The outcome has been attached herewith.
Awaiting price reaction for this filing.
The Board of Directors of Alka India Limited approved the audited standalone and consolidated financial results for Q4 and the financial year ended March 31, 2025. The company, which underwent Corporate Insolvency Resolution Process (CIRP) and whose resolution plan was approved by NCLT on February 7, 2025, reported a standalone total income of Rs. 50.85 lakhs (vs Rs. 27.06 lakhs in FY24) and a net loss of Rs. (44.58) lakhs for FY25, indicating a worsening bottom line despite higher reported income. The auditor (Amit Ramakant & Co.) issued a Disclaimer of Opinion specifically on Internal Financial Controls over Financial Reporting, citing inability to gather sufficient audit evidence. The auditor also flagged 14 Emphasis of Matter points, including impairment of Rs. 1,448 lakhs of unquoted investments to zero without a valuation report, write-back of old advances without supporting documentation, and pending restructuring of paid-up share capital as mandated by the NCLT order. The Board also adopted 17 governance policies and classified Rs. 7.25 crores of unsecured loans from the Resolution Applicant (Mr. Jatinbhai Ramanbhai Patel) plus an additional Rs. 1 crore as quasi-equity, to be later converted into equity with shareholder approval.
For shareholders: This is a micro-cap company emerging from insolvency with negligible operating revenue (Rs. 6.27 lakhs standalone) and persistent losses. The auditor's disclaimer on internal financial controls, multiple emphasis-of-matter flags around unverified write-backs and impairment of investments, and pending capital restructuring signal ongoing governance and control weaknesses. The quasi-equity conversion will dilute existing shareholders once shareholders approve. Stock price could remain volatile given the distressed history and continued audit qualifications.