In continuation of our letter dated 14th May, 2025 and Pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 as amended from ....
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The board approved audited standalone financial results for Q4 and FY ended March 31, 2025, along with an unmodified (clean) audit report from K M Chauhan & Associates. The company swung from a loss after tax of Rs 274.63 lakhs in FY24 to a profit of Rs 131.34 lakhs in FY25, with total income rising sharply to Rs 202.23 lakhs from Rs 16.17 lakhs. However, the FY24 loss was largely driven by a one-time inventory-related expense of Rs 265.25 lakhs that did not recur in FY25, so the headline turnaround reflects the absence of that charge rather than a dramatic improvement in operations. Net cash flow from operating activities was negative at Rs (36.53) lakhs despite the reported profit, indicating weak cash generation. Other equity remained negative at Rs (589.09) lakhs, and trade receivables of Rs 50.06 lakhs and short-term loans and advances jumped to Rs 335.85 lakhs from Rs 175.50 lakhs.
The reported profit turnaround is encouraging on the surface, but shareholders should note that operating cash flow is negative, accumulated losses are still substantial, and the auditor flagged a Key Audit Matter about Rs 3.36 crore of loan and advance documents being misplaced (though management expects full recovery in FY26). Significant overdue income tax demands (notably Rs 2.32 crore for AY 2018-19) and a mid-year change of statutory auditor add to the caution flags.