AIFL Board Approves FY25 Audited Standalone Results Amidst Auditor's Disclaimer and Going Concern Doubts
Ashapura Intimates Fashion Limited's board approved FY25 standalone results, but auditors issued a disclaimer due to significant issues, including suspected fraud, non-compliance, and material uncertainty on going concern post-liquidation sale.
The auditor's disclaimer, inability to verify critical financial information, identification of potential fraudulent activities, and the company's status under liquidation mean that the financial statements cannot be relied upon. This poses extreme risks to investors and stakeholders, indicating a high impact.
The auditors issued a disclaimer of opinion due to a severe lack of audit evidence, numerous unverified balances, non-compliance with statutory dues and regulations, suspected fraudulent transactions, and the ongoing liquidation process. These factors indicate significant financial distress and operational issues, leading to a negative sentiment.
Ashapura Intimates Fashion Limited (AIFL) announced that its Board of Directors, at a meeting held on September 26, 2025, approved the audited standalone financial results for the year ended March 31, 2025. However, the Independent Auditor's Report issued a disclaimer of opinion due to significant concerns, including: * Inability to obtain sufficient appropriate audit evidence regarding opening balances as of April 1, 2024, and relevant supporting documents from the previous year. * Multiple irregularities and suspected fraudulent transactions noted during the year ended March 31, 2018, based on a preliminary assessment by the Liquidator/Resolution Professional. * Failure to obtain confirmations from parties, leading to an inability to reconcile trade payables, other payables, and various other receivables outstanding as of March 31, 2025. * Non-deposit of various statutory dues (PF, ESIC, GST, TDS, and Income Tax) and non-compliance with filing requirements for financial years 2017-18 through 2024-25, with no provision for interest and penalties. * Suspected fraudulent nature of various trade receivables and advances to suppliers, with balance confirmations not received. * Non-availability of key financial documents, including bank statements, loan account statements, and fixed deposit schedules, for verification. * Lack of Secretarial Audit Report for FY 2024-25 and previous years, along with unsigned Board and committee minutes. * Absence of supporting data or records for closing inventory as of March 31, 2025, and no physical verification conducted by management. * Share application money of ₹2.70 crore (INR 270 Lakh) from FY 2017-18 is still pending allotment as of March 31, 2025, contravening Section 73 of the Companies Act 2013. * The company has not filed its financial results for the periods ended June 30, 2024, September 30, 2024, December 31, 2024, and March 31, 2025. * The Company was sold in its entirety to Grow House Agro Limited during FY 2024-25 for a total consideration of ₹21.30 crore (INR 2130 Lakh). An amount of ₹0.45 lakh (INR 45,000) was recognized as interest income due to a delay in receiving the sale consideration. The ₹21.30 crore received is grouped under "Other Financial Liabilities – Advance Received Against Sale of Entire Shareholding – Shares Allotment Pending" as shares have not yet been issued.
The auditors also highlighted a material uncertainty relating to the company's ability to continue as a going concern, noting that its net worth was fully eroded by accumulated losses as of March 31, 2019. The Corporate Insolvency Resolution Process (CIRP) was initiated on November 29, 2018, approved by NCLT on June 28, 2019, and a liquidation order was issued on October 5, 2020. The company was subsequently sold as a whole via an e-auction on December 21, 2024, with the sale certificate issued on March 1, 2025.
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Ashapura Intimates Fashion Limited filed this with the NSE as a statutory disclosure, categorised under board meeting. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Ashapura Intimates Fashion Limited. Read the original for the full detail.