Outcome of Board Meeting held on 14th August, 2025
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The Board approved unaudited financial results for Q1 FY26 (quarter ended 30 June 2025). Revenue from operations was nil, compared to Rs 198.51 lakhs in the same quarter last year — a complete collapse in top line. The company reported a marginal net loss of essentially nil versus a loss of Rs 6.17 lakhs in Q1 FY25. More critically, the statutory auditor (ADV & Associates) issued a Disclaimer of Opinion, meaning they could not form any conclusion on the financial results. The auditor flagged several serious concerns: Rs 20.72 crores of Rights Issue proceeds advanced to suppliers without any purchase orders or agreements; Rs 20 crores paid to CNX Corporation Limited with no supporting documents; misuse of the Rs 42.22 crores raised via Rights Issue, which was not deployed as per the stated objects; acceptance of Rs 41.53 lakhs as deposits in possible violation of the Companies (Acceptance of Deposits) Rules, 2014; and a going concern doubt due to continuous losses across all four quarters of FY24-25 and FY23-24, with no viable recovery plan provided by management.
This is a deeply negative filing for shareholders. The auditor's disclaimer signals severe governance and financial reporting red flags, with possible misuse of funds raised from investors via the Rights Issue. The collapse in revenue to zero combined with a going concern warning suggests the business is not commercially viable in its current form. Expect significant regulatory scrutiny, sharp negative stock reaction, and elevated risk for retail shareholders.