Please find attached the Disclosure of impact of audit qualification for the year ended 31st March, 2025.
Awaiting price reaction for this filing.
KD Leisures Ltd has submitted its delayed Statement on Impact of Audit Qualifications for FY2024-25 following restoration of its listing status by SAT on March 17, 2026. The company received a Qualified Opinion from auditors GAV & Associates due to two issues: (1) inability to verify closing balances of loans and advances totaling Rs. 176.50 Lakhs as management did not provide confirmations, and (2) non-compliance with Income Tax Act by failing to file ITR under section 139 for assessment years 2021-22 onwards, making the company liable for penalties. The company was effectively dormant during FY2024-25 with zero revenue from operations and other income of only Rs. 4.30 Lakhs, resulting in a net loss of Rs. 4.30 Lakhs. Total assets stand at Rs. 186.52 Lakhs while other equity is negative at Rs. 162.14 Lakhs indicating accumulated losses.
The qualified opinion and non-compliance with tax laws signal weak governance and potential financial irregularities. The company's nil operating revenue and negative net worth make it a high-risk investment. Investors should be cautious until pending compliances are regularized.