OUTCOME OF THE BOARD OF DIRECTORS MEETING HELD ON AUGUST 14, 2025.
Awaiting price reaction for this filing.
The Board approved the unaudited standalone financial results for the quarter ended June 30, 2025. Revenue from operations jumped about 80% year-on-year to Rs. 449.10 lakh from Rs. 249.10 lakh in Q1 FY25. Despite the strong revenue growth, the company reported a small pre-tax loss of Rs. 3.47 lakh, which turned into a post-tax profit of Rs. 5.24 lakh after a deferred tax credit of Rs. 8.71 lakh. Full-year FY25 revenue stood at Rs. 1,888.89 lakh with a profit after tax of Rs. 215.65 lakh. The statutory auditor M/s MAAK & Associates issued a Limited Review Report but flagged a 'Basis for Disclaimer of Opinion' citing that inventory figures rely solely on management certification and that the company's accounting software lacks an audit trail feature. Separately, the company filed a declaration claiming the auditor's opinion was 'unmodified and unqualified,' which appears inconsistent with the auditor's own disclaimer language.
Strong top-line growth is a positive signal, but the auditor's disclaimer on inventory and IT controls, combined with the company's contradictory claim of an unqualified opinion, is a serious governance red flag that investors should weigh carefully before taking a positive view on the stock.