Kridhan Infra Limited Reports Q3 Results Amid Financial Challenges
Kridhan Infra Limited released unaudited Q3 FY2024 results, revealing severe financial challenges. The company reports accumulated losses, fully eroded net worth, and defaults on working capital borrowings. Bank loans are classified as NPAs. Auditors raised concerns about the company's ability to continue as a going concern. The consolidated results include a wholly-owned subsidiary and an associate but exclude Readymade Steel Singapore Pte Limited. The Board approved these results on February 13, 2024.
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Kridhan Infra Limited , a company facing significant financial hurdles, has released its unaudited standalone and consolidated financial results for the quarter ended December 31, 2023. The report highlights the company's financial challenges and raises questions about its future operations.
Financial Challenges
The company is grappling with several critical issues:
- Accumulated losses
- Fully eroded net worth
- Defaults in working capital borrowing repayments
- Bank borrowings under NPA (Non-Performing Asset) classification
Additionally, Kridhan Infra has not provided for further interest liability on outstanding borrowings, potentially understating its total liabilities.
Auditor's Concerns
The auditors have highlighted a material uncertainty about the company's ability to continue as a going concern. Despite this observation, the financial results were prepared on a going concern basis, suggesting that management believes the company can continue its operations in the foreseeable future.
Consolidated Results
The consolidated financial results include:
| Entity | Relationship |
|---|---|
| Kridhan Infra Solutions Private Limited | Wholly owned subsidiary |
| Vijay Nirman Company Private Limited | Associate |
Notably, the results exclude the subsidiary Readymade Steel Singapore Pte Limited.
Board Approval
The Board of Directors of Kridhan Infra Limited approved these results at a meeting held on February 13, 2024.
The financial challenges faced by Kridhan Infra, including accumulated losses, eroded net worth, and loan defaults, present a complex situation for the company. The auditor's emphasis on material uncertainty regarding the company's ability to continue as a going concern adds another layer of complexity to the company's financial narrative. Stakeholders and potential investors may need to closely monitor the company's future steps and any potential turnaround strategies it might implement to address these significant financial hurdles.
Historical Stock Returns for Kridhan Infra
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.53% | -1.05% | -2.84% | -7.16% | -13.96% | +50.40% |
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