Supreme Engineering Approves Audited FY25 Results with Qualified Opinion and Going Concern Doubts
Supreme Engineering approved Q4 and FY25 standalone results with a net loss of ₹1,180.99 lakh. Auditors issued a qualified opinion due to non-compliance, unverified records, and going concern doubts from NPA status and negative net worth.
The impact is high because the company is facing critical financial distress, including NPA status, continuous losses, and negative net worth, compounded by significant audit qualifications and doubts about its going concern assumption. These issues pose substantial risks to investors and the company's future operations.
The sentiment is negative due to significant financial losses, negative net worth, and severe audit qualifications highlighting non-compliance with laws, unverified financial items, and a material uncertainty regarding the company's ability to continue as a going concern.
Supreme Engineering Limited's Board of Directors, at its meeting on October 29, 2025, approved the Audited Standalone Financial Statements for the fourth quarter and financial year ended March 31, 2025. The company reported a net loss of ₹1,180.99 lakh for the financial year ended March 31, 2025, with revenue from operations at ₹1,742.30 lakh. The total assets stood at ₹2,966.65 lakh, and the net worth was negative at -₹8,889.95 lakh.
Key details from the announcement include: * The Statutory Auditors, M/s. Rushabh Davda & Associates, issued a qualified opinion on the financial results. * Reasons for Qualified Opinion: * Non-compliance with laws and regulations, including failure to file Income Tax Audit Reports for FY 2019-20 and FY 2020-21, unpaid/short-paid statutory dues (TDS, PF, Professional Tax) with unascertained interest and penalties, absence of a Company Secretary as required by Section 203 of the Companies Act 2013, and various non-compliances highlighted in the Secretarial Report. * Long-outstanding trade receivables, payables, advances, and borrowings with unascertained impact due to insufficient ledger confirmations. * Inability to verify the classification of trade payables between MSME and other parties due to inadequate records. * Auditors did not conduct physical verification of inventory as of March 31, 2025, and lacked stock movement documentation, preventing them from commenting on inventory correctness and valuation. * Emphasis of Matter (not a qualification but significant): * The company's secured loan account was classified as a Non-Performing Asset (NPA) on August 19, 2021, and principal and interest repayments have ceased since. * Continuous losses, including for the quarter ended March 31, 2025, have led to current liabilities exceeding total assets, resulting in negative net worth. * These conditions indicate a material uncertainty regarding the company's ability to continue as a going concern. * Management has prepared financial results on a going concern basis, citing ongoing loan restructuring, exploration of fund infusion, preferential allotment, and asset monetization options. * A preliminary deposit of 10% has been made with bankers, and an application for a One Time Settlement Plan has been submitted. * Accrued interest, charges, or penalties since the NPA classification have not been provided in the accounts. * Ongoing litigations under Income Tax and GST laws exist, with contingent impacts.
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Supreme Engineering Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. 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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