Financial Analyst Summary: Lorenzini Apparels Limited Regulatory Response
Date and Nature of Communication
Date of Communication: July 02, 2025
Nature of Query: The company submitted a clarification letter to both BSE Limited and National Stock Exchange of India Limited regarding the resubmission of audited financial results for the quarter and year ended March 31, 2025. This was done pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Company's Clarification on Financial Results
Lorenzini Apparels Limited has duly resubmitted its Financial Results for the quarter and year ended March 31, 2025 in the format prescribed by SEBI. The submission includes:
- Revised financial results
- Audit Report issued by the Statutory Auditors (Mittal & Associates)
- The documents were marked as "Annexure-A"
The company requested the exchanges to take this submission on record as compliance with applicable Listing Regulations.
Details of Financial Results Clarification
Auditor's Opinion: Mittal & Associates issued an unmodified opinion on the financial results, stating that:
- The statement is presented in accordance with Regulation 33 requirements
- It gives a true and fair view in conformity with Ind-AS principles
- The net profit figures are accurately represented
Emphasis of Matter: The auditors drew attention to Note No. 5 regarding preferential issue of equity shares worth ₹2,100 lakh. The management represented that:
- The company is in the process of deploying funds raised through share issuance toward intended objectives
- Undeployed funds (₹446.28 lakh) have been temporarily invested in equity markets until fully utilized for designated purposes
Financial Performance Highlights:
- Q4 FY25: Net loss of ₹656.73 lakh with revenue from operations of ₹1,392.25 lakh
- FY25 Annual: Net profit of ₹583.64 lakh with revenue from operations of ₹6,342.04 lakh
- EPS FY25: Basic 0.34, Diluted 0.32
- Equity Structure: Paid-up capital of ₹1,727.37 lakh, Other equity of ₹3,032.30 lakh
Fund Utilization Details:
- Preferential share warrants issued: 10,38,371 shares in October 2023
- Total proceeds received: ₹2,100 lakh (Oct-23: ₹525 lakh, May-24: ₹375 lakh, Jul-24: ₹825 lakh)
- Funds utilized for intended objectives: ₹1,653.72 lakh
- Balance funds temporarily invested: ₹446.28 lakh
Cash Flow Statement:
- Net cash flow from operating activities: (₹495.02) lakh
- Net cash used in investing activities: (₹288.94) lakh
- Net cash from financing activities: ₹795.83 lakh
- Net increase in cash: ₹11.88 lakh
Approval Details:
- Results reviewed by Audit Committee and approved by Board of Directors
- Approval date: May 30, 2025
- Auditor's report date: May 30, 2025
Topic Tags: Regulatory Response, Financial Results Clarification, SEBI Compliance, Audit Opinion, Preferential Issue, Fund Utilization