Manipal Finance Corporation Ltd (MFCL) has released its unaudited financial results for the quarter ended September 30, 2025, revealing significant challenges that cast doubt on the company's future operations. The Board of Directors convened on November 13, 2025, to review and approve the financial statements, with the meeting concluding at 4:45 p.m.

Key Highlights

• MFCL's auditors have issued a qualified review report, expressing substantial concerns about the company's ability to continue as a going concern.
• The company has reported ongoing losses over the years.
• A majority of MFCL's funds are currently tied up in Non-Performing Assets (NPAs).

Auditors' Concerns

The qualified review report from the auditors highlights several critical issues:

1. Ongoing Losses: The company has been incurring losses for an extended period, indicating persistent financial difficulties.

2. Asset Quality: A significant portion of MFCL's funds are locked in Non-Performing Assets, raising questions about the company's asset management and recovery strategies.

3. Asset Realizability: The auditors expressed their inability to comment on the ultimate realizability of the company's assets, including Property, Plant, and Equipment under lease.

4. Liability Settlement: Concerns were raised about the company's ability to settle its liabilities, suggesting potential liquidity issues.

Management's Stance

Despite the auditors' concerns, MFCL's management has prepared the financial statements on a going concern basis. This decision reflects the management's perception of the company's ability to continue its operations in the foreseeable future.

Regulatory Compliance

In compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, MFCL has submitted the following to the BSE Ltd:

• Unaudited Financial Results for the quarter ended September 30, 2025
• Limited review report from the Statutory Auditors

Investor Implications

The qualified review report and the auditors' concerns about MFCL's going concern status may have significant implications for investors and stakeholders. These issues highlight the need for careful consideration of the company's financial health and future prospects.

As the situation develops, investors and market participants will likely keep a close watch on Manipal Finance Corporation's strategies to address these challenges and improve its financial position.

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:

1. Retirement of Independent Director: Ms. Vinoda Chandappa Sherigar (DIN: 07224755) has retired from her position as an Independent Director upon completion of her tenure.

2. 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.

3. 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:

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.