Shares of EKI Energy Services Ltd (EKIESL) gained over 4 percent on June 6 on the back of higher volume. At 9.49am, the stock was trading at Rs 428 on BSE, up 4.35 percent from its previous close. EKI Energy recently made an announcement to the stock exchanges regarding the establishment of a wholly owned subsidiary named EKI Community Development Foundation.
Key goals
The primary objective of this subsidiary is to promote, facilitate, develop, and implement programmes that offer sustainable solutions to address emerging environmental needs. The foundation will focus on working in the areas of climate change and global warming, with the aim of reducing their impact.
One of the key goals of the subsidiary is to contribute to the reduction of carbon emissions and other greenhouse gases. This will be achieved through the establishment of projects, allocation of resources, and implementing various measures to procure natural resources in a sustainable manner. The foundation will also emphasise the acquisition of renewable natural resources and actively engage in initiatives to protect and preserve the environment.
Recently, the firm's stock saw a drastic fall after its auditor raised concerns on the company's financial statements. The auditor, Walker Chandiok & Co LLP, in its report stated that there were "material weaknesses" in the company's internal financial controls, and raised concerns about the accuracy and completeness of its financial statements.
The stock hit a 52 week high of Rs 2964 on June 7, 2022 and since then it has lost over 86 percent. The firm is yet to report its March quarter earnings.
According to the report, EKI Energy had incorrectly classified certain expenses as assets, which had the effect of overstating the company's profits. The auditor also expressed fears about the company's ability to continue as a going concern, noting that it had incurred losses in the past and had a negative net worth as of March 31, 2021.