Outcome of Meeting of Board of Directors of IMP Powers Limited ('Company') held on Friday, 30th May, 2025
Awaiting price reaction for this filing.
IMP Powers' Board approved audited standalone and consolidated results for FY ended March 31, 2025, but statutory auditor BJS and Associates issued a Qualified Opinion on both, flagging concerns around going concern, pending trade receivables reconciliation, tax balance reconciliation, non-provisioning of finance costs, and absence of impairment testing despite ongoing losses. The company is currently under liquidation under the Insolvency and Bankruptcy Code after NCLT admitted it on December 16, 2023; it was subsequently sold as a going concern to the highest bidder for Rs. 78 crore, and new management has taken over pending the final distribution order. Standalone total income collapsed to Rs. 1,325.95 lakhs in FY25 from Rs. 2,931 lakhs in FY24, though net loss narrowed sharply to Rs. (211.87) lakhs from Rs. (2,048.99) lakhs. Net worth remains deeply negative at Rs. (26,997.41) lakhs against total outside liabilities of Rs. 46,993.30 lakhs, and customers invoked bank guarantees of Rs. 1.40 crore during the year.
Shareholders face a deeply distressed stock with fully eroded net worth and a qualified audit opinion citing going concern and unresolved receivables; however, the sale of the company as a going concern to a new bidder with Rs. 78 crore received provides a potential turnaround path, though final outcome for equity holders depends on the awaited distribution order under IBC. Caution is warranted as the equity is likely of speculative value only.