outcome
Awaiting price reaction for this filing.
The board met on May 2, 2025 and approved a long-overdue backlog of financial results covering half-year and full-year periods from September 2019 through March 2023, along with auditor reports. Revenue has fallen sharply from Rs 34.19 lakhs in FY2019 to about Rs 15.6 lakhs in FY2021, and the company reported a loss of Rs 34 lakhs in FY2019 before small profits in later years. The auditor (MAAK & Associates) issued a Disclaimer of Opinion for both FY2020 and FY2021 audited results, meaning they could not gather enough evidence to express any opinion at all. Concerns flagged include no depreciation charged on fixed assets, no fixed asset register, missing balance confirmations, no rent agreements or expense vouchers, and no TDS/GST payment records. Directors have filed a fraud complaint against a merchant banker for Rs 5.50 crore shown in Other Current Financial Assets, which the Economic Offence Wing is reviewing as a civil matter.
This is a major red flag for shareholders - the auditor disclaiming opinion means the financials cannot be relied upon, the company is years behind on disclosures, revenues are shrinking, and there is an unresolved Rs 5.5 crore fraud claim against a merchant banker sitting on the balance sheet. Expect heightened scrutiny from the exchange and meaningful stock-price risk until these issues are resolved.