Southern Infoconsultants Limited has released its unaudited financial results for the quarter ended September 30, 2025, revealing a mixed financial picture and raising concerns from auditors. The company's board approved these results during a meeting held on November 14, 2025.

Financial Performance

The company reported the following key financial metrics for Q2 2025:

The financial results indicate a challenging quarter for Southern Infoconsultants, with a significant decline in both revenue and profitability compared to the same period last year.

Auditor Qualifications

The statutory auditors, Mukesh Aggarwal & Co., have raised two significant concerns in their limited review report:

1. Gratuity Provisions: The company has not made the required gratuity provisions for its employees as mandated by the Indian Accounting Standard-19 (Ind AS 19) on Employee Benefits. This non-compliance may result in an overstatement of net profits and an understatement of provisions.

2. Work-in-Progress Inventory: The auditors highlighted concerns regarding the recognition of work-in-progress inventory worth ₹964.08 lakhs. They were unable to verify the basis for this recognition due to the absence of supporting contracts.

Balance Sheet Highlights

As of September 30, 2025, Southern Infoconsultants reported:

• Total Assets: ₹2,643.92 lakhs (down from ₹3,319.70 lakhs on March 31, 2025)
• Total Equity: ₹574.19 lakhs (down from ₹583.31 lakhs on March 31, 2025)
• Cash and Cash Equivalents: ₹62.87 lakhs (up from ₹4.11 lakhs on March 31, 2025)

Implications

The financial statements reflect a challenging operating environment for Southern Infoconsultants. The significant decrease in revenue and the swing to a net loss suggest potential headwinds in the IT hardware and software trading sector, which is the company's primary business.

The company faces the task of addressing the auditors' concerns, particularly regarding employee benefits and inventory recognition practices. These issues, if left unresolved, could impact investor confidence and the company's financial reporting quality.

Investors and stakeholders may look for clarification from the management on these audit qualifications and the company's strategies to improve its financial performance in the coming quarters.

Southern Infoconsultants Limited (ISIN: INE298B01010) has taken a significant step towards aligning its corporate governance structure with current regulatory requirements. The company received approval from the Ministry of Corporate Affairs on October 30, 2025, for the adoption of new Memorandum of Association (MOA) and Articles of Association (AOA).

Key Changes

The primary purpose of these changes is to bring the company's existing MOA and AOA, which were based on the Companies Act 1956, in line with the provisions of the Companies Act 2013. This update reflects Southern Infoconsultants' commitment to maintaining compliance with the latest regulatory framework.

Modifications to MOA

The alterations to the Memorandum of Association include:

1. Re-alignment of the object clause and liability clause as per Table A of Schedule I of the Companies Act, 2013.
2. No change in the main objects of the company.
3. Deletion of the existing Clause III (B) containing "Objects Incidental or Ancillary to the attainment of Main Objects" and replacement with a new Clause III (B) titled "Matters which are necessary for furtherance of the Objects specified in Clause III (A)".
4. Complete deletion of the existing Clause III (C) containing "Other Objects".
5. Modification of Clause IV regarding the liability of members.

Changes to AOA

The Articles of Association have been comprehensively revised to align with the provisions of the Companies Act, 2013. This includes:

1. Updating references to specific sections of the Act.
2. Aligning regulations with the new Act's requirements.
3. Adopting a new set of Articles of Association in substitution of the existing AOA.

Shareholder Approval and Implementation

These changes were made following shareholder approval obtained at the company's Annual General Meeting. The implementation of these updates demonstrates Southern Infoconsultants' proactive approach to corporate governance and regulatory compliance.

Implications

The adoption of the new MOA and AOA is expected to:

1. Ensure better alignment with current regulatory requirements.
2. Potentially improve corporate governance practices.
3. Provide a more up-to-date framework for the company's operations.

Investors and stakeholders can view these changes as a positive step towards modernizing the company's governance structure and ensuring compliance with the latest corporate laws.

Southern Infoconsultants has duly informed the Bombay Stock Exchange of these changes, as required under Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.