Outcome of Board Meeting
Awaiting price reaction for this filing.
Devoted Construction Limited reported an unmodified audit opinion from KRA & Associates for FY 2025-26. The company posted a net loss of Rs 10.52 Lakhs, more than doubling from Rs 4.98 Lakhs loss in the previous year. Revenue from operations remained minimal at just Rs 10 Lakhs. The auditor issued an Emphasis of Matter noting that the company holds FSI inventories worth Rs 14,746.81 Lakhs at historical cost, with recoverability dependent on future disposal. The balance sheet shows long-term borrowings of Rs 12,980.10 Lakhs against total equity of Rs 855.26 Lakhs, resulting in a dangerously high debt-to-equity ratio of approximately 15.17x. Additionally, the company's ICICI Bank account was frozen for Rs 9.97 Crore by the Income Tax Department.
The company is in significant financial distress with mounting losses, extremely high leverage, and heavy reliance on debt financing. The frozen bank account and inventory recoverability concerns add further risk for shareholders.