Manipal Finance Corporation Reports Q1 Loss, Announces Board Changes
Manipal Finance Corporation Ltd. (MFCL) reported a net loss of Rs 9.85 crore for Q1 ended June 30, 2025, with total income of Rs 1.44 crore. The company announced board restructuring, including the appointment of Ms. Vinoda Chandappa Sherigar as Non-Executive Non-Independent Director and Mr. H Mohandas as Independent Director. MFCL's 42nd AGM is scheduled for September 26, 2025. Auditors raised concerns about the company's ability to continue as a going concern, citing accumulated losses and non-performing assets. Management remains hopeful of recovering dues and maintains a 'going concern' basis for accounts.
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Manipal Finance Corporation Ltd. (MFCL) has reported its financial results for the first quarter ended June 30, 2025, along with significant changes to its board composition. The company continues to face challenges, as highlighted in its latest financial disclosure and auditor's review.
Financial Performance
For the quarter ended June 30, 2025, MFCL reported a net loss of Rs 9.85 crore. This loss comes despite the company recording a total income of Rs 1.44 crore for the same period. The financial results, prepared as per Indian Accounting Standard (Ind-AS), were approved by the company's Board of Directors at a meeting held on August 12, 2025.
Board Restructuring
The company announced several changes to its board composition:
Retirement of Independent Director: Ms. Vinoda Chandappa Sherigar (DIN: 07224755) has retired from her position as an Independent Director upon completion of her tenure.
New Non-Executive Non-Independent Director: Following her retirement as Independent Director, Ms. Vinoda Chandappa Sherigar has been appointed as a Non-Executive Non-Independent Director, subject to shareholder approval.
New Independent Director: Mr. H Mohandas (DIN: 06926720), previously a Non-Executive Non-Independent Director, has been appointed as a Non-Executive Independent Director for a term of five consecutive years, effective from August 12, 2025, subject to shareholder approval.
Annual General Meeting
MFCL has scheduled its 42nd Annual General Meeting for September 26, 2025. The board has approved the draft notice for the AGM and set the dates for book closure.
Auditor's Concerns
The company's statutory auditors, Sriramulu Naidu & Co., have issued a qualified review report, raising concerns about MFCL's ability to continue as a going concern. The auditors pointed out that the company has incurred losses over the years, with a majority of its funds blocked in Non-Performing Assets.
Management's Stance
Despite the auditor's concerns, the company's management has prepared the accounts on a 'going concern' basis. They remain hopeful of recovering dues from non-performing accounts and other debtors. The management does not foresee any diminution in the value of investments.
Financial Position
As of June 30, 2025, the company reported:
| Item | Amount (in crore) |
|---|---|
| Paid-up Equity Share Capital | 839.10 |
| Other Equity | -1,509.51 |
It's worth noting that the company's activities are currently restricted to the recovery of dues and repayment of debts. MFCL stopped the repayment of matured debentures and subordinated debts, as well as interest payment on debentures and subordinated debts from July 1, 2002. The company has since settled these debts based on its liquidity position.
Investors and stakeholders should closely monitor the company's future performance and the outcome of the upcoming Annual General Meeting for further developments.
Historical Stock Returns for Manipal Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | 0.0% | -100.00% | -100.00% | -100.00% | -100.00% |
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