Key Financial Figures - Standalone (HY Sept 2025)

Income Statement (₹ lakhs):

  • Total Income: ₹289.12 lakhs
  • Total Expenses: ₹930.51 lakhs
  • Loss before tax: ₹(641.39) lakhs
  • Net Loss: ₹(629.58) lakhs
  • Earnings per Share (basic and diluted): ₹(3.56)

Balance Sheet Position (as at September 30, 2025):

  • Share Capital: ₹1,770.73 lakhs (unchanged)
  • Reserves: ₹(3,237.10) lakhs (negative)
  • Net Worth: ₹(1,466.38) lakhs (negative)
  • Total Borrowings: ₹6,229.58 lakhs (₹1,111.05 lakhs long-term + ₹5,118.53 lakhs short-term)
  • Cash & Cash Equivalents: ₹55.13 lakhs
  • Inventories: ₹1,790.45 lakhs
  • Trade Receivables: ₹519.56 lakhs

Cash Flow Statement (HY Sept 2025):

  • Net cash used in operating activities: ₹(17.00) lakhs
  • Net cash from investing activities: ₹0.00 lakhs
  • Net cash from financing activities: ₹1.55 lakhs
  • Net decrease in cash: ₹(15.45) lakhs

Key Financial Figures - Consolidated (HY Sept 2025)

  • Net Loss: ₹(629.68) lakhs
  • Earnings per Share: ₹(3.56)
  • Reserves: ₹(3,374.85) lakhs (negative)
  • Net Worth: ₹(1,604.12) lakhs (negative)
  • Cash & Cash Equivalents: ₹63.60 lakhs

Material Disclosures and Notes

Operational Challenges:

  • The company operates in a single business segment of Automobile Components
  • Facing delays in recovery of long-term loans and advances amounting to ₹1,100.41 lakhs
  • Exploring legal options for recovery with provisions to be recognized at year-end based on recoverability assessment

Borrowings and NPA Status:

  • Defaulted in repayment of borrowings from lenders, resulting in loan accounts being classified as Non-Performing Assets (NPA)
  • Entered into discussions with lenders for One-Time Settlement (OTS) arrangement
  • Taking steps to raise funds to meet OTS obligations
  • Interest expense not recognized on NPA borrowings during the year
  • Interest pertaining to prior periods expected to be waived under OTS to be reversed only upon final settlement

Statutory Defaults:

  • Delays in payment of statutory liabilities including TDS, Provident Fund and ESIC

Asset Quality Issues:

  • Sundry debtors of ₹1,811.76 lakhs outstanding for more than one year classified as Other Non-Current Assets
  • Provision for doubtful debts of ₹1,322.26 lakhs recognized against these balances
  • Inventories of ₹1,790.45 lakhs include slow-moving items, physical verification not fully completed

Contingent Liabilities:

  • Outstanding Income Tax demands: ₹8,678.59 lakhs
  • Outstanding GST demands: ₹911.07 lakhs
  • Company pursuing legal remedies including appeals and rectification applications
  • Management believes significant portion may not be sustainable on merits
  • No provision made in financial statements, disclosed as contingent liabilities

Accounting Policies:

  • Financial statements prepared in accordance with Indian GAAP under historical cost convention
  • Company exempt from mandatory adoption of Ind AS as listed on SME Exchange
  • Depreciation on Research and Development assets not charged during the period

Auditor's Review Report - Key Qualifications

The statutory auditors, Agrawal Jain & Gupta, issued a disclaimer opinion with the following basis:

Inventory Concerns:

  • Physical verification not fully completed as at reporting date
  • Unable to obtain sufficient evidence to evaluate carrying value of ₹1,790.45 lakhs inventories
  • Management initiated reconciliation of slow-moving and non-tradable inventories

Asset Recoverability Issues:

  • Unable to obtain evidence regarding recoverability of non-current assets amounting to ₹979.02 lakhs
  • Company recognized provision/impairment of ₹489.51 lakhs during the period
  • Unable to assess appropriateness of impairment or need for further adjustments

Loan Advances Recovery:

  • Unable to obtain evidence regarding recoverability of long-term loans and advances of ₹1,100.41 lakhs
  • Unable to comment on whether impairment or provision required

OTS Negotiations Uncertainty:

  • Unable to obtain evidence regarding status of OTS negotiations with banks and financial institutions
  • Unable to comment on appropriateness of non-recognition of interest on NPA accounts

Balance Confirmations:

  • Trade Payables, Trade Receivables, and Other Financial Liabilities subject to confirmation and reconciliation
  • Unable to ascertain correctness of these balances

Going Concern Uncertainty:

  • Company incurred cash losses of ₹106.45 lakhs during the period
  • Net worth has become negative
  • Material uncertainty regarding ability to continue as going concern
  • Unable to assess reasonableness of management's going concern evaluation

Tax Demand Disclosure:

  • Unable to evaluate status of disputed tax demands totaling ₹9,589.66 lakhs
  • Unable to comment on appropriateness of non-recognition/non-disclosure

Subsidiary Information

Consolidated results include:

  • Benara Solar Private Limited: Total assets ₹11.75 lakhs, net loss ₹(0.06) lakhs
  • Securitrans Trading Private Limited: Total assets ₹24.42 lakhs, net loss ₹(0.05) lakhs

Board and Committee Approvals

  • Meeting for approval of revised unaudited results held on February 20, 2026 from 15:50 to 16:30 hours
  • Results reviewed by Audit Committee and Statutory Auditors
  • Approved by Board of Directors