Submission of Outcome of Board Meeting held on 27.05.2025
Awaiting price reaction for this filing.
The board approved audited standalone financial results for Q4 and FY ended March 31, 2025. Revenue from operations collapsed to roughly ₹2,508 lakhs for FY25 versus ₹10,486 lakhs in FY24, a decline of around 76%. The company reported a net loss of ₹375.94 lakhs, narrower than the ₹618.81 lakhs loss the prior year. The statutory auditor (R Mehta & Associates) issued a Qualified Opinion, flagging unconfirmed debtor/creditor balances, inventory at the Bhiwandi godown sealed by a government department, and an improperly maintained fixed asset register. Internal financial controls also received a Modified Qualified Opinion due to control weaknesses. Other equity stands at negative ₹547 lakhs, and the debt-equity ratio is an elevated 8.80. M/s SG & Associates resigned as secretarial auditor and was replaced by M/s Pooja Gandhi & Co. Notably, the company declared an 'Unmodified Opinion' in the board outcome, which contradicts the auditor's actual qualified opinion.
This is a deeply negative filing. Persistent losses, shrinking revenue, negative other equity, a high debt-equity ratio, and a qualified (not clean) audit opinion are serious red flags. The gap between the company's declared 'unmodified' status and the auditor's qualified report may invite regulatory and shareholder scrutiny and could weigh on the stock.