Authorization Clarification

Responds to BSE email dated 19th June 2026 regarding observations on financial results submitted on 30th May 2026. Confirms that Mr. Pardeep Dalal (DIN: 02424111), Director, was authorized by the Board of Directors in their meeting held on 25th May 2026 to sign the financial results for FY ended 31st March 2026. Includes certified true copy of Board resolution as evidence.

Financial Results Overview

Income Statement (Amounts in ₹ lakhs):

  • Total Income FY26: ₹14,810.43 (FY25: ₹9,770.77)
  • Revenue from Operations: ₹14,758.44 (FY25: ₹9,751.83)
  • Other Income: ₹51.99 (FY25: ₹18.93)
  • Total Expenses FY26: ₹14,248.28 (FY25: ₹9,063.66)
  • Cost of Material Consumed: ₹10,278.62
  • Employee Benefits Expense: ₹762.76
  • Finance Costs: ₹326.28
  • Depreciation and Amortization: ₹499.03
  • Other Expenses: ₹2,822.08
  • Profit Before Tax FY26: ₹562.15 (FY25: ₹707.11)
  • Tax Expense FY26: ₹169.24 (Current tax: ₹120.93, Deferred tax: ₹-58.61)
  • Net Profit FY26: ₹451.52 (FY25: ₹555.00)
  • Earnings Per Share (Face Value ₹10): Basic EPS ₹4.49 (FY25: ₹6.94)

Half-Year Performance:

  • H2 FY26 (Audited): Net Profit ₹309.77, EPS ₹3.08
  • H1 FY26 (Unaudited): Net Profit ₹141.75, EPS ₹1.41

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

  • Total Liabilities: ₹14,625.97 lakhs
  • Total Assets: ₹14,625.97 lakhs
  • Property, Plant & Equipment: ₹3,103.79 lakhs
  • Inventories: ₹3,360.89 lakhs
  • Trade Receivables: ₹5,202.84 lakhs
  • Cash and Cash Equivalents: ₹17.91 lakhs

Cash Flow Statement (FY26):

  • Net cash used in operating activities: ₹-1,364.83 lakhs
  • Net cash used in investing activities: ₹-1,989.77 lakhs
  • Net cash from financing activities: ₹3,363.70 lakhs
  • Net change in cash: ₹9.10 lakhs

Key Notes and Disclosures

Auditor's Report:

Statutory auditors Avnish Sharma & Associates (FRN: 009398N) issued unmodified opinion on the financial results. Notes that the company is in the process of strengthening internal financial controls, though such controls were operating unavailing as at 31st March 2026.

Significant Events:

1. Factory Fire Incident: Major fire occurred on 27th April 2026 in factory premises affecting plant functioning. Fire caused substantial damage to building, plant & machinery, stocks and records. Management estimated loss of ₹9.39 crores, claim yet to be filed with insurance company.

2. Related-Party Transactions: During the year, company entered into Distribution, Marketing & Brand License Agreement with Astonea One Private Limited (associate concern) to sell their products as non-exclusive distributor on commission basis. Total sales post agreement (dated 01.08.2025): ₹41,40,76,077. Direct/indirect commission paid: ₹15,42,95,411. Transactions require arm's length pricing reporting.

3. Listing Status: Successfully debuted on BSE SME platform on 3rd June 2025. Exempt from mandatory Ind AS adoption but voluntarily adopted Ind AS effective FY 2026-27.

4. Subsidiary: Incorporated wholly-owned foreign subsidiary Astonea LLC in Sheridan, Wyoming, USA on 25th January 2026. Expenses of ₹60,798 (USD 660.89) borne for incorporation but no capital subscribed. No consolidation done as no business started.

5. Segment Reporting: Company operates in single segment - manufacture and sale of cosmetics & pharmaceutical products.

6. IPO Details:

  • Listed on 03.06.2025
  • Fresh issue of 27,90,000 equity shares of face value ₹10 each at premium of ₹125 per share
  • Issue price: ₹135 per share
  • Proceeds received: ₹37,66,50,000

7. IPO Proceeds Utilization (as of 31.03.2026):

  • Total utilized: ₹35,91,15,998
  • Unutilized: ₹1,75,34,002 (kept in Current Account No. 50200088242121)
  • Significant revision: Board approved (27.02.2026) and shareholders approved (EGM 27.03.2026) variation to invest ₹6.25 crores in Damaira Pharmaceuticals Private Limited for 52,00,000 shares (25.74% equity) on 31.03.2026

Other Matters:

  • Internally generated brand: Research phase (01.01.2021 to 31.03.2024) expenses charged to P&L. Development phase (01.04.2024 to 31.03.2027) expenses capitalized. FY26 development cost capitalized: ₹3.27 crores (includes borrowing cost ₹7.90 lakhs)
  • AGM for FY 2024-25 postponed with ROC approval, held on 27.12.2025
  • Share issue expenses: ₹3,86,61,128 (₹3,57,14,128 from Share Premium Account, ₹29.50 lacs in P&L)

Financial Impact

All financial impacts are quantified in the disclosure. The factory fire loss of ₹9.39 crores represents a material contingent loss pending insurance claim settlement.