LEEL Electricals Limited, formerly known as Lloyd Electric & Engineering Limited, has reported its unaudited standalone financial results for the quarter ended 30th June 2025, during a board meeting held on 07th August 2025. The meeting commenced at 1:00 PM and concluded at 1:40 PM.

As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, particularly Regulation 33, the quarterly financial results were considered, taken on record, and approved by the company’s Board of Directors.

These results were reviewed by the company’s statutory auditors, Vivek Mittal & Associates, who submitted a Limited Review Report alongside the financials. The auditors noted that based on their review, no material misstatements were found and that the statement of results complied with applicable accounting standards. However, they also drew attention to two critical matters that have significantly impacted the company’s financial and operational status.

Ongoing Liquidation and Takeover Process

In a significant development, the Hon’ble National Company Law Tribunal (NCLT), Allahabad Bench, had earlier initiated liquidation proceedings against LEEL Electricals Limited through an order dated 06th December 2021.

Subsequently, via its orders dated 21st March 2024 and 23rd October 2024, the NCLT approved the sale of the company as a going concern to Krishna Ventures Limited (KVL). The Sale Certificate was formally issued on 12th June 2024, authorizing the acquisition under provisions of the Insolvency and Bankruptcy Code, 2016.

Krishna Ventures has since initiated the takeover and is in the process of integrating the company. While the change in management has been effected, other restructuring activities, such as changes in the capital structure, are still underway. These changes are yet to reflect completely in the financial documentation.

Auditor Observations and Caveats

The auditor’s report, issued by CA Vivek Mittal, highlights several key points:

1. The acquirer is in the process of taking full operational control, including access to financial records and internal documents.

2. The company is currently awaiting updated shareholding data from its Registrar and Transfer Agent (RTA). This affects the completeness of the financial results.

3. The audited financials for the year ended 31st March 2025 may require further adjustments due to unavailability of finalised data before the issuance of the Sale Certificate in June 2024.

4. The auditors also stated that the comparative financial results for the corresponding quarter ending 30th June 2024 were not available and were hence not provided, which is a limitation to full comparative analysis.

Despite these pending matters, the unaudited financials were approved, and no adverse remarks were made regarding compliance with disclosure norms.

Implications and Next Steps

The restructuring and acquisition process will be a critical factor in LEEL Electricals' ability to move forward. The new management under Krishna Ventures is expected to revive operations, implement capital restructuring, and stabilise the company’s financial reporting and regulatory compliance.

With the transition in ownership, LEEL’s business model and strategic direction may undergo substantial changes. Stakeholders, including investors, employees, and vendors, are advised to closely monitor regulatory filings and corporate announcements in the coming months.

The company is expected to submit its audited results for FY25 after receiving the pending shareholding and structural information, completing the final leg of its transition from a liquidated entity to a potentially restructured enterprise under new ownership.

For now, LEEL Electricals continues to fulfil its disclosure obligations as per SEBI norms, with limited but compliant reporting, reflecting its ongoing but incomplete corporate restructuring process.

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