Board Meeting and Regulatory Compliance

The Board of Directors of Advance Lifestyles Limited held a meeting on May 27, 2026, from 4:00 PM to 7:00 PM. The meeting approved the audited standalone financial results for the quarter and financial year ended March 31, 2026, pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Auditor's Qualified Opinion

Piyush J. Shah & Co., Chartered Accountants, issued a qualified opinion on the financial results. The qualifications include:

1. Non-Provision of Interest on Borrowings and Outstanding Liabilities: The company obtained an unsecured loan of ₹3,511.90 lakhs (₹35.12 crore) from a related party, which management claims is interest-free, resulting in no interest expense recognition. Additionally, outstanding liabilities aggregating ₹758.99 lakhs (₹7.59 crore) payable to three parties (two undergoing Corporate Insolvency Resolution Process under IBC 2016 and one non-traceable) had no interest provision. Financial impact is unascertainable.

2. Non-Confirmation of Balances from Parties under CIRP/Non-Traceable Parties: Balance confirmations and supporting reconciliations were unavailable for the ₹758.99 lakhs outstanding liabilities, preventing verification of existence, completeness, and valuation.

3. Non-Charging of Interest on Loans Granted: The company granted short-term loans and advances without charging interest, contrary to Ind AS 109 requirements. Additionally, interest-free loans were granted in contravention of Section 186(7) of Companies Act, 2013. Financial impact is unascertainable.

Financial Results Overview (Year Ended March 31, 2026)

  • Total Revenue: ₹76,838.99 thousand (₹7.68 crore)
  • Other Income: ₹76,838.99 thousand (includes fair value measurement gain on loans of ₹39,588.33 thousand)
  • Total Expenses: ₹32,011.13 thousand (₹3.20 crore)
  • Employee benefits: ₹26,924.10 thousand
  • Finance costs: ₹26,924.10 thousand
  • Depreciation: ₹69.16 thousand
  • Other expenses: ₹3,016.85 thousand
  • Profit Before Tax: ₹44,827.86 thousand (₹4.48 crore)
  • Tax Expense: ₹1.88 thousand (deferred tax)
  • Net Profit: ₹44,825.98 thousand (₹4.48 crore)
  • Earnings Per Share (Basic & Diluted): ₹7.20
  • Paid-up Equity Share Capital: ₹62,257.50 thousand (face value ₹10 each)

Quarterly Results (Q4 FY26)

  • Total Revenue: ₹48,944.23 thousand
  • Profit Before Tax: ₹40,596.97 thousand
  • Net Profit: ₹40,597.18 thousand
  • EPS: ₹6.52

Segment Reporting (Year Ended March 31, 2026)

This is the first period of segment reporting under Ind AS 108:

  • Mining and Trading of Bullion & Precious Metals: Assets ₹301,024.94 thousand
  • Real Estate & Infrastructure Development: Assets ₹385,225.00 thousand
  • Unallocated: Assets ₹79,551.08 thousand
  • Total Segment Assets: ₹765,801.02 thousand
  • Segment Result Before Tax: ₹71,751.96 thousand

Balance Sheet Position (As at March 31, 2026)

  • Total Assets: ₹765,801.02 thousand
  • Current Assets: ₹687,465.98 thousand (includes cash ₹6,268.47 thousand)
  • Non-Current Assets: ₹78,335.04 thousand
  • Total Equity: ₹323,188.04 thousand
  • Non-Current Liabilities: ₹338,524.49 thousand
  • Current Liabilities: ₹104,088.49 thousand (includes borrowings ₹75,899.55 thousand)
  • Total Liabilities: ₹442,612.98 thousand

Cash Flow Statement (Year Ended March 31, 2026)

  • Net Cash Used in Operating Activities: ₹(690,292.06) thousand
  • Net Cash from Investing Activities: ₹696,584.24 thousand
  • Net Cash Used in Financing Activities: ₹(194.82) thousand
  • Net Increase in Cash: ₹6,097.36 thousand
  • Cash at End: ₹6,268.47 thousand

Additional Information

  • No investor complaints were pending as of March 31, 2026
  • Figures for previous periods have been regrouped/reclassified where necessary
  • The financial results include fair value measurement gain on loans of ₹39,588.33 thousand recognized under Other Income

Impact of Audit Qualifications Statement

The management stated that the exact financial impact of the audit qualifications is not ascertainable due to:

  • Interest-free nature of borrowings since inception
  • Entire principal of granted loans repaid during the year
  • Ongoing CIRP proceedings for two parties
  • Non-traceability of one party
  • Absence of balance confirmations or claims from concerned parties

The audited figures remain unchanged as the impact cannot be reliably estimated.