Outcome of Board Meeting held on 14th August 2025.
Awaiting price reaction for this filing.
Muzali Arts Ltd reported un-audited results for the quarter ended 30 June 2025. The company had zero revenue from operations and only Rs 10.36 lakhs of other income, down from Rs 15.26 lakhs a year ago. It posted a small profit after tax of Rs 4.75 lakhs (EPS Rs 0.01) compared to a loss of Rs 288.74 lakhs in the same quarter last year, mainly because last year's other expenses of Rs 299.59 lakhs dropped to just Rs 2.61 lakhs. The company also formally derecognised Jalan & Jalan Collection Inc. as a subsidiary, saying it never had real control despite holding 80%, and wrote that investment down to zero. The current auditor (Bilimoria Mehta & Co.) gave a modified review, flagging that it could not get balance confirmations for loans and advances of about Rs 6.6 crore, and that internal controls over financial reporting appear weak. The previous auditor (Gupta Ravi & Associates) had issued a disclaimer of opinion on the FY24 accounts citing similar issues.
This is a very small, micro-cap company with no active business operations since October 2022 and is essentially living off other income. The audit qualifications, absence of real revenue, weak internal controls, and prior disclaimer of opinion make this a high-risk stock for retail investors despite the headline profit.