Outcome Of The Board Meeting Held On 28Th May, 2025.
Awaiting price reaction for this filing.
Modern Denim Limited reported audited financial results for the quarter and year ended March 31, 2025, approved at the board meeting held on May 28, 2025. Revenue from operations collapsed sharply to Rs. 481.19 lakhs in FY25 from Rs. 2,517.23 lakhs in FY24, an ~81% decline. The company posted a net loss of Rs. 569.78 lakhs for FY25 (vs Rs. 533.52 lakhs loss in FY24) and a loss of Rs. 131.82 lakhs for Q4 FY25. The auditor (J.T. Shah & Co) issued a Qualified Opinion, flagging that interest on cumulative redeemable preference shares (Rs. 110.75 lakhs), interest on certain borrowings (Rs. 57.47 lakhs), and amortisation of pre-received income (Rs. 517.63 lakhs) were not provided for in the accounts. An Emphasis of Matter paragraph highlighted that the company's net worth is fully eroded with a negative net worth of Rs. 6,639.80 lakhs, and that material uncertainties exist about its ability to continue as a going concern. The company is pursuing a Scheme of Compromise, Arrangement and Amalgamation under Sections 230-232 of the Companies Act, 2013 seeking waivers on public deposits and interest.
This is a deeply negative filing for shareholders. The company is loss-making, its equity is wiped out (negative net worth of Rs. 66.4 crores), revenue has collapsed, and the auditor has raised a qualified opinion with going concern doubts. Operating cash flow is also negative at Rs. 628.69 lakhs. Shares face significant risk; outcome depends on the pending NCLT scheme approval.