The Exchange had sought clarification from Libas Consumer Products Limited for the quarter ended 31-Mar-2025 with respect to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. On basis of above the Company was required to clarify the following: -1. Limited Review Report/ Independent Auditor's Report is not in the format prescribed by SEBI -2. The company has not submitted the Statement of Impact of Audit Qualifications in case of modified opinion(s) The response of the Company is enclosed.
LIBAS · price
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NSE asked Libas Consumer Products to resubmit its Q4 FY25 results because the auditor's report wasn't in the proper SEBI format and the Statement of Impact of Audit Qualifications was missing required signatures. The company complied and resubmitted. More importantly, the auditor issued a Qualified Opinion flagging seven serious issues: inventory overstated by ₹1,187.30 lakhs (including ₹700.84 lakhs of obsolete stock), missing loan agreements for ₹884.27 lakhs with ₹298.59 lakhs likely irrecoverable, unrecognised interest income of ₹632.92 lakhs, doubtful trade receivables of ₹198.11 lakhs, unsubstantiated trade payables of ₹176.64 lakhs, weak internal controls, and a ₹168.99 lakhs gap between inventory shown in books versus the bank. Six of seven qualifications are repeated from March 2023, showing no meaningful improvement. If the numbers were corrected, standalone net loss would balloon from ₹157.44 lakhs to ₹1,652.09 lakhs and consolidated results would swing from a ₹264.45 lakh profit to a ₹1,230.20 lakh loss.
This is a major red flag for shareholders. The reported financials materially overstate profitability, and the true standalone loss is roughly 10x larger than disclosed. Persistent audit qualifications, weak internal controls, unrecoverable loans, and tax non-compliance raise serious concerns about governance and going concern. Expect negative sentiment and possible price pressure on the stock.