Financial Analyst Summary: GB Global Limited Regulatory Response
Company Response to NSE Query Dated 25th June 2025
GB Global Limited responded to the National Stock Exchange of India Limited's email dated 20th June 2025 regarding deficiencies observed in the submission of financial results for the quarter and year ended 31st March 2025, which were filed on 29th May 2025.
The company addressed two specific observations:
- Machine Readable Copy Deficiency: The company acknowledged the inadvertent omission of submitting a legible, machine-readable copy of financial results in the prescribed format. The required document was subsequently prepared and submitted on the NEAPS portal under the Result Compliance Adequacy Accuracy Module.
- Statement of Impact of Audit Qualification: The company submitted the duly signed Statement of Impact of Audit Qualifications in the prescribed format as per SEBI Circular CIR/CFD/CMD/56/2016 on the NEAPS portal.
Regulatory Compliance Reference
The communication explicitly references compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The response demonstrates the company's efforts to rectify filing deficiencies and meet regulatory obligations.
Financial Results Clarification and Audit Qualifications
The audited financial results for FY2025 were accompanied by a qualified audit opinion from Bhuta Shah & Co LLP, Chartered Accountants (Firm Registration No. 101474W/W100100).
The basis for qualified opinion included:
Standalone Financials:
- Complete details regarding Inventory (quantity and valuation) as at 31 March 2025 were not made available to auditors
- Balances of trade payables, trade receivables, advances received, advances given (including capital advances), and GST balances are subject to confirmation, reconciliation, and consequential adjustment
Consolidated Financials:
- The Holding Company (GB Global) has not provided complete details regarding Inventory (quantity and valuation) as at 31 March 2025
- Similar balance confirmation issues exist in the holding company books
The auditors stated they are "unable to comment upon the resultant impact of the above on assets, liabilities, and profit for the quarter and year ended 31st March, 2025."
Key Financial Performance Metrics
Standalone Financial Results (Amounts in ₹ lakhs):
- Revenue from operations: ₹19,122.10 (FY2025) vs ₹21,929.93 (FY2024)
- Total Income: ₹29,122.25 (FY2025) vs ₹28,168.52 (FY2024)
- Net Profit after tax: ₹10,816.36 (FY2025) vs ₹4,038.82 (FY2024)
- EPS after exceptional items: ₹21.62 (FY2025) vs ₹8.07 (FY2024)
- Total Comprehensive Income: ₹10,818.09 (FY2025) vs ₹4,045.61 (FY2024)
Consolidated Financial Results (Amounts in ₹ lakhs):
- Revenue from operations: ₹19,122.10 (FY2025) vs ₹21,929.93 (FY2024)
- Total Income: ₹29,148.71 (FY2025) vs ₹28,205.73 (FY2024)
- Net Profit after tax: ₹10,610.14 (FY2025) vs ₹4,018.49 (FY2024)
- EPS after exceptional items: ₹21.21 (FY2025) vs ₹8.03 (FY2024)
- Total Comprehensive Income: ₹10,611.87 (FY2025) vs ₹4,025.28 (FY2024)
Exceptional Items: ₹500.55 lakhs pertaining to settlement amount paid to Indian Bank, a dissenting financial creditor
Segment Performance Analysis
The company operates in three main segments:
Textiles Segment: Reported negative results of (₹1,303.80) lakhs for Q4 FY2025
Garment Segment: Reported positive results of ₹1,053.68 lakhs for Q4 FY2025
Infrastructure Projects Segment: Reported negative results of (₹48.52) lakhs for Q4 FY2025
Balance Sheet Position (as of 31-Mar-2025)
Standalone (₹ lakhs):
- Total Assets: ₹70,516.57
- Total Equity: ₹38,761.54
- Total Liabilities: ₹31,755.03
Consolidated (₹ lakhs):
- Total Assets: ₹86,889.46
- Total Equity: ₹38,504.98
- Total Liabilities: ₹48,384.48
Indian Bank Settlement Resolution
The document notes the resolution of a long-standing legal dispute with Indian Bank, which had been a dissenting financial creditor. The Successful Resolution Applicant (SRA) proposed a full and final settlement, which was accepted by Indian Bank, resulting in a No Dues certificate issued on 03 March 2025.
Additional Contextual Notes:
The company underwent a Corporate Insolvency Resolution Process (CIRP) initiated in 2017, with a resolution plan approved by NCLT on 19 May 2021. The equity share capital was reduced and then increased through infusion of ₹5,000 lakhs by DLH (Dev Land Housing Private Limited). The company's shares remain suspended from trading pending procedural compliance with stock exchanges.