Agenda Items Approved

The Board considered, discussed, and approved the following items:

1. The Standalone Audited Financial Results for the Fourth Quarter and Financial Year ended March 31, 2026.

2. The appointment of M/s. Lookman Mansuri & Associates, Chartered Accountants, as the Internal Auditor of the Company for the Financial Year 2026-27.

Key Financial Figures (Standalone, Rs. in Lakhs)

For the Year Ended March 31, 2026 (Audited):

  • Revenue from Operations: 27.23 (Previous Year: 44.47)
  • Total Expenses: 28.85 (Previous Year: 48.30)
  • Net Profit/(Loss) after tax: (1.62) (Previous Year: (3.82))
  • Earnings Per Share (Basic & Diluted): (0.002) (Previous Year: (0.004))

For the Quarter Ended March 31, 2026 (Audited):

  • Revenue from Operations: 6.10 (Corresponding Quarter Previous Year: 11.62)
  • Net Profit/(Loss) after tax: (1.11) (Corresponding Quarter Previous Year: (3.70))
  • Earnings Per Share (Basic & Diluted): (0.001) (Corresponding Quarter Previous Year: (0.004))

Balance Sheet Highlights as of March 31, 2026 (Audited):

  • Paid-up Equity Share Capital: 931.20
  • Other Equity: 746.45
  • Total Assets: 1,769.36
  • Inventories: 1,649.89
  • Cash and Cash Equivalents: 4.05
  • Total Liabilities: 91.71

Statutory Auditor's Report & Qualifications

The statutory auditor, M Sahu & Co., issued a Disclaimer of Opinion on the financial results. The basis for this is threefold:

1. Non-Current Investments (₹113.67 Lakhs): Requisite documents for these investments are not available with the Company. The management has not provided for any impairment. The auditor is unable to comment on the carrying value or its impact on Other Comprehensive Income.

2. Outstanding Income Tax Demand (₹357.63 Lakhs): A demand exists for Assessment Year 2017-2018. The Company has neither filed an appeal nor created a provision in its books. The auditor states the loss would have been higher by this amount had it been provided for.

3. Inventory Valuation (₹1,649.89 Lakhs): The valuation relies on a report dated May 8, 2023, which states values as of March 31, 2023. The auditor is unable to ascertain the impact of any deviation from Ind AS 2.

The auditor also highlighted a Material Uncertainty Related to Going Concern due to non-moving inventories amounting to ₹1,641.62 Lakhs, which constitutes 92.74% of the company's total assets.

Management's Response to Qualifications (From Annexure C)

  • Investments (₹113.67 Lakhs): Management acknowledges the observation and is coordinating with counterparties to retrieve documentation. They believe there is no permanent diminution in value.
  • Tax Demand (₹357.63 Lakhs): The matter is under review with legal and tax advisors. The company is preparing an appeal and currently treats it as a contingent liability.
  • Inventory Valuation: The company believed the old report was fair as inventory value is typically retained. However, a new independent valuer has been appointed, and an updated assessment is underway.

Impact of Audit Qualifications

As per Annexure C, the management's assessment is that the qualified items have no quantifiable impact on the reported figures for turnover, net loss, EPS, total assets, liabilities, or net worth for the period ended March 31, 2026. The figures remain unchanged after considering the qualifications.

Internal Auditor Appointment

The Board approved the appointment of M/s. Lookman Mansuri & Associates, Chartered Accountants as the Internal Auditor for FY 2026-27. The firm is described as offering services in accounting, auditing, taxation, and company law, led by CA Lookman Mansuri.

Additional Notes from Financial Statements

  • The company has an "assets light" business strategy in place of an "assets heavy" model.
  • Employee Benefit Expenses and Finance Costs were nil for the current year.
  • The previous year's figures have been regrouped/rearranged for comparability.