Board Meeting Details

The meeting commenced at 03:30 PM and concluded at 05:35 PM on May 25, 2026.

Key Approvals and Outcomes

1. Approval of Audited Financial Results: The Board approved the audited financial results for the year ended March 31, 2026, based on the audit report dated May 25, 2026, issued by M/s. CNGSN & Associates LLP, Statutory Auditors. The detailed standalone audited financial results are available on the company's website at www.coromandelengg.com.

2. Disclosure of Deviation in Use of Proceeds: A statement of deviation/variation in the use of proceeds from the preferential allotment of equity shares under Regulation 32 is enclosed as Annexure-II.

3. Appointment of Internal Auditor: Based on the recommendation of the Audit Committee, the Board appointed M/s. B. Thiagarajan & Co., Chartered Accountants as the Internal Auditor for the financial years 2026-27 and 2027-28 (Annexure-III).

4. Appointment of Additional Director: Based on the recommendation of the Nomination and Remuneration Committee, the Board appointed Dr. Swetha (DIN: 01728751) as an Additional Director (Non-Executive, Non-Independent Director) effective May 25, 2026, subject to shareholder approval (Annexure-IV).

5. Resignation of Director: Mr. Baskaran (DIN: 01918525), Non-Executive (Non-Independent) Director, tendered his resignation effective May 25, 2026 (Annexure V & VI).

6. Postal Ballot Approval: The Board approved conducting a postal ballot to seek members' approval and authorized Mr. GV Manimaran, Chairman and Managing Director, to issue the draft notice. M/s. Vidhya & Associates, Company Secretary, was appointed as the Scrutinizer for the postal ballot process.

Financial Results Overview (Year Ended March 31, 2026)

  • Revenue from Operations: ₹4,308.84 lakhs
  • Other Income: ₹16.30 lakhs
  • Total Revenue: ₹4,325.14 lakhs
  • Total Expenses: ₹4,308.26 lakhs
  • Profit Before Tax: ₹16.88 lakhs
  • Net Profit After Tax: ₹16.88 lakhs
  • Earnings Per Share (Basic and Diluted): ₹0.00
  • Paid-up Equity Share Capital: ₹3,488.34 lakhs (face value ₹10 per share)
  • Reserves (excluding revaluation reserves): ₹-2,421.76 lakhs

Balance Sheet Highlights (As at March 31, 2026)

  • Total Assets: ₹9,704.10 lakhs
  • Non-Current Assets: ₹1,769.48 lakhs
  • Current Assets: ₹7,934.62 lakhs
  • Total Equity: ₹1,330.80 lakhs
  • Non-Current Liabilities: ₹1,089.83 lakhs
  • Current Liabilities: ₹7,283.48 lakhs
  • Trade Payables to MSMEs: ₹761.27 lakhs
  • Trade Payables to Others: ₹2,023.78 lakhs

Cash Flow Statement (Year Ended March 31, 2026)

  • Net Cash Used in Operating Activities: ₹-271.78 lakhs
  • Net Cash from Investing Activities: ₹137.70 lakhs
  • Net Cash from Financing Activities: ₹130.10 lakhs
  • Net Decrease in Cash and Cash Equivalents: ₹-3.98 lakhs
  • Closing Cash and Cash Equivalents: ₹29.58 lakhs

Auditor's Emphasis of Matter

The auditors, CNGSN & Associates LLP, highlighted the following:

1. Delayed Statutory Dues: Delays were observed in the remittance of Goods and Services Tax (GST), Tax Deducted at Source (TDS), Employees' Provident Fund (EPF) contributions, and Employees' State Insurance (ESI) dues, along with applicable interest. TDS for February and March 2026 remains unpaid as of the reporting date. Inconsistencies were noted in the discharge of liability under the Reverse Charge Mechanism (RCM) for GST.

2. Unpaid MSME Dues: Dues to Micro, Small and Medium Enterprises (MSMEs), including interest, aggregating to ₹10,05,21,229 (₹10.05 crore), remain unpaid beyond the due dates prescribed under the Micro, Small and Medium Enterprises Development Act, 2006.

3. Limited Verification: Due to the voluminous nature of transactions, comprehensive verification of GST and Input Tax Credit (ITC) claims was difficult. Audit procedures were performed on a test-check basis, relying primarily on internal audit reports and supporting records.

Notes to Financial Results

1. The financial results were reviewed by the Audit Committee and approved by the Board on May 25, 2026.

2. The company operates in a single business segment: Construction.

3. Figures for previous periods have been regrouped and reclassified for consistency.

4. Results prepared in accordance with Indian Accounting Standards and SEBI Listing Regulations.

5. Results available on BSE website (www.bseindia.com) and company website.

6. Impact of new Labour Codes notified by the Government of India on November 21, 2025, has been recognized based on available information and ICAI guidance.

7. Confirmed delays in remittance of GST, TDS, EPF, and ESI dues, with TDS for February and March 2026 unpaid.

8. Confirmed unpaid MSME dues of ₹10,05,21,229 including interest.

Utilization of Issue Proceeds (Annexure-II)

  • Fund Raising Mode: Preferential Issue
  • Instrument: Equity
  • Date of Raising Funds: May 9, 2025
  • Amount Raised: ₹6,60,76,092
  • Amount Utilized During Quarter Ended March 31, 2026: ₹5,14,199.54
  • Deviation/Variation: No deviation in use of funds
  • Purpose: General corporate purposes, upcoming projects, execution of bank guarantees, performance guarantees, and advances for projects

Director Appointments and Resignations (Annexures III-VI)

  • Internal Auditor Reappointment: M/s. B. Thiagarajan & Co., Chartered Accountants, reappointed for 2026-27 and 2027-28 effective May 25, 2026.
  • New Director Appointment: Dr. Swetha (DIN: 01728751) appointed as Additional Director (Non-Executive, Non-Independent) effective May 25, 2026, subject to shareholder approval. Brief profile highlights her as an industrialist, educationist, and philanthropist with over a decade of experience across multiple states and sectors including healthcare, hospitality, education, power generation, pharmaceuticals, media, and infrastructure. She holds an M.B.B.S., M.B.A., and Ph.D. She is related to Mr. Sundeep Anand Jegath Rekshagan, Promoter of the Company.
  • Director Resignation: Mr. Baskaran (DIN: 01918525) resigned as Non-Executive (Non-Independent) Director effective May 25, 2026, due to pre-occupancy.