Announced Wed, 25 Jun · 21:25 IST

Please find enclosed herewith audited financial results for March 2025

Going ConcernQualified OpinionEmphasis Of MatterResults RestatedContingent Liabilities IncreasedDebt Equity ThresholdResults View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Harish Textile Engineers reported FY25 total income of Rs. 13,259.96 lakhs, essentially flat compared to Rs. 13,258.58 lakhs in FY24. The company turned profitable with a net profit of Rs. 23.55 lakhs versus a loss of Rs. 37.26 lakhs last year, though the prior year figures were restated. The auditor issued a Qualified Opinion because interest liability owed to MSME vendors under the MSMED Act has not been quantified or provided for. The auditor also flagged a Material Uncertainty on Going Concern, citing negative working capital of Rs. 2,140 lakhs (current liabilities of Rs. 6,465 lakhs vs current assets of Rs. 4,325 lakhs), liquidity crunch, and defaults in repayment of Non-Convertible Debentures across multiple series. Additionally, the Board dropped its earlier Rights Issue proposal and approved the sale/transfer of the Textile Processing and Finishing Machinery business, subject to shareholder approval.

Likely market impact

Despite the swing to profitability, the qualified audit opinion, going concern uncertainty, NCD defaults, and high debt-equity ratio of 3.55x signal significant financial stress and serious risk for shareholders. The dropped Rights Issue removes a potential capital infusion, while the planned sale of a business segment indicates ongoing restructuring under liquidity pressure.