Board Meeting Outcomes

The Board of Directors meeting was held on Saturday, May 30, 2026, at 07:00 p.m. at the registered office in Bangalore and concluded at 09:00 p.m. The following items were approved:

1. Audited financial results (Standalone and Consolidated) along with Declaration as per Regulation 33 of SEBI (LODR) Regulations, 2015 for the quarter and year ended March 31, 2026

2. Auditor's Report for the quarter and year ended March 31, 2026

3. Appointment of M/s. MGR & Co., Chartered Accountants, as Internal Auditors of the Company for FY 2026-27

Internal Auditor Appointment Details

  • Firm: M/s. MGR & Co., Chartered Accountants
  • Date of Appointment: May 30, 2026
  • Term: Financial year 2026-27
  • Brief Profile: Chartered Accountants firm with branch office in Hyderabad providing Statutory Audit, Concurrent Audit, Stock Audit, Revenue Audit, Company Law Matters, Internal Audit, Tax Laws, GST, Forensic Accounting and Fraud Detection, Information Systems Audit, and C & AG Audits
  • Key Personnel: Mr. M.G. Rao, M.Com, BL qualified, fellow member of ICAI with rich experience in mentioned services
  • Relationship Disclosure: Not Applicable

Financial Results Overview

Standalone Financial Highlights (Year Ended March 31, 2026):

  • Revenue from Operations: ₹1,785.21 lakhs (Previous year: ₹390.83 lakhs)
  • Total Expenses: ₹1,901.12 lakhs (Previous year: ₹506.74 lakhs)
  • Profit/(Loss) Before Tax: ₹(115.91) lakhs (Previous year: ₹(115.91) lakhs)
  • Profit/(Loss) for the Period: ₹(115.91) lakhs (Previous year: ₹14.00 lakhs)
  • Earnings Per Share (Basic & Diluted): ₹(0.64) (Previous year: ₹0.12)
  • Paid-up Equity Share Capital: ₹1,797.19 lakhs (Face Value ₹10 per share)

Consolidated Financial Highlights (Year Ended March 31, 2026):

  • Total Assets: ₹7,586.25 lakhs (Previous year: ₹3,891.75 lakhs)
  • Total Liabilities: ₹4,449.63 lakhs (Previous year: Not fully comparable)
  • Net Worth: ₹3,136.62 lakhs
  • Turnover/Total Income: ₹6,294.12 lakhs
  • Total Expenditure: ₹6,249.99 lakhs
  • Net Profit: ₹44.13 lakhs
  • Earnings Per Share: ₹0.16

Audit Reports

Standalone Financial Results Audit:

M/s. M.M. Reddy & Co., Chartered Accountants issued an unmodified/unqualified opinion on Standalone Audited Financial Results for the quarter and year ended March 31, 2026. Deepak Reddy Bandaram, Managing Director, provided declaration pursuant to Regulation 33(3)(d) of SEBI LODR Regulations confirming the unmodified opinion.

Consolidated Financial Results Audit:

M/s. M.M. Reddy & Co. issued a qualified opinion on Consolidated Financial Results due to the following issues:

1. VSR Paper and Packaging Limited (51.08% subsidiary) recorded purchase and sale transactions with certain parties through same ledger accounts, resulting in netting off of trade receivables and trade payables with nil balances as of March 31, 2026

2. Inadequate supporting documentation, agreements, confirmations, or reconciliations provided for these transactions

3. Trade receivable balances adjusted against trade payable balances without sufficient evidence demonstrating legal right of set-off or mutual agreement

4. Sundry debtors and creditors amounting to ₹1,240.80 lakhs were adjusted by offsetting with various parties in subsidiary company books

The auditors were unable to obtain sufficient audit evidence regarding completeness/accuracy of adjusted balances, validity of underlying transactions, appropriateness of accounting treatment, and consequential impact on consolidated financial statements.

Subsidiary Information

Consolidated results include:

  • VSR Paper and Packaging Limited (51.08% subsidiary) - Total assets: ₹3,685.06 lakhs, Total revenues: ₹5,313.08 lakhs
  • Craftsmart Products Private Limited (100% subsidiary) - Total assets: ₹1,494.44 lakhs, Total revenues: ₹136.40 lakhs

During the year, the holding company sold 9.21% of its total sales to its subsidiary company and purchased 11.70% of its total purchases from its subsidiary company.

Impact of Audit Qualifications

Management provided a statement on impact of audit qualifications indicating that the adjusted figures after considering qualifications remain the same as originally reported figures:

  • Turnover/Total income: ₹6,294.12 lakhs (no change)
  • Total Expenditure: ₹6,249.99 lakhs (no change)
  • Net Profit/(Loss): ₹44.13 lakhs (no change)
  • Earnings Per Share: ₹0.16 (no change)
  • Total Assets: ₹7,586.25 lakhs (no change)
  • Total Liabilities: ₹4,449.63 lakhs (no change)
  • Net Worth: ₹3,136.62 lakhs (no change)

Additional Information

  • Financial statements prepared in accordance with Ind AS-34 "Interim Financial Reporting"
  • Segment-wise report as per Ind AS-108 not applicable