Outcome of the Board Meeting held on May 30, 2025. Regulation 30 & 33 of SEBI (LODR) Regulations, 2015.
Awaiting price reaction for this filing.
The Board approved the audited standalone financial results for FY25. Revenue from operations rose about 8% to ₹34.61 crore from ₹32.00 crore last year, but the company posted a net loss of ₹3.30 crore (slightly narrower than ₹3.42 crore in FY24). Shareholders' funds have turned negative at ₹(2.29) crore, down from a positive ₹1.02 crore, as accumulated losses wiped out reserves. The auditor flagged this as a going concern issue, noting continuous losses for three years and erosion of net worth, though management plans to convert promoter unsecured loans into equity and monetise part of its land. The company also underwent debt restructuring with Saraswat Co-op Bank, getting a 24-month moratorium on term loans plus an additional ₹3.50 crore letter of credit. Operating cash flow swung negative to ₹(2.79) crore versus a positive ₹4.04 crore last year, and cash and bank balances remain negative at ₹(6.93) lakh. Notably, the auditor also modified the report regarding an undisclosed ₹14.91 lakh payment to Saraswat Bank, even though the company separately declared the opinion as 'un-modified'.
Negative for shareholders — the company is loss-making with negative net worth, negative operating cash flow, and auditor-level going concern flags, making future dilution of equity (via promoter loan conversion) a real possibility. Expect stock price pressure and elevated risk perception, though the 24-month debt moratorium and promoter support provide short-term breathing room.