OUTCOME OF BOARD MEETING DATED 30TH MAY, 2025 FOR APPROVAL OF AUDITED FINANCIAL RESULTS FOR THE FINANCIAL YEAR 2024 - 2025
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The Board approved audited financial results for FY ended 31 March 2025. The auditor issued an Unmodified Opinion but flagged an Emphasis of Matter, noting that the company has ceased its entire operations and sold/written off all its assets during the year, including plant & machinery, land, building, electrical fittings, and obsolete inventories worth Rs. 74.29 lakhs. Revenue from operations stood at Rs. 0, with total income of Rs. 2.76 crore coming almost entirely from the one-time sale of fixed assets. The company swung to a reported profit of Rs. 1.20 crore from a Rs. 51 lakh loss last year, but this profit is entirely asset-sale driven, not from any ongoing business. Property, Plant & Equipment dropped to Rs. 0 from Rs. 2.54 crore, borrowings fell to Rs. 0, but operating cash flow was deeply negative at Rs. (2.53 crore), and cash balance is only Rs. 70,935. The company also granted Rs. 2.20 crore in short-term advances to parties under Section 189 with unstipulated terms.
The company has effectively shut down its manufacturing business. The reported profit is a one-time gain from asset disposals and is not sustainable. With no operating revenue, minimal cash, and negative operating cash flows, shareholders should be seriously concerned about the company's future direction and viability as a going concern.