Key Decisions Approved
1. Approval of Audited Financial Statements: The Board considered and approved the Audited Financial Results for the year/quarter ended 31 March 2026.
2. Proposal for Sale of Assets: The Board approved the disposal of the Company's Ferro Alloys manufacturing unit situated at Rudraram Village, Patancheru Mandal, Sangareddy District, Telangana. This decision was based on:
- Report from Committee of Directors evaluating plant condition and restart feasibility
- Independent Chartered Engineer's report concluding restart is not viable due to:
- Technological obsolescence
- High power intensity and tariff costs
- Volatile market conditions
- Environmental/regulatory constraints
- Assets will be sold in "as is where is" condition through transparent sale process
3. Shareholders' Approval: The disposal constitutes disposal of the Company's undertaking, requiring shareholders' approval by special resolution through postal ballot/e-voting under Section 180(1)(a) of Companies Act, 2013.
4. Postal Ballot Process: The Board authorized Shri P.V. Rao, Whole-Time Director, to initiate the postal ballot/e-voting process.
5. Scrutinizer Appointment: B'S S & Associates, Company Secretaries, appointed as Scrutinizer for the postal ballot process.
Financial Results for Year Ended 31 March 2026 (Amount in ₹ Lacs)
Income Statement Highlights:
- Sales/Income from Operations: ₹7,340.06
- Other Income: ₹949.67
- Total Income: ₹1,056.86
- Total Expenses: ₹2,040.86
- Net Loss: ₹(984.00)
- Basic and Diluted EPS: ₹(6.00)
- Paid-up Equity Share Capital: ₹1,639.50 (Face Value ₹10 each)
Balance Sheet Highlights as at 31 March 2026:
- Total Assets: ₹22,994.76
- Property, Plant and Equipment: ₹11,561.52
- Inventories: ₹3,956.72
- Total Liabilities: ₹21,476.16
- Borrowings: ₹3,441.60 (Non-current ₹3,006.01 + Current ₹435.59)
- Trade Payables: ₹8,296.26
- Net Worth: ₹1,518.61
Cash Flow Highlights for Year Ended 31 March 2026:
- Net Cash Used in Operating Activities: ₹(1,910.26)
- Net Cash from Investing Activities: ₹48.54
- Net Cash from Financing Activities: ₹1,859.34
- Net Decrease in Cash: ₹(2.38)
Asset Sale Details
Regulatory Disclosure (Annexure-B):
- The Rudraram unit contributed 100% of turnover/revenue/income and net worth during last financial year
- Agreement for sale not yet executed (subject to shareholder and regulatory approvals)
- Expected completion date: 31 October 2026
- Consideration not finalized (to be determined through transparent tender process)
- Sale value not lower than value determined by Registered Valuer(s)
- Buyers not identified yet
- Transaction does not qualify as related party transaction
- Net sale proceeds to be utilized for:
- Repayment of existing borrowings
- Reduction of interest burden
- Enhancement of working capital
- Other general corporate purposes
Audit Qualifications
The auditors issued a qualified opinion highlighting several issues:
1. Ind AS 16 Non-compliance: Management did not carry out scheduled physical verification of Property, Plant and Equipment
2. Ind AS 19 Non-compliance: Company has not made provisions for gratuity and leave encashment using Projected Unit Credit method
3. Recoverability Concerns: Interest-free loans & advances of ₹6.65 crores have material uncertainties over realizability
4. Inventory Issues: No physical verification or technical/market evaluation of inventories conducted
5. Confirmation Deficiencies: Balance confirmations not received for:
- Advances to suppliers: ₹19.77 crores
- Borrowings: ₹4.36 crores
- Trade payables: ₹7.18 crores
- Other liabilities: ₹16.36 crores
6. MSME Compliance: Company does not identify trade payables registered under MSME Act 2006
Operational Status
The Company suspended Ferro Alloys manufacturing activities since 30 May 2025 due to significant market fluctuations and continues to monitor market conditions for potential resumption.
Meeting Details
The Board meeting started at 5:30 PM and concluded at 7:45 PM on 29 May 2026.