Please find enclosed statement of impact of auidt qualification .
Awaiting price reaction for this filing.
Muzali Arts Ltd's auditor has issued a Disclaimer of Opinion on the FY24 financial statements due to 12 separate qualifications, including lack of documentation for write-offs, missing GST reconciliation, undocumented Q4 sales, unsupported cash balances, unconfirmed trade receivables of ₹1.84 crore, and unconfirmed loans given of ₹5.08 crore. After adjusting for these qualifications, the company's net loss widens sharply from ₹1.07 crore to ₹3.41 crore, EPS deteriorates from (₹0.18) to (₹0.58), and total assets fall from ₹12.23 crore to ₹9.90 crore. The company also failed to complete secretarial compliances for two years, has no compliance officer, and could not obtain financial data from its 80%-owned subsidiary Jalan & Jalan Collection Inc. due to an ongoing dispute with the minority shareholder. Management has written down the subsidiary investment to zero, citing loss of significant influence.
This is a serious red flag — a Disclaimer of Opinion is the most severe type of audit report and means shareholders cannot rely on the financial statements. The widening losses, weak internal controls, and unresolved subsidiary dispute raise significant governance and going-concern concerns, likely weighing negatively on the stock.