Outcome - Board Meeting held on 30.5.2025
Price
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The board approved audited standalone and consolidated financial results for Q4 and full year ended March 31, 2025, with the statutory auditor issuing an unmodified opinion. Cotton yarn manufacturing remains discontinued (since Q2 FY23), and the company's main activity is monetising its Aluva land — 16.39 acres already sold for Rs 59.99 Cr, with another 9.33 acres under sale agreement. For FY25, the company posted a total comprehensive loss of Rs 743 lakhs and a cash loss of Rs 799 lakhs, with negative net worth. The auditor flagged a 'Material Uncertainty related to Going Concern' given the eroded net worth and recurring losses, though management plans to use land-sale proceeds to become debt-free and restart via outsourcing or yarn trading. The board also appointed Varma & Varma as the new internal auditor for FY 25-26.
Existing shareholders face a going-concern risk as net worth is wiped out and core manufacturing is shut, but the ongoing land sale is reducing debt and could fund a restart. Stock is likely to remain speculative until the land monetisation is complete and the new business model shows traction.