Outcome of the Board Meeting dated 15.05.2025 for approval of audited financials for the quarter and year ended 31 march, 2025
Awaiting price reaction for this filing.
The Board approved audited financial results for Q4 and FY ended March 31, 2025. The statutory auditor, M/s CKSP & Co LLP, issued a 'Qualified Opinion' on both standalone and consolidated results, flagging a material uncertainty on the company's ability to continue as a going concern. The qualification stems from the 2019 IBC admission against the company, change in management, and the fact that operations have not started as the company is still awaiting business licenses and clearances. The company reported a standalone net loss of ₹92.58 lakhs (FY25) versus a profit of ₹1,127.93 lakhs in FY24, which was driven almost entirely by a one-time write-back of sundry creditors of ₹1,214.23 lakhs. Consolidated net loss stood at ₹121.18 lakhs. Operational revenue remained essentially nil. Operating cash flows were deeply negative at ₹(216.71) lakhs standalone and ₹(226.99) lakhs consolidated. The Board also appointed Mr. Raveendra Sangapu as Acting CFO in place of the outgoing Mr. Vineet Goverdhan Shah, and appointed Mr. Samarendra Kumar Mohanty as CTO.
The auditor's qualified opinion citing going concern uncertainty is a significant red flag for shareholders — the company's survival depends on obtaining business licenses and successfully raising funds to commence operations. The FY24 profit was a one-time accounting write-back, not real operating performance; the underlying business continues to generate no meaningful revenue and is burning cash. Expect continued stock-price pressure and high risk until operations actually commence.