Outcome of Meeting of Board of Directors of IMP Powers Limited ( Company ) held on Tuesday, 26th May, 2026.
Awaiting price reaction for this filing.
IMP Powers Limited's board approved audited standalone and consolidated financial results for Q4 and FY ended March 31, 2026. The company, which emerged from Corporate Insolvency Resolution Process (CIRP) and liquidation in November 2024 after being sold to Electrify Energy Pvt Ltd consortium for Rs. 78 crore, posted standalone net profit of Rs. 11.01 lakh for FY2026 versus a loss of Rs. 208.40 lakh in FY2025. Total income was Rs. 3,682.67 lakh. However, auditors BJS and Associates issued a Qualified Opinion citing: unreconciled trade receivables of Rs. 39.86 crore outstanding over 3 years without expected credit loss provisioning, bank balances and other current assets of Rs. 22.93 crore lacking documentation, no impairment assessment of assets despite prolonged production suspension, pending NCLT distribution order affecting accounting treatment, non-compliance with Ind AS 12 (deferred tax), unperformed actuarial valuation for employee benefits, and investment in subsidiary at Rs. 77.48 lakh without impairment testing despite negative net worth. These qualifications have been continuing since March 2022. A legal dispute in Supreme Court regarding distribution of sale proceeds adds uncertainty.
The qualified opinion signals significant accounting risks and potential overstatement of assets. Despite posting a profit after years of losses, the unresolved qualification issues since 2022 and pending legal proceedings create uncertainty about the reliability of financial statements and the company's ability to continue as a going concern.