Board Decisions
The Board:
- Approved the Un-audited (Standalone and Consolidated) Financial Results of the Company for the half-year ended September 30, 2026
- Noted the Limited Review Report with modified opinion on the aforesaid Financial Results issued by M/s. Rasool Singhal & Co. (Firm Registration No. 500015N), Chartered Accountants
Financial Results Overview (Standalone)
Balance Sheet Position as at September 30, 2026 (₹ lakhs):
- Total Equity and Liabilities: 5,166.38
- Total Assets: 5,166.38
- Share Capital: 2,500.00
- Reserves and Surplus: (445.05)
- Shareholders' Funds: 2,054.95
- Long-Term Borrowings: 685.44
- Short-Term Borrowings: 1,346.02
Income Statement for Half Year Ended September 30, 2026 (₹ lakhs):
- Income from Operations: 1,248.55
- Other Income: 41.05
- Total Income: 1,289.61
- Total Expenses: 1,265.62
- Profit Before Tax: 23.99
- Tax Expense: 3.47 (Deferred tax: 3.47)
- Net Profit After Tax: 21.76
- Earnings Per Share (Basic and Diluted): ₹0.09
Comparative Figures (₹ lakhs):
- Half Year Ended September 30, 2025: Net Loss of (418.87)
- Year Ended March 31, 2026: Net Loss of (2,102.03)
Cash Flow Statement (Standalone)
Half Year Ended September 30, 2026 (₹ lakhs):
- Net Cash Used in Operating Activities: (509.24)
- Net Cash Used in Investing Activities: (111.27)
- Net Cash from Financing Activities: 586.59
- Net Decrease in Cash: (33.91)
- Cash and Cash Equivalents at End: 79.03
Consolidated Financial Results
Balance Sheet Position as at September 30, 2026 (₹ lakhs):
- Total Equity and Liabilities: 6,504.07
- Total Assets: 6,504.07
- Share Capital: 2,500.00
- Reserves and Surplus: (1,014.16)
- Shareholders' Funds: 1,485.84
- Long-Term Borrowings: 685.44
- Short-Term Borrowings: 2,841.68
Income Statement for Half Year Ended September 30, 2026 (₹ lakhs):
- Income from Operations: 1,240.55
- Other Income: 41.38
- Total Income: 1,288.93
- Total Expenses: 1,417.34
- Loss Before Tax: (126.17)
- Tax Expense: 17.23 (Deferred tax: 17.23)
- Net Loss After Tax: (143.40)
- Earnings Per Share (Basic and Diluted): ₹(0.57)
Segment Information:
- Revenue from operations within India: ₹310.01 lakh
- Revenue from operations outside India: ₹938.54 lakh
- Total revenue from operations: ₹1,248.55 lakh
The company operates in a single business segment of pharmaceutical formulations.
Auditor's Qualified Review Report
M/s. Rasool Singhal & Co. issued a qualified conclusion on both standalone and consolidated financial results citing:
Standalone Qualifications:
1. Inventories: Physical verification not carried out during H1 FY27. Inventories of ₹474.70 lakh valued based on book records without supporting statements
2. Property, plant and equipment: No fixed asset register maintained. PPE of ₹2,198.73 lakh and CWIP of ₹615.74 lakh not physically verified
3. Balance confirmations: Not obtained for trade receivables, advances, and trade payables
4. GST input tax credit: Unreconciled difference between books (₹amount not specified) and electronic credit ledger
Consolidated Additional Qualifications:
5. Subsidiary matters: Auditor of Dr. Smith's Biotech Private Limited reported similar issues - inventories of ₹45.46 lakh, trade receivables of ₹441.06 lakh, PPE of ₹898.85 lakh, and unreconciled GST of ₹113.15 lakh
The auditors stated these matters were also qualified in previous periods and affect comparability.
Management Response
Management provided the following responses to the qualifications:
1. Inventories: Physical verification could not be carried out due to staff shortage and ERP migration. Will complete verification by March 31, 2027
2. Property, plant and equipment: Compiling fixed asset register and will complete physical verification by March 31, 2027
3. Balance confirmations: Process of seeking confirmations ongoing, expected completion by March 31, 2027
4. GST reconciliation: Difference due to timing issues. Reconciliation expected by December 31, 2026
5. Subsidiary matters: Subsidiary was under Corporate Insolvency Resolution Process until September 23, 2026. Resolution Plan implemented October 23, 2026
Entities Involved
- Subsidiary: Dr. Smith's Biotech Private Limited
- Statutory Auditors: M/s. Rasool Singhal & Co. (FRN: 500015N)
- Stock Exchange: BSE Limited