Board Meeting Details

The Board of Directors meeting was held on Wednesday, June 03, 2026, commencing at 05:15 PM and concluding at 08:45 PM.

Key Business Items Approved

1. Audited standalone financial results for the year ended March 31, 2026 along with auditor's report

2. Appointment of M/s. Brickwork Ratings India Private Limited as Monitoring Agency for Rights Issue proceeds utilization reporting for quarters ended March 31, 2026 and June 30, 2026, replacing previous agency M/s. Infomerics Valuation and Ratings Limited

Financial Performance Highlights (Year Ended March 31, 2026)

  • Revenue from Operations: ₹418.58 lakhs (Previous year: ₹445.38 lakhs)
  • Total Revenue: ₹418.74 lakhs (Previous year: ₹446.12 lakhs)
  • Total Expenses: ₹470.05 lakhs (Previous year: ₹418.04 lakhs)
  • Profit Before Exceptional Items and Tax: Loss of ₹51.31 lakhs (Previous year: Profit of ₹28.08 lakhs)
  • Exceptional Items: Gain of ₹61.08 lakhs from One Time Settlement (OTS) of unsecured loans with various Banks/NBFCs
  • Profit Before Tax: Profit of ₹9.77 lakhs (Previous year: Profit of ₹40.22 lakhs)
  • Tax Expense: ₹7.25 lakhs current tax and deferred tax credit of ₹3.83 lakhs
  • Net Profit/Loss for Period: Loss of ₹13.15 lakhs (Previous year: Profit of ₹36.95 lakhs)
  • Earnings Per Share (Basic): Loss of ₹0.15 (Previous year: Profit of ₹0.96)
  • Earnings Per Share (Diluted): Loss of ₹0.15 (Previous year: Profit of ₹0.96)

Balance Sheet Position (As at March 31, 2026)

  • Total Equity and Liabilities: ₹1,760.05 lakhs (Previous year: ₹1,574.88 lakhs)
  • Non-Current Assets: ₹478.98 lakhs including Fixed Assets ₹306.70 lakhs (Tangible ₹286.70 lakhs, Intangible ₹20.13 lakhs)
  • Current Assets: Includes Current Investments ₹141.95 lakhs
  • Current Liabilities: ₹337.65 lakhs including:
  • Outstanding dues to micro/small enterprises: ₹17.98 lakhs
  • Other creditors: ₹70.81 lakhs
  • Other current liabilities: ₹9.40 lakhs
  • Short-term provisions: ₹337.65 lakhs

Cash Flow Statement (Year Ended March 31, 2026)

  • Net Cash from Operating Activities: Negative ₹76.46 lakhs (Previous year: Positive ₹44.30 lakhs)
  • Net Cash from Investing Activities: Negative ₹50.94 lakhs (Previous year: Positive ₹5.87 lakhs)
  • Net Cash from Financing Activities: Positive ₹211.74 lakhs (Previous year: Positive ₹50.32 lakhs)
  • Net Change in Cash: Positive ₹84.35 lakhs (Previous year: Positive ₹100.49 lakhs)
  • Cash and Cash Equivalents at Year End: ₹414.08 lakhs (Previous year: ₹329.73 lakhs)

Auditor's Qualified Opinion Key Issues

1. Accounts with lenders classified as NPA with no working capital limits sanctioned or renewed during the year

2. One Time Settlement with various banks/NBFCs resulting in ₹61.08 lakhs exceptional gain

3. Default in repayment of principal and interest on term loans and unsecured loans despite significant cash balances

4. Non-payment of statutory dues: PF (July 2024 to March 2026), ESIC, and TDS for current and previous financial years

5. Non-provision of Gratuity Liability and Leave Encashment Liability contrary to Accounting Standard-15

Emphasis of Matter by Auditors

  • No balance confirmations received from receivables, loans & advances, and payables
  • No provision for doubtful debts despite long aging of receivables

Management Response to Audit Qualifications

Management states that the impact of audit qualifications have already been adjusted and accounted for in the financial statements.