Intimation of outcome of board meeting as held on 27-06-2025
Awaiting price reaction for this filing.
The board approved the audited financial results for Q4 and FY25, which had been deferred from the May 30, 2025 meeting. The company is currently under the Corporate Insolvency Resolution Process (CIRP) since NCLT's order dated September 13, 2024, with Mr. Hemant Sharma appointed as Resolution Professional after Edelweiss ARC (holding ~99% of secured debt) filed an insolvency petition. Revenue from operations fell sharply to Rs. 190.93 lakh (standalone) from Rs. 376.42 lakh in FY24. Standalone net loss widened to Rs. 6,399.04 lakh (vs Rs. 5,623.85 lakh), while consolidated net loss was Rs. 6,388.52 lakh. The statutory auditor issued a Qualified Opinion because the company has not provided for ~Rs. 2,12,917 lakh of waived interest and principal, and flagged the negative net worth and CIRP as Emphasis of Matter. No dividend was recommended due to losses.
Very negative for shareholders — the company is insolvent, under IBC resolution, with negative net worth of ~Rs. 893 crore, entire bank debt of Rs. 668 crore in default, and resolution plans pending CoC and NCLT approval. Existing equity holders face significant risk of dilution or extinction depending on the approved resolution plan, and there is no near-term prospect of dividend or recovery in the stock.