Audroc Q2 Results with ₹7.41 Cr Audit Qualification

Quarter Ended September 30, 2026:

Half Year Ended September 30, 2026:

The statutory auditors, J.M. Patel & Bros., issued a qualified opinion on the financial results due to a material accounting treatment:

During the quarter ended September 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.
The auditors consider this treatment a departure from Ind AS 109 (Financial Instruments) and Ind AS 1 (Presentation of Financial Statements), stating these material losses should have been routed through the Statement of Profit and Loss.
Consequently, the Loss for the quarter is understated and Reserves & Surplus/Equity is overstated by ₹7,41,13,473.

Management states that:

The company completed disinvestment of its subsidiary, M/s Vintage FZE India Private Limited during the half year
The adjustment was carried out pursuant to duly approved Board Resolution and irrevocable No Objection Certificate from Mr. Jatinbhai R. Patel
The adjustment did not involve any cash outflow from the company
GST registration had been cancelled and the company is now engaged in business of exempted goods
The financial support was extended by the director as part of company's revival and restructuring efforts

Name and Object Clause Change:

Company name changed from "Alka India Limited" to "AUDROC LIMITED" effective April 21, 2026
Primary business focus changed from textile sector to agro-commodity sector

Registered Office Shift:

Current Business Operations:

Q2 FY27: Trading in potatoes (agro-commodity)
Q1 FY27: Trading in 1121 Basmati Rice (exempted from GST under Section 23 of CGST Act, 2017)

Equity Capital:

Preferential Issue:

Received ₹70,39,35,000 through preferential issue
Entire amount utilized towards working capital requirements
Company allotted 20,00,00,000 warrants convertible into equity shares pursuant to in-principle exchange approval dated August 07, 2026 and EGM resolution dated June 27, 2026

Assets:

Total Assets: ₹7,403.95 lakhs (vs. ₹991.93 lakhs as at March 31, 2026)
Non-current Assets: ₹54.40 lakhs (mainly Property, Plant and Equipment)
Current Assets: ₹7,349.55 lakhs (including Inventories: ₹943.01 lakhs, Trade Receivables: ₹746.69 lakhs, Loans & Advances: ₹5,657.25 lakhs)
Cash and Cash Equivalents: ₹2.60 lakhs

Liabilities and Equity:

Total Equity: ₹7,121.93 lakhs (including Share Application Money: ₹7,039.35 lakhs)
Non-current Liabilities: ₹134.09 lakhs (Borrowings)
Current Liabilities: ₹147.93 lakhs

Operating Activities:

Investing Activities:

Financing Activities:

Management was handed over to Resolution Applicant pursuant to approved Resolution Plan
Certain statutory dues continue to appear on government portals but were stated to have been extinguished to the extent covered by NCLT-approved Resolution Plan

Car Purchase Accounting:

Toyota Fortuner recorded under Fixed Assets at ₹54,40,000
Vehicle purchased on September 15, 2026 in the name of Mr. Jatinbhai Ramanbhai Patel but accounted in company's books
SBI Bank-Fortuner Car Loan of ₹47,65,000 recorded as per board resolution
Necessary adjustments for related-party disclosures not quantified

#Tags: #AudrocLimited #SEBIDisclosure #Regulation33 #FinancialResults #AuditQualification #Negative