Pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015. The Standalone Annual Audited Financial Results ....
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Devoted Construction Limited reported a standalone net loss of Rs 10.52 lakhs for FY 2025-26, more than double the loss of Rs 4.98 lakhs in the prior year. Revenue from operations was minimal at Rs 10.00 lakhs. Total borrowings stand at Rs 12,980.10 lakhs against equity of Rs 300.11 lakhs, indicating extremely high leverage. The balance sheet is heavily inventory-driven with FSI inventories valued at Rs 14,765.90 lakhs (Rs 14,746.81 lakhs historical cost). Auditors KRA & Associates issued an unmodified opinion, but included an Emphasis of Matter on the FSI inventory valuation and non-confirmed debtor/creditor balances. A separate note reveals that an ICICI Bank account holding Rs 9.96 crore has been frozen by the Income Tax Department. Cash position improved to Rs 30.59 lakhs from Rs 2.09 lakhs, driven by new borrowings and reduced inventory advances.
The doubling of losses and extreme leverage (debt-to-equity ratio of ~43x) raise serious concerns about the company's ability to service debt. The frozen bank account signals potential Income Tax Department action that could further strain liquidity. The heavy reliance on unconfirmed inventory valuation for financial health is a red flag for shareholders.