Kesar Terminals & Infrastructure Ltd — Board Meeting, 14-05-2025: Board Meeting

Kesar Terminals & Infrastructure Limited has announced a board meeting outcome including approval of the financial results for the quarter and year ended March 31, 2025, appointment of M/s. Dhrumil M. Shah & Co. LLP as Secretarial Auditor for five years subject to shareholder approval, and fixed the date for the 17th Annual General Meeting.

The standalone financials show total income at Rs. 33.55 Cr with a net profit of Rs. 2.72 Cr for the year. Key expenses include finance costs of Rs. 8.32 Cr and depreciation of Rs. 3.16 Cr. Exceptional items resulted in a net gain of Rs. 0.59 Cr. Earnings per share stood at Rs. 2.49. The company’s net worth is Rs. 91.77 Cr.

Significant audit qualifications highlight pending liabilities related to corporate guarantees for its wholly owned subsidiary Kesar Multimodal Logistics Limited (KMLL), which has defaulted on borrowings totaling Rs. 171.56 Cr as on March 31, 2025. The subsidiary’s substantial losses have eroded its net worth, triggering ongoing insolvency proceedings and a proposed divestment subject to regulatory approvals. The carrying value of investments and loans in KMLL (aggregating approx. Rs. 98.03 Cr and Rs. 81.07 Cr respectively) is under provision review post the divestment.

Additionally, there is pending litigation with Deendayal Port Trust over leasehold land transfer fees and increased lease rentals, with no provisions made due to uncertain outcomes. The company continues to charge depreciation on related lease assets pending resolution.

On a consolidated basis, revenues were Rs. 36.95 Cr with a net loss after tax of Rs. 7.06 Cr, reflecting KMLL’s continuing losses. Borrowings and interest written back totaled Rs. 37.77 Cr in exceptional items. Consolidated net worth remains negative at Rs. (88.43) Cr due to subsidiary losses and provisions.

Management maintains the consolidated financials prepared on a going concern basis, anticipating future business improvements and successful completion of the KMLL divestment. The audit opinion remains qualified for the fourth consecutive year due to these uncertainties.