Outcome of Board Meeting held on April 16, 2025
Awaiting price reaction for this filing.
The Board on April 16, 2025 approved consolidated financial results for FY21, but auditor Batliboi & Purohit issued a Disclaimer of Opinion, unable to gather enough evidence to form any view. The company's net worth is deeply negative at Rs -3,67,453 lakhs, with total comprehensive loss of Rs 1,39,649 lakhs for FY21 (vs Rs 2,67,074 lakhs loss in FY20). Revenue from operations fell sharply to Rs 2,05,525 lakhs from Rs 3,27,450 lakhs (~37% decline). The company went through CIRP from January 2020, was acquired by Finquest Financial Solutions via a resolution plan approved by NCLT in March 2023, and a new board was reconstituted in November 2023. Multiple serious issues were flagged: accounting system migrated from Oracle to Tally without proper audit, several subsidiaries have unaudited or missing financials, gratuity provisions calculated on ad-hoc basis instead of actuarial valuation, no impairment assessment on investments, unreconciled bank balances, unverified inventory, and questionable deferred tax assets of Rs 11,924 lakhs.
This is a deeply negative filing showing a company in severe financial distress with broken accounting records and no auditor confidence in its numbers. Material going concern uncertainty remains even after the resolution plan approval. Shareholders should view this as a high-risk situation with history of massive losses, wiped-out equity, and significant governance concerns during the CIRP period.