Board Meeting Outcomes

The Board of Directors at their meeting held on May 30, 2026, considered and approved the following items:

1. The Audited Financial Results of the Company for the quarter and year ended March 31, 2026, which were reviewed by the Audit Committee.

2. A declaration on the Auditor's Report with a Modified Opinion under Regulation 33(3)(d) for the standalone audited financial results for the year ended March 31, 2026, along with a statement on the impact of audit qualifications.

3. The re-appointment of M/s. A Chaturvedi & Associates, Chartered Accountants (FRN: 130397W), as Internal Auditors for FY 2026-27.

4. The re-appointment of M/s. S.R. Singh & Co., Cost Accountants (FRN: PROP/101398), as Cost Auditors for FY 2026-27.

5. The re-appointment of M/s. Desai Saksena & Associates, Chartered Accountants (FRN: 102358W), as Tax Auditors for FY 2026-27.

The meeting commenced at 1:00 PM and concluded at 9:10 PM.

Financial Results Highlights (Year Ended March 31, 2026)

  • Total Income: ₹2,448.52 Lakhs
  • Total Expenses: ₹2,975.09 Lakhs
  • Profit/(Loss) before tax: (₹526.57 Lakhs)
  • Tax Expense: ₹(34.95) Lakhs (Deferred Tax) + ₹11.42 Lakhs (Short/(Excess) provision of Tax of Earlier Years)
  • Profit/(Loss) for the period (Net Loss): (₹503.04 Lakhs)
  • Total Comprehensive Income for the period: (₹613.47 Lakhs)
  • Paid-up Share Capital: ₹528.55 Lakhs
  • Earnings per equity share (Basic & Diluted): (₹0.95)

Assets and Liabilities (As at March 31, 2026)

  • Total Assets: ₹24,209.22 Lakhs (Previous Year: ₹14,677.59 Lakhs)
  • Total Liabilities: ₹19,781.00 Lakhs (Previous Year: ₹9,635.90 Lakhs)
  • Net Worth: ₹4,428.22 Lakhs (Previous Year: ₹5,041.68 Lakhs)
  • Non-Current Assets: ₹8,932.35 Lakhs
  • Current Assets: ₹15,276.87 Lakhs (including Inventories of ₹12,410.14 Lakhs)
  • Non-Current Liabilities: ₹5,489.51 Lakhs (including Borrowings of ₹5,114.17 Lakhs)
  • Current Liabilities: ₹14,291.49 Lakhs (including Borrowings of ₹3,090.10 Lakhs and Trade Payables of ₹1,571.87 Lakhs)

Statutory Auditor's Report - Qualified Opinion

The statutory auditors, M/s. Desai Saksena & Associates, issued a qualified opinion on the annual financial results. The basis for the qualified opinion is:

1. Overdue Trade Receivables: The carrying value of old overdue trade receivables is ₹10.21 Crores as of March 31, 2026. The company has not made any provision for these receivables, which constitutes a departure from Indian Accounting Standards. Had a provision been made, the loss for the year would have been higher by ₹10.21 Crores, shareholders' funds would have been lower by ₹10.21 Crores, and the provision amount would have been higher by ₹10.21 Crores.

2. Impairment of Assets (Fertilizer Segment): The Fertilizer Segment has incurred significant losses with nil capacity utilization. The company has not carried out an impairment study for the Property, Plant, and Equipment related to this segment as required by Ind AS 36. The auditors were unable to obtain sufficient evidence to comment on the quantum of provision required.

These matters have been qualified in the preceding quarters and the previous financial year.

Emphasis of Matter by Auditors

The auditors drew attention to sub-judice matters:

  • Short Receipt of TDR: The company paid ₹9.66 Crores to M/s. Hubtown Limited (erstwhile Akruti City Limited) on September 19, 2014, for Transferable Development Rights (TDR). The company claims it received short TDR for an area of 332.180 sq. mtrs., aggregating to ₹1.16 Crores. A case has been filed in the NCLT. No provision has been made for this amount.
  • Maintenance Charges Payable: The company has filed a counterclaim regarding the above, and thus has not provided for a liability of ₹0.33 Crores for maintenance charges payable.

The auditors' opinion is not modified in respect of these matters.

Segment Reporting (Year Ended March 31, 2026)

  • Construction Segment Revenue: ₹0.00 Lakhs; Segment Result: (₹131.66 Lakhs)
  • Fertilizer Segment Revenue: ₹1,606.63 Lakhs; Segment Result: (₹271.65 Lakhs)
  • Resort Segment Revenue: ₹928.27 Lakhs; Segment Result: ₹37.42 Lakhs
  • Total Segment Results: (₹365.89 Lakhs)

Operational and Strategic Updates

  • Anchaviyo Resort Expansion: The hospitality division's flagship property is undergoing an expansion to add 116 keys to the existing 120 keys, bringing total capacity to 236 keys. The expansion will include three grand banquets, premium amenities, a SPA/Wellness center, and a man-made Mandap with a capacity for 1,000 guests.
  • Wembley-60 Realty Project: The real estate project in Majiwada, Thane, has progressed to the 27th floor. 190 units up to the 35th floor have been sold, representing over 75% of units offered up to that level. An additional construction loan of ₹15 Crore has been sanctioned to accelerate development from the 8th to the 60th floor.
  • Director Remuneration: The Chairman and Whole-time Directors had voluntarily waived their remuneration from April 1, 2025. In March 2026, the Nomination and Remuneration Committee (NRC) and the Board approved the payment of remuneration for FY 2025-26 in view of exceptional circumstances, in accordance with Schedule V of the Companies Act, 2013.

Statement on Impact of Audit Qualifications

Management provided its view on the audit qualifications:

  • Point a (Receivables): Based on management analysis, they are confident about the recovery of the overdue trade receivables.
  • Point b (Impairment): Management views the losses in the fertilizer division as a short-term phenomenon due to lower capacity utilization and non-availability of working capital. The impact is stated as "Not Ascertainable."

The auditors reiterated their inability to comment on the quantum of provision for the impairment matter.

Cash Flow Statement (Year Ended March 31, 2026)

  • Net Cash from Operating Activities: ₹2,550.04 Lakhs
  • Net Cash used in Investing Activities: (₹3,411.17 Lakhs)
  • Net Cash from Financing Activities: ₹1,050.75 Lakhs
  • Net increase/(decrease) in cash and cash equivalents: ₹(59.62) Lakhs
  • Cash and Cash Equivalents at end of year: ₹66.54 Lakhs

Re-appointments

Profiles for the re-appointed auditors were provided:

  • Internal Auditor: M/s. A. Chaturvedi & Associates, Chartered Accountants.
  • Cost Auditor: M/s. S.R. Singh & Co., Cost Accountants.
  • Tax Auditor: M/s. Desai Saksena & Associates, Chartered Accountants.