We wish to inform you that meeting of director held today to considered and approved the financial result.
Awaiting price reaction for this filing.
Minolta Finance Ltd reported a qualified auditor opinion from JCR & Co. LLP. The auditors flagged that the company reclassified a loan from Doubtful to Sub-Standard Asset and reduced ECL provision by Rs. 1.84 crore based only on TDS deposited by borrower with no actual recovery made. Interest expense of Rs. 2.43 crore was not provided for one borrower, and investments of Rs. 62.96 lakhs lack ownership documents. Revenue surged 1,074% to Rs. 1,195.83 lakhs (from Rs. 101.88 lakhs), but the company posted a net loss of Rs. 142.81 lakhs versus profit of Rs. 1.22 lakhs in FY25. Total assets tripled to Rs. 19,024.51 lakhs, funded by borrowings that increased nearly 4x to Rs. 17,792.69 lakhs. Additionally, the company did not obtain RBI approval for change in management during FY25, which may attract regulatory penalties.
The qualified audit opinion and regulatory non-compliance (RBI approval) raise red flags for investors. The company has negative other equity of Rs. 68.91 lakhs and a significant net loss despite higher revenue, indicating poor asset quality and high leverage. Negative operating cash flow despite positive operating profit signals working capital stress.