Melstar Information Technologies Limited has informed the Exchange regarding Board meeting held on May 15, 2025 for approval of audited financial results for the quarter and year ended 31.03.2025
Awaiting price reaction for this filing.
The board of Melstar Information Technologies approved audited financial results for Q4 and FY ended March 31, 2025 on May 15, 2025. Statutory auditor CKSP & Co LLP issued a qualified opinion on both standalone and consolidated results, flagging a going concern issue related to the company's past corporate insolvency proceedings (admitted in October 2019) and its current dependence on awaited business licenses to start operations. Revenue from operations collapsed to zero in FY25 (from ₹1,214.23 lakhs in FY24), and the company reported a standalone net loss of ₹92.58 lakhs (consolidated loss of ₹121.18 lakhs) versus a profit of ₹1,127.93 lakhs in the previous year. Net cash used in operations was ₹216.71 lakhs (standalone). The board also appointed Raveendra Sangapu as the new Acting CFO (replacing the outgoing Vineet Goverdhan Shah) and named Samarendra Kumar Mohanty as Chief Technology Officer.
Multiple red flags for shareholders: revenue has completely dried up, the company is loss-making, operating cash flows are negative, and the auditor has qualified the accounts over going concern uncertainty. The CFO change amid continued operational dormancy suggests the promised business revival is still uncertain, making this a high-risk situation for investors.