Outcome of board meeting for the audited financial results for the year ended 31st march 2025
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Awaiting price reaction for this filing.
The Board approved audited financial results for FY25 showing total income of Rs. 54.29 lakhs (vs Rs. 7.50 lakhs in FY24) and a reported profit before tax of Rs. 33.64 lakhs, reversing last year's loss of Rs. 11.07 lakhs. However, the statutory auditor (Ratan Chandak & Co LLP) issued an ADVERSE OPINION, flagging that the reported profit is misleading. Auditors highlighted that over 99% of company assets are advances to related parties currently under investigation by the Enforcement Directorate under PMLA, and about 64% of liabilities are unsecured loans from those same related parties. The company has defaulted on a Rs. 687.03 lakh loan from Jalgaon Peoples Co-Op Bank since February 2020, and by not providing interest of Rs. 126.73 lakhs for FY25, the loss is understated - meaning the real position is a loss of Rs. 93.09 lakhs, not the reported profit. The company has been non-operational for over 3 years, has accumulated losses of Rs. 526.99 lakhs, and negative net worth. The auditor also raised significant doubt about the going concern status. No dividend was declared.
This is an extremely negative filing. The adverse auditor opinion, going concern uncertainty, ED investigation into related party transactions, and hidden losses all point to serious financial distress. Shareholders should expect sharp stock price pressure, and the company appears at risk of regulatory action or insolvency given its inability to service existing debts and negative net worth.