Audroc Q1 Net Profit ₹4.34 Lakhs; Auditor Issues Qualification

Revenue from Operations: ₹98.60 lakhs for Q1 FY27 (compared to ₹250.21 lakhs in previous quarter, ₹0.00 lakhs in Q1 FY26)
Total Expenses: ₹94.26 lakhs for Q1 FY27 (including Cost of materials: ₹65.25 lakhs, Employee benefits: ₹6.29 lakhs, Other expenses: ₹22.62 lakhs)
Profit Before Tax: ₹4.34 lakhs for Q1 FY27 (compared to ₹81.99 lakhs in previous quarter, loss of ₹41.69 lakhs in Q1 FY26)
Net Profit for Period: ₹4.34 lakhs for Q1 FY27 (compared to ₹81.99 lakhs in previous quarter, loss of ₹41.69 lakhs in Q1 FY26)
Paid-up Equity Share Capital: ₹65.00 lakhs (65,00,000 equity shares of ₹1/- each) after bonus issue
Earnings Per Share (Basic): ₹0.07 for Q1 FY27 (compared to ₹1.64 in previous quarter, loss of ₹0.83 in Q1 FY26)
Write-off Amount: ₹7,41,13,473/- (₹7.41 crores) of subsidiary investments, loans/advances, and statutory tax balances

Board Meeting: July 17, 2026 (commenced at 03:30 PM, concluded at 04:00 PM)
Director Reclassification Effective: July 17, 2026
Bonus Share Allotment: May 11, 2026 (approved by AGM on May 4, 2026)
Name Change Effective: April 21, 2026 (Special Resolution passed March 23, 2026)

The company has formally shifted its primary business focus from the textile sector to the agro-commodity sector
During the quarter, the company executed agro-commodity trading (1121 Basmati Rice)
Management has declared they are dealing exclusively in exempted goods and not liable to register for GST under Section 23 of the CGST Act, 2017
The company has only single reportable business segment as per Ind AS 108

Equity share capital increased from ₹50,00,000/- (50,00,000 equity shares) to ₹65,00,000 (65,00,000 equity shares) due to bonus issue
The bonus issue was approved by Board on April 7, 2026 and subsequent allotment on May 11, 2026 as approved by members in AGM on May 4, 2026

The statutory auditor issued a qualified opinion noting:

During the quarter ended June 30, 2026, the Company wrote off its investment in subsidiary (M/s Vintage FZE India Private Limited), outstanding loans/advances, and statutory tax balances (CGST, SGST, IGST) aggregating to ₹7,41,13,473/-
These amounts were directly adjusted against the 'Quasi-Equity'/'Deposit' account of Director Mr. Jatinbhai R. Patel
This treatment is a departure from the measurement and recognition principles of Ind AS 109 and Ind AS 1
The material losses should have been routed through the Statement of Profit and Loss
Consequently, the Loss for the quarter is understated and the Reserves & Surplus/Equity is overstated by ₹7,41,13,473/-

Management represented that:

The adjustment was made against the director's deposit account which had a sufficient balance
The financial support was extended by the Director as part of the Company's revival and restructuring efforts
The adjustment was considered appropriate to reflect the commercial substance of the transaction
No cash outflow was involved from the Company
The adjustment was undertaken to facilitate clean-up of legacy balances arising from disinvestment of the subsidiary and write-off of non-utilizable statutory balances

Based on the recommendation of the Nomination and Remuneration Committee, the Board approved:

Change in category of Mr. Karnik Shasankan Pillai (DIN: 08529650) from 'Promoter' to 'Professional Director', effective July 17, 2026
Mr. Pillai shall continue to serve as Managing Director on existing terms and conditions
The approval is limited only to change in classification and does not affect his office, tenure, powers, duties, responsibilities or terms of appointment

In adherence to the Approved Resolution Plan, the management was formally handed over to the Resolution Applicant
Outstanding Central/State statutory dues continue to reflect on government portals but have been extinguished in the Company's books of accounts to the extent covered by the NCLT-approved Resolution Plan

#Tags: #AudrocLimited #Q1Results #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Neutral