Outcome of the Board Meeting held on Tuesday, July 15, 2025 attached.
Awaiting price reaction for this filing.
The board approved un-audited standalone and consolidated results for Q1 FY26 (quarter ended June 30, 2025). Revenue from operations jumped to Rs. 445.54 lakhs from Rs. 3.52 lakhs in Q1 FY25, but the company posted a net loss of Rs. (2,208.35) lakhs, driven largely by depreciation of Rs. 2,159.79 lakhs. The statutory auditor RPSV & Co. issued a qualified review report, flagging non-conduct of impairment testing despite indicators such as negative net worth and underutilized assets, and added an emphasis of matter on timely completion of the CIRP resolution plan (fourth installment due August 2025). RPSV is being replaced by ASKM & Co. as statutory auditor (FY 2025-30) due to a casual vacancy. The board also approved changing the company name to Neueon Corporation Limited, amending the MOA to add new business verticals (EPC, data centers, blockchain, eVTOL/air mobility, advertising, interiors), adopting new MOA/AOA, and proposing the sale of three Telangana-based undertakings by end of December 2025.
For shareholders: the company remains in turnaround mode post-CIRP, with negligible operating revenue and deeply negative net worth being propped up by massive non-cash depreciation. While revenue has restarted, profitability is still far off. The qualified audit, auditor change, major MOA overhaul, and proposed asset sales signal a company restructuring its business direction and unlocking value from legacy assets. Near-term stock action could hinge on the asset-sale execution and whether the new business verticals translate into real income.