AUTIED FINANCIAL RESULTS FOR 4TH QUARTER AND YEAR ENDED 31/03/2025 AND OTHER BUSINESS TRANSACTED ATTACHED
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Khyati Multimedia Entertainment's board met on 28 May 2025 and approved audited financial results for Q4 and the full year ended 31 March 2025 on a standalone IND AS basis. The board also appointed M/s. Khandar and Co. as internal financial auditor for FY26 and M/s. Kamlesh M Shah & Co. as secretarial auditor for a five-year term (FY26–FY30). Importantly, statutory auditor MAAK and Associates issued a Qualified Opinion with three observations: (1) loans and advances given by the company that may become doubtful of recovery and require write-off, (2) revenue from a Polo Championship event organised in a league format that was not covered under the company's existing Memorandum of Association, and (3) inability to verify the accuracy and timing of Polo Championship revenue recognition under Ind AS 115 due to absence of written agreements with sponsors, franchisees, and broadcasters. The balance sheet shows cash and equivalents plunging from about Rs 47.11 lakh (FY24) to Rs 2.50 lakh (FY25), indicating severe liquidity pressure. The company was compelled to increase borrowings during the year to manage cash flows.
The qualified auditor opinion is a red flag — it signals governance and revenue-quality concerns, particularly around the new Polo Championship business that was carried out without proper charter amendments or written contracts. Shareholders should view this as a cautionary development; the drastic drop in cash and rising borrowings point to possible liquidity stress that may weigh on the stock.