Revised outcome for Audited Standalone Financial Results Of The Company For The Quarter And Financial Year Ended March 31, 2025 And Preferential Allotment Of Equity Shares.
Awaiting price reaction for this filing.
Shivamshree Businesses (BSE: 538520) resubmitted its audited standalone results for the quarter and year ended March 31, 2025 after a wrong document was initially filed. Total income for FY25 fell sharply to Rs 413.73 lakhs from Rs 1,170.93 lakhs in FY24, a drop of about 65%, mainly due to a steep decline in solar trading revenue. The company swung to a net loss of Rs 74.57 lakhs (after tax) versus a marginal profit of Rs 0.03 lakh last year, with EPS of Rs (0.16). A new segment of manufacturing industrial bags was started in February 2025. The board also approved a preferential allotment of 3 crore equity shares at Rs 1.50 per share, raising Rs 4.5 crores. The auditor issued a qualified opinion citing lack of balance confirmations for trade receivables, trade payables, loans and advances, noting this is a repetitive qualification whose impact could not be quantified.
Shareholders should note the sharp revenue decline and swing to losses, plus a repetitive audit qualification on balance confirmations, which signals weak internal controls. However, the company is raising Rs 4.5 crores via a preferential issue at Rs 1.50/share (a 50% premium to face value of Rs 1), indicating promoter/investor support, though it will dilute existing shareholders significantly since 3 crore new shares are being issued against an existing equity base of Rs 456.50 lakhs (4.565 crore shares of Rs 1).