Outcome Of The Board Meeting Held On 28Th May, 2025.
Awaiting price reaction for this filing.
Modern Denim Ltd's board approved audited financial results for Q4 and FY25 on May 28, 2025. Revenue from operations collapsed to Rs. 480.76 lakhs in FY25 from Rs. 2,503.90 lakhs in FY24 — an ~81% year-on-year decline. The company posted a net loss of Rs. 569.78 lakhs for FY25 (FY24 loss: Rs. 533.52 lakhs), with negative EPS of Rs. 1.52. Net worth is fully eroded at negative Rs. 6,639.80 lakhs against total borrowings of Rs. 8,585 lakhs. The auditor (U.T. Shah & Co) issued a Qualified Opinion, flagging non-recognition of interest expense on preference shares, borrowings, and non-fair-value amortisation totalling roughly Rs. 685 lakhs. The auditor also added an Emphasis of Matter on material going-concern uncertainties, noting the company was declared a sick company by BIFR and a Scheme of Compromise under Sections 230-232 is pending NCLT approval. Operating cash flow was deeply negative at Rs. (628.69) lakhs.
This is a deeply negative disclosure — collapsing revenues, widening losses, negative net worth, and a qualified audit opinion with going-concern doubts signal severe financial distress for shareholders. The pending NCLT scheme is the key lifeline; resolution risk remains very high and the stock is effectively in penny-stock distress territory.