ARSS Infrastructure Projects Limited - Audited Financial Results FY2026

Key Financial Figures (Standalone - Rs in Lakhs)

Income Statement Highlights:

  • Total Revenue from Operations: ₹14,579.28 lakhs for FY26 (₹16,538.80 lakhs in FY25)
  • Other Income: ₹340.25 lakhs for FY26 (₹450.01 lakhs in FY25)
  • Total Income: ₹15,326.08 lakhs for FY26 (₹17,172.49 lakhs in FY25)
  • Net Loss before Exceptional Items & Tax: ₹(11,847.24) lakhs for FY26 (₹(835.69) lakhs in FY25)
  • Exceptional Items: ₹3,43,413.06 lakhs for FY26
  • Net Loss before Tax: ₹(3,55,260.30) lakhs for FY26 (₹(835.69) lakhs in FY25)
  • Net Loss after Tax: ₹(3,55,498.04) lakhs for FY26 (₹(949.37) lakhs in FY25)
  • Total Comprehensive Income: ₹(3,55,498.04) lakhs for FY26 (₹(949.37) lakhs in FY25)

Balance Sheet Highlights (as at March 31, 2026):

  • Equity Share Capital: ₹9,011.85 lakhs (₹2,273.80 lakhs in FY25)
  • Other Equity: ₹86,956.30 lakhs (₹(18,652.35) lakhs in FY25)
  • Total Assets: ₹1,27,731.05 lakhs (₹1,58,715.55 lakhs in FY25)
  • Total Liabilities: ₹31,762.90 lakhs

Per Share Data:

  • Earnings Per Share (Basic & Diluted): ₹(394.48) for FY26 (₹(4.18) in FY25)

Corporate Insolvency Resolution Process Implementation

The company completed the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, with the National Company Law Tribunal (NCLT) approving the Resolution Plan submitted by Ocean Capital Market Limited (Successful Resolution Applicant) on August 29, 2025.

Key implementation steps completed:

  • Board of Directors reconstituted on September 29, 2025
  • Extinguishment of 1,06,19,468 equity shares held by erstwhile promoters
  • Entire admitted claim of Financial Creditors amounting to ₹4,940.14 crores assigned to SRA
  • Financial creditors settled through payment of ₹207.69 crores by SRA
  • Unsustainable debt of ₹4,675.45 crores settled by issue of 7.5 crore equity shares
  • Settlement of operational creditors for ₹0.47 crores
  • Extinguishment of all contingent liabilities, commitments and other claims
  • SRA infused ₹3 crores for acquiring 30 lakh equity shares

Exceptional Items Breakdown

The exceptional items of ₹3,43,413.06 lakhs comprise:

  • Extinguishment of Operational Creditors: ₹(5,039.46) lakhs
  • Interest expense payable to Financial Creditors: ₹2,23,724.03 lakhs
  • Liability relating to Financial Creditors not recorded earlier: ₹1,04,286.74 lakhs
  • Provision for Arbitration claim written off: ₹91,273.71 lakhs
  • Arbitration claim raised during the year: ₹(70,831.96) lakhs

Auditor's Qualified Opinion

Statutory Auditors A D V AND CO LLP issued a qualified opinion with the following key concerns:

1. Non-compliance with IND AS 115:

  • Contract-wise surplus/deficit on construction contracts not ascertained or recognized
  • Absence of relevant contract-wise records and underlying project documentation

2. Recognition of Arbitration Claims (₹70,831.96 Lakhs):

  • Claims subject to arbitration proceedings with uncertain outcome
  • Recognition not in accordance with Ind AS 115, 109, and 37
  • Results in overstatement of exceptional items, other financial assets and net worth

3. Loan Classification from Ocean Capital Market Limited:

  • Classified as "Secured Borrowing" with accrued interest at 9% p.a. (₹1,122.76 lakhs)
  • No security creation documents executed or charges registered
  • NCLT approved Resolution Plan does not contemplate interest payment
  • Requisite approvals for related party transaction not demonstrated

Emphasis of Matter

Auditors drew attention to:

  • Completion of CIRP and implementation of Resolution Plan
  • Financial statements not strictly comparable with previous year due to restructuring
  • Write-off of ₹91,273.71 lakhs arbitration claims
  • Booking of new arbitration claims of ₹70,831.96 lakhs
  • Proposed amendments to Resolution Plan requiring NCLT approval
  • CWIP of ₹6,694.70 lakhs in ARSS Damoh Hirapur Tolls classified as financial asset
  • Inclusion of unaudited results from certain joint ventures

Internal Auditor Appointment

Board reappointed M/s. PR & Associates as Internal Auditors for financial year 2026-27.

PR & Associates Profile:

  • Partnership Firm (FRN: 103892)
  • Established: May 11, 2015
  • Partners: Priyadatta Rath (M.Com, LLB, CMA) and Sumita Mukherjee (B.Com, ACMA)
  • Address: Plot No-43/3817, First Floor, Maruti Vihar, Raghunathpur KIIT, Bhubaneswar-751024

Impact of Audit Qualifications

Management provided statement on impact of audit qualifications:

  • Turnover/Total Income: ₹15,326.08 lakhs (unchanged)
  • Total Expenditure: ₹27,173.32 lakhs (would be ₹26,050.56 lakhs after adjustment)
  • Net Loss: ₹(3,55,498.04) lakhs (would be ₹(4,25,207.93) lakhs after adjustment)
  • EPS: ₹(394.48) (would be ₹(471.85) after adjustment)
  • Total Assets: ₹1,27,731.05 lakhs (would be ₹56,899.09 lakhs after adjustment)
  • Total Liabilities: ₹31,762.90 lakhs (would be ₹30,640.14 lakhs after adjustment)
  • Net Worth: ₹95,968.15 lakhs (would be ₹26,258.95 lakhs after adjustment)

Consolidated Results

Consolidated financial results include:

  • Subsidiary: ARSS Damoh Hirapur Tolls Private Limited
  • Associate: ARSS Developers Limited
  • Joint Ventures: 14 entities including Atlanta-ARSS JV, ARSS-SCPL JV, ARSS LGPPL JV, etc.

Key Consolidated Figures (Rs in Lakhs):

  • Net Loss after Tax: ₹(3,55,357.47) for FY26
  • Total Comprehensive Income: ₹(3,55,357.47) for FY26
  • EPS: ₹(394.32) for FY26

Cash Flow Statement

Standalone Cash Flows (Rs in Lakhs):

  • Net Cash from Operating Activities: ₹(2,876.77)
  • Net Cash from Investing Activities: ₹355.91
  • Net Cash from Financing Activities: ₹2,189.05
  • Net Decrease in Cash: ₹(331.81)
  • Cash & Cash Equivalents at year end: ₹1,620.10

Additional Information

  • The company is under corporate insolvency resolution process (CIRP)
  • Financial results published in newspapers as per Regulation 47 of SEBI LODR
  • Results available on company website: www.arssgroup.in
  • Board meeting duration: 12:00 hours to 19:30 hours on May 30, 2026