Revised Statement on Impact of Audit Qualification Report March 31, 2025
Awaiting price reaction for this filing.
Advance Syntex Ltd has filed a revised statement on audit qualifications for FY ended March 31, 2025, where the auditor issued an Adverse Opinion (not just qualified) on the financial statements. The company reports zero revenue from continuing operations and a massive net loss of Rs. 841.56 million from continuing operations, with Rs. 39.29 million revenue and Rs. 6.59 million loss from discontinuing operations. Net worth stands at Rs. 1,342.21 million with EPS of Rs. (6.59). The auditor flagged five serious repetitive issues: the company is no longer a going concern as business operations have stopped, incomplete asset disposal information from the lender bank, non-recognition of interest on loans classified as NPAs, insufficient provisioning for old debtors (3+ years), and outdated gratuity provisions without actuarial valuation. Management acknowledges the going concern problem but disputes certain other qualifications.
This is a severe red flag for shareholders — an Adverse Opinion signals deep financial distress, business operations have ceased, the company has NPAs with banks, and the going concern is in question. Investors should treat this stock as extremely high risk, as continued listing compliance and asset recovery remain uncertain.