City Online Services Limited held its Board meeting on Friday, 13th November 2026 at 4:00 PM at the company's registered office in Hyderabad. The meeting concluded at 7:45 PM. The Board reviewed and approved the un-audited financial results for the quarter and half-year ended 30th September 2026.

Financial Performance (Quarter Ended September 30, 2026)

  • Revenue from Operations: ₹186.82 lakhs
  • Other Income: ₹1.09 lakhs
  • Total Income: ₹187.90 lakhs
  • Operating Expenses: ₹126.38 lakhs
  • Employee Benefit Expenses: ₹47.88 lakhs
  • Finance Costs: ₹0.23 lakhs
  • Depreciation and Amortization: ₹4.98 lakhs
  • Other Expenses: ₹30.37 lakhs
  • Total Expenses: ₹209.85 lakhs
  • Loss Before Tax: ₹21.94 lakhs
  • Deferred Tax Credit: ₹0.06 lakhs
  • Net Loss for Quarter: ₹21.88 lakhs
  • Basic EPS: (₹0.42)
  • Diluted EPS: (₹0.42)

Financial Performance (Half-Year Ended September 30, 2026)

  • Revenue from Operations: ₹391.13 lakhs
  • Other Income: ₹6.60 lakhs
  • Total Income: ₹397.73 lakhs
  • Total Expenses: ₹438.67 lakhs
  • Loss Before Tax: ₹40.94 lakhs
  • Deferred Tax Credit: ₹0.32 lakhs
  • Net Loss for Half-Year: ₹40.62 lakhs
  • Basic EPS: (₹0.79)
  • Diluted EPS: (₹0.79)

Balance Sheet Position (as of September 30, 2026)

  • Paid-up Share Capital: ₹516.47 lakhs (face value ₹10 per share)
  • Total Assets: ₹345.02 lakhs
  • Non-Current Assets: ₹169.92 lakhs
  • Property, plant and equipment: ₹94.92 lakhs
  • Intangible assets: ₹0.03 lakhs
  • Investments: ₹0.50 lakhs
  • Other non-current assets: ₹15.64 lakhs
  • Deferred tax assets: ₹58.84 lakhs
  • Current Assets: ₹175.10 lakhs
  • Inventories: ₹5.82 lakhs
  • Loans and advances: ₹13.48 lakhs
  • Trade receivables: ₹71.60 lakhs
  • Cash and cash equivalents: ₹65.25 lakhs
  • Other bank balances: ₹3.22 lakhs
  • Other financial current assets: ₹2.33 lakhs
  • Other current assets: ₹13.40 lakhs
  • Total Equity: Negative ₹95.34 lakhs
  • Non-Current Liabilities: ₹19.07 lakhs
  • Provisions: ₹19.07 lakhs
  • Current Liabilities: ₹421.29 lakhs
  • Borrowings: ₹9.85 lakhs
  • Trade payables: ₹174.65 lakhs
  • Provisions: ₹19.10 lakhs
  • Other current liabilities: ₹217.70 lakhs

Cash Flow Statement (Half-Year Ended September 30, 2026)

  • Net Cash from Operating Activities: ₹6.45 lakhs
  • Net Cash from Investing Activities: ₹2.91 lakhs
  • Net Cash from Financing Activities: Negative ₹6.44 lakhs
  • Net Increase in Cash: ₹2.92 lakhs
  • Cash and Cash Equivalents at End: ₹3.22 lakhs

Auditor's Qualified Opinion

Komandoor & Co LLP issued a qualified review report highlighting several critical issues:

1. Going Concern Uncertainty: The company's net worth is completely eroded with negative net worth of ₹95.34 lakhs as of September 30, 2026. Current liabilities exceed current assets, indicating material uncertainty about the company's ability to continue as a going concern.

2. Expected Credit Loss Not Recognized: The company has not recognized Expected Credit Loss on financial assets as required by Ind AS 109, and management has not performed impairment assessment using the ECL model.

3. Statutory Liabilities Outstanding: ₹8.38 lakhs in statutory liabilities were outstanding as of September 30, 2026, including ₹2.74 lakhs in professional tax and ₹5.64 lakhs in TDS deducted but not remitted to income tax authorities.

4. Revenue Recognition Issues: Unbilled revenue and deferred income pertaining to Q2 FY2026-27 has not been recognized in the books of account, contrary to Ind AS 115 requirements.

5. Employee Benefits Liability: The company has not recognized liability for accumulated leave entitlements in accordance with Ind AS 19, despite having a leave encashment policy with accumulating but non-vesting leave entitlements.

6. Fixed Asset Records Deficiency: The company is in the process of reconciling expired assets and fully depreciated assets, indicating deficiencies in fixed asset records affecting accuracy, completeness, existence, and valuation of PPE.

The auditor was unable to quantify the impact of unbilled revenue/deferred income and leave encashment provisions due to non-availability of sufficient supporting data from management.

Management Response

Management noted the qualifications and stated they will take necessary steps to resolve them, but did not provide quantified impact estimates for the audit qualifications.