Outcome of Board meeting along with audit report and financial results are submitted
Awaiting price reaction for this filing.
The Board of Hindustan Fluorocarbons approved audited financial results for Q4 and FY ended 31st March 2025, along with an unmodified auditor's opinion from M/s AVRSK & Associates. Total income for FY25 stood at Rs. 212.15 lakhs versus Rs. 208.21 lakhs in FY24, but profit after tax dropped sharply to Rs. 42.17 lakhs from Rs. 122.72 lakhs in the previous year. The auditor flagged a material uncertainty on going concern, explicitly stating that the company is no longer a going concern following the Government of India's January 2020 decision to close the company's factory. The company is now following Ind AS 105 (Discontinued Operations). Operating cash flow was deeply negative at Rs. (318.88) lakhs for FY25. The Board also appointed M/s K S Ramakrishna & Co as Internal Auditor for FY26 at a fee of Rs. 30,508 plus GST.
This is a serious red flag for shareholders — the auditor has confirmed the company is no longer a going concern, meaning its operations are being wound down. Despite a positive bottom line, retained earnings are deeply negative at Rs. (1,780) lakhs and operating cash flows are bleeding. The stock is effectively in liquidation/closure mode, so investors should treat it as a high-risk, terminal-stage holding rather than a going business.