Orient Technologies Limited — Important, 11-02-2025: General Updates

The company has disclosed a deviation in the utilization of funds raised through its IPO, which amounted to ₹214.76 crore. A significant portion of the funds was accurately utilized for the acquisition of office premises but there was an oversight related to issue expenses. Specifically, the company incurred costs that included Goods and Services Tax (GST), contrary to the prospectus stipulating exclusions of GST for certain payments. The Audit Committee acknowledged this deviation and advised the Board to adjust future reimbursements accordingly. The net effect for the reporting quarter showed a minor deviation of ₹0.13 crore, contributing to a cumulative adjustment of ₹0.84 crore by the end of the quarter. This situation suggests a need for enhanced financial management and oversight, emphasizing potential operational risks that may arise from accounting discrepancies. Investors should monitor how the company addresses these issues to mitigate risks and maintain financial integrity.