Board Meeting Details

The Board of Directors meeting was held on Wednesday, 27th May, 2026, commencing at 03:55 PM and concluding at 04:30 PM

Financial Position (as at 31.03.2026 in ₹ Lakhs)

Assets

  • Total Assets: 20,813.58
  • Non-Current Assets: 20,686.32
  • Property, Plant and Equipment: 0.07
  • Non-current Investments: 37,363.15
  • Trade receivables-Non current: 1,69,500.00
  • Other Non Current Financial Assets: 2,06,863.23
  • Current Assets: 1,272.61
  • Inventories: 1,148.03
  • Trade receivables-current: 592.60
  • Cash and Cash Equivalent: 2.24
  • Other current assets: 157.61

Equity and Liabilities

  • Total Equity: 6,587.88
  • Equity Share Capital: 6,274.80
  • Other Equity: 2,842.59
  • Non-current liabilities: 1,42,200.04
  • Borrowings: 1,42,200.00
  • Provisions: 0.04
  • Current liabilities: 56.95
  • Other financial liabilities: 385.96
  • Other current liabilities: 2.66
  • Provisions: 54.29
  • Current Tax Liabilities: 56.95

Cash Flow Statement (Year ended 31.03.2026 in ₹ Lakhs)

  • Cash flows from operating activities: (563.83)
  • Profit before taxation: (246.11)
  • Depreciation: 0.04
  • Provision for income tax: (54.29)
  • Deferred tax: (0.01)
  • Working capital changes: (263.46)
  • Cash flows from investing activities: 564.85
  • Sale/purchase of shares: 564.85
  • Net increase in cash and cash equivalents: 1.02
  • Cash and cash equivalents at beginning: 1.22
  • Cash and cash equivalents at end: 2.24

Auditor's Opinion

Qualified opinion issued with the following key matters:

Basis for Qualified Opinion

The financial statements do not give a true and fair view due to:

1. Non-provision of interest on loans amounting to ₹1,69,500 lakhs pending conversion to equity

2. Non-compliance with Indian Accounting Standards (Ind AS) as prescribed

Key Audit Matters

1. Loans obtained: ₹1,422 crore borrowings with variety of terms including repayment schedule, interest rates, and securities

2. Loans advanced: ₹1,695 crore inter-corporate deposits with similar complex terms

3. Fair valuation of investments: Significant judgment required for unquoted instruments

Specific Qualifications

  • Interest not provided on ₹1,69,500 lakhs loans pending conversion to equity
  • Company should have prepared financial statements in compliance with IND-AS
  • Investments in group companies exceed limits prescribed under section 186 of Companies Act 2013
  • No interest provided on specific loans: Abhijit Trading Company Ltd (₹72,500 lakhs), Tiaan Consumers Ltd (₹35,000 lakhs), Pacheli Industrial Finance Ltd (₹62,000 lakhs)

CARO Report Findings

Loans and Advances

  • Company granted unsecured demand loans of ₹1,695 crore to various entities
  • ₹NIL loans were converted to investments due to financial constraints of borrowing companies
  • Terms and conditions of loans not prima facie prejudicial to company's interest except for non-provision of interest
  • No schedule of repayment stipulated for principal and interest

Statutory Dues

  • Company regular in depositing undisputed statutory dues except for GST under reverse charges mechanism amounting to ₹0.108 lakhs
  • Pending tax demands: AY 2011-12 (₹12.71 crore), AY 2022-23 (₹0.187 crore), AY 2015-16 (₹0.047 crore)

Internal Financial Controls

  • Company maintained internal financial controls but with certain deficiencies that may affect effectiveness
  • Deficiencies do not result in material misstatement but could impact reliability of financial reporting

Going Concern

  • Auditors expressed doubt about company's ability to meet liabilities falling due within one year from balance sheet date
  • Based on financial ratios, ageing of assets, and expected realization dates

Additional Information

  • Investor Complaints: No pending complaints at beginning or during the quarter
  • Reconciliation Statement: Net profit as per previous Indian GAAP: ₹288.254 lakhs, Net profit as per Ind-AS: ₹288.254 lakhs
  • Accounting Policy: First-time adoption of Ind AS with transition date of 1st April, 2016
  • Format Compliance: Modified format as per SEBI circular dated 5th July, 2016 and Ind AS requirements