Board Meeting Outcomes

The Board of Directors meeting held on August 13, 2026 (3:00 PM to 5:30 PM) transacted the following business:

1. Approved Un-Audited Financial Results (Standalone and Consolidated) for quarter ended June 30, 2026 pursuant to Regulation 33 of SEBI (LODR) Regulations, 2015

2. Took on record Limited Review Reports of Statutory Auditors M/s. S S Kothari Mehta & Co. LLP on the financial results

3. Based on Nomination and Remuneration Committee recommendation, approved re-appointment of Mr. Vinay Sharma as Managing Director for further term of three years w.e.f. August 4, 2027, subject to shareholder approval

4. Based on Audit Committee recommendation, approved appointment of M/s A. Gandhi & Associates, Chartered Accountants as Internal Auditor for FY 2026-27

Standalone Financial Results (₹ lakh)

Quarter Ended June 30, 2026:

  • Total Income: ₹3,171 lakh (Revenue from operations: ₹2,407 lakh; Other income: ₹764 lakh)
  • Total Expenses: ₹19,404 lakh (Employee benefits: ₹6,700 lakh; Finance costs: ₹2,300 lakh; Depreciation: ₹4,500 lakh; Other expenses: ₹5,904 lakh)
  • Loss before tax: ₹(16,233) lakh
  • Tax expense: Nil
  • Loss for the period: ₹(16,233) lakh
  • Paid-up equity share capital: ₹18,680 lakh (Face value ₹10 per share)
  • Basic and Diluted EPS: ₹(0.87)

Comparative Figures:

  • March 31, 2026 (Audited): Loss ₹(16,500) lakh, EPS ₹(0.88)
  • June 30, 2025 (Unaudited): Loss ₹(19,300) lakh, EPS ₹(1.03)
  • March 31, 2026 (Audited Year): Loss ₹(58,000) lakh, EPS ₹(3.10)

Consolidated Financial Results (₹ lakh)

Quarter Ended June 30, 2026:

  • Total Income: ₹20,780 lakh (Revenue from operations: ₹20,210 lakh; Other income: ₹570 lakh)
  • Total Expenses: ₹19,360 lakh (Employee benefits: ₹10,100 lakh; Finance costs: ₹250 lakh; Depreciation: ₹630 lakh; Other expenses: ₹8,380 lakh)
  • Profit before tax: ₹14,200 lakh
  • Share of Profit/(loss) of equity accounted investee: ₹11,600 lakh
  • Profit before tax (after share): ₹25,800 lakh
  • Tax expense: ₹10,000 lakh
  • Profit for the period: ₹15,800 lakh
  • Paid-up equity share capital: ₹18,680 lakh
  • Basic and Diluted EPS: ₹0.85

Comparative Figures:

  • March 31, 2026 (Audited): Loss ₹(15,100) lakh, EPS ₹(0.81)
  • June 30, 2025 (Unaudited): Profit ₹32,400 lakh, EPS ₹1.74
  • March 31, 2026 (Audited Year): Profit ₹28,900 lakh, EPS ₹1.55

Segment-wise Performance (Standalone)

Quarter Ended June 30, 2026:

  • Real Estate: Revenue ₹0 lakh, Segment results ₹0 lakh
  • Grey Iron Casting: Revenue ₹0 lakh, Segment loss ₹(9,100) lakh
  • Others: Revenue ₹2,407 lakh, Segment profit ₹200 lakh
  • Total segment assets: ₹30,950 lakh
  • Total assets: ₹76,390 lakh
  • Total segment liabilities: ₹72,520 lakh
  • Total liabilities: ₹73,860 lakh

Key Notes to Accounts

Note 3: Lockout at Engineering Division

  • Industrial unrest continues at Engineering Business Undertaking in Village Asron, District Shaheed Bhagat Singh Nagar (Punjab)
  • Lockout declared effective October 22, 2019, and continues
  • Matter sub-judice before labour authorities
  • Management believes lockout is legal and justified based on legal advice
  • No provision made for wages of workmen during lockout period (October 22, 2019 to June 30, 2026) aggregating ₹3,080 lakh (₹114 lakh pertains to current quarter)
  • Company evaluating various options for engineering business/operations

Note 4 & 5: Joint Development Agreement Dispute

  • Company signed JDA on August 11, 2022 with GCD Prime for development of 68.35 acres land in Village Bir Hisar, Sector-23, Hisar, Haryana
  • Received license no. 179 of 2022 on November 10, 2022 for 67.275 acres
  • License suspended by Director General, Town and Country Planning, Haryana in April 2023
  • Company issued notice of forfeiture and termination of JDA on November 1, 2025, citing Developer's breaches
  • Developer filed Section 9 petition before Delhi High Court, dismissed on July 28, 2026
  • Developer filed appeal; Division Bench passed interim order on August 12, 2026 staying operation of July 28 judgement and directing status quo on project land
  • Arbitration proceedings commenced before Sole Arbitrator
  • Advance of ₹5,000 lakh from Developer continues in current liabilities pending outcome
  • Current liabilities exceed current assets by ₹4,264 lakh (standalone) and ₹508 lakh (consolidated)
  • Management believes infusion of liquidity through real estate asset management and engineering business restructuring will enable going concern

Note 6: Deferred Tax Asset

  • Deferred tax asset not recognized due to uncertainty of sufficient taxable profit to recover accumulated losses

Note 9: Municipal Corporation of Delhi Demand

  • MCD raised demand of ₹24,134 lakh on September 4, 2025 for conversion charges for Plaza 1, 2 and 3 at Bara Hindu Rao
  • Joint venture entity has objected and filed writ petition in Delhi High Court
  • No provision made as demand considered not sustainable based on legal advice

Auditor's Emphasis of Matter

Statutory Auditors S S Kothari Mehta & Co. LLP highlighted:

1. No provision for wages during lockout period (₹3,080 lakh total, ₹114 lakh current quarter)

2. Material uncertainty regarding going concern due to JDA dispute and current liabilities exceeding current assets

Management Appointments

1. Mr. Vinay Sharma: Reappointed as Managing Director for 3 years w.e.f. August 4, 2027, subject to shareholder approval

2. M/s A. Gandhi & Associates: Appointed as Internal Auditor for FY 2026-27 w.e.f. April 1, 2026