The outcome of the board meeting held on 22nd May, 2025 has been attached herewith.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The board approved audited standalone and consolidated financial results for Q4 and FY ended March 31, 2025, appointed M/s. Mikil Vora & Associates as internal auditors for FY26, and reviewed the Related Party Transactions policy. On a standalone basis, full-year revenue rose about 8% to Rs 34,841.57 lakhs, but net profit fell sharply by around 58% to Rs 599.37 lakhs from Rs 1,416.62 lakhs a year ago, with Q4 net profit dropping to Rs 113.34 lakhs. The statutory auditor (H Thakkar & Co. LLP) issued a Qualified Opinion citing serious concerns, including a SEBI show cause notice alleging that a substantial portion of FY18–FY24 sales and purchases were fictitious, trade receivables of Rs 36,106 lakhs (about 94% of total assets) with no Expected Credit Loss provision, and unpaid income tax liabilities. Notably, the company's separate declaration claims an 'unmodified opinion', which directly contradicts the auditor's qualified opinion. Massive contingent liabilities exist from a GST demand of Rs 20,684.38 lakhs and a disputed income tax demand of Rs 11,744 lakhs. Operating cash flow was negative at Rs -4,831 lakhs (standalone) and Rs -4,865 lakhs (consolidated).
This is a materially negative filing for shareholders: profits have more than halved despite revenue growth, the auditor has flagged a qualified opinion with SEBI-level fraud allegations, and the company's claim of an unmodified opinion contradicts the auditor's actual report, raising governance concerns. Combined with very high trade receivables, negative operating cash flows, and large contingent tax liabilities, investors should treat this filing as a significant red flag on earnings quality and disclosure integrity.