Financial Results Overview

Quarter Ended March 31, 2026 (Audited):

  • Revenue from Operations: ₹1,311.98 lakhs
  • Other Income: ₹5.27 lakhs
  • Total Revenue: ₹1,317.25 lakhs
  • Net Loss: ₹82.33 lakhs
  • Basic EPS: ₹-0.75
  • Diluted EPS: ₹-0.75

Year Ended March 31, 2026 (Audited):

  • Revenue from Operations: ₹4,439.52 lakhs
  • Other Income: ₹11.75 lakhs
  • Total Revenue: ₹4,451.27 lakhs
  • Net Loss: ₹112.64 lakhs
  • Basic EPS: ₹-1.22
  • Diluted EPS: ₹-1.22

Comparative Figures (Year Ended March 31, 2025):

  • Revenue from Operations: ₹7,808.52 lakhs
  • Other Income: ₹13.90 lakhs
  • Total Revenue: ₹7,822.42 lakhs
  • Net Profit: ₹17.35 lakhs
  • Basic EPS: ₹0.20
  • Diluted EPS: ₹0.20

Balance Sheet Position as at March 31, 2026

  • Total Assets: ₹7,025.04 lakhs (Previous year: ₹6,741.57 lakhs)
  • Total Equity: ₹2,524.40 lakhs (Previous year: ₹1,513.84 lakhs)
  • Paid-up Equity Share Capital: ₹1,101.11 lakhs (Previous year: ₹851.67 lakhs)
  • Total Liabilities: ₹4,500.64 lakhs (Previous year: ₹5,227.73 lakhs)

Cash Flow Statement for Year Ended March 31, 2026

  • Net Cash from Operating Activities: ₹261.53 lakhs
  • Net Cash from Investing Activities: ₹22.93 lakhs
  • Net Cash from Financing Activities: ₹417.00 lakhs
  • Closing Cash and Cash Equivalents: ₹330.84 lakhs

Auditor's Qualifications and Emphasis of Matters

The independent auditor's report by M/s. Mukund and Rohit, Chartered Accountants (Registration No. 113375W) contains several emphasis of matters:

1. GST Show Cause Notice:

  • Received Show Cause Notice No. V/CGST/AXEL/PREV/GRP5/JC/245/2025-26 dated 19.01.2026 on 03.02.2026
  • Issued by Office of the Commissioner GST, Central Vadodara
  • Pertains to financial years 2021-2022 to 2024-2025
  • Alleges wrongful availment of Input Tax Credit (ITC) amounting to ₹31.57 crores along with applicable interest and penalties
  • Management considers this a contingent liability; no provision made in financial statements

2. Regulatory Investigations:

  • Investigation initiated by regulatory authorities regarding GST matter
  • Summons issued to directors and others; statements recorded by SEBI Investigation Officer
  • Income Tax Department investigation ongoing by Investigation Wing of Vadodara Income Tax
  • Contingent liability not quantifiable

3. Legal Proceedings under Negotiable Instruments Act:

  • Vendor initiated legal proceedings u/s 138 of Negotiable Instruments Act
  • Matter pending before competent court at Tirupati, A.P.
  • Involves nine post-dated cheques aggregating ₹18 crore issued as security
  • Company contends no amount was due and payable
  • Considered contingent liability; no provision made

4. Inventory Valuation:

  • No provision made for obsolete/slow moving inventories
  • Exact value not available; impact on financial statements not determinable

5. New Labour Codes Impact:

  • Company has not assessed or quantified impact of New Labour Codes
  • No provision or liability recognized in financial statements
  • Defined benefit obligation of ₹0.06 Crores accounted based on existing laws

Material Uncertainty Related to Going Concern

Auditors highlighted that the GST show cause notice and related investigations indicate a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern.

Preferential Issue Proceeds Utilization

Fund Raising Details:

  • Mode: Preferential Issues
  • Date of Raising: 13th December, 2025
  • Amount Raised: ₹11,17,99,980
  • Monitoring Agency: Not applicable

Utilization as at March 31, 2026:

  • Working Capital: ₹6,70,79,988 (fully utilized as per allocation)
  • Capital Expenditure: ₹42,84,731 (against allocation of ₹2,23,59,996)
  • General Purpose: ₹2,23,59,996 (fully utilized as per allocation)

Deviation Identified:

  • Capital expenditure utilization shows deviation of ₹1,80,75,265 from allocated amount
  • Company remarks: Funds are partially utilized for capital expenditure
  • No change in terms of contract or objects approved by shareholders
  • No comments from Audit Committee or auditors on the deviation

Board Meeting Details

  • Meeting held on Tuesday, 02nd June, 2026
  • Commenced at 04:50 PM and concluded at 05:30 PM