change in management
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Awaiting price reaction for this filing.
Virtual Global Education's board, meeting on May 29, 2025, approved several changes following the exit of Mr. Ankit Sharma, who resigned as Executive Director and CFO amid a fraud investigation. Mr. Nirbhay Kumar Roy has been appointed as the new CFO and Additional Executive Director, while Ms. Shikha has been named Board Chairperson. The statutory auditor issued a qualified opinion on FY25 results, flagging that Mr. Sharma misappropriated approximately Rs 88.18 lakh through fictitious payments and unauthorized transfers; an FIR (Complaint No. 801012509075) was already filed in February 2025. The auditor also flagged unsupported advances of Rs 5.32 crore (Gurugram land purchase), Rs 4.21 crore in undocumented loans/advances, and Rs 5.99 crore in training expenses lacking supporting documents. On a standalone basis, FY25 revenue stood at Rs 105.67 lakh with a net loss of Rs 37.40 lakh (vs Rs 183.02 lakh loss in FY24), though adjusted for audit qualifications the loss widens to Rs 125.56 lakh.
This is a significant negative event for shareholders — the company has confirmed a financial fraud by its former CFO involving Rs 88 lakh, multiple serious audit qualifications point to weak internal controls, and large sums (over Rs 15 crore in advances/expenses) lack documentation. While leadership has been replaced and legal action initiated, the qualified audit opinion and governance concerns are likely to weigh on the stock and investor confidence.