Regulatory Communication Summary
AAA Technologies Limited responded to regulatory queries from the National Stock Exchange of India Limited regarding their financial results submission for the quarter and year ended March 31, 2026.
Date and Nature of Exchange Query
The company received queries from NSE on July 13, 2026, regarding two specific issues:
1. Financial results not signed by authorized signatory/ies - Signed by Director only
2. The Statement of Impact of Audit Qualifications in case of modified opinion(s)/Declaration of unmodified opinion submitted was not in the format prescribed by SEBI - Not signed by Audit Committee Chairman and names of signatories were not mentioned
The company submitted the required copies with all signatures and signatory names as requested by the exchange.
Financial Results Clarification
Annual Financial Results for FY26 (Audited):
- Total Revenue: ₹2,180.26 lakhs (FY25: ₹2,702.56 lakhs)
- Revenue from Operations: ₹2,037.86 lakhs (FY25: ₹2,545.55 lakhs)
- Other Income: ₹142.40 lakhs (FY25: ₹157.01 lakhs)
- Total Expenses: ₹1,904.23 lakhs (FY25: ₹2,232.49 lakhs)
- Employee Benefits Expense: ₹1,038.24 lakhs (FY25: ₹898.15 lakhs)
- Depreciation: ₹32.16 lakhs (FY25: ₹46.72 lakhs)
- Other Expenses: ₹833.83 lakhs (FY25: ₹1,287.62 lakhs)
- Profit Before Tax: ₹276.03 lakhs (FY25: ₹470.07 lakhs)
- Tax Expense: ₹69.74 lakhs (FY25: ₹119.04 lakhs)
- Net Profit: ₹206.29 lakhs (FY25: ₹351.03 lakhs)
- Basic EPS: ₹1.61 (FY25: ₹2.74)
Q4 FY26 Results (Audited):
- Total Revenue: ₹392.58 lakhs (Q4 FY25: ₹1,099.77 lakhs)
- Revenue from Operations: ₹337.68 lakhs (Q4 FY25: ₹1,057.36 lakhs)
- Other Income: ₹54.90 lakhs (Q4 FY25: ₹42.41 lakhs)
- Total Expenses: ₹439.53 lakhs (Q4 FY25: ₹966.51 lakhs)
- Loss Before Tax: ₹(46.95) lakhs (Q4 FY25: Profit ₹133.26 lakhs)
- Tax Benefit: ₹(12.02) lakhs (Q4 FY25: Tax Expense ₹33.51 lakhs)
- Net Loss: ₹(34.93) lakhs (Q4 FY25: Profit ₹99.75 lakhs)
- Basic EPS: ₹(0.27) (Q4 FY25: ₹0.78)
Key Notes from Financial Statements:
- The company provided retrospective increment to all employees, resulting in employee benefits expense of ₹115.64 lakhs as of March 31, 2026
- Revenue recognition includes GST (₹321.08 lakhs for year, ₹52.46 lakhs for quarter) with equivalent amount debited to other expenses
- Management is evaluating applicability of gratuity provisions under new labor codes effective November 21, 2025
Board Decisions from May 30, 2026 Meeting:
1. Approved Audited Financial Results for FY26 ended March 31, 2026
2. Approved Audited Financial Statements for FY26 with Auditors' Report
3. Deferred declaration/recommendation of dividend for FY26 (to be considered at subsequent meeting)
4. Appointment of M/s. S P M L & Associates, Chartered Accountants (FRN: 136549W) as Statutory Auditors for FY27
5. Appointment of Internal Auditor for FY27
6. Disclosure of Director interests under Section 184 of Companies Act, 2013
7. Compliance Report for quarter ended March 31, 2026
Audit Qualifications
Auditors issued a qualified opinion with two main issues:
1. Gratuity Provision (Ind AS 19 Non-compliance):
- Company did not make any provision for gratuity expenses for FY26
- Management cited new labor laws effective November 21, 2025, and is evaluating applicability
- Financial impact cannot be quantified as assessment is ongoing
- Had provision been recognized, profit before tax, profit after tax, and employee benefits expense would have been adjusted, and liabilities increased
2. GST-Inclusive Revenue Recognition:
- Revenue recognized inclusive of GST (₹321.08 lakhs for year, ₹52.46 lakhs for quarter)
- Corresponding equivalent amount debited to 'other expenses'
- No impact on profit before tax or profit after tax
- Management will change policy to recognize revenue net of GST effective April 1, 2026
Management Response to Audit Qualifications:
- For GST accounting: Will change policy to recognize revenue net of GST from Q1 FY27
- For gratuity: Undertaking internal review, will obtain legal opinion and actuarial assessment
- Any adjustments required will be quantified and accounted for in Q1 FY27 financial statements