Monitoring Agency Report for the quarter ended March 31, 2025
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Awaiting price reaction for this filing.
The board approved audited standalone and consolidated financial results for Q4 and full year ended March 31, 2025, along with an unmodified (clean) auditor's opinion from Bagaria & Co LLP. For FY25, standalone revenue from operations fell sharply to Rs 42.81 lakh (vs Rs 134.27 lakh in FY24) and profit after tax dropped to Rs 10.51 lakh (vs Rs 28.98 lakh), though Q4 FY25 swung to a small profit of Rs 0.29 lakh versus a Rs 26.35 lakh loss in Q4 FY24. Total assets ballooned to Rs 13,948.15 lakh (vs Rs 918.18 lakh), almost entirely driven by Capital Work-in-Progress of Rs 11,889.68 lakh linked to acquisition and expansion of a biorefinery asset in Maharashtra. The company, under new promoter ZR2 Group Holdings (which took 60.96% control in July 2024), raised funds through a preferential issue of 2.59 crore convertible warrants and 1.24 crore compulsorily convertible debentures at Rs 65 each. The Crisil Monitoring Agency Report flagged governance concerns: Rs 18.50 crore of unutilised issue proceeds parked with a non-deposit-taking NBFC (Sukhmehar Finance), unsecured loans totalling about Rs 32.85 crore taken without formal documentation, and a related-party angle where PVSKL (the biorefinery asset seller) also holds 35.51% of the warrants allotted.
Shares may stay volatile as investors weigh the large biorefinery capex push against weak current revenue and the monitoring agency's observations on fund deployment and related-party exposure. The clean audit opinion is positive, but the flagged NBFC deposit and undocumented loans could draw governance scrutiny and weigh on sentiment until clarified.