, the statutory auditor (A.R. Sodha & Co.) issued an Adverse Opinion, flagging going concern issues due to ceasing operations, accumulated losses, and significant liabilities, along with unverified commission income of Rs. 30.86 lakh and non-provision of gratuity under Ind AS 19. The board accepted the completion of A.R. Sodha & Co. and appointed DDM & Associates (FRN 133446W) as the new statutory auditor, subject to shareholder approval. The secretarial auditor was also replaced. An EGM is scheduled for 23 September 2025 to alter the object clause of the Memorandum of Association.
This is a major red flag for shareholders — the adverse audit opinion and explicit going concern doubts indicate the company faces material uncertainty about its ability to continue operations. Combined with negative reserves, two years of losses, and a mid-year auditor change, the stock is likely to face selling pressure and heightened risk perception.